ACCA Paper F1 - Accountant in Business, Course Notes, BPP 2010
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18: PERFORMANCE APPRAISAL
18.7
4 How effective is the appraisal scheme?
4.1 Criteria for evaluating an appraisal scheme include:
(a) Relevance
(b) Fairness
(c) Serious intent
(d) Co-operation
(e) Efficiency
4.2 It can be evaluated by:
(a) Asking participants their views
(b) Checking to see if performance improves
(c) Reviewing other indicative factors
5 Chapter summary
• This chapter has outlined the importance of performance appraisals and how they
should be conducted.
18: PERFORMANCE APPRAISAL
18.8
18.9
Chapter 18: Questions
18: QUESTIONS
18.10
18.1 Lockett pointed out six reasons why appraisals fail. Which of the following is not one of these reasons?
A Confrontation
B Reward
C Chat
D Annual event (2 marks)
18.2 Which of the following is not an objective of a performance review?
A Resolution of interpersonal conflicts
B Establish expected results for individual
C Communicate objectives
D Identify areas for improvement (2 marks)
18.3 Which of the following is the name given to an appraisal that collects feedback from a variety of sources?
A All round
B Circular
C Complete
D 360° (2 marks)
18.4 Upward appraisal is where employees are rated by their subordinates. True or false?
A True
B False (1 mark)
18.5 Which of the following is not an essential feature of performance management?
A It is an approach to managing people
B Shared understanding
C It is a one off event
D It needs an agreed framework of goals (2 marks)
18.11
Chapter 18: Answers
18: ANSWERS
18.12
18.1 B Reward is a type of appraisal.
18.2 A Resolution of conflicts should be dealt with separately.
18.3 D
18.4 A True
18.5 C It is an ongoing process.
END OF CHAPTE
R
19.1
Answers to
Lecture Examples
19: ANSWERS TO LECTURE EXAMPLES
19.2
Chapter 1
Answer to Lecture Example 1
Commercial – BPP
NFP – Olympic committee
Public Sector – NHS
Charity – Save the Children
Trade Union - National Union of Teachers
Mutual Associates - Building Societies
Answer to Lecture Example 2
(a) Middle line
(b) Operating core
(c) Strategic apex
(d) Support staff
(e) Technostructure
Answer to Lecture Example 3
• Age of organisation
• Size
• Management ability
• Similarity of work
• Number of employees
Answer to Lecture Example 4
Advantages Disadvantages
Entrepreneurial Flexible
Quick to react
Not scalable
Duplication
Functional Standardisation
Teamwork
Sub-optimal behaviour
Reduced communication
Matrix Customer focus
Motivational
Dual authority
Uncertainty
19: ANSWERS TO LECTURE EXAMPLES
19.3
Answer to Lecture Example 5
(a) Entrepreneurial
(b) Functional
(c) Divisional
(d) Divisional
Answer to Lecture Example 6
Centralisation Decentralisation
Advantages Quick decisions
Strategic view
Motivational
Local focus
Disadvantages Loss of local focus
Loss of autonomy
Costly
Lack of direction
Chapter 2
Answer to Lecture Example 1
• Control
• Decision –making
• Performance measurement
• Review
• Decision-making
• Change management
Answer to Lecture Example 2
A Automated data capture
C Use external sources
C Review usage levels
U Summarised information
R Exception reporting
A Use of reliable sources
T Review reporting cycle
E Download into easy to use applications, eg Excel
19: ANSWERS TO LECTURE EXAMPLES
19.4
Answer to Lecture Example 3
OCR: Pre-printed cheques
OMR: Lottery
Bar codes: Retail
Voice recognition: Voice activated booking systems
Touch screens: In store promotions
EFTPOS: Credit transactions
Answer to Lecture Example 4
TPS: Sales order system
DSS: Excel spreadsheet (budget)
ESS: 'Dashboard' system, eg Business objects
Expert: Taxation advice
MIS: Internal reporting system
Answer to Lecture Example 5
• Easy to navigate
• Speedy search
• FAQ's
• Drill down facility
• Clear visuals
• Product search
Answer to Lecture Example 6
Example Control
Input error On-line entry by customer
Fire OFF site back-up
Fraud Segregation of duties
Insider dealing Systems monitoring
Viruses Anti-virus software
Strike action Negotiation