澳大利亚留学生英语会计案例分析报告：Blue Moon case study – PMRS

澳大利亚留学生英语会计案例分析报告：Blue Moon case study – PMRS

 

 

Executive summary

Performance evaluation and incentive mechanism is the central issue of human resource management, which is conducive to manage and control MB’s differentiation strategy, through which the competitive advantage can be obtained. The results from the implementation of such PMRS in 2013 indicated that the achievement of those budgets and standards target was much lower than the expected target. Therefore, the previous PMRS of MB should be restated, and contemporary system should be developed. Therefore, this report was composed to restate the previous PMRS of MB and put forward some suggestions for the development of contemporary system. 执行概要

绩效评价和激励机制是人力资源管理的核心问题，这有利于管理和MB的差异化策略的控制，通过它可以获得竞争优势。2013从这样的PMRS实施结果表明，实现这些预算和标准的目标是比预期目标要低。因此，以往采用的MB应该重申，和当代的系统开发。因此，本报告是由重申以前的PMRS MB和提出当代系统发展的几点建议。

 

 

Table of contents

Executive summary 1

1 Introduction 3

2 The definition of PMRS 3

2.1 What is PMRS? 3

2.2 Three elements included in PMRS 4

3 The significance of PMRS 4

3.1 PMRs: a significant part of the Management Accounting System 4

3.2 A directional influence on behavior 4

3.3 A motivational influence on behavior 5

4 The limitations of the proposed PMRS 5

4.1 Lack of feedback mechanism 5

4.2 The lack of coordination mechanism 5

4.3 The set of major key success factors (KSFs) is unreasonable 5

5 The specific dysfunctional behaviors Blue Moon's three Directors have engaged in and their causes 6

5.1 There is no enough time for Creative Director to make all prototypes meet the standards 6

5.2 Capital is limited for Production Director to buy better equipment and hire higher skilled workers 6

5.3. The KSFs for the Distribution Director are impossible to be achieved. 7

5.4. The causes for such dysfunctional behaviors 7

6. Recommendations for new performances 7

6.1 The improvement of PMRS previously used 7

6.2 New PMRs for better control 8

References 8

篇目

执行摘要1

1引言3

2公共流动无线电话3的定义

2.1什么是公共流动无线电话？ 3

2.2包括三个要素PMRS4

3 PMRS4的意义

3.1内地来港定居未足七年人士的一个重要组成部分，管理会计系统4

3.2影响定向第四行为

3.3动机影响行为5

4建议的公共流动无线电话5的局限性

4.1缺乏反馈机制5

4.2缺乏协调机制5

4.3重大关键成功因素的集合（关键成功因素）是不合理的5

5的具体功能失调的蓝色月亮的三位董事从事的行为及其原因6

5.1有没有足够的时间进行创意总监，以使所有的原型符合标准6

5.2资本有限的生产总监，以购买更好的设备和聘请更高的技术工人6

5.3。分销总监的关键成功因素是不可能实现的。 7

5.4。这种不正常的行为7的原因

6。新的表演7建议

6.1改善内地来港定居未足七年人士先前使用的7

为了更好地控制86.2内地来港定居未足七年新

参考8

 

1 Introduction 

The intention of this report is to describe how the department directors of Blue Moon (MB) were evaluated and rewarded using performance measurement and reward systems (PMRS). The PMRS traditionally used by MB focused on three key main areas – costs, time and ROI. Cost-based performance measures were derived from cost budgets prepared for each department, containing both the cost budgets and resulting performance measures and targets. In addition, two time standards such as “Average Time to Create Prototype” and “Average Time to Create Boat” were set. Such performance measures and targets were established to reduce the costs such as production costs and improve the production efficiency, with the result that the competitive advantages can be gained. However, results from the implementation of such PMRS in 2013 indicated that the achievement of those budgets and standards target was much lower than the expected target. Therefore, I was hired to examine the PMRS of MB to make sure whether it is reasonable. In this report, the business’ means of competitive advantages, business mission and key success factors would be focused on. 

 

 

2 The definition of PMRS

2.1 What is PMRS?

     The so-called performance measurement refers to the task completion, job responsibilities fulfillment degree and the development of staff using certain evaluation methods, and the evaluation results are then fed back to the employees (Bourne and Neely, 2003, p. 3; Neely, et al., 1995, p.86), helping to monitor and control the corporate (Kellen and Wolf, 2003, p. 5). The so-called PMRS is a kind of evaluation system which is composed of a set of accurate performance measures and reward indexes, and the actual performance were compared with the relative target, if needed, reward positively (Chenhall and Langfield-Smith, 2003, p.117). The establishment of performance evaluation is conducive to evaluate the working station of the staff. The measurement system is relative to the production efficiency (Gharajedaghi, 2011, p. 331). 

 

 

2.2 Three elements included in PMRS

    Commonly, 3 elements were contained in PMRS, such as: 1) The factor (performance) that MB intends to measure, for instance, the quality, innovation of prototype for the creative department; 2) A specific performance targets that MB imposes on the Directors, e. g. MB urges the creative department to enhance the quality and innovation of prototype to some extent 3) A reward attached to the achievement of intended performance goals, for example, when, the creative department accomplish the targets posed by MB, then it will be rewarded.

 

 

3 The significance of PMRS

3.1 PMRs: a significant part of the Management Accounting System

The PMRs is a significant part of the management accounting system of MB, which is conducive to the accomplishment of MB’s business objectives, the enhancement of the innovation of MB. In addition, the competitive advantage can be obtained through the implementation of PMRS.

 

 

3.2 A directional influence on behavior 

The key success factors (KSFs) are those specific performance goals imposed by MB to its directors, including both financial factors (e.g. operating income growth rate) and non-financial factors (the production quality). These directors should perform to achieve the respective target. Through this way, MB can impose directional influences on Directors.#p#分页标题#e#

 

 

3.3 A motivational influence on behavior 

If certain director achieve the performance targets posed to him, them he should be rewarded. Then these incentives will motivate the all directors to obtain higher performance. Thus, MB can impose motivational influences to its directors using PMRS.

 

 

4 The limitations of the proposed PMRS 

4.1 Lack of feedback mechanism

The proposed PMRs in MB are lack of feedback mechanism. The financial measures such as “Sale Revenue per Quarter” are often reported at the end of each quarter, so they are not timely. Thus, it is recommended that, the achievement of some KSFs should be looked into timely through investigation, and the results obtained from investigation should be reflected to the related departments. 

 

 

4.2 The lack of coordination mechanism

There were no coordination mechanisms between different KSFs of the departments, which caused some conflicts. There are close relationships between the four departments. For example, creative department provides the prototypes to the production department. Therefore, there should be coordination mechanisms among those departments. 

 

 

4.3 The set of major key success factors (KSFs) is unreasonable

The proposed KSFs such as Profit, and its components, costs and revenues are not useful for the control of MB. Because financial consequences rather than causes were described using such factors. In addition, the only use of financial factors profit，budget，revenue and cost is incomplete, unscientific. For instance, if too much attention is paid to cost reduction and the necessary investment (e. g. the investment for the improvement of innovation, equality) is rejected, the customer satisfaction and profit should be declined. From this we can see that sales budgets and profit budgets emphasis only one perspective of departments’ performance. 

 

 

5 The specific dysfunctional behaviors Blue Moon's three Directors have engaged in and their causes 

 

 

5.1 There is no enough time for Creative Director to make all prototypes meet the standards

   It is a waste of time for the creative department to make the prototypes and guarantee the quality. In addition, the production department always urges the creative department to provide the prototypes as quickly as possible, because it wants to achieve the KSFs for them quickly. This brings great stress to the creative department, thus creative department always can’t make the prototypes meet the standards in order to meet the requirements of the production department.

 

 

5.2 Capital is limited for Production Director to buy better equipment and hire higher skilled workers 

    Capital is always limited for Production Director to buy better equipment and hire higher skilled workers. The development strategy of MB urges the production director to high quality, innovative boats for the clients. The achievement of such KSFs needs the better equipment and higher skilled workers, which should be supported by the enough capital. In addition, the executive and account director Laura does not agree with such new investment in order to reduce the cost budget. But, if there is no enough capital, there is no better equipment and higher skilled workers. Thus, the production director considers that they can’t achieve the KSFs target without enough capital support. 

 

 

5.3. The KSFs for the Distribution Director are impossible to be achieved. 

    The distribution director thinks that the ROI target does not reflect the new strategic direction, thus these targets are impossible to be achieved. In addition, he was urged to decline the client cost budget, which made him hard to meet the requirement of the dealers and clients of MB. Therefore, the customer value and business mission of MB should be encouraged to be declined for such performance measures (Cokins, 2004, p. 7). 

 

 

5.4. The causes for such dysfunctional behaviors

    The proposed PMRS are not in line with the development strategy, which make such dysfunctional behaviors. In addition, the KSFs set for different departments are always conflicting. This brings conflicts. The achievement of KSFs for certain department should block the achievement of KSFs for another department. 

 

 

6. Recommendations for new performances 

 

6.1 The improvement of PMRS previously used

    In order to change the previous PMRS and develop Contemporary System, some guidelines are suggested to be followed.  Firstly, non-financial and financial measures should be both accepted. For instance, the customer satisfaction, the quality of the boats produced, and the innovation of the boats and processes, etc. should be carefully looked into. If the customer satisfaction, then the clients should leave and MB should suffer from lost. Second, the system should be strategy-oriented. Performance measures may be selected directly to measure areas that provide competitive advantage and that increase MB’s customer value. Lastly, the measures should be simple. In the other words, measures should be understandable and easy to communicate to directors. 

 

 

6.2 New PMRs for better control 

   The KSFs for all department directors should be integrated as a whole, but not completely independent. For example, it is not suggested to run after the production efficiency blindly ignoring the quality, innovation of boats produced. Therefore, it is correct to measure the quality, innovation of the boats in the new KSFs identified by Rob. In addition, the cost budget should involve all departments to enhance the competitive advantage and the cost should be controlled flexibly. The capital to improve the quality, innovation of boats produced and increase the customer value should not be declined. 

 

 

References 

Bourne, M., Neely, A., Mills, J. and Platts, K 2003, ‘Implementing performance measurement systems: a literature review’, Int. J. Business Performance Management , Vol. 5, No. 1, pp.1-24.

Chenhall, R. H., Langfield-Smith, K 2003. Performance Measurement and Reward Systems, Trust, and Strategic Change. Journal of Management Accounting Research, Vol. 15, pp. 117.  

Cokins, G 2007, How to Measure and Manage Customer Value and Customer Profitability, A SAS White Paper (website: www.sas.com), viewed 23 April 2013, http://www.sas.com/offices/europe/slovakia/events/pdf/profitability.pdf.

Gharajedaghi, J 2011. Systems Thinking (3rd Edition), Morgan Kaufmann Press, San Francisco, pp. 331. 

Kellen, V; Wolf, B 2003, Business Performance Measurement-At the Crossroads of Strategy, Decision-Making, http://www.ukassignment.org/ Learning and Information Visualization, February, viewed 23 April 2013, <http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.105.7194&rep=rep1&type=pdf>. 

Neely, A., Gregory, M., Platts, K 1995, "Performance measurement system design: A literature review and research agenda", International Journal of Operations & Production Management, Vol. 15 Issue: 4, pp.80 - 116.