Description
Review Problem 6.34 in your textbook. Using the questions provided as a guide, explain how you think the performance report presented may impact the company. Please review the posts of your classmates before responding to Problem 6.34; discuss three weaknesses that are different than what your classmates’ posted, or provide a different explanation as to why the item poses a weakness.
To participate in follow up discussion, ask questions and post comments regarding classmates’ posts, or respond to follow-up questions posted by the instructor.
Please include proper citations in your discussion post. Points will be deducted if proper citations are not used.
Beena Shaji
Feb 29, 2024, 6:37 PM
Published
Hello, Sir and Class
Performance Reporting Reflection
Performance reporting is a crucial determinant of success in organizations. The presentation of performance reports raises concerns among company leaders and stakeholders due to the influence of these reports on the profitability and sustainability of operations. In light of this, professionals must influence investor confidence by amending performance reporting practices. Therefore, this discussion will describe how the performance report in Problem 6.34 demonstrates company implication.
June’s production performance report was plagued with divergent weaknesses, including limited transparency, failure to include critical key performance indicators and lack of comparison with previous performances. These aspects are essential in fostering informed decision-making and leveraging insight from credible and informative performance reports (Shamsudin et al., 2020). In this view, the performance report may negatively impact the company by compromising goal achievement.
The optimal performance of employees requires supportive leaders. Adverse and non-supportive performance reporting hinders the optimal improvement of organizational outcomes and goal achievement (Shamsudin et al., 2020). Therefore, June’s performance report may negatively impact the company by compromising employee morale and commitment to shared visions. Notably, the company’s performance report also compromised its operational effectiveness due to limited identification and relevance analysis of improvement strategies. This reporting practice hinders continuous development and fast-tracks obsoletes in the global business landscape.
Successful performance reporting ensures accurate and optimal goal achievement in organizations. Organization leaders should rely on proper reporting practices. Focusing on critical aspects, particularly transparency, comparability, and improvement strategies, is essential.
Reference
Shamsudin, N., Mohammed, M. O., Rahman, N. H. A., & Kamil, N. K. M. (2020). Mandate Performance Reporting of Malaysian Development Financial Institutions (DFIs): A Review. Asian Journal of Accounting and Finance, 2(1), 1-6. http://myjms.moe.gov.my/index.php/ajafin
REPLY
DDDavid Duren replied toBeena ShajiMar 1, 2024, 5:14 PMUnread
Beena, The performance report does not compare actual performance to the flexible budget. Therefore, actual results and budgeted amounts are based on two different sales volumes. Why is it important to compare the actual performance to the flexible budget rather than the master budget?
