Development of divisional performance measures

Burkšaitienė, Daiva

Use this url to cite publication: https://hdl.handle.net/20.500.14911/121023

Development of divisional performance measures

Details

Publication Type (CRIS)

Straipsnis konferencijos medžiagoje Web of Science duomenų bazėje / Article in conference proceedings in Web of Science database (P1a1)

Publication Type (eLABa)

Straipsnis konferencijos darbų leidinyje Web of Science DB / Article in conference proceedings Web of Science DB (P1a)

Author(s)

Author	Affiliation
Burkšaitienė, Daiva	Finansų inžinerijos katedra / Department of Financial Engineering (1148)

Title

Development of divisional performance measures

[en]

Daiva Burkšaitienė

Is part of

5th international scientific conference Business and management' 2008. 16-17 May 2008 Vilnius, Lithuania : selected papers / International North German Academy of Informatology (Stralsund), Vilnius Gediminas Technical University, Riga Technical University, Tallinn University of Technology, Brno University of Technology, Slovak University of Technology, Technical University (Sofia, Bulgaria), University of Foggia (Italy), Information Society Development Committee under the Government of the Republic of Lithuania, Lithuanian Academy of Science, Infobalt Lithuania

Published In

Year	Start Page	End Page
2008	115	123

Publisher

Vilnius : Technika, 2008

Extent

p. 115-123

URI

URI
https://hdl.handle.net/20.500.14911/121023

Cited references

Science / Art Area

Socialiniai mokslai / Social sciences (S)

Field of Science / Art

Vadyba / Management (S003)

Keywords (en)

Abstract (en)

This article investigates the financial measures for evaluating divisional performance. At the strategic business unit level operating profit, return on investment, residual income and economic value added were examined, and these measures should be used for measuring the financial objective of the business unit. There are two arguments in determining how divisional profitability should be measured – the primary purpose is to measure the performance of the division (the economic performance of the division) or that of the divisional manager (managerial performance). In this article divisional profit measurement is based on these two determinants. Fi-nally, the financial performance measures on the basis on recent studies are developed. Nevertheless, financial measures cannot adequately measure all those factors that are critical to the success of a division. Notice should also be taken to reporting non-financial measures related to such areas as competitiveness, product leadership, quality, innovation and flexibility to respond to changes in demand.