An Empirical Study of Non-Financial Measures' Emphasis for the Compensation Schemes on Different Categories of Strategic Orientation in Malaysia

Performance management has been a contemporary topic for research. Extensive studies have concentrated on this area and claimed that non financial measures besides financial measures are the essence for today's business environment. The literature review also asserted that the business performa...

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Main Authors: Krishnan, Anbalagan, Ramasamy, R., Prem, L.
Format: Journal Article
Published: Indian Journal of Finance 2014
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/26743
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author Krishnan, Anbalagan
Ramasamy, R.
Prem, L.
author_facet Krishnan, Anbalagan
Ramasamy, R.
Prem, L.
author_sort Krishnan, Anbalagan
building Curtin Institutional Repository
collection Online Access
description Performance management has been a contemporary topic for research. Extensive studies have concentrated on this area and claimed that non financial measures besides financial measures are the essence for today's business environment. The literature review also asserted that the business performance measurement is highly concentrated on the non-financial indicators and is worthless if not linked to a reward system. Moreover, the measures linked to a reward system, but not as per the strategic direction of the firms, will also flunk the performance measurement system. Thus, this empirical research explored the emphasis of performance measures in relation to the reward system among different categories of Malaysian firms' strategic orientation. The study was conducted during 2011, and the findings revealed that the emphasis differed among the three categories of Miles and Snow strategic orientations. The firms which adopted a prospector strategy orientation placed a greater emphasis on non-financial performance measures tied to the compensation schemes, and differed from the other two Miles and Snow strategy orientations - analyzers and defenders. On the whole, the findings concluded that when Malaysian firms adopted different categories of strategic orientations, it did have an impact on measures in relation to the compensation schemes.
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publishDate 2014
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spelling curtin-20.500.11937-267432017-01-30T12:55:07Z An Empirical Study of Non-Financial Measures' Emphasis for the Compensation Schemes on Different Categories of Strategic Orientation in Malaysia Krishnan, Anbalagan Ramasamy, R. Prem, L. Miles and Snow Strategy orientation Financial measures reward system Non-Financial measures Performance management has been a contemporary topic for research. Extensive studies have concentrated on this area and claimed that non financial measures besides financial measures are the essence for today's business environment. The literature review also asserted that the business performance measurement is highly concentrated on the non-financial indicators and is worthless if not linked to a reward system. Moreover, the measures linked to a reward system, but not as per the strategic direction of the firms, will also flunk the performance measurement system. Thus, this empirical research explored the emphasis of performance measures in relation to the reward system among different categories of Malaysian firms' strategic orientation. The study was conducted during 2011, and the findings revealed that the emphasis differed among the three categories of Miles and Snow strategic orientations. The firms which adopted a prospector strategy orientation placed a greater emphasis on non-financial performance measures tied to the compensation schemes, and differed from the other two Miles and Snow strategy orientations - analyzers and defenders. On the whole, the findings concluded that when Malaysian firms adopted different categories of strategic orientations, it did have an impact on measures in relation to the compensation schemes. 2014 Journal Article http://hdl.handle.net/20.500.11937/26743 Indian Journal of Finance restricted
spellingShingle Miles and Snow Strategy orientation
Financial measures
reward system
Non-Financial measures
Krishnan, Anbalagan
Ramasamy, R.
Prem, L.
An Empirical Study of Non-Financial Measures' Emphasis for the Compensation Schemes on Different Categories of Strategic Orientation in Malaysia
title An Empirical Study of Non-Financial Measures' Emphasis for the Compensation Schemes on Different Categories of Strategic Orientation in Malaysia
title_full An Empirical Study of Non-Financial Measures' Emphasis for the Compensation Schemes on Different Categories of Strategic Orientation in Malaysia
title_fullStr An Empirical Study of Non-Financial Measures' Emphasis for the Compensation Schemes on Different Categories of Strategic Orientation in Malaysia
title_full_unstemmed An Empirical Study of Non-Financial Measures' Emphasis for the Compensation Schemes on Different Categories of Strategic Orientation in Malaysia
title_short An Empirical Study of Non-Financial Measures' Emphasis for the Compensation Schemes on Different Categories of Strategic Orientation in Malaysia
title_sort empirical study of non-financial measures' emphasis for the compensation schemes on different categories of strategic orientation in malaysia
topic Miles and Snow Strategy orientation
Financial measures
reward system
Non-Financial measures
url http://hdl.handle.net/20.500.11937/26743