Analysis of Contemporary Accounting Practices: Performance Measurement

This report delves into the critical role of performance measurement systems within organizations, particularly in the context of contemporary accounting practices. It begins by defining performance management and its importance in evaluating outcomes and productivity. The report explores effective performance management strategies, emphasizing the significance of delegation and the use of tools like the balanced scorecard. It highlights the role of performance measurement in achieving organizational goals, including monitoring, change management, and reward systems. Various performance measurement models, such as the balanced scorecard and activity-based costing, are discussed. The report then examines assessment tasks, favoring group work for its emphasis on cooperative learning and critical thinking, while critiquing case studies for their limited practical application. The conclusion reinforces the necessity of effective performance measurement for achieving business objectives and introduces ideas for workplace improvements.

RUNNING HEAD: Contemporary Accounting Practices 1
Contemporary Accounting Practices

Contemporary Accounting Practices 2
Table of Contents
Introduction......................................................................................................................................3
Effective Performance Management...............................................................................................3
Role of performance measurement..................................................................................................3
Assessment task...............................................................................................................................4
Conclusion.......................................................................................................................................4
References........................................................................................................................................5

Contemporary Accounting Practices 3
Introduction
This report describes the role of performance measurement system in an organization. As
performance management system is defined as regular estimations of results and outcomes which
creates reliable information on the viability and productivity of projects. Performance refers to
the output results and their outcomes acquired from procedures, products and services that allow
assessment and correlation identified with objectives, previous outcomes and different
organizations. This report clarifies the part of performance measurement with a specific end goal
in order to ensuring its compliance by decision makers in an organization.
Effective Performance Management
According to Gimbert et al. (2010), to manage and convey authoritative resources so as to
convey and satisfy hierarchical goals is an essential part of senior finance and management
experts. There are many tools, methods and structures have advanced to help managers in this
chain, value based management and add up to quality based management, total quality
management, the performance and so on. In order to get effective performance results, there is
need of delegation authority because through delegation a manager is enables to segregate the
work and allocate it to its subordinates. There are well known approach available which
measures the performance in the organization such as balance scorecard. Balance scorecard is an
effective tool for managing the performance in the organization. In other words, it offers a way
of communicating and implementing a strategy within the organization.
Role of performance measurement
This part will cover the importance of performance estimation, technique outline, scorecard and
its part in adjusting authoritative objectives to the procedure. According to Grigoroudis et al.
(2012), performance measurement assumes a huge part in the achievement of an association and
that it gauges the accomplishment of the system. The business performance measurement has a
variety of uses which are as follows:
To monitor and control

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To drive change
To maximize the adequacy of the change exertion
To reward and to discipline
There are different structures models accessible for assessing the business performance from a
variety of origins. Structures are those ways to deal with estimation that business received
frequently with critical assorted variety in their plan and utilize (McDavid et al, 2012). The well-
known frameworks are balance scorecard, activity based costing and customer value analysis.
These models are considered as a strategic performance management system that links
performance to strategy using a multi dimensional set of financial and non-financial performance
measures. Performance measurement is essential keeping in mind the end goal to make the
sustainable success and is all inclusive to all organizations regardless to size, sort and area.
Strategies and plans should be informed by quantitative and subjective experiences and sound
bits of knowledge and a sound comprehension of the external competitive environment which
includes customers and as well as internal organization performance.
Assessment task
In my opinion the assessment task which completed in Macquaire and also a good measure for
achieving the effective performance is group work. Group work emphasizes cooperative
learning, critical thinking, and basic assessment and is a significant preparation for the work
environment. (Taticchi et al., 2012). You can influence utilization of corresponding abilities, to
develop your comprehension through cooperation discussion and ,manage a scope of
perspectives in this way that will improving your basic critical thinking. Group work enalbles
you to create team skills and enthusiasm to learn with a range of people. On the other hand,
assessment task of case studies which was not a good measure of achieving effective
performance and effort because it only emphasizes on theoretical ideas to practical contexts.
Case studies only see the relevancy of academic ideas.

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Conclusion
From this report, it has been concluded that for achieving the business objectives successfully, a
effective performance measurement is essential in the organization which enables the employees
to perform their best. This report provides the well-known models of performance measurement
which help us to initiate new ideas and think differently for the workplace.
References
Gimbert, X., Bisbe, J. & Mendoza, X., 2010. The role of performance measurement systems in
strategy formulation processes. Long Range Planning, 43(4), pp.477-497.
Grigoroudis, E., Orfanoudaki, E. & Zopounidis, C., 2012. Strategic performance measurement in
a healthcare organisation: A multiple criteria approach based on balanced
scorecard. Omega, 40(1), pp.104-119.
McDavid, J.C., Huse, I., Hawthorn, L.R. & Ingleson, L.R., 2012. Program evaluation and
performance measurement. Sage.
Taticchi, P., Tonelli, F. & Cagnazzo, L., 2010. Performance measurement and management: a
literature review and a research agenda. Measuring business excellence, 14(1), pp.4-18.