The
Syllabus outlines the content of the paper and
how that content is examined.
The
ability to manage performance effectively is
an invaluable skill in today's competitive environment.
Increasingly, employees and organisations are
being judged on how well they meet agreed targets,
and as performance is often linked to rewards,
accuracy of measurement is extremely important.
AIM
To give an understanding of how performance
can be managed through both financial and non-financial
measures. The different methods available are
critically reviewed for individuals, departments,
divisions and an organisation as a whole. The
paper considers performance management from
the perspectives of planning an organisation's
operations to enable it to achieve its objectives,
measuring its performance against those plans
and managing the operations of the organisation
towards those organisational objectives.
CONTENT
Planning
- preparation
of budgets
- behavioural
aspects of budgeting
- measuring
performance based on budgets
- budgeting
in the service industries
- future
of budgeting
Measuring
performance - methods of measurement
- profitability,
activity, productivity
- measuring
productivity
- critical
success factors and key performance indicators
- benchmarking
- financial
and non-financial performance measures
- Balanced
Score Cards
- Economic
Value Added
Measuring
performance - allocation of responsibility
- Cost,
revenue, profit and investment centres
- measuring
divisional performance: Return on Investment,
Residual Income
- Transfer
pricing
Managing
performance
- purchasing
and materials management
- control
over production
- control
over purchasing
- ensuring
"value for money"
- activity
based costing
- interpretation
of cost variances
|
