Managerial Accounting: Performance Measurement at CSL Limited

This report examines the performance measurement systems employed by CSL Limited, a global biotechnology company. It explores how these systems, which include both financial and non-financial measures, affect the ethical behavior and organizational culture within CSL. The report highlights the importance of these systems, particularly given the nature of CSL's products, and discusses the impact of globalization and strategic alignment on the company's approach to performance measurement. It also identifies the key measures that influence management behavior and contribute to the company's long-term success, employee motivation, customer satisfaction, and market share in the biotechnology sector. The report emphasizes the significance of non-financial performance measures in achieving desired outcomes aligned with stakeholder aims.

Running head: MANAGERIAL ACCOUNTING
MANAGERIAL ACCOUNTING
Name of the Student
Name of the University
Author Note

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About the Organization and Its Policies
The main objective of this paper will be to discuss about the performance
measurement systems and their effect on the ethical behaviour and the culture of the
organization selected for this paper, which is CSL Limited. It is a biotechnology organization
having its operations worldwide. The company was founded in 1916 and having headquarter
in Parkville, Melbourne, Victoria. The business house is specialised in researches,
manufacturers, developers and marketers the products to provide treatment and cure serious
medical conditions in human. The products ranges of this organization from biotechnology
industry includes blood plasma derivatives, antivenom, vaccines and cell culture reagents
which are used in different genetic and medical research and manufacturing applications
(CSL Limited 2020).
Performance Measurement System
The term performance measurement system can be described as a small and precise
collection of financial as well as non-financial measures that help to support the decision-
making process of a business house by collection, processing and evaluating the quantified
data of performance information of that business entity. Some of the examples of these are
balanced scorecards, industry dashboards and ISO standards (Eswaramurthi and Mohanram
2013). In this context, it can be said that as CSL Ltd. deals with biotechnical products which
can be termed as emergency products, the performance measurement system affect the ethical
behaviour along with the culture of this company a lot. All these are sensitive products and
any unethical measures may lead to an accident to a person, which may result to death of that
human being. Unethical practices also affect the organizational culture of this company, who

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firmly follows a disciplined approach throughout their overall business operations (Keong
Choong 2013).
Identification
According to this context, it can be said that the Performance measurement matrix
will possess the greatest motivational impact on behaviour of the management of this
organization of CSL Ltd. As this organization is a multinational organization, the
involvement of the term globalization is hugely involved within the organizational culture of
this business house. Targets are set according to the organizational strategies that are
followed by this company. Globalization has led to follow non-traditional approach, where
the focus has shifted from low costs of production to flexible, quality and delivery of the
products and the same is applicable for this business house as well. Improvement of quality
of the products is the most important factor which is followed by CSL Ltd (Pekkola and
Ukko 2016).
Financial and Non-Financial Measures
Financial measures involve measurement of profits, revenues and cash flows. These
are used to determine the usage of available resources effectively and efficiently by a
company to earn operating income and revenues. On the other hand, the non-financial
performance measurement involves the lack or deficiencies in the particular areas of
businesses which possess the power of affecting in the long-term success of that business
house from the strategic point of view along with the qualitative aspects (Teeratansirikool et
al 2013). In this context, it can be said that non-financial performance measurement is
followed by CSL Ltd., as it helps to reach the desired outcomes like long-term success, and is
matched with the aim and focus of the shareholders. It helps to focus on the employee

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motivation as well as satisfaction and retention of the customers of CSL Ltd. apart from
product development and maintaining the market share that is enjoyed by this organization in
the global biotechnological market place.

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Reference
Anon, (2020). CSL Limited. [online] Available at: https://www.csl.com/ [Accessed 14 Jan.
2020].
Eswaramurthi, K.G. and Mohanram, P.V., 2013. Improvement of manufacturing performance
measurement system and evaluation of overall resource effectiveness. American Journal of
Applied Sciences, 10(2), p.131.
Keong Choong, K., 2013. Understanding the features of performance measurement system: a
literature review. Measuring Business Excellence, 17(4), pp.102-121.
Pekkola, S. and Ukko, J., 2016. Designing a performance measurement system for
collaborative network. International Journal of Operations & Production
Management, 36(11), pp.1410-1434.
Teeratansirikool, L., Siengthai, S., Badir, Y. and Charoenngam, C., 2013. Competitive
strategies and firm performance: the mediating role of performance
measurement. International Journal of Productivity and Performance Management, 62(2),
pp.168-184.