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(b) Discuss the relevance of each of the following actions as steps in trying to remedy performance measurement
problems relating to the ‘365 Sports Complex’ and suggest examples of specific problem classifications that
may be reduced or eliminated by each action:
(i) Focusing on and improving the measurement of customer satisfaction
(ii) Involving staff at all levels in the development and implementation of performance measures
(iii) Being flexible in the extent to which formal performance measures are relied on
(iv) Giving consideration to the auditing of the performance measurement system. (8 marks)
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更多 “ (b) Discuss the relevance of each of the following actions as steps in trying to remedy performance measurementproblems relating to the ‘365 Sports Complex’ and suggest examples of specific problem classifications thatmay be reduced or eliminated by each action:(i) Focusing on and improving the measurement of customer satisfaction(ii) Involving staff at all levels in the development and implementation of performance measures(iii) Being flexible in the extent to which formal performance measures are relied on(iv) Giving consideration to the auditing of the performance measurement system. (8 marks) ” 相关考题
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5 Astrodome Sports Ltd was formed in December 2000 by seven engineers who comprise the board of directors of thecompany. The seven engineers previously worked together for ‘Telstar’, a satellite navigation company.In conjunction with one of the three largest construction companies within their country they constructed the ‘365Sports Complex’ which has a roof that opens and uses revolutionary satellite technology to maintain grass surfaceswithin the complex. The complex facilities, which are available for use on each day of the year, include two tenniscourts, a cricket pitch, an equestrian centre and six bowling greens. The tennis courts and cricket pitch are suitablefor use as venues for national competitions. The equestrian centre offers horse-riding lessons to the general public andis also a suitable venue for show-jumping competitions. The equestrian centre and bowling greens have increased inpopularity as a consequence of regular television coverage of equestrian and bowling events.In spite of the high standard of the grass surfaces within the sports complex, the directors are concerned by reducedprofit levels as a consequence of both falling revenues and increasing costs. The area in which the ‘365 SportsComplex’ is located has high unemployment but is served by all public transport services.The directors of Astrodome Sports Ltd have different views about the course of action that should be taken to providea strategy for the future improvement in the performance of the complex. Each director’s view is based on his/herindividual perception as to the interpretation of the information contained in the performance measurement system ofthe complex. These are as follows:Director(a) ‘There is no point whatsoever in encouraging staff to focus on interaction with customers in efforts to create a‘user friendly’ environment. What we need is to maintain the quality of our grass surfaces at all costs since thatis the distinguishing feature of our business.’(b) ‘Buy more equipment which can be hired out to users of our facilities. This will improve our utilisation ratioswhich will lead to increased profits.’(c) ‘We should focus our attention on maximising the opening hours of our facilities. Everything else will take careof itself.’(d) ‘Recent analysis of customer feedback forms indicates that most of our customers are satisfied with the facilities.In fact, the only complaints are from three customers – the LCA University which uses the cricket pitch formatches, the National Youth Training Academy which held training sessions on the tennis courts, and a localbowling team.’(e) ‘We should reduce the buildings maintenance budget by 25% and spend the money on increased advertising ofour facilities which will surely attract more customers.’(f) ‘We should hold back on our efforts to overcome the shortage of bowling equipment for hire. Recent rumours arethat the National Bowling Association is likely to offer large financial grants next year to sports complexes whocan show they have a demand for the sport but have deficiencies in availability of equipment.’(g) ‘Why change our performance management system? Our current areas of focus provide us with all theinformation we need to ensure that we remain a profitable and effective business.’As management accountant of Astrodome Sports Ltd you have recently read an article which discussed the followingperformance measurement problems:(i) Tunnel vision(ii) Sub-optimisation(iii) Misinterpretation(iv) Myopia(v) Measure fixation(vi) Misrepresentation(vii) Gaming(viii) Ossification.Required:(a) Explain FOUR of the above-mentioned performance measurement problems (i-viii) and discuss which of theviews of the directors (a-g) illustrate its application in each case. (12 marks)
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