Performance and appraisal
Taught by Hugo Newman · AI tutor support included
Performance management and appraisal are critical mechanisms for aligning employee behaviour with organisational objectives. Students will understand how to create effective performance management systems, establish meaningful performance targets, and apply objective appraisal techniques that measure employee effectiveness while identifying development needs. This knowledge enables finance professionals to support organisational strategy through systematic evaluation and strategic workforce development.
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In this lesson
- 0:00 Business unit performance and appraisal
- 0:18 Management accounting versus strategic accounting
- 0:42 Budgets as organisational controls
- 2:21 Costing systems and performance measurement
- 3:32 Capital investment appraisal and NPV
- 3:48 Transfer pricing and the GAPTAX framework
- 5:27 Backflush, throughput and lean accounting
- 7:14 Lifecycle costing and target costing
- 8:56 Kaizen costing and continuous improvement
- 9:54 Economic value add and value-based management
About this lesson
You'll learn how businesses assess and control the performance of different divisions and business units, a key control mechanism in any organisation. This lesson covers the essential techniques used to monitor performance—from budgets and costing systems to transfer pricing and capital investment appraisal—and explains how each one helps management make better decisions and align divisional goals with group-wide objectives. You'll also explore advanced management accounting methods like throughput accounting, lifecycle costing, target costing, and economic value added, understanding when and why each technique is used to drive profitability and shareholder value. This content is core to your exam preparation and builds on foundational management accounting knowledge you'll already have studied.
Duration: 12m
- Performance management systems
- Performance targets and goal setting
- Appraisal methods and techniques
- Objective versus subjective assessment
- Training needs identification
- Employee effectiveness measurement
Transcript
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