Advanced Performance Management Flashcards
6 cards from real ACCA SP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Advanced Performance Management flashcards as text
Which of the following correctly describes a 'key performance indicator' (KPI)?
Answer: A quantifiable metric that measures progress toward strategic objectives critical to the organisation's success
KPIs are measurable values that demonstrate how effectively an organisation is achieving its key business objectives. They are selected to reflect what truly matters strategically.
Fitzgerald and Moon's 'building block' model applies to:
Answer: Service organisations, using dimensions of results and determinants, with standards and rewards
Fitzgerald and Moon's building block model for service businesses uses: Results (financial performance, competitiveness) and Determinants (quality, flexibility, resource utilisation, innovation), supported by fair Standards and Rewards.
The 'divisional autonomy vs central control' dilemma in large organisations refers to:
Answer: The tension between allowing divisions freedom to make decisions and head office retaining control for coordination and risk management
Decentralisation grants divisions autonomy (speed, motivation, local knowledge) but risks sub-optimal decisions from a group perspective. The balance between autonomy and central control is a core APM challenge.
Which of the following is the primary purpose of 'benchmarking' in strategic performance management?
Answer: To compare performance against best-in-class standards to identify performance gaps and improvement opportunities
Benchmarking identifies gaps between current performance and best-in-class standards, providing the foundation for improvement initiatives and more challenging performance targets.
In the context of APM, 'Big Data' analytics can improve performance management by:
Answer: Enabling real-time, granular analysis of large datasets to identify patterns and predict future performance
Big Data enables organisations to analyse vast, varied and fast-moving datasets in real time, uncovering patterns invisible to traditional reporting and enabling predictive performance management.
Which of the following best describes 'total quality management' (TQM)?
Answer: A philosophy of continuous improvement involving every employee in achieving customer satisfaction through quality
TQM is a management philosophy focused on continuous improvement (kaizen), customer orientation and involvement of all employees in the quality process, aiming for zero defects.