Summary ACCA Performance Management, ISBN: 9781509716579 ACCA

PM – Organisational Performance
Contents
Management Reports ................................................................................................................. 2
CONTROLS OVER MANAGEMENT REPORTS ............................................................................ 2
SENSITIVE INFORMATION ........................................................................................................ 3
PM - Management Accounting ................................................................................................... 4
Sources of Management Information ..................................................................................... 4
USING MANAGEMENT INFORMATION AS A CONTROL ........................................................... 5
THE COSTS OF MANAGEMENT INFORMATION ....................................................................... 5
LIMITATIONS OF USING EXTERNALLY GENERATED INFORMATION ........................................ 6
Management Info & Reports ...................................................................................................... 7
DEFINITION: ............................................................................................................................. 7
TYPES OF PLANNING: ............................................................................................................... 7
TYPES OF MANAGEMENT SYSTEMS: ....................................................................................... 8
SOURCES OF MANAGEMENT ACCOUNTING INFORMATION: ............................................... 10
INFORMATION SYSTEMS CONTROLS: .................................................................................... 11
Big Data and Data Analytics ...................................................................................................... 12
BIG DATA................................................................................................................................ 12
DATA ANALYTICS ................................................................................................................... 17
SUMMARY.............................................................................................................................. 19




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,Management Reports
Management reports are used for internal decision-making. Management reports should:

 Be communicated through the appropriate channels;

 Contain good quality information;

 Be easy to use;

 Be understood and be relevant to users;

 Be complete;

 Be worth the time and other resources invested to produce them; and

 Be timely.

CONTROLS OVER MANAGEMENT REPORTS

There must be controls over the production of management reports, otherwise time and
money could be wasted and sensitive information leaked. Before a report is started, the
following should be undertaken:

 A cost/benefit analysis ensuring the benefits of the report outweigh the costs of making it.

 Standardising the formatting of all the organisation's reports, ensuring consistency and
reduced chances of misinterpretation.

 Users’ requirements must be clear and understood. After the report is completed, these
requirements should be checked against the report.

The report should clearly outline its recommendations and actions that need to be taken by
management. Moreover, the writers must be clearly identified – transparency and
accountability will result in more accurate information.

If a company writes a report, it is investing time and effort. Therefore, reports should only be
written if they will give new information.




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, SENSITIVE INFORMATION

The information contained in management reports is often confidential to both users external
and internal to the organisation. Therefore, controls should be put in place to protect sensitive
information. A few examples of possible controls include:

 Information should only be given to the relevant parties, nobody else;

 Employees should sign confidentiality agreements preventing them from sharing sensitive
information with third parties;

 Securing all sensitive computer files with a secret password, not one that everyone knows;

 Holding all sensitive reports in a safe place that can be locked;

 The company's information systems should be protected with firewalls;

 Encryption – so hackers cannot read the information;

 Anti-virus and anti-spyware software; and

 Personal data must be protected under data protection and never given to third parties.




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