Performance Management and evaluation - Performance measurement
4 important questions on Performance Management and evaluation - Performance measurement
What is a performance management and evaluation system?
It is a set of procedures that account for and report on both financial and non financial performance so that a company can identify how well it is going, where it is going, and what improvements will make it more profitable.
What is performance measurement?
The use of quantitative tools to gauge an organization's performance in relation to a specific goals or an expected outcome.
What is a responsibility centre?
An organizational unit whose manager has been assigned the responsibility of managing a portion of the resources.
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Discretional costs centers
Accountable for: Controllable costs only, the links between the resources and the resulting products or not well defined
Performance measured: Compare actual non-costs-based measures with targets. Determine compliance with pre approved budgeted spending limits
EG: Administrative activities: Accounting, HR, research and development.
The question on the page originate from the summary of the following study material:
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