What is Error Correction Term

In their endeavor to increase profits, companies usually become aware that this is predominantly the result of employee competence and satisfaction, excellent processes, and customer's satisfaction. Based on that assertion, companies integrate different managerial tools in the performance measurement system (PMS) and therefore in their management system. One of the most dominant managerial tools is the Kaplan and Norton's balanced scorecard (BSC). In this chapter, the approach that represents the basis for further work in the field of research in PMSs of companies, with the use of econometric tools, was empirically tested and developed.