Portrait of Performance Measurements: A Case Study in Micro Organization

Abstract

Introduction/Main Objectives: This study elaborates on on the use of a comprehensive performance measurement mechanism by considering the financial and non-financial aspects of micro-organizations. Background Problems: The performance measurement mechanism is one of the main factors that can promote goal congruence. However, not all performance measurement mechanisms can promote long-term organizational goals. Its because the orientation is only limited to a financial perspective. The use of non-financial performance measurement is considered quite complex so it cannot be used at all levels of the organization, especially in the micro-organizations. Novelty: Most of the research examines from the side of the middle and upper-middle-class organization level, both in the field of commercial and non-commercial studies. There is still limited research that considers the level of micro-scale organizations. Research Methods: This research uses a qualitative method with a case study approach. Finding/Results: The results showed that the balanced scorecard (BSC) is a performance measurement mechanism that is not easy to use in micro-level organizations. Efforts to design performance measures require several adjustments to achieve optimal performance measures. Conclusion: The implementation of a balanced scorecard in micro-enterprises is possible. However, limited resources in micro-enterprises are a determining factor in the ability to read potential and threats to form a scorecard. Determination of measurement weights needs to be studied in depth according to the conditions of each business.