Advanced Performance Management

Paper Code: 
AAF 612
Credits: 
6
Contact Hours: 
90.00
Max. Marks: 
100.00
Objective: 

To apply relevant knowledge, skills and exercise professional judgment in selecting and applying strategic management accounting techniques in different business contexts and to contribute to the evaluation of the performance of an organization and its strategic develoCourse Outcome (COs):

 

Course

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

AAF 612

Advanced Performance Management

Upon successful completion of this course, the student will be able to:

CO 192: Explain Strategic planning and control

CO 193: Estimate External influences on organizational performance

CO 194: Outline relevant skills and exercise professional judgment in selecting Performance measurement systems and design

CO 195: Select the best strategic management accounting techniques for performance measurement

CO 196: Justify and contribute to the Performance evaluation, corporate failure and its strategic development

CO 197: Gain knowledge regarding Japanese business practices and management accounting techniques, including Kaizen costing, Target costing, JIT and TQM.

 

Approach in teaching:

Interactive Lectures, Discussion, Tutorials, Reading assignments

 

Learning activities for the students:

Self learning assignments, Effective questions, Seminar presentation, Giving tasks

 

Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects

 

18.00
Unit I: 
Strategic planning and control
  • Strategic management accounting, Performance management and control of the organization Changes in business structure and management accounting.
  • Effect  of  Information  Technology  (IT)  on  strategic  management, Accounting Other environmental and ethical issues
18.00
Unit II: 
External influences on organizational performance
  • Changing business environment- role of risk and uncertainty in long term strategic  planning  and  decision-making,  risk  analysis  techniques  in assessing business performance such as maximin, maximax, minimax regret and expected values.                                                                              
  • Impact of external factors on strategy and performance-PEST and Porter’s 5 forces model including areas: i) Political climate, ii) Market conditions, iii)  Funding,  impact  of  governmental  regulations  and  policies  on performance measurement techniques used and the performance levels achieved (utility services and former state monopolies).
18.00
Unit III: 
Performance measurement systems and design
  • Performance management information systems
  • Sources of management information- internal and external sources of management accounting, information, their costs and limitations, use of information in planning and controlling activities
  • Recording and processing methods- influence of type of business entity on the recording and processing methods, influence of IT developments Management reports
18.00
Unit IV: 
Strategic performance measurement
  • Performance hierarchy Strategic performance measures in private sector- Application of different, Performance measures- i) Return on Capital Employed (ROCE), ii) Return on Investment (ROI), iii) Earnings Per Share (EPS), iv) Earnings Before  Interest,  Tax,Depreciation  and  Amortisation  (EBITDA),  v) Residual Income (RI), vi) Net Present value (NPV), vii) Internal rate of return and modified, internal Rate of Return (IRR, MIRR), viii) Economic Value Added (EVA TM);
  • Divisional performance and transfer pricing issues Strategic performance measures in not-for profit organizations Non- financial performance indicators  The  role  of  quality  in  management  information  and performance measurement systems- application of Japanese business practices and management accounting techniques, including: i) Kaizen costing, ii) Target costing, iii) JIT and TQM.
18.00
Unit V: 
Performance evaluation and corporate failure
  • Alternative views of performance measurement and management-‘balanced scorecard’ approach, ‘performance pyramid’, work of Fitzgerald and Moon, Performance Prism, application of activity-based management, value-based management approaches to performance management.
  • Strategic performance issues in complex business structures- Strategic models in assessing the business performance of an entity, such as Ansoff, Boston Consulting Group and Porter, problems encountered in planning, controlling and measuring performance levels, e.g. productivity, profitability, quality and service levels, in complex business structures, impact on performance management of the use of business models involving strategic alliances, joint ventures and complex supply chain structures, influence of culture and strategy will influence the adoption of new performance measurement methods and techniques, Predicting and preventing corporate failure- quantitative and qualitative performance measures and models (such as Zscores and Argentina), performance improvement strategies to prevent corporate failure
  • Current developments and emerging issuesàCurrent developments in management accounting techniques-environmental management accounting, lifecycle costing, input/output analysis and activity-based costing, use of benchmarking in public sector performance (league tables), issues surrounding the use of targets in public sector organizations.
  • Current issues and trends in performance management- the changing role of the management accountant in today’s business environment as outlined by Burns and Scapens, contemporary issues in performance management
References: 

• Study material of ACCA – P5

Academic Year: 
2021-2022
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