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Dear P5 tutor,
After reading June 2012, Q5, I’m confused about the difference between performance measurement and performance management. The answer used in performance measurement seems also can use for performance management and vice versa.
My understanding for performance measurement is dealing with number whereas performance management is dealing with people. Could you explain more about the differences between both?
Thanks a lot.
I think the ACCA answer does point to ‘numbers’ for measurement and ‘people’ for management.
For example, under measurement are points like: ‘Callisto has the problem of collecting and monitoring data about its
employees working from home and the outsourcing partners’. Ie collecting numbers. ‘Even with reviews of system logs to identify the hours that staff spend logged in to the systems, there are still the difficulty of measuring staff outputs in order to ensure their productivity’ once again, numbers.Under management ie how to improve the numbers there are statements like: ‘The performance management of employees is complicated due to the inability of management to ‘look over their shoulder’ since they are not present in the same building’ ie hard to supervise and thereby manage people to improve their performance.
Dear Tutor,
I have attempted this question twice yesterday and I am still battling with it. The scenario is so complex that if you are not familiar with the industry, it is difficult to relate to the scenario.
But why would the examiner choose an industry that is so specialised? It is not really testing your knowledge of P5.
Your comment would be highly appreciated.
I think the fact they are selling local hand-craft items is irrelevant. Essentially this is an on-line retailer that has outsources many of its functions. Even their employees largely work from home. The main problems with any such organisation will centre on communication and coordination and ensuring that all contributors, whether oursouce companies or tele-working employees, perform as they should.
It is these areas that the answer conventrates on.
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