Firm Performance Improvement Through Employees Performance Evaluation

DOI

10.2991/978-2-494069-99-2_3How to use a DOI?

Keywords

Small and medium enterprise; Management accounting practices; Employees performance evaluation; Firm performance

Abstract

Due to outbreaks of the COVID-19 pandemic, the survival and continuity of Malaysian SME businesses are seriously affected. According to SME Corporation Malaysia (2019), SME establishments from service sector contribute to 63.3% of SMEs gross domestic product in 2019. Hence, it is of utmost importance that effective management practices are engaged by the businesses to strengthen the capabilities of their employees in response to challenges in the external environment. Despite management accounting literature strongly supporting the positive role of formal employee performance evaluation on firm performance, there are still substantially limited SMEs in Malaysia adopting such a practice. A formal employee performance evaluation system improves firm performance, which in turn allows the businesses to survive and get through the hard times. Thus, this study aims to perform an investigation on how employee performance evaluation as a key management accounting practice relates to SME firm performance. The outcome of the proposed study provides valuable information to policymakers and government agencies on what actions could be taken to motivate SMEs to implement formal management accounting practices. This study contributes further to the employee performance evaluation literature as well as allows SME businesses the insights on utilizing employee performance evaluation for improving their firm performance.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Tai-Seng Wong
AU  - Min-Khen Tan
AU  - Pui-Yee Chan
AU  - Ah-Suat Lee
AU  - Mai Farhana Mior Badrul Munir
AU  - Yen-Hong Ng
PY  - 2023
DA  - 2023/02/04
TI  - Firm Performance Improvement Through Employees Performance Evaluation
BT  - Proceedings of the 10th International Conference on Business, Accounting, Finance and Economics (BAFE 2022)
PB  - Atlantis Press
SP  - 14
EP  - 20
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-2-494069-99-2_3
DO  - 10.2991/978-2-494069-99-2_3
ID  - Wong2023
ER  -