Forums › ACCA Forums › ACCA APM Advanced Performance Management Forums › What is difference between Misrepresentation and misinterpretation?
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- December 6, 2012 at 2:15 am #56205
Found.
Measure fixation implies behaviour and activities in order to achieve specific performance indicators which may not be effective. For example, the recruitment of less well qualified undergraduates in order to boost the student:staff ratio may result in ongoing problems of high student drop-out rates and associated counselling problems.
Misrepresentation refers to the tendency to indulge in ?creative? reporting in order to suggest that a performance measure result is acceptable. For example, a statistic that 80% of responses indicated satisfaction with the organisation of a course, when only 10% of the students have responded to the question.
Misinterpretation involves failure to recognise the complexity of the environment in which the organisation operates. In Higher Education, the existence of multiple principals e.g., government, employers and students creates a complex environment in which the objectives of the principals may not coincide. The government may wish greater numbers of students into Higher Education where as wide a range of courses as possible is offered. Employers may wish to focus on obtaining a satisfactory number of graduates qualified in disciplines suited to their (the employer) needs. Students may wish a quality educational environment with considerable support through staff and services on offer.
Gaming is where there is a deliberate distortion of the measure in order to secure some strategic advantage. This may involve deliberate under performing in order to avoid higher targets being set. For example, restriction of departmental consultancy earnings in one year in order that the target for the next year will not be increased and/or to hold back consultancy possibilities which are ?in the pipeline? in order to create slack.
Ossification which by definition means ?to harden? refers to an unwillingness to change the performance measure scheme once it has been set up. A university example could be a standard set of questions in a questionnaire to test student satisfaction with a course. ?Good? responses may simply indicate a poorly structured questionnaire, rather than a high degree of student satisfaction.
January 13, 2013 at 9:32 am #113041The above notes is quite good in addition to that we can say that misrepresentation is a fraud were as misinterpretation is not.
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