Performance Measurement the Case of Banks in Ethiopia

Abstract

In a dynamic business world, to function successfully an organization depends upon the decision- making ability of its managers, who in turn, depends up on the availability of useable information.  Large organizations have a variety of activities which they carry out in different locations and most of these organizations such as manufacturing and banking industry adopt branch structures. The way a company is organized, which depends on such things as the culture of its home country and the philosophy of its top managers, influences its reporting systems. It is palpable that the banking firms have adopts a branch structure. The style in which branch performance is controlled and measured is, therefore, of particular meaning. A central issue of responsibility accounting is whether a branch manager should be held accountable for transactions that he or she cannot influence by his or her actions. This research focuses on the use of financial performance measures in evaluating branch managers’ performance; and describes the relative importance attached to financial performance measures versus non financial performance measures that are used to evaluate branch managers’ performance. The study adopted a descriptive research design as it aims to investigate in depth and describe features of the population under study. Thus, to achieve the stated objectives both quantitative and qualitative research was employed. This study presents the research findings of the survey relating to the branch performance measurement in Ethiopian banks. Thus, in general the finding of this study indicates that financial measure were considered to be important than non financial performance measures in evaluating the performances of branch performances.

Keywords: Branches, Performance,   branch performance, financial, non financial