PRACTICE OF PERFORMANCE MEASUREMENT: EXPERIENCE FROM INDIAN SMES

The findings in the paper are reported on the basis of the outcome of sponsored research project on Small and Medium Enterprises (SMEs). Effective Performance Measurement System (PMS) for organisation is a key factor for success in today's competitive globalised market. In the era of globalisation and outsourcing, SMEs understand and acknowledge the importance of the performance measurement system in day-to-day business operations but may not able to pay serious attention to it. This paper presents results of a survey of Indian SMEs whilst addressing this issue. The study included SMEs from three western states of India covering the manufacturing, high tech engineering, finance, packaging, and distribution sector. Responses from 147 SMEs are analysed for various issues related to performance measurement system.