Assignment on Performance Management and Control

Running Head: PERFORMANCE MANAGEMENT AND CONTROL
Performance management and control

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Contents
Introduction............................................................................................................... 2
Objectives of Management Accounting.............................................................................2
Role of Management Accounting.................................................................................... 3
Trends in management accounting...................................................................................5
Implications of the trend............................................................................................... 6
Nature of Information................................................................................................... 7
Source of information................................................................................................... 7
Analysis of Information................................................................................................ 8
Conclusion................................................................................................................ 8
References................................................................................................................ 9
Introduction

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Lloyds Banking Group plc is a large British financial institution founded in 1995. It
provide financial and banking services. Its activities include retail banking mortgages, life
insurance, pensions, commercial and private banking, investment banking and general
insurance. The banking group is listed on London Stock Exchange and is a component of
FTSE 100. It has billions of UK customers and the business is mainly focused on retail and
commercial services. The main objective of the group is to serve best to their customers,
maintaining good relationship with the communities and is focused on prosperity of Britain
(Lloydsbankinggroup.com, 2017). This report contain the critical review of Lloyd’s
performance management and its control over the activities. Review of the objectives and
trends in management accounting and analysis of the information is done to measure
performance of Lloyds Banking Group.
Objectives of Management Accounting
Management accounting is the method of presenting and providing the accounting
information to the management in an organised and systematic manner to help the
management in taking decisions and performing its functions effectively and efficiently. The
primary objective of management accounting is to give necessary information to the
management so that all the functions can be carried easily (BANERJEE, 2017). Various
objectives are as follows:
 Analysis and Interpretation: Financial statements are properly analysed with
the help of various tools like ratio analysis, cash flow and trend analysis, comparative
and common size statements. Management accounting interprets the financial data
and made it available for the management in an understandable manner. By doing
proper analysis of its final accounts and interpreting the data accurately, Lloyd is able
to maintain an effective performance management. LBG employees are clear about
their responsibilities, a proper track record of improvements and achievement is kept.
Having a proper knowledge of financial performance help Lloyd to take decisions
regarding improvements and modifications.
 Planning & Policy making: Success of any organisation and institution
depends upon the planning and policies made by them. Proper planning and making
of beneficial policies by LBG has contributed in successful management of its
performance. Lloyd have attracted a lot of consumers in recent years by making

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beneficial and profitable policies for them. Also, involving employees in planning
process have improved their performance in an efficient and effective manner.
 Controlling: The managers of the bank have kept an eagle eye over the
functioning of the institution. Control on the resources of the organisation was kept In
order to make sure that the resources are used optimally. Lloyd is capable of
achieving its predetermined targets by keeping a control on the activities performed
by its employees. This also help the bank to increase its financial performance over
the year.
 Communication: It is considered as the most important objective of
management accounting which is required to be achieved. Better communication of
the performance of various departments is essentially required for the management to
perform tasks such as planning, decision making and controlling. With the proper
communication among the employees of LBG, the group is able to achieve all its
objectives. It can be in any form that is formal or informal. Accurate financial
information is properly communicated by the accountants to the managers which
results in the effective performance management of Lloyd.
 Decision Making and Coordination: in an organisation, decisions are been
made and taken at every level. Management accounting help the managers to take
right decisions at right time. Knowing about the overall financial performance of the
organisation, mangers are capable to take correct decisions as and when required. It is
also easy to set coordination between the various departments, when everything is
properly managed. With the help of effective performance management, Lloyd
Banking Group take proper and right decisions regarding its policies and objectives.
The group is also capable enough to maintain coordination among its different
activities (Jhamb, 2009).
Role of Management Accounting
In general, banks provide various services to its customers. The managers of bank require
different types of data and reports which are related to the various activities performed by
bank. Management accounting plays a critical role in managing the resources of bank. The
role it plays include collection of data, supply of modified data and control over the data
recorded and processed (Accountingedu.org, 2017).