Management Accounting

Running head: MANAGEMENT ACCOUNTING
Management Accounting
Name of the Student
Name of the University
Author’s Note

1MANAGEMENT ACCOUNTING
Table of Contents
Assessment Task 3.....................................................................................................................2
Assessment Task 4.....................................................................................................................4
References..................................................................................................................................8

2MANAGEMENT ACCOUNTING
Assessment Task 3
The following discussion shows different types of performance management tools and
techniques that can be deployed in large business organizations like Almarai for the
evaluation of their sustainability across a range of businesses and economic environments:
KPI and Metrics – Key Performance Measures (KPI) and metrics provides the Almarai with
the way of measuring the extent to which the companies, business units, projects or
individuals are performing in accordance with their strategic objectives and goals. This helps
in accurate performance conversations on the basis of the data along with better
organizational process to make decisions. Well-developed KPIs are considered as vital for
providing clearer picture on current performance level of the company (Kerzner2017). There
are certain pros and cons of KPI and metrics that Almarai needs to consider. KPI and metrics
provide large companies with accurate results of performance measurement in the form of
statistics, numbers and metrics. It also aligns everyone with the organizational goals. In case
of cons, this can only be used for short-term goals since it is not acceptable for long-term
goals.
Performance Appraisal – Beside KPIs, performance appraisal can be considered as the most
widely used tool to measure and manage performance in Almarai. In case the managements
of Almarai is able in using this method properly, this is an extremely powerful tool that aligns
the individual goals with organizational strategic objectives. Its major advantage is that it
provides a document of organizational performance for a specific time while the higher
management gets the chance to provide feedback on performance measured. This motivates
the whole organization. It has certain disadvantages since this can create negative experience
in case it is not done properly. It is a time consuming matter.