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This book presents an analysis and a critical discussion on performance management systems. It seeks to advance the current state of knowledge in the subject by introducing a holistic performance management system - the loosely coupled performance management system. This new system presents a framework to leverage the systemic relationships among already established performance management mechanisms. The author contends that loosely coupled performance management systems fulfill two different objectives, namely - they assure control and foster innovation. Such a comprehensive approach to management control provides managers of economic organizations with an overarching architecture for the design, diagnosis and effective use of performance management systems.?