Strategic Management Accounting: Performance Management- Report Writing Assignment

Internal Code: TV612

Report Writing Assignment:

Task: The performance management framework It will be argued that there are five main sets of issues that need to be addressed in developing a framework for managing organizational performance that are represented as a set of questions.5 The questions are phrased in a normative tone, reflecting a managerial perspective, but can easily be re-phrased descriptively for use as a research tool. The questions themselves appear to remain constant, but organizations need to continually develop new answers to them. This is because the context in which the organization is set is constantly changing and new strategies need to be developed to cope with new operating environments. The questions are as follows: 1. What are the key objectives that are central to the organization’s overall future success, and how does it go about evaluating its achievement for each of these objectives? 2. What strategies and plans has the organization adopted and what are the processes and activities that it has decided will be required for it to successfully implement these? How does it assess and measure the performance of these activities? 3. What level of performance does the organization need to achieve in each of the areas defined in the above two questions, and how does it go about setting appropriate performance targets for them? 6 4. What rewards will managers and other employees gain by achieving these Ž . performance targets or, conversely, what penalties will they suffer by failing to Ž achieve them ?. 5. What are the information flows feedback and feed-forward loops that are Ž . necessary to enable the organization to learn from its experience, and to adapt its current behaviour in the light of that experience?