Building Block model
Fitzgerald and Moon’s Building Block model links performance dimensions, standards and rewards, particularly in service organisations. Dimensions cover financial performance, competitiveness, quality, flexibility, resource utilisation and innovation. Standards should support ownership, achievability and equity; rewards should have clarity, motivation and controllability. The model helps connect what matters with fair targets and incentives, but does not remove measurement difficulty or the need to tailor measures to the service.
Worked example
A courier selects reliability and resource-use measures, sets targets staff accept as achievable and fair, and rewards controllable performance rather than only total revenue.
Common mistake
Appraisal equity means fairness, not shareholders’ equity. Do not confuse the model with a generic strategy–structure–culture framework.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | APM | Direct | September 2026–June 2027 |
| ACCA | PM | Direct | September 2026–June 2027 |