2 PERFORMANCE MANAGEMENT

Aim

To develop a good understanding of the knowledge required and techniques available to enable managers to measure and manage business performance within their organisation. Both financial and non- financial measures of performance are included in this paper.

Objectives

On completion of this paper candidates should be able to:

• understand how performance measures should be linked to overall organisation strategy
• prepare budgets and use them to control and evaluate organisational performance
• identify and apply techniques that aid decision-making to maximise financial performance
• identify and implement appropriate costing systems and business control systems
• identify and apply techniques to evaluate decisions in relation to costing, pricing, product range, marketing strategy, purchasing and production strategies
• identify and apply non-financial performance measures, and understand the inter-relationships between different performance measures
• understand the behavioural and organisational consequences of using performance measurement and performance management techniques
• identify and apply techniques for evaluating the performance of divisions
• identify and understand issues that may cause performance to fall short of expectations, such as actions of competitors, labour disputes, supply problems, foreign exchange movements and late payment.

For detailed syllabus on paper 2 click here and for study guide click here.