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Extra info for ACCA P5 Advanced Performance Management: Study Text
6 How performance management fits into strategic planning and control as As business environments become increasingly dynamic and competitive, it is increasingly important for managers to develop coherent business strategies and to have tools and processes in place which provide relevant and reliable information to support strategic decision making, planning and control. ) cc This need for information is linked to the importance of performance management in strategic planning and control. Performance management is a way of trying to direct and support the performance of employees and departments within an organisation, so that they work as efficiently and effectively as possible.
Ial ym a Exam focus point ter Yet, these long-term, group-wide goals and plans are unlikely to have immediate relevance for the operational staff at each of BMW's manufacturing and production sites. Their focus is more likely to be on the short-term operational issues which affect the number and quality of cars they can produce, and therefore their ability to meet more short-term customer demands and market requirements. The need to link strategy and operations is also an important idea behind the balanced scorecard (which we will look at in Chapter 13 later in this Study Text).
They also buy a bottle of wine and two bars of chocolate. These were not on their original list. Answer cc We would describe making the list as planning, but it could also be an example of decision making because Mr and Mrs Average have to decide what items will go on the list. Ticking off the items is control and choosing alternatives is 'control action' involving further decision making. ea You should be able to answer the various parts of this question without further help. 1 Information for planning, control and decision making fre Key terms Robert Anthony, a leading writer on organisational control, suggested what has become a widely used hierarchy, classifying the information used at different management levels for planning, control and decision making into three tiers: strategic planning, management control and operational control.