Financial Measures For Performance

AnswerImportance of non-financial performance measures in modern organizationsAny measure of an individual’s performance that cannot be expressed in monetary terms is called as a non financial performance measure. Various factors other than factors which are expressed in monetary terms also play a very important role in organizations or an individual’s performance. Some examples of such type of nonfinancial measures are customer satisfaction, employee satisfaction, better quality goods and services to be delivered, market share and new products launched by the company. Financial performance in future depends upon these non financial measures only because for example if our employee are happy with the organization they will be ready to work for the company in future, if customers are satisfied with an organization, it would be helpful for an organization to survive in future and attain growth.The Importance of non-financial performance measure in modern organizations is described as follows:-Non financial measures provide indirect indicators of firm’s intangible assets. This is always difficult in traditional measures to quantify intangible assets of an organization but a non financial measure provides an indirect indicators.Non financial measures are indicators of financial performance of an organization future performance.It is