Q/ Figure/
Module Part REF Index Knowledge of Questions Page Index
M5 Module 5: Performance management 220
M5 Part A Role of performance management 220
M5 Part A What is Performance and Performance management 221
M5 Part A Performance 221
M5 Part A Performance measurement 221
M5 Part A Other aspects of performance 221
M5 Part A Performance management 221
M5 Part A Performance management and its links to strategy 222
4 Performance dimensions:
1. Financial measures
2. Non-financial but quantitative
3. Subjective judgements and
opinions
4. Combine financial and non-
M5 Part A Figure 5.2 Performance dimensions financial quatitative terms 222 Figure
Performance management and its
M5 Part A Example 5.1 Performance reporting by Event Hospitality and Entertainment Ltd links to strategy 223 Question
M5 Part A Financial Performance Management 223
M5 Part A Figure 5.3 Ratios for financial performance 5 Ratios for financial performance 224 Figure
Comparison of approaches to performance between financial
M5 Part A Table 5.1 accounting and strategic management accounting FR VS SMA 224 Table
M5 Part A Non-Financial Performance Management 225
M5 Part A Measurability and reporting of performance 225
M5 Part A Example 5.2 Safety index Measurability and reporting of 226 Question
M5 Part A Example 5.3 Performance reporting by Victoria Police performance 226 Question
1. Value creation
2. Performance and Sustainability
M5 Part A Multiple roles of performance management 3. Signalling 227
M5 Part A Performance—a process of value creation 227
M5 Part A Example 5.4 Value creation at Apple Inc. 228 Question
M5 Part A Example 5.5 Value creation at Woolworths 228 Question
Performance management role 1.
Mega Markets Ltd 1). Explain the value creation process for Mega
Value creation
Markets. 2). Why is its value creation process now facing competition
from online sales? 3). What can the company do in the face of online
M5 Part A Question 5.3 competition? 229 Question
1. CSR and sustainability
2. Triple-bottom-line reporting
3. GRI Standards
4. Integrated Reporting
M5 Part A Performance and Sustainability 5. XBRL 230
M5 Part A Figure 5.4 Sustainability in relation to performance 230 Figure
M5 Part A Example 5.6 Sustainability at Newcrest Mining Performance management role 2. 231 Question
M5 Part A GRI Standards Sustainability 232
M5 Part A Integrated Reporting 232
M5 Part A XBRL 233
1. Governance, Risk and
Performance Management
2. Ethics and Performance
M5 Part A Signalling Management 233
M5 Part A Example 5.7 Risk management and signalling at Westpac 234 Question
Performance management role 3.
M5 Part A Example 5.8 HIH Insurance 234 Question
Signalling
M5 Part A Example 5.9 Dick Smith Group 235 Question
M5 Part A Governance, Risk and Performance Management 236
M5 Part A Figure 5.5 Relationship between elements of the management control system Management control system 238 Figure
M5 Part A Ethics and Performance Management APES 110 Code of Ethics 238
Ethics and performance
M5 Part A Example 5.10 WorldCom, Enron and Arthur Andersen management 239 Question
1. Agency Theory
M5 Part A Theories related to performance management 2. Contingency Theory 240
M5 Part A Agency Theory 240
M5 Part A Contingency Theory 241
Comparison of control systems and performance measures for large
M5 Part A Table 5.2 and small food retailers Contingency theory 241 Table
M5 Part B Strategy, management control and performance management 242
M5 Part B Performance management and control-their role in strategy 243
1. Cost leadership
2. Differentiation
M5 Part B Porter 3 generic strategies for competitive advantage 3. Focus 243
Performance management and
M5 Part B Example 5.11 Performance measures and the value chain—a retail store example value chain 244 Question
Mega Market 1). How would you describe Mega Markets’ strategy? Performance mgt and 2). Porter’s
2). Compare the value chain for Mega Markets with one of its Generic strategies and 3). Value
M5 Part B Question 5.6 international online competitors. chain 244 Question
Module Part REF Index Knowledge of Questions Page Index
M5 Module 5: Performance management 220
M5 Part A Role of performance management 220
M5 Part A What is Performance and Performance management 221
M5 Part A Performance 221
M5 Part A Performance measurement 221
M5 Part A Other aspects of performance 221
M5 Part A Performance management 221
M5 Part A Performance management and its links to strategy 222
4 Performance dimensions:
1. Financial measures
2. Non-financial but quantitative
3. Subjective judgements and
opinions
4. Combine financial and non-
M5 Part A Figure 5.2 Performance dimensions financial quatitative terms 222 Figure
Performance management and its
M5 Part A Example 5.1 Performance reporting by Event Hospitality and Entertainment Ltd links to strategy 223 Question
M5 Part A Financial Performance Management 223
M5 Part A Figure 5.3 Ratios for financial performance 5 Ratios for financial performance 224 Figure
Comparison of approaches to performance between financial
M5 Part A Table 5.1 accounting and strategic management accounting FR VS SMA 224 Table
M5 Part A Non-Financial Performance Management 225
M5 Part A Measurability and reporting of performance 225
M5 Part A Example 5.2 Safety index Measurability and reporting of 226 Question
M5 Part A Example 5.3 Performance reporting by Victoria Police performance 226 Question
1. Value creation
2. Performance and Sustainability
M5 Part A Multiple roles of performance management 3. Signalling 227
M5 Part A Performance—a process of value creation 227
M5 Part A Example 5.4 Value creation at Apple Inc. 228 Question
M5 Part A Example 5.5 Value creation at Woolworths 228 Question
Performance management role 1.
Mega Markets Ltd 1). Explain the value creation process for Mega
Value creation
Markets. 2). Why is its value creation process now facing competition
from online sales? 3). What can the company do in the face of online
M5 Part A Question 5.3 competition? 229 Question
1. CSR and sustainability
2. Triple-bottom-line reporting
3. GRI Standards
4. Integrated Reporting
M5 Part A Performance and Sustainability 5. XBRL 230
M5 Part A Figure 5.4 Sustainability in relation to performance 230 Figure
M5 Part A Example 5.6 Sustainability at Newcrest Mining Performance management role 2. 231 Question
M5 Part A GRI Standards Sustainability 232
M5 Part A Integrated Reporting 232
M5 Part A XBRL 233
1. Governance, Risk and
Performance Management
2. Ethics and Performance
M5 Part A Signalling Management 233
M5 Part A Example 5.7 Risk management and signalling at Westpac 234 Question
Performance management role 3.
M5 Part A Example 5.8 HIH Insurance 234 Question
Signalling
M5 Part A Example 5.9 Dick Smith Group 235 Question
M5 Part A Governance, Risk and Performance Management 236
M5 Part A Figure 5.5 Relationship between elements of the management control system Management control system 238 Figure
M5 Part A Ethics and Performance Management APES 110 Code of Ethics 238
Ethics and performance
M5 Part A Example 5.10 WorldCom, Enron and Arthur Andersen management 239 Question
1. Agency Theory
M5 Part A Theories related to performance management 2. Contingency Theory 240
M5 Part A Agency Theory 240
M5 Part A Contingency Theory 241
Comparison of control systems and performance measures for large
M5 Part A Table 5.2 and small food retailers Contingency theory 241 Table
M5 Part B Strategy, management control and performance management 242
M5 Part B Performance management and control-their role in strategy 243
1. Cost leadership
2. Differentiation
M5 Part B Porter 3 generic strategies for competitive advantage 3. Focus 243
Performance management and
M5 Part B Example 5.11 Performance measures and the value chain—a retail store example value chain 244 Question
Mega Market 1). How would you describe Mega Markets’ strategy? Performance mgt and 2). Porter’s
2). Compare the value chain for Mega Markets with one of its Generic strategies and 3). Value
M5 Part B Question 5.6 international online competitors. chain 244 Question
