In recent years, the issues relating performance measurement, control and strategic planning and management in organizations has received much attention from different profit oriented and non-profit oriented organizations. This paper undertakes an interview with the financial manager of IIUM holding BHD to evaluate the performance management, financial performance measurement and the budgetary control of the company. Furthermore, we would recommend improvements to the current policies of the company and its implementations.
The main motivation behind this survey is to get to know the real lives’ performance and their measurements. In this paper we would discuss the Strategic Performance Measurement’s policy whether it is a centralized or decentralized, the policies that the company uses to make a helping environment for its employees and their performance evaluation techniques. Moreover, the financial performance measurement of the company would be evaluated based on the questions that we ask the representative of the company and we would recommend plans for improvements wherever possible.
According to the relevant information obtained from our interview and researches, the different aspects of an application area, specific area, perspectives, advantages, disadvantages and other tools are analyzed and discussed. Research methodology. The first step in our research method was to identify the policy used by the organization which can be either centralized or decentralized. We particularly targeted the finance and accounting depertment manager for helping us with the project. We conduct face to face interview with the accounting depertment manager.
The interview questionnaire was well written to match our research and was analyzed properly to help us give the necessary information we were looking for as each question was reviewed to serve our sole purpose. We have read some articles on the topics to get more knowledge about strategic performance measurement and control system. Specifically, business performance measurement and control systems are the formal, information-based routines and procedures managers use to maintain or alter patterns in organizational activities.
Measurement systems are comprised of multiple measures. A measure (or metric) is a quantitative value that can be used for purposes of comparison . A specific measure can be compared to itself over time, compared with a preset target or evaluated along with other measures. Since a measure is used for the purpose of comparison, it need not represent an absolute value. Moreover, many BPM systems normalize a measure into a value that promotes comparison not just with itself, but also with other measures.
Measures can be leading or lagging. Lagging measures give feedback on past performance, such as last month’s profit, and typically do not provide insight into future performance. Leading indicators, in contrast, are designed to measure future performance, and more often than not, future financial performance. Measures are also objective or subjective. Objective measures can be independently measured and verified. Subjective ones cannot. Measures are also typically classified as financial or non-financial.
Financial measures are typically derived from or directly related to an account chart of accounts and found in a company’s profit and loss statement or balance sheet, such as inventory levels or cash on hand. Non-financial measures are measures not found in the chart of accounts, such as customer satisfaction scores or product quality measures. Measures are either complete or incomplete. Complete measures capture all the relevant attributes of achievement, whereas incomplete measures do not. Measures are also responsive or not responsive.
Individuals can influence responsive measures, whereas non-responsive measures are outside the influence or control of an individual (such as consumer confidence). Measures may be related to inputs into a process, feedback on the performance of a process itself or they may be related to the outcomes or outputs from the process. Measures may be related to human performance, process performance or market conditions. Some, but not all, measures are directly related to the firm’s strategy and are critical for its successful execution of its strategy.
These are called critical or key performance indicators. Finally, measures can refer to tangible things, often recorded in the chart of accounts, such as inventory levels, accounts receivable balances, employee headcount, or can refer to intangibles such as level of skill or knowledge, creativity and innovation. Company Background: IIUM holding SDN BHD, as part of the International Islamic University Malaysia, is committed to the principle of Value Driven Organization that can meet the need of the present generation without compromising the ability of the future generation to meet their own needs.
Their action is always guided by the needs to make business decisions that demonstrate economic, social and religious responsibilities. Their vision is to be the leading university – based company internationally. IIUM Trading Sdn Bhd has enjoyed an established and solid reputation since its incorporation in 2001. As a successful trading arm of IIUM Holdings, the Company has grown from strength to strength each year by fulfilling the needs of clients proactively and efficiently. IIUM Trading offers multi-verse of products and services.