Financial Planning and Control
Table of Contents
Title page 1
Table of Contents 2
Strategic Management as it Relates to PMM 3
Introduction to Performance Measurement and Management 3
How Modern Performance Measurement Techniques Facilitate PMM 4
Emerging Systems for Performance Measurement 6
The Balanced Scorecard 7
The Impact of Globalization and Cultural Differences on the Application of PMM 9
Conclusion 13
Bibliography 15
STRATEGIC MANAGEMENT ACCOUNTING AS IT RELATES TO PMM
Strategic management accounting is a detailed form of management accounting that oversees all aspects of an organization. The strategic aspect describes how an organization is able to match its capabilities and internally generated information such as budgets, and capacity with external opportunities in order to accomplish the organizations overall objectives, improve competitive advantage while also increasing profitability. The most important developments of effective strategic management accounting involve planning and control. As such, performance measurement and management is a main requirement of the strategic management accounting control objective. While traditional management accounting frameworks relay on financial measures, strategic management accounting observes both financial and non-financial measures. In the following paper, both the financial and non-financial elements of performance measurement and management, hereby referred to as PMM, will be discussed including how modern performance measurement techniques facilitate PMM, as well as the impact of globalization and cultural differences on the application of PMM.
INTRODUCTION TO PERFORMANCE MEASUREMENT AND MANAGEMENT
“It has been long recognized that performance measurement and management is critical for the effective and efficient management of any business. PMM facilitates effective control and correction by reporting the current level of performance, and comparing it with the desired level of
Title page 1
Table of Contents 2
Strategic Management as it Relates to PMM 3
Introduction to Performance Measurement and Management 3
How Modern Performance Measurement Techniques Facilitate PMM 4
Emerging Systems for Performance Measurement 6
The Balanced Scorecard 7
The Impact of Globalization and Cultural Differences on the Application of PMM 9
Conclusion 13
Bibliography 15
STRATEGIC MANAGEMENT ACCOUNTING AS IT RELATES TO PMM
Strategic management accounting is a detailed form of management accounting that oversees all aspects of an organization. The strategic aspect describes how an organization is able to match its capabilities and internally generated information such as budgets, and capacity with external opportunities in order to accomplish the organizations overall objectives, improve competitive advantage while also increasing profitability. The most important developments of effective strategic management accounting involve planning and control. As such, performance measurement and management is a main requirement of the strategic management accounting control objective. While traditional management accounting frameworks relay on financial measures, strategic management accounting observes both financial and non-financial measures. In the following paper, both the financial and non-financial elements of performance measurement and management, hereby referred to as PMM, will be discussed including how modern performance measurement techniques facilitate PMM, as well as the impact of globalization and cultural differences on the application of PMM.
INTRODUCTION TO PERFORMANCE MEASUREMENT AND MANAGEMENT
“It has been long recognized that performance measurement and management is critical for the effective and efficient management of any business. PMM facilitates effective control and correction by reporting the current level of performance, and comparing it with the desired level of
Bibliography: (Source: Amekudzi , 2011) HOW MODERN PERFORMANCE MEASUREMENT TECHNIQUES FACILITATE THE PMM (Source: Neely, 1999) Traditionally, organizations primarily used accounting data as measures of performance EMERGING SYSTEMS FOR PERFORMANCE MEASUREMENT (Source: Pun and White, 2005) Adams, R., Bessant, J., Phelps, R., (2006). “Innovation Measurement Management: A Review”, International Journal of Management Reviews Balanced Scorecard Institute, (2014). Balanced Scorecard Basics. [online]. Available from: https://balancedscorecard.org/Resources/AbouttheBalancedScorecard/tabid/55/Default.aspx. [Accessed: 2014MAR15]. Behn, Robert D Bititci et al, (2008). “Performance Measurement: Questions for Tomorrow” SIOM Research Papers Series, Vol. 005 Iss: 27 Bititci, U.S., Carrie, A.S., McDevitt, L.G., 1997 Bouckaert, G. and Peters, B.G. (2002). “ Performance Measurement and Management: The Achilles’ Heel in Administrative Modernization” Public Performance & Management Review, Vol. 25, No. 4 (Jun., 2002), pp. 359-362 Cooper, D., Ezzamel, M CPA Journal (2005). Management Control Systems in a Global Economy. [online]. Available from: http://www.nysscpa.org/cpajournal/2005/905/essentials/p62.htm. [Accessed: 2014MAR19].