Performance management and balanced scorcecards in airline: A study in airline companies

Today, performance measurements based only on financial criteria are not sufficient for evaluating the performances of the companies. Performance measurement systems based on financial criteria are inadequate to measure the factors important to the companies. Balanced scorecard method which is developed by Kaplan and Norton has become a preferred performance management tool since it does not involve only the financial dimension but all dimensions of the company performance. Airline companies which are operating in the service industry are also in need of using the non-financial performance indicators besides of financial indicators in performance management. Thus, the balanced scorecards widely used in other sectors have begun to be used in airline companies.The objective of this study is to make a research on the applicability of the balanced scorecards which transforms the targets of the company to financial and non-financial performance indicators for measuring and managing purposes in airline companies. This study consists of three chapters. First, Strategic performance management, balanced scorecard method and the related concepts are explained. In the second chapter, the performance management in airline companies and the usage of the Balanced Scorecard method in the airline companies are explained. Finally the third chapter includes the results of the study about the performance management and balanced scorecard usage in airline companies.