Final answer:
Performance measurement systems can be categorized as traditional or contemporary. Traditional systems focus on financial metrics and historical perspectives, while contemporary systems consider a wider range of indicators and future-oriented measures.
Step-by-step explanation:
Performance measurement systems play an important role in evaluating the effectiveness and efficiency of an organization's performance. Traditional performance measurement systems focus on financial metrics such as profitability and return on investment. They typically use lagging indicators to assess past performance. On the other hand, contemporary performance measurement systems take a more holistic approach by incorporating both financial and non-financial metrics, such as customer satisfaction and employee engagement. These systems often use leading indicators to anticipate future performance.
Some differences between traditional and contemporary performance measurement systems include:
- Focus: Traditional systems focus on financial measures, while contemporary systems consider a broader range of performance indicators.
- Time Orientation: Traditional systems have a historical perspective, while contemporary systems emphasize future-oriented measures.
- Integration: Traditional systems tend to use standalone measures, while contemporary systems integrate multiple measures to provide a comprehensive view.
To compare and contrast these two types of performance measurement systems, you can refer to at least three published journal articles that discuss the topic. Make sure to use APA format for both in-text citations and references.