Performance management systems | Assignment
13 Pages3882 Words214 Views
Added on 2019-12-03
Performance management systems | Assignment
Added on 2019-12-03
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Performance Management 1
TABLE OF CONTENTSIntroduction to Performance Management .....................................................................................4Budgetary control ............................................................................................................................4Pricing .............................................................................................................................................6Limiting factors ...............................................................................................................................7Investment appraisal........................................................................................................................7Balanced scorecard .........................................................................................................................9Risk ...............................................................................................................................................102
EXECUTIVE SUMMARY The present report is based on a scenario of a rapidly growing manufacturingorganisation which is faced with important decisions in respect of its’ future growth. Thecompany is required to take a viable decision which is best for the company. This report is goingto be produced for making Board of Directors understand with the techniques that are availableto making decision regarding future growth. Furthermore, Board is going to be provided withinformation and recommendations that will enable them to take the relevant decisions. In thereport, it has been witnessed that techniques are used in business for making decision on costcontrolling, improving profitability and improve production. 3
IntroductionThe success of a corporate entity depends on the effectiveness of decisions taken to theorganization. To a general phenomenon, performance management is a system that is used foridentifying improved ways to attain organizational goals as well as constant assessment to thefactors that are helpful in current level of performance in the organisation. The above mentionedmanagement aspect is quite important for goal-setting and developing metrics to identifyprogress and areas of improvements that leads to effective decision making. However, there arevarious techniques that are useful in making effective decision among various alternatives. Thereis a strong planning and critical thinking behind every decision taken in respect with the futuregrowth and expansion. Decision making process require an effective technique that can identifythe long-term impacts of such decision. Here, in the reports some of the techniques along withtheir limitations in respect with the scenario of a rapidly growing manufacturing organisation.The discussed techniques are Budgetary control, Issues of CVP, Pricing, Limiting factors,Investment appraisal, Balanced scorecard and RISK factor. Range and depth of techniquesBudgetary control The budgetary control is a technique that is used to identify the effectiveness of usingbudgets so as to monitor and control costs and operations in a given accounting period. Thistechniques is important for business to identify the future expenses associated with businessoperations. To an further extent, budgetary control is said to be a process in which managers setfinancial and performance goals using budgets and compare the actual results against thestandard one. The use of this technique is helpful to management for adjusting operationalperformance of business. The mentioned manufacturing organization can compare budgeted andactual figures with the help of aforesaid technique and can find out discrepancies along withtaking remedial measures to improve the performance in proper time. This technique will helpbusiness in making decision over the use of cost controlling techniques. On the other hand,budgetary control techniques is used for planning and co-ordination between production process.The company can take decisions regrading improvement in operational performance that willdefiantly support future growth of business. The decision that are to be taken on the basis ofbudgetary control technique include future planning along with setting up various budgets,4
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