Essay about Business Performance Management

6301 Words Apr 24th, 2016 26 Pages
Journal of Management Research
ISSN 1941-899X
2014, Vol. 6, No. 4

Understanding Performance Indicators of
Organizational Achievement in Turkish Airline
Companies
Dilek Erdogan (Corresponding author)
Department of Aviation Management, Faculty of Aeronautics and Astronautics
Anadolu University, Eskisehir, Turkey
Tel: 90-222-321-3550 / 6984

E-mail: dilekc@anadolu.edu.tr

Ergun Kaya
Department of Management, Faculty of Business Administration
Anadolu University, Eskisehir, Turkey
Tel: 90-222-335-05-80/ 2544

Received: Sep. 16, 2014 doi:10.5296/jmr.v6i4.6355 E-mail: ergunk@anadolu.edu.tr

Accepted: Oct. 13, 2014

Published: October 13, 2014

URL: http://dx.doi.org/10.5296/jmr.v6i4.6355

Abstract
The aim of this
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In addition to these high fixed costs, they have to operate in an intensely competitive environment where many airline businesses offer similar services with minimal profit margins. Due to such a highly competitive environment, most operating airlines feel pressured to quickly respond to demands in order to survive
(Doganis, 2002). Thus, performance management has become a vital issue for airline businesses, and the need for performance tools to assess their current and future performance multi-dimensionally has increased (Khim et al., 2010).
Having effective performance management in place is highly critical to ensure successful implementation of a business strategy. Through such a performance management system, whether shareholder demands have been met and whether pre-determined objectives have been accomplished can be evaluated (Neely et al., 2005). To deem themselves successful, businesses today are not only satisfied by good performance on cost-efficiency, but also strive to show good performance on other non-financial criteria, such as quality, flexibility, value-creation and customer satisfaction (CIMA, 2002). Consequently, performance measurements based only on financial criteria are insufficient for the assessment of business performance, and are inadequate in measuring factors that are important for a business (Neely,
1999). Therefore, businesses need non-financial performance indicators, as well as financial indicators in

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