Skip to content

CMA Final · Strategic Performance Management and Business Valuation · Introduction to Performance Management

Which of the following best captures the scope of performance management in a large Indian group, as opposed to the narrow scope of budgetary control alone?

Performance management has a broad scope: it spans strategy, planning, measurement, feedback, rewards and continuous improvement across the whole organisation, using both financial and non-financial measures. Budgetary control, finance-only variance reporting or senior appraisals are merely parts of this wider integrated process.

  1. AIt is limited to comparing actual spending with the approved budget each month
  2. BIt covers strategy, planning, measurement, feedback, rewards and continuous improvement across the organisation, using financial and non-financial measuresCorrect
  3. CIt deals only with the performance appraisal of senior management by the Board
  4. DIt is confined to the finance function and covers only variance reporting

Explanation

Performance management is an integrated, organisation-wide cycle from strategy to improvement, using multiple measures. Budgetary control is only one tool within it, so options limiting it to budgets, finance or senior appraisals are too narrow.

Did you get it right without looking?

One question tells you little. A timed set on Introduction to Performance Management shows your real accuracy, how long you take and where you lose marks.

Practise Introduction to Performance ManagementFree diagnostic mock

More Introduction to Performance Management questions