Handbook of Management Scales/Firm's financial performance over the past 5 years

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Firm's financial performance over the past 5 years (alpha = 0.8815)[edit | edit source]

Items[edit | edit source]

(1/decreased significantly - 3/remained constant - 5/increased significantly)

  • Return on investment
  • Profits as a percent of sales
  • The firm’s net income before taxes
  • The present value of the firm

Source[edit | edit source]

Comments[edit | edit source]

In general, particular attention needs to be paid to the measurement of performance. A review of the operationalization of organizational performance by Richard et al. (2009) highlights the limited effectiveness of commonly accepted measurement practices. Their article is strongly recommended for reading: Richard et al. (2009): Measuring Organizational Performance: Towards Methodological Best Practice. Journal of Management, Vol. 35, Nr. 5, pp. 718-804.

Related Scales[edit | edit source]