Modern Tools to Evaluate the Performance of Business Organizations ...

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Accounting and Finance Research

Vol. 4, No. 4; 2015

Modern Tools to Evaluate the Performance of Business Organizations between Theory and Practice -The Case of Public Cement Companies in Algeria Dr. Murad Kouachi1 & Dr. Talal Al-Kassar2 1

Associate Professor, Faculty of Economics Management and Business Sciences, University of Oum El Bouaghi, Algeria. He is Deputy Dean in charge of graduate studies and foreign relations. The author is the Editor in chief of the economic and financial research journal at the University of Oum El Bouaghi. 2

Associate Professor, Department of Accounting, Faculty of Economics and Administrative Sciences, Zarqa University, P.O. Box 132222, Zarqa 13132, Jordan, from 1998. Tel: +962-5-382-1100 Ex: 4422, Fax: +962 5 3821120. The author was senior researcher at the Board of Supreme Audit in Iraq from 1983-1998. Correspondence: Dr. Murad Kouachi, Associate Professor, Faculty of Economics Management and Business Sciences, University of Oum El Bouaghi, Algeria. He is Deputy Dean in charge of graduate studies and foreign relations. The author is the Editor in chief of the economic and financial research journal at the University of Oum El Bouaghi. E-mail: [email protected] Received: August 27, 2015

Accepted: September 11, 2015

Online Published: September 21, 2015

doi:10.5430/afr.v4n4p26

URL: http://dx.doi.org/10.5430/afr.v4n4p26

Acknowledgements Special thanks to University of Oum El Bouaghi (Algeria) and Zarqa University (Jordan) for supporting this research. Abstract Through this research, we reviewed the most important modern tools currently known at the global level in the field of management control. We found that most of them tried to bypass the traditional view in the evaluation, which was confined to the financial dimension. By proposing modern philosophies seeking to be knowledgeable in all dimensions and aspects of the organization performance. Whether, are these economic, social or environmental, etc.. According to the analysis of the survey, the result became clear to us that most of public cement company's tools and traditional methods used in the field of management control is the absence of most basic accounting information systems and of analytical accounting. As we found out through the analysis of the results of the questionnaire that the vast majority of the respondents are not familiar with the evolution of what is happening in the field of management and governance in general, and in the modern tools of management control in particular. Keywords: Management control tools, Comprehensive performance, Performance evaluation, Performance indicators, Public companies 1. Introduction Some researchers point out that in spite of the development of production methods and the use of modern technology, but the performance evaluation systems have lagged behind this development dramatically. In addition, the rapid change in the latest production technology has a significant impact on the required information, as well as control systems within the organizations. The challenge has to be faced in this area by provide appropriate information in a timely manner. Which has led to question the possibility of performance evaluation systems currently used to keep up with the modern environmental variables and developments. In this context Cooper (2000), has noted that the problem of these systems is still working until the beginning of the nineties of the last century at the same ideas and methods that existed since 1920. The researcher says that, "The generally accepted performance evaluation systems derives its principles and concepts of scientific management principles penned by Frederick Taylor. The researcher adds that these principles have appeared under different conditions than it is now (in 2000); and the organizations are

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faced limited competition, as well as produced a limited number of products. The researcher concluded that the change in the contemporary business environment has created the need to develop new systems to evaluate the performance of organizations using modern concepts". The contemporary world is going through a technical and social changes are enormous, all of which affect the performance of the business method strongly, not only in the global markets, but also in the local markets, which are becoming more open to global competition (Al-Kassar and Ahmed, 2013). This competition has become, in recent years, an important factor to companies that want to be in superiority and to provide best products depending on accurate accounting information (Kandil, 2008(. Because of this competition, some companies have threatened to get out of the market unless they can and optimally to meet the many requirements relating to develop old management styles to meet new required systems (Neogy, 2014). From the above, we conclude that conventional performance evaluation systems are not compatible with the requirements of contemporary business environment, which has reflected on the quality of information they provide. Therefore, there is an urgent need to look for methods and entrances suited to the development of these systems. 1.1 Study Importance The importance of this study comes from the significant of vital role, which has supposed that the economic organizations in various forms plays in the overall economy. These organizations have considered modern and sophisticated tools of comprehensive economic and social development. Economic organization is as a main source of wealth and effective instrument in the economy of any State involved the application of dimensions of sustainable development. This allows them to economy service and service development at the same time by concern for the environment and society without compromising its main objective, which it has created and is the economic dimension of maximizing profits. Thus, the follow-up actions and examine their behavior and monitor their conditions and evaluating the effectiveness of the delivery and performance levels are necessary to guide them in the right frame and the desired requirements. In this context, Paul PINTO (2003) mentioned that: "The idea of taking the overall performance of the institution would have a positive impact on them, and through the allocation of resources between the interests of consensus: customers, suppliers, shareholders, workers in a way". 1.2 Study Aims This study aims to try to gain access to a set of goals that will lift the confusion on the subject of global systems to evaluate comprehensive performance of organizations, of which the most important are: 

definition of modern systems to evaluate the comprehensive performance of the organizations;



stand on the reality of the subject of performance evaluation in public companies cement systems;

Thus, we see that it is necessary to stand by the study problem by answer the following questions: 1.

What extent of the success of global management's thought in providing and able to propose modern comprehensive performance systems to evaluate organization?

2.

What are the most modern systems applied currently at the global level in the field of organization performance evaluation?

3.

What is the reality of the comprehensive performance evaluation in public cement companies systems in Algeria?

1.3 Study Limitation and Organization The limitation of the study was to answer the main question for this study, which we put forward already in the introduction. It can say that the global management thought has succeeded largely in proposing a range of modern systems, which shares each in its own way in addressing problem to evaluate the comprehensive performance of organizations. However, these modern systems suffer from many shortcomings and gaps that have made them the object of some criticism. It found out through the analysis of the results of the questionnaire that the majority of the respondents are not familiar with the evolution of what is happening in the field of management, governance, and to evaluate the comprehensive performance. The research paper will cover both theoretical and empirical materials. The theoretical side includes defining of modern tools of performance, criteria, and business organization. While, the empirical side includes the studying of evaluating performance, and testing the results of the questionnaire. Different materials, articles, reports, and sites have used to assist the research paper.


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The paper will organize as follows: the next section provides a research methodology, questionnaire and tested. Section three review of literature and previous studies. Section four begins with the Study Instrument, including the sample, data collection and study Instrument scale. Section five presents test of performance, and the questions of the study. Finally, section six provides findings and conclusions. 2. Research Methodology The researchers in order to achieve the objectives depend on the comprehensive survey method, as will access to the literature, researches, and previous studies that are relevant to the subject of the study. In order to configure the theoretical framework of the research, and form the basis of intellectual and theoretical subject under study. The researchers conduct the field study through a questionnaire distributed to a sample of the population of the study and analyze the results using the statistical package of social sciences (SPSS). 2.1 The Study Tool To achieve the objectives of the study, we have adopted a tool that has commonly used in such researches in order to gather preliminary information. This tool includes a comprehensive questionnaire to get satisfactory answers to the questions of the study. The questionnaire included a number of questions complement each other. Therefore, we made a shot text in the questionnaire regarding objectives of the study. The following questions addressed by the questionnaire: Question No. 1: Tools used in the performance evaluation We seek through this question to identify the most important tools used by these organizations in order to evaluate their performance, where we proposed to the respondents set of tools and asked them pointing to those used in their organizations. Question No. 2: Performance Evaluation System We seek through this question to find out the degree of respondents' agreement on some ideas of performance used in their organizations evaluation. These included, the clarity of this system, the extent to provide various parties at organization with all the information about the level of performance, and the extent of link applied to these organizations performance evaluation. Also, included, the system of incentives, the degree of dependence on the performance evaluation system in the decision-making process and, finally, the comprehensiveness of this system to all organizations involved in the activities. Question No. 3: Global Systems to evaluate the comprehensive performance It has emerged for the time being at the global level a set of systems that have used to evaluate the comprehensive performance of organizations, which already we dealt with the most important of these systems in literature review. Accordingly, we are trying through this question is to know how aware respondents on these systems. 2.2 Test of Questionnaire After we finished the initial design of the questionnaire, in order to ensure its relevance to collect the required data have subjected to test the honesty Validity in order to ensure that the measurement tool to measure precisely and clearly defined concept and not any other concept. Where the questionnaire has presented to a group of arbitrators, professors in scientific methodology, and in management science in general, and some practitioners, providing them with the problematic of the study was to apprise them. We asked everyone to express an opinion about the clarity of the questions and phrases suitability for the purposes of the study. 3. Literature Review The performance evaluation process is as old as the organization themselves. Since the human has embarked to the practice of economic activity, the performance evaluation was synonymous with it. Although it was not known at the same names in today's world and terminology. Traditional measurement has based on the financial indicators focused on the profit earned from the activity. Despite the fact that this measure is an essential and vital element in the performance evaluation process. However, because of the evolution of life aspects in the great development of various technology and information, which is, make it possible to have mass production operations. Financial measurement element alone becomes insufficient to give a clear view of the actual position of the organization, and it was necessary to add other indicators related to non-financial aspects of performance such as quality, flexibility, creativity and social responsibility, and other criteria. Therefore, we will try to address the most important systems used by global management thought in evaluating the comprehensive performance to companies where we will focus particularly on: Published by Sciedu Press

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- Malcolm Baldrige Award of quality system; -The European Quality Award system; - American Commission Administrative Accounting Standards system; -Triple Bottom Line (TBL) reporting system; -Global Reporting Initiative system; -Balanced Scorecard system; - NAVIGATEUR SKANDIA system. 3.1 Malcolm Baldrige Award of quality: This is a national award called MALCOLM BALDRIGE NATIONAL QUALITY AWARD. It is an annual award given to US peer organizations excellence and reached record levels in performance; it also promotes knowledge of the different elements of the comprehensive performance as an increasingly important element to improve the competitiveness of companies now. It has considered as the emergence of Malcolm Baldrige criteria for evaluating the performance to the organizations radically transformed in the realization of American society during the last period. These standards are working to confirm attention to strategic planning organizations quality on the one hand, as well as the creation and innovation of techniques to evaluate the performance of organizations on the other. BRUNO (2006) noted that, President Ronald Reagan signed the introduction of standards Baldrige Congress after the issuance of Law No. 100-107, on 20 August 1987. This law, which known as program Baldrige for quality and strengthen and enhance competition among US organizations by supporting and raising awareness about the strategic application of quality and performance systems. The responsibility and the task of preparing the design and renovation programs Baldrige has been given to the National Institute of Standards and Technology of the US Department of Commerce in cooperation with the private sector (Balasubramanian, et. al., 2005). Baldrige are highly respected award where the US president annually by providing organizations that evaluated to get the honor of the coronation and this after a detailed evaluation process. Bin Aboud (2009) has considered as the first prize in the United States and the famous at the global level. It could granted two awards annually for each category of the following three categories: industrial enterprises, service organizations, and small projects (CRAIG, et. al., 1996). The award has named Malcolm Baldrige, which was the US Secretary of Commerce, as a recognition of his efforts in improving the performance of US organizations, and as he was the greatest defenders of quality management (Balasubramanian, et. al., 2005). Malcolm Baldrige award depends on a system comprising seven key criteria with 1,000 score. (Baldrige National Quality Program: Criteria for performance excellence, available at http://www.baldrige.nist.gov/PDF_files/2009_2010_Business_Nonprofit_Criteria.pdf). These criteria are the basis for evaluating the performance of the organizations, which are as follows: leadership, strategic planning, customer focus, measurement, analysis and knowledge management, a focus on human resources, operations management, and measurement of business results. The criteria for this award instruction manual Baldrige one of the most popular and printed materials prevalent in the American business community has become. In recent years has been printed about 200 thousand copies per year, while registration applications for the award of no more than 100 organizations annually. This can interpreted that most organizations use standards Baldrige evaluation performance structure and not in order to compete for this award (Mahoney, 2000). The experience has shown that organizations that have adopted the standards Baldrige in the evaluation of their performance managed to improve the satisfaction of customers and employees, as well as the increase in sales volume and profits and market share, in addition to achieving the overall strategic goals. It can said that Baldrige system is not only a system for the application of quality but also a tool to judge the progress of the organization in its performance (PACCIONI, 2006). 3.2 The European Quality Award: The European Foundation for Quality Management (EFQM) in 1991 established the European Quality Award, in order to encourage European organizations to excellence in the areas of performance; it has presented the first award in Madrid in 1992 (Joseph Kelada, 2004). It should note that the European Foundation for Quality Management is a non-profit organization, has established in 1988 to promote quality basic idea as a process of continuous improvement in European organizations. It has dedicated to the development of competition between public and private European economic sectors, and that by providing different organizations with a network of information to Published by Sciedu Press

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raise the level of knowledge about the latest developments and trends in business management. There are more than 10,000 organizations in the public and private sectors apply the European Quality Award system. The mission of the European Foundation for Quality Management to stimulate and help organizations throughout Europe to participate in improvement activities, in order to achieve customer and staff satisfaction, and knowledge management and the impact on business and society results ... and this is what would lead in the end to improve the performance levels these organizations of holistic perspective. I have developed a system of its own EFQM Excellence called (EFQM Excellence Model) where you used many organizations in order to conduct a self-assessment of their performance or to prepare themselves in order to compete on the European Quality Award. It has starting to work the European system EFQM in early 1992 as a framework for evaluating the performance of the organizations in order to get the European Quality Award. Over time, this system has become the most famous quality models and the most widespread in Europe, as it essentially became most other quality awards at the national and regional levels. The Prize has awarded to the four categories of organizations are: -Large enterprises; -Operational departments and units of the organizations; -Public sector organizations; -Medium and small enterprise. European Quality Award system includes nine criteria classified into two main categories: category empowered or causes (Enablers) and category (Results). As for category possibilities are for the possibilities and resources owned by the organization and the operations carried out in order to achieve its objectives ruler, this category includes five criteria: leadership, policy and strategy, human resources, relationships and resources, operations (VAN MARREWIJK et. al., 2004). The class results it has represented in all the achievements of the organization, this category includes turn on four criteria: the results of individuals, client's results, society results, key performance results. Therefore, the relationship between cause and effect is a reciprocal relationship, where the results are the outcome of what the organization of the causes of offer, and etiology are working to develop through the feedback caused by the results (VALLEJO et. al., 2006). Therefore, the relationship between enabler and result is a reciprocal relationship. Therefore, the results have recognized of what an organization can enable to offer. It has developed through the feedback related to result. Like Malcolm Baldrige Quality Award system in the United States, most European organizations do not bother with the European Quality Award system in order to win it. It look to it on the basis that it is a good tool used to evaluate self-performance. Where you get rich reactionary organizations to feed about strengths and reservoir development (The report includes about 50 pages in addition to oral observations), and get the evaluation results for each of the nine components of the system. 3.3 American Commission Administrative Accounting Standards system: American Commission administrative accounting standards developed a system that has integrated and considered as a comprehensive to evaluate the performance of organizations. This was through a set of dimensions have identified carefully and accurately in order to cover all aspects of comprehensive performance to the organization. This Committee made it clear that each organization has to choose the performance indicators, which fit the nature of their work, circumstances and strategic needs (Al-Amiri, & Ghalibi, 2003). This system consists of six main dimensions, which are, the financial indicators, the market and consumer indicators, competitive indicators, the performance of human resources indicators internal operating indicators, and environmental indicators. 3.4 Triple Bottom Line (TBL) reporting system: The organization has dealing with large amounts of environmental, economic and social information. It adapted to face the challenges in a limited number of indicators of the ruling so that they can assess their performance and make development decisions. In this context, the newly triple reporting system has emerged as a model for high-helps organizations evaluate their performance according to three important dimensions of economic, social and environmental. Behind of these dimensions is already a huge challenge for the management of the organization. The concept of the triple bottom reports has developed in 1997 by the researcher JOHN ELKINGTON, through his book "CANNIBALS WITH FORKS", also through which explained that the organizations should take into account the environmental and social consequences the same degree of interest to financial results (GENDRE-AEGERTER, Published by Sciedu Press

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2008). In this context DEMONTROND and JOYEAU (2010), believe that the organization will not be legitimate unless it took into account the three-dimensional problem of the triple report system. The increase for using to the TBL reports on the results of its operations because of competition for customers and capital attraction. This may stems the idea that organizations no longer just a just economic entities, which pays the management of these organizations to think about the economic project is not only of a business perspective, but also from social and environmental perspectives. Thus, the basic idea behind the emergence of the concept of triple reports on business results when you evaluate the performance of organization is that financial performance is no longer the sole determinant for the development of enterprise in the market or to the level of their overall success. This must respond to the demands for the provision of more information on the social effects and environmental activities. Because of the importance of the TBL reporting system and the known that has become enjoy it. It has formally adopted by the European Commission, the beginning of the month of April 2000 as a tool to measure the upper value of the organizations, LA VALEUR SUPERIEURE DES ENTREPRISES. A value that does not just take into account the economic performance of the organization, but also its contribution to environmental protection and the development of society exist in (LÉPINEUX, 2003). This prompted DOHOU and BERLAND (2007) to consider that the TBL reporting system which has become a major Anglo-Saxon approach to evaluate the comprehensive performance of the organization. 3.5 Global Reporting Initiative system: The Global reporting initiative is an independent organization. Its mission is to develop and publishing guidelines applicable globally in order to raise the comprehensive reports on the performance of the organizations. The proposes are to suggest a harmonious set of indicators to be used voluntarily by the governmental and non-governmental organizations for reporting on economic, environmental and social dimensions of their activities and its products and services. The organization began its work in 1997 through a partnership between the Coalitions for Environmentally Responsible Economies (CEREs), which is an American non-governmental organization committed to protecting the environment on one hand and the Program of United Nations Environment (PNUE) on the other hand. In addition, it has become an independent organization in 2002, and taken from Amsterdam as headquarter after Boston's headquarter in the United States of America (RASOLOFO-DISTLER, 2009). It should note that the Global Reporting Initiative GRI is the world's most widely used frameworks for reporting to evaluate the performance by the standards of human rights, labor, environment, anti-corruption, as well as corporate citizenship standards. The proposed indicators have divided into three types: economic indicators, environmental and other social indicators. Overall GRI system that includes 97 indicators in total, including 50 of the basic indicators and 47 additional indicators, have considered key indicators are important for most of the organizations as well as the various stakeholders categories (Adams, 2004). Available at (http://www.unctad.org/ar/docs/iteteb20037_ar.pdf). 3.6 Balanced Scorecard system: The definition of Balanced Scorecard as it a practical framework for evaluating the performance with two main objectives. The first goal is to translate of strategy into specific objectives, while the second goal is to deliver that strategy to all parts of the organization (Fernandes et.al. 2006). The definition is more accurate for each of Kaplan and Norton, which are the Balanced Scorecard integrated system, reflects the balance between short and long-term goals, financial and non-financial indicators (Epstein and Manzoni, 2002). So this card can regarded as an administrative system designed to help owners and managers to translate visions and strategies for their organizations to a set of strategic goals and measurements correlated, as the financial report is no longer the only way through which organizations can evaluate their activities and draw future moves. It has considered by some specialists in this area that the Balanced Scorecard is the first systematic work tried to design a system for evaluating the performance of the organization is interested in translating the strategy into specific targets, indicators and standards and targeted initiatives for continuous improvement, as it unites all the indicators used by the organization. The Balanced Scorecard translates the vision and strategy of the organization to a comprehensive set of performance that provides a full framework for the implementation of strategies. This card depends on the achievement of financial objectives, but it emphasizes the non-financial goals that must achieved by the institution indicators in order to meet financial goal (Fernandes et.al. 2006). In this context, DOHOU and BERLAND (2007) says, "It remains the greatest what Balanced Scorecard brought is to give more importance to the non-financial performance indicators". Published by Sciedu Press

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While CRABTREE and DEBUSK, (2008), mentioned that "The BSC is not only a system that combines indicators financial and non-financial, but also a mechanism that will allow the organization to translate strategy into a set of practical and operational procedures". It should note that the field experiments have shown that the Balanced Scorecard great importance to the strategic and operational levels, as well as on the financial and non-financial levels. Where this importance has reflect through the following points: -This card is considered as a cornerstone to the current and future success of the organization, as opposed to the traditional financial indicators which are useful for the analysis of the last period without reference to how to use them to improve performance in the future. -Address the shortage of traditional management systems in the sense that it dealt with the inability of these systems to link the institution's strategy for long-term with short-term activities. -The system includes many of balances, such as the balance between long and short-term goals, the balance between financial and non-financial indicators, the balance between the internal aspects of the organization and the external aspects. -Able to diagnose and identify new areas in a process that should be of interest to the organization to achieve its goals. -Help organizations to focus on what needs to be done to increase performance progress. It works as an umbrella organization for the distribution of the joint programs such as quality, re-design, and customer service. - Describes the vision, improve performance, and develop sequence of goals. It also provide feedback of the strategy, in addition to allow the link of rewards with performance standards. - Gathered in one report many elements scattered to the competitive of the work program such as, orientation towards customers, minimize response time, improve quality, emphasis on teamwork, and time analysis of new product introductions. -Create a correlation between objectives and performance indicators. -The expansion of the coordination process in the organization to include all employees, by giving them an accurate idea of what and how they can work to support the strategy. -Ability to work effectively with other tools such as ABC / ABM system, the economic value added EVA, total quality management TQM (WEGMANN, 2010). It is clear that the BSC system is greater than a calendar traditional performance system. It is possible to use as a strategic management in the long term, because it addresses the shortage of traditional management systems, that is, it deals with the inability of these systems for linking enterprise strategy long-term with its near-term. In this context, BUGHIN (2007) says, "Experience has shown the BSC is not only a tool for evaluating the performance but it is also a system of strategic management would allow to clarify and communicate the organization's strategy. This through translated into a set of objectives and indicators which are grouped under four perspectives constitute the fundamental basis for the development of a strategic system". 3.7 NAVIGATEUR SKANDIA system: The Swedish researchers (EDVINSSON and MALONE) suggested in 1997 a new system for evaluating the overall performance of the organization, which called NAVIGATEUR SKANDIA. This model has retained almost the same the previous four dimensions of the Balanced Scorecard, and added the fifth dimension is the human axis. It is shows in following Figure:


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Financial Dimension

Today

Customer

Human

Operational

Dimension

Dimension

Dimension

Tomorrow

Creativity & development Dimension

Figure 1. NAVIGATEUR SKANDIA Model Source: France-Anne GRUAT LA FORME-CHRETIEN: "Référentiel d’évaluation de la performance d’une chaine logistique", Thèse de doctorat en génie informatique sous la direction de Valérie BOTTA-GENOULAZ, l’institut national des sciences appliquées de LYON, 2007, P45. From the previous figure, it shows us that EDVINSSON and MALONE have benefited from criticism directed to Kaplan and Norton in regards to neglect of human dimension at the Balanced Scorecard design. This made them, to put up the human dimension at the heart of their model because it is the first base to create value and improve performance foundation. This theme reflects the competencies of individuals, their skills, experiences, and the extent of their loyalty to the organization. Generally, the model NAVIGATEUR SKANDIA allowed providing an overview of the organization's performance by linking the various fields of evaluation uniformly with a focus on valuing human dimension strategy. However, the model remains in view of many experts is merely a modified and revised for Balanced Scorecard. 4. Study Instrument After completion of the study to determine problems, the researchers used the questionnaire mentioned in the tool study. 4.1 Sampling The researchers were selected sample study of a group of cement companies operating in Algeria, which are 12 company. These are: Cement company Alma (Tebessa), Cement company Hamma Bouziane, Cement company Aian Tota (Batna), company cement Hajjar (Skikda), cement company Aian (Setif), cement company algaslan (Bouira), cement company Maftah (Blida), cement company Rais Hamidou (Algeria), cement Chlef company, cement Zhanh company (Mouaskar), company cement Bani Saf (Aian Temouchent), Saeeda cement company. The researchers were distribute of the questionnaire for each of the Director of Finance and Accounting, Commercial Director, Human Resources Manager, Director of Supply. The reason for our choice of these managers without the others because they are supposed to have information of what they can answer this questionnaire. Therefore, they are best able to understand the nature of the questionnaire without the rest of the other managers. 4.2 Data Collection At this stage, the researchers adopted a questionnaire as a means to gather information that will help in achieving the objectives of the research. The questionnaire contains three questions as mentioned before.


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4.3 Study Instrument Scale Five points Likert scale has been selected, for being one of the most metrics used to measure the opinions and responses, due to its ease of understanding , indicates where the study sample under test for the extent of their agreement for each paragraph of the questionnaire as follows: Strongly Agree

Agree

Not sure

Disagree

Strongly Disagree

5

4

3

2

1

The study population consists of (12) companies. The study sample is totaling (48) questionnaires, but what was not subjected to statistical analysis only (40) because of the lack of returned or completion of the respondents, it was (83.33%). To achieve the objectives of the study were used scale (Likert) as mentioned above. To achieve the objectives of the study were used scale (Likert) as mentioned above. The averages were determined for the purposes of the study as follows: (4.25-5) indicate a very high degree (Strongly Agree), (3.50-4.24) indicating a high degree (Agree), (2.75-3.49) indicates a medium degree (Not sure), (2-2.74) indicate the low degree (Disagree), (less than 2) show a very low degree (Strongly Disagree). 5. Results After applying, the study procedures as referred to previously obtained the following results: 5.1 First, the results related to the first question What are the most important tools adopted by the public companies of cement in the process of evaluating their performance? Table 1 contains the results of statistical analysis of the sample answers for the question on the tools used in the performance evaluation. Table 1. Tools used to evaluate the performance of companies under study Tools

Frequency

%

Periodic Reports

40

100%

Leadership Panel

31

%77.5

Productivity Measures

34

%85

Estimated Budgets

40

100%

Financial Statements

40

100%

From the previous data, it can note the following: - All respondents have reported that public companies of cement used all of periodic reports, estimated budgets and financial statements on a permanent basis in order to evaluate its performance. - About 77.5% of the respondents reported by using the leadership panel in the evaluation of the performance of their companies. - About 85% of the respondents using the estimated budgets in the evaluation of the performance of their companies. - About the possibility of using these companies other tools not covered in the proposals, the answers was in the negative. However, through our interviews with many of the respondents show us that the majority of the public cement companies are lacks to the system of analytical accounting. Therefore, it can be said in principle that these companies in addition to the use of traditional tools to evaluate the performance, they lacks to use new style of management has proved its worth in the conduct of the companies which is depend on accounting analytical. As we have noted through interviews that accompanied the distribution of the questionnaire process and fill, the absence of a general agreement on the concept of organizational performance evaluation, what has intended and what are the main aspects to it. The researchers can say that there is ambiguity in the concept of evaluating the company's performance and the confusion between it and the staff performance evaluation among some respondents.


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5.2 Second, the results relating to the second question What is the reality of performance evaluation systems to public companies cement? Table 2 contains results of the statistical analysis of the sample answers about the extent to approve accepted ideas to the reality of performance in public companies cement to evaluation systems. Table 2. The Extent of approval to accepted ideas of the performance evaluation system Strongly Disagree

Disagree

Ideas

Frequency

%

Frequency

%

Frequency

%

Frequency

%

Frequency

%

Is it available in your

2

5

12

30

15

37.5

10

25

1

2.5

2.9

0.92

4

10

22

55

11

27.5

3

7.5

-

-

2.32

0.76

5

12.5

15

37.5

13

32.5

7

17.5

-

-

2.55

0.93

-

-

14

35

17

42.5

9

22.5

-

-

2.87

0.75

10

25

4

10

-

-

2.32

0.82

0.5

2.59

0.84

Approval degree

Not sure

Agree

Strongly Agree

Mean

Standard Division

company a clear and specific system for evaluating the performance Is the team which carry out the evaluation provides various authorities with all the information about the level of performance evaluation Incentive system is mainly linked to your company in performance evaluation system Performance evaluation system in your company is considered as a helpful tool in decision-making Performance evaluation

5

system cover all your company's activities Average

8

42

33

16.5

Depending on the previous table data can be highlighted the following observations: - All the mean values for the sample answers about five ideas that represent the performance evaluation system less than the average value (3), which fall within the area is Disagree and on Not Sure. However, the overall average was 2.59, which is located within the area is Disagree to Strongly Disagree (1.8 - 2.6), and a standard deviation at a rate of 0.84. - Through financial ratios it shows us that 50% of respondents disagreed about the ideas at the performance evaluation system, while the frequency ratio of 33%, while the agree rate has reached 16.5%. These results came expressive and logical, so most views of the respondents whom we met surely use the traditional tools in public cement companies represented in: periodic reports, leadership panel, and productivity measures that cannot originally considered a system to evaluate performance. It can see how the companies of a strategic nature as companies of public cement that face competition to Lafarge global leader in the cement industry. It has use the latest tools and management techniques, while many public cement companies are not using analytical accounting system. Therefore, most of the respondents are not convinced at applied performance evaluation systems in their companies. They rely on routine methods for decades, and are therefore lacking any new in the field of modern management. 5.3 Third, the results relating to the third question Global Systems to evaluate the comprehensive performance? Alternatively, what is the degree of informed managers of public cement companies on modern systems to evaluate the comprehensive performance?


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Table 3 contains the results of statistical analysis of the sample answers for the question on available for modern systems to evaluate the extent of the comprehensive performance. Yes

Answers Systems

No

Frequency 1

% 2.5

Frequency 39

% 97.5

American Commission Administrative Accounting Standards system

1

2.5

39

97.5

Triple Bottom Line (TBL) reporting system

0

0

40

100

0

0

40

100

Balanced Scorecard system

Global Reporting Initiative system From the previous table data, it can note the following: -There are 97.5% of the respondents have never seen that on one of the following systems: the Balanced Scorecard system, the American Commission Administrative Accounting Standards system; - As for the Triple Bottom Line (TBL) reporting system and the Global Reporting Initiative system, it was unprecedented to any one of the forty who responded to the questionnaire that have seen them. The previous results were very scary. It refers to the great weakness to inform respondents on what is happening from a scientific development in the field of management and governance. They also indicate the failure of configuration policy of these companies to monitor it annually huge budgets and this has confirmed to us through many interviews we had with these respondents. 6. The Conclusion and Further Studies In this era of trade globalization and shift to a market economy, every country will be opening avenues of investment. Governments’ fiscal policies and laws will in turn tend to change according to the new economic environment. Consequently, public company will have to adapt itself to the changed pattern of government criteria and define its auditing standards according to further studies. For example, the new tools should use to get better results than previous methods. It should use Information Technology (IT) audit is another area of challenge that will have its own momentum of development the companies. These required having a role to play in ensuring that appropriate laws are in place to translate the changes and to assure laws are implement properly to safeguard government revenues in an era of liberalization. Through this study, we show that the business environment has played a key role in the modernization of methods and tools to evaluate the performance of organizations. Traditional tools such as financial analysis, reporting, and monitoring budgets has worked successfully in an environment characterized by the expansion of productive capacity. When the environment has become more complex, it appeared multidimensional tools to offset the financial indicators and accounting information that failed to describe the environment through its variables. When environmental protection, consumer protection and others are grown, movement emerged other pressures calling for comprehensive performance. It has intended to respond to the aspirations of the various stakeholders' categories. To answer the main question for this study, which we put forward already in the introduction, we can say that the global management thought has succeeded to a large extent in proposing a range of modern systems, which shares each in its own way in addressing problem to evaluate the comprehensive performance of organizations. However, these modern systems suffer from many shortcomings and gaps that have made them the object of some criticism. Through applied study of this subject, it shows us that most of the public cement companies have used traditional tools and methods in the evaluation of their performance. This in the absence of most basic information and accounting systems along the lines of analytical accounting. As we found out through the analysis of the results of the questionnaire that the vast majority of the respondents are not familiar with the evolution of what is happening in


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