文档介绍：Management decisions and control Performance measurementmeasuring total business performance
Management decisions and control
Performance measurement:
measuring total business performance
Lecture objectives
What is meant by performance?
Limitations of financial measures
Broad problems
Design problems
Use problems
The Balanced Scorecard – what is it?
Components of the Balanced Scorecard
Essential design features of the Balanced Scorecard
Management control systems
Planning
Measurement Controls
Reward
and
Compensation
Budgets
Financial Controls
Non Financial Controls
Long
Range
Planning
Short
Range
Planning
Administrative Controls
Management Structure
Organisation Structure
Policies and Procedures
Social Controls
Clans
Culture
Values
Strategy
and
Objectives
Organisation
Performance
Activities
External
Environment
Control package (Brown, 2005)
What is meant by performance?
Company
Profit and
returns to shareholders
Long term growth
Innovation
Safety
Environmental
management
Stakeholder
management
Reputation and
customer satisfaction
Employee
satisfaction
Quality products
Last week’s lecture
What do we mean by performance?
Limitations of financial measures –
Broad problems
Move from the industrial age to the post-industrial age or knowledge economy
Increasing need to ensure that stakeholders beyond the shareholder are satisfied
Level of investment in information technology
Limitations of financial measures –
Design problems
Only measure one aspect of performance
Can only approximate anisation’s economic cost function
Little relation to long term strategy
Does not measure future value creators
Are an plete reflection of managerial performance
May reflect aspects anisational performance which are not controllable
Limitations of financial measures –
Use problems
Financial measures are often not familiar or intuitive anisational members
Misleading information about the health of pany