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Dear Tutor,
I’ve seen this term come up a few times but what chapters would this cover in the Kaplan text? I’m sure I’ve covered the subject, but when asked what Performance Measurement System design I’d struggle.
Is it how the idea that performance should be linked to long term growth, the problems in doing so, dysfuntional behaviour etc?
thanks
David
It is important that performance is measured using a range of measures – both financial and non-financial (such as measures of quality).
The managers are likely to focus their attention to the areas on which they are being measured, and so it is important that the measures are designed well. They should be designed to include those areas that are of key importance to the business, and should also be encouraging the managers to do what is good for the business as a whole.
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