Business and Management

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Secondary:

HR policy of Akij Textile limited, Beximco Textile Limited,Square Textile Limited and Wet Soft Tex Limited.

- Official web site.

- Operational manual.

- Relevant books Newspaper, journals etc.

1.6 Significant Recent Events of the Industry:

- Akij Textile develops new conpact yarn,compact Twin yarn,sub and sub with multicount And multi twist yarn.

- Beximco Group, a leading Bangladeshi industrial conglomerate, today announced a joint venture with Russian investment and industry holding giant GS Group to launch Bangladesh’s first DTH (Direct to Home) company for TV viewers in the country.

- BEXIMCO has developed in-house design capabilities with teams based in Bangladesh and Spain.

- Beximco textile present in retail apparel through “Yellow”, a youthful brand sold through BEXIMCO owned outlets.

[Chapter – 02]

Literature review

There are several theories on how the concept of performance measurement appeared. Morgan (2004) believes that modern performance measurement appeared in Venice in the fifteenth century, with the appearance of the double entry accounting. Another view is that of the authors Johnson and Kaplan (1987) that consider that performance measurement appeared during the industrial revolution. Either way we can say with fair certainty that performance management has emerged as the dominant research area in the early '50s, when academics and practitioners have become interested in the need to measure performance and measurement consequences (Argyris, 1952, Ridgway, 1956).

Interest in management and performance measurement has increased considerably in the last 20 years (Taticchi, 2008). Number of publications on this topic has grown significantly over the last decade (Beamon 1999, Lohman et al. 2004, Gunasekaran et al. 2004). We believe that this is mainly due to a fundamental change in business. Furthermore, performance is not a subject easily addressed. It is clear the need to study and rethink the concept and, in this context, to rethink how performance measurement it is done.

According to Atkinson et al. (1997) performance measurement should help the economic entity to understand and assess the value received from suppliers and employees, the value provided by the stakeholders and the effectiveness of processes implemented in the economic entity and its strategic properties. Therefore, we can say that performance measurement plays the role of coordination, monitoring and diagnosis of economic entity's activities.

Marr (2004) distinguishes the following activities in the process of measuring performance: (1) building a model of performance for each business separately, (2) data collection, (3) data

analysis and interpretation, (4) retrieval and communication information. Such a definition of

performance measurement is more comprehensive than those mentioned above. Thus, Marr

manages to emphasize that performance measurement is a structured process, focused on results. Another answer to the question "What is performance evaluation?" is provided by Maria Niculescu in "Global Strategic Diagnostics", where it considers that "performance measurement is a process that allows you to connect an abstract concept to empirical indicators" (Niculescu 2005:246). So, performance measurement tools are established to be the indicators. The economic literature can account for dozens of definitions of indicators. Un indicator is an element or a set of information elements, representative in relation to a concern or an objective, resulted from tangible measuring or observing a state of a phenomenon or an output (Boldeanu, 2008:24). Since the performance of an economic entity is influenced by various factors we consider that the indicators used to assess the performance have to cover all performance determinants and their influence on performance by highlighting the quantifiable aspects and also the unquantifiable ones. The measure "financial" or "non-financial" has not such a great importance and there is no strict rule on the matter. Relevant criteria are different (strategic relevance, operational efficiency) and can be met, as appropriate, by the financial indicators and / or non-financial (Lorino 2002: 237). The so-called "non-financial indicators”, even if they can’t always be expressed in monetary units, their effect is reflected in other indicators of economic and financial dimension whose size is easily translated in monetary units. Improving the quality of the entity’s activity is acting on the entity’s image (non-financial indicator), but also on the size of turnover.

Currently performance measures should meet the following requirements (Maskell 1992:44-48): to use primarily the non-financial techniques; to vary from one location to another, from one region to another; to change over time, as entity needs change and to improve performance, not just monitor performance.

Performance evaluation of an economic entity requires approaching several criteria, such as

industry and economic entity type, managerial and entrepreneurial strategy, competitive

environment, human and material resources available, using a system of appropriate performance indicators for this purpose (Petrescu 2008:281).

The management of an economic entity uses indicators to measure, report and improve entity’s performance. The relationship between indicators and management is ensured by the existence of performance measurement.

The exigencies of communication occurred on the growing number of phenomena that marked the global economy in recent decades (internationalization and relocation of business crises and turmoil in financial markets), demand performance measurement to be made in a comprehensive way by financial and non-financial criteria. Non-financial criteria take into account the entity’s long-term orientation and they derive from aspects such as social responsibility (Mironiuc 2009:152).

In the current context of sustainable development, performance evaluation process should take into account the interests of all parties involved (Kubiak 2003:41): internal and external