The Applications of Non-financial Indicators in Business Assessment
XU Wei-hu
Abstract
XU Wei-hu
Abstract
The traditional one-dimension financial performance indicators has become unable to adapt to new requirements for enterprise performance evaluation because of its inherent problems such as shortsighted,lagged and other defects.A trend of the enterprise performance evaluation is to introduce non-financial evaluation indicators in the performance evaluation index system.However,non-financial performance indicators are almost at everywhere.It is not easy to select some specific indicators that closely match with the strategic development from so many indicators.In addition,many non-financial indicators are difficult to quantify,and the internal relationships among those indicators are also difficult to determine.So,compared with the applications of sophisticated system of financial performance indicators,the choice of non-financial indicators is still vague.Further,the performance indicators are the basis of the performance evaluation index system.Thus,the article is focused on basic work that trying to develop some useful setting of the non-financial indicators and evaluation.
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The traditional one-dimension financial performance indicators has become unable to adapt to new requirements for enterprise performance evaluation because of its inherent problems such as shortsighted,lagged and other defects.A trend of the enterprise performance evaluation is to introduce non-financial evaluation indicators in the performance evaluation index system.However,non-financial performance indicators are almost at everywhere.It is not easy to select some specific indicators that closely match with the strategic development from so many indicators.In addition,many non-financial indicators are difficult to quantify,and the internal relationships among those indicators are also difficult to determine.So,compared with the applications of sophisticated system of financial performance indicators,the choice of non-financial indicators is still vague.Further,the performance indicators are the basis of the performance evaluation index system.Thus,the article is focused on basic work that trying to develop some useful setting of the non-financial indicators and evaluation.
Key concepts: Performance indicator, Index (typography), Performance measurement, Computer science, Work (physics), Economic indicator, Business, Dimension (graph theory)