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ACCA Strategic Professional · Advanced Performance Management · Performance hierarchy

Altair Retail uses a management information system in which store managers can alter their own sales figures before they flow into the regional dashboard. Regional directors use the dashboard to set bonuses. Which characteristic of good performance information is most directly compromised?

Reliability and integrity is compromised. When managers can change their own sales figures, the data may be biased or manipulated, so directors cannot trust it for bonus decisions. Daily availability, relevance of sales and a common currency are not the problem in this situation.

  1. ATimeliness, because data is available daily
  2. BReliability and integrity, because the data can be manipulated by those being measuredCorrect
  3. CRelevance, because sales are not a useful measure for retailers
  4. DComparability, because every store reports in the same currency

Explanation

Allowing the people being evaluated to edit the data undermines its accuracy and integrity, so it cannot be relied on for bonus decisions. Daily availability is a strength, sales are generally relevant to retail, and a common currency supports rather than harms comparability.

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