ABSTRACT
Performance measurement in the practical and theoretical spheres has attracted growing attention in recent years. Conventional methods for evaluation of business activity are based on the calculations of financial indicators and their evaluation which do not indentify all factors influencing company development. The conventional management accounting has been criticized by numerous management accounting scholars for placing much emphasis on financial data for decision making in an organisation. Hence, this study investigated non-financial performance measures and its effect on the organisation, while the specific objectives were to determine the influence of customer satisfaction, social performance, market strategy and employee satisfaction on organisational effectiveness in Nigeria listed manufacturing firms.
The study, therefore, underscores the contextual factors of non-financial performance measures and organisational effectiveness of listed manufacturing firms in Nigeria. The population of this study was 210 (made up of 10 chief executives officers and departmental heads drawn from 21 manufacturing firms; firms classified under “Consumer goods” sector) while 170 form the sample. The study adopted the survey research design which is considered as an appropriate technique as it involves a careful and in-depth analysis of the effectiveness of credit policies in the performance of firms.
The study findings revealed that customer satisfaction, market strategy and employee satisfaction have positive relationship with organisational effectiveness, while social performance has negative relationship with organisational effectiveness. The study therefore recommends that management of manufacturing firms should focus on these strategies geared towards good quality services, creativity, and employee motivation.
