SOME ASPECTS REGARDING THE PERFORMANCE INDICATORS USED IN THE MANAGEMENT OF A COMPANY

Abstract

To assess the economic performance of an enterprise four indicators are commonly used: return on investment, residual income, economic value added and profitability of sales. The performance analysis is a constituent of any managerial control system. Strategic planning and control decisions require information on how different subunits of the enterprise worked. To be efficient, performance indicators and remuneration have to motivate the managers and the employees from all enterprise levels and to make sustained efforts to implement strategies and to attain business objectives.

Keywords

• performance
• profitability
• economic value added
• investments