ACCA F5 or the study of performance management is the process of involving the employees in the organizational decision to improve their performance and increase the company’s effectiveness in achieving its goals.
Employee performance management in ACCA F5 includes:
The success in an organization is achieved through planning in advance. Planning is the involvement of individuals in the achievement of the organizational goals. Employees who are involved in the process will understand the main objective of the business better,increasing the chance for them to contribute to its success. Performance elements should also be established and these standards should be understandable, measurable, equitable, verifiable and achievable. It should also be flexible to allow adjustment period when changes are implemented by the company.
Monitoring is the act of measuring performance and providing feedback to the management and employees. Monitoring performance includes employee reviews, which compares their performance to a set of standards. Ongoing monitoring process will enable the management to check employee performance and to allow changes if the standard is proven to be unrealistic. By continually monitoring the employees, unacceptable performance can be addressed sooner rather than waiting for the end of the period where the report is finalized.
In ACCA F5, it is important to address the developmental needs of the employees. A company that takes care of their employees increase the chance of improving their productivity and effectiveness. The development might include trainings which improve job-related skills or help the employees adjust to change and the introduction of new technology.
It is helpful in ACCA F5 to rate the performance of employees from time to time. The company needs to know who their best employees are. The rating can also be the basis for other personnel actions such as pay increase, promotion, demotion or the reduction in force.
An organization that can recognize excellent performance should be effective in using these rewards to boost their employee’s morale. However, negative reward or punishments are also necessary in maintaining control and order in the organization. Rewarding can both be formal and informal. Recognition of performance need not be shown in a plaque, a simple tap on the back is sometimes enough to show approval for a certain action.
Syllabus in ACCA F5
Specialists’ Cost and management techniques
ACCA F5 includes activity based costing which identifies cost drivers and calculating them to come up with the cost per unit. Target costing, life-cycle costing, throughput costing and environmental costing are the topics under the first area of the syllabus.
The explanation of relevant costing and identifying the relevant coast are under the second area of ACCA F5. Cost volume profit analysis and the interpretation of break even analysis and margin of safety are also part of the study.
The development of budgeting system is important for any organization. Knowing the types of budgets and analysis in interpreting them is important.
Costing and variances
Variances and standard cost are covered in this area. The study helps to identify which cost can be reduced and which one is inflexible.
Performance measurements and control
This area includes the scope of performance measurement, divisional performance, performance analysis and external considerations on behavioural aspect.