Learning Outcomes
On successful completion of this assignment you will be able to:
1. Identify and critically analyse principles and trends in Performance Measurement and Control.
2. Determine the different budgeting techniques and critically evaluate their use in short term decision making
3. Analyse the current approach to performance measurement and control in a selected global organisation and critically appraise suggestions for improvement of current practices
4. Critically appraise the application of performance criteria in Not for profit and Public sector organisations.
Your Task
Scooby's Shelter is a dog rehoming shelter where stray dogs can go in order to find a new family. This organisation is a not for profit business which has been successfully operating for 5 years. In the last three years Scooby's Shelter has seen an increase in the costs of food, toys and other running costs. The Shelter has therefore had to try to reduce the costs associated with its operations and has done this by reducing the number of paid employees that work within each shelter. This has meant that there has been a reduction in the number of hours that the shelter can be open each day. In addition to reducing the number of paid employees the shelter has started to charge an admission charge for individuals who wish to visit the Shelter. By charging an admission price the Shelter is able to cover some of the costs associated with the Shelter such as food and toys for the dogs. The shelter also charges an adoption fee for any pet who is adopted and sells food and other accessories for dogs.
For the last two years the financial results of the business are shown below. Inflation within the country in which Scooby's Shelter operates is around 2% per year.
Scooby's Shelter Financial Results 2016 and 2017
| 2015 |
2016 |
2017 |
|
Revenue from adoptions £25000
|
£27000
|
£30000
|
|
Revenue from admissions £2500
|
£3000
|
£3750
|
|
Revenue from accessories/food, etc.
£5000
|
£5500
|
£5000
|
|
Total Revenue £32500
|
£35500
|
£38750
|
|
Non-staff Costs £10000
|
£12000
|
£15000
|
|
Wages £15000
|
£12000
|
£10000
|
|
Management Wages £10000
|
£10000
|
£10000
|
|
Total Costs
|
£35000
|
£34000
|
£40000
|
|
Charge for adoption
|
£50
|
£60
|
£75
|
|
Admission charge
|
£1.00
|
£1.50
|
£2.50
|
|
Visitors
|
2500
|
2000
|
1500
|
|
Adoptions
|
500
|
450
|
400
|
|
Hrs open per week
|
32
|
25
|
21
|
Required:
Question 1
You have been appointed as a performance management consultant for Scooby's Shelter. You have been asked to write a report for the Management of Scooby's shelter on the performance of the business. Within your report you should include:
a. An assessment of the financial performance of Scooby's Shelter using the information given above and how the current financial performance may impact upon the business within the short term. (LO2, LO3)
b. A critical discussion of different performance management techniques and tools which could be applied to Scooby's Shelter as a not for profit organisation in order to monitor and improve performance. This should include a critical evaluation of which tools and techniques should be prioritised for introduction. (LO4, LO5)
c. An exploration of performance measurement principles and trends used in other not for profit organisations globally and provide example of how these practices could aid performance at Scooby's shelter. (LO1, LO3)
Guidelines Please read all questions and information provided carefully. Answer should be made in appropriate length keeping in view the requirement of each question and total word counts allowed.
In addition, your assignment should demonstrate the following qualities:
A critical appreciation of relevant literature and its use to support argument, substantiate calculations and other aspects of the assignment.
Taking ownership of the content, being prepared to debate and argue a personal position, and providing evidence of evaluative skills. A submission made up of extracts from published sources which is descriptive or simply just theoretical regurgitation is not acceptable. Your submission must have interpretation and consideration of the challenges and issues of taking theory into practice.
Logical flow of ideas and treatment; appropriate selection of real world factors related to the companies under scrutiny.
Evidence of additional personal research, and the ability to analyse material from a variety of appropriate relevant perspectives.
Presentation, structure, appropriateness of methodology, breaking into section headings/subheadings, tidiness.