THE EFFECTIVENESS OF PERFORMANCE MEASUREMENT IN TERMS OF THE CONTEMPORARY BUSINESS ENVIRONMENT

The effective performance measurement systems are inevitably becoming the condition of companies’ existence in terms of thecontemporary dynamic and very turbulent environment.The effective performance measurement system enables a company to measure and control its performance in accordance with the defined strategy. In thedesigning of the performance measurement system in the contemporary environment, both financial and non-financial indicators reflecting the effects of the key activitiesadding the value of any company should be respected. The introduction of the diversified strategically aligned performance indicators should improve the organizational outcomes by increasing the quantity of the information relevant for making adecision, which is at the manager’s disposal, which makes easierstrategically consistent decisionmaking. The effectiveness of the performance measurement system is influenced by numerous factors, some of which are the subject of the paper research. The aim of the paper is to highlight the significance of the use of multidimensional measures as well as of the specific organizational factors in the process of thecontemporary performance measurement systems implementation.