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Chapter 11

Performance measurement and control

Outcome

By the end of this session you should be able to:

 describe, calculate from given data, and interpret financial performance
indicators (FPIs) for profitability, liquidity and risk in both manufacturing and
service businesses, and suggest methods for improving these measures

 describe, calculate from given data and interpret non-financial performance
indicators (NFPIs) in both manufacturing and service businesses, and suggest
methods for improving the performance indicated

 explain the causes of, and problems created by, short-termism and financial
manipulation of results, and suggest methods to encourage a long-term view

 describe the main behavioural aspects of performance management

 explain the need to allow for external considerations in performance
management, and describe ways in which external considerations could be
allowed; interpret performance in the light of external considerations

 explain and interpret the balanced scorecard and its elements; the building
block model proposed by Fitzgerald and Moon

 describe, using simple non-numerical examples, the difficulties of target setting
in qualitative areas

and answer questions relating to these areas.

The underpinning detail for this Chapter in your Integrated Workbook can

be found in Chapter 11 of your Study Text

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