Chapter 9 - Control Measures Flashcards
1
Q
Performance Measurement
A
Use of statistical evidence to determine progress towards specific objective
2
Q
Balanced Scorecard
(Kaplan + Norton)
A
Demonstrates the linkages between getting things right and being sucessful
- Financial - successful financial performance
- Customer - appear efficient and reliable to our cmrs
- Internal Processes - what we must do well to satisfy our stakeholders and cmrs
- Innovation + Learning - what we need to achieve our vision
3
Q
3 basic types of Benchmarking (Seber)
A
- Internal - another department
- Competitor
- Process/Activity - similar process in non-competitor
* Benchmarking doesn’t identify reasons because doesn’t compare competences directly
4
Q
Stretch Targets
A
- Difficult to achieve
- Demotivating
- Take more risks / reduce quality
5
Q
Poor design of targets
(Berry, Broadbent, Otley)
A
- Sub Optimisation - focus on some targets, neglect others
- Myopia - short term target over long term goals
- Ossification - unwilling to change inappropriate measure
- Gaming - fix results e.g. underachieve for easier target
6
Q
Financial Targets
A
- Expected by employees
- Cheap to monitor
- Focus on resource generation
- Comparable across companies
7
Q
Non-Financial Measures
A
- Earlier identification of problems
- Wider view of performance
- More easily undertood by staff
BUT
- More subjective
- More difficult to benchmark against rivals