MA620 Performance Management Assignment: Strategic System
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Advanced Management Accounting (MA620)
Added on 2020-05-28
MA620 Performance Management Assignment: Strategic System
Advanced Management Accounting (MA620)
Added on 2020-05-28
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Running head: STRATEGIC PERFORMANCE MANAGEMENT SYSTEMSTRATEGIC PERFORMANCE MANAGEMENT SYSTEMName of the StudentName of the UniversityAuthors Note
1STRATEGIC PERFORMANCE MANAGEMENT SYSTEMExecutive summaryThis report focuses on the importance of advanced management accounting techniques in thecurrent business environment. Through strategic performance measurement systems (SPMS) theorganizational performance is evaluated. The balance scorecards approach is used in the recent times bythe managers to develop competitive strategies. Moreover, through SPSM the managers ascertain theperformance measures that may be financial and non- financial in nature of the business firm. Byadoption of the balance scorecard (BSC) it is evident that it has very crucial impact on the organization.Furthermore, the financial and non-financial measures have major effect of Strategic Performance of thebusiness. In the given report, the SPMS of the middle size supermarket chain is ascertained.
2STRATEGIC PERFORMANCE MANAGEMENT SYSTEMTable of ContentsIntroduction.................................................................................................................................................3Strategic Performance Management System..............................................................................................3Balance Scorecard:......................................................................................................................................5Performance Measures:..............................................................................................................................6SPMS outcomes:..........................................................................................................................................8SPMS impact on business performance:.....................................................................................................9Conclusion:................................................................................................................................................10References.................................................................................................................................................11
3STRATEGIC PERFORMANCE MANAGEMENT SYSTEMIntroductionIn the recent times, the modern business environment has evolved and changed drastically inshort period of time. The business environment is now known as modern business environment as it is itcharacterized by advanced technology, globalization, intense competition, social responsibility. Thoughthe basic methods or procedures have changed but the purpose of accounting still remains the same.The owner uses various accounting techniques for measuring the financial performance of the businessand making appropriate decisions (Nørreklit & Mitchell, 2014). Modern accounting is the vital aspect inthe current business scenario. Management accounting is related with information present within theorganizationto help people in improving the efficiency and effectiveness of the present businessoperations and making better decisions. It is completely different from the previous traditional financialaccounting. Moreover, management accounting is the study of accounting related to managementfunctions. This advanced accounting functions shows how they can be modified to suit the managerialactivity framework. The vital function related to accounting of modern management is the redesigningof the entire accounting system to serve the firm’s operational needs. It provides definite accountinginformation that may be used as a basis for the management action that can be used in present andfuture (Tan, Zhang &Khodaverdi, 2017). moreover, the financial data are highly devised as well assystematically development so this becomes a unique tool for executing the management decisions.Strategic Performance Management SystemThe Strategic Performance Management system (SPMS) is a process, which relates the efficiencyof the employees with theperformance of overall organizational to increase the productivity for themanagement compensation system (Tizroo et al., 2017). This ensures that the employees attain theirgoals that have been set by the company and on the other hand, the organization achieves theirobjective that has been set as their strategic plan. Improvement in the organizational or individualperformance is incomplete until the management getsadequate feedback of the performance. Thisprovides the ultimate result of the task provided to the employee or the firm. Performance measureshelps in creating link between the individual own behavior and the objectives of the organization (Cao etal., 2015. Moreover, for the organization, performance measurement acts as a link between the
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