High efficiency and high effectiveness
the manager selected the appropriate goals to pursue and optimally apply the resources to achieve these chosen goals
Performance management allows managers and employees to
-Provide feedback
-Conduct appraisals
-Conduct observations
-Develop performance standards
Market controls
They involve the use of data to monitor performance in terms of sales, prices, costs, and profits relating to products sold, market share, and services rendered
To be effective, market controls generally require that
-The costs of the resources used in producing outputs be measured monetarily
-The value of the goods and services produced be defined clearly and priced monetarily
-The prices of the goods and services produced be set competitively
Financial controls
They include a wide range of methods, techniques, and procedures intended to prevent or correct the misallocation of resources
Budgeting has three primary purposes when managing performance
-To help in planning work effectively
-To assist in allocating resources
-To assist in controlling and monitoring resource utilisation during the budget period.
Types of budgets used for performance management
-Sales budget
-Materials budget
-Labour budget
-Capital budget
-Research and development budget
-Cash budget
Cash budget
This refers to the expected flow of monetary receipts and expenditure.
Capital budget
This refers to targeted spending for major tangible assets
Materials budget
Expected purchases are generally stated by specific categories
Sales budget
This is a forecast of expected revenue (sales)
Activity-based costing (ABC)
It is a performance management system that focuses on activities as the fundamental cost centres of organisations.
A balanced scorecard
a format for describing the activities of an organisation through a number of measures
Four perspectives of a balanced scorecard
-Financial perspective
-Customer perspective
-Internal operations perspective
-A learning and innovation perspective
A balanced scorecard allows the management team to focus on the following elements when managing organisational performance
-Financial performance
-Performance in terms of customers
-Internal operational performance
-Learning and innovation performance
Financial performance
The organisation considers how it is viewed by its shareholders.
Performance in terms of customers
The organisation considers how it is viewed by its customers.
Internal operational performance
The organisation considers what it must excel at.
Learning and innovation performance
The organisation considers whether it is able to improve continuously and create value
Quality control tools
-Six Sigma
-JIT
-Total quality management
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Chapter 122
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Chapter 1.222
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Chapter 1.316
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Chapter 221
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Chapter 2.223
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Chapter 2.31
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Chapter 420
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Chapter 4.218
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Chapter 722
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Chapter 7.219
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Chapter 7.320
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Chapter 7.423
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Chapter 820
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Chapter 8.221
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Chapter 8.320
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Chapter 8.420
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Chapter 921
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Chapter 9.220
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Chapter 9.322
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Chapter 9.45
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Chapter 1020
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Chapter 10.216
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Chapter 1120
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Chapter 11.220
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Chapter 11.320
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Chapter 11.43
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Chapter 1220
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Chapter 12.220
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Chapter 12.320
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Chapter 12.47
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Chapter 1320
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Chapter 13.220
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Chapter 1420
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Chapter 14.218
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Chapter 1520
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Chapter 15.220
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Chapter 15.37
