Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 5

Explain the difference between informal and formal control systems. What type of control system is strategic performance measurement?

Step 1 of 3

Strategic Performance Measurement:

Strategic performance measurement is one of the systems which are used by management to evaluate performance of SBU manager. Here, Strategic performance measurement is possible only when proper delegation of responsibility is available. In this case management measures whether SBU manager is performed his responsibility towards achievement of organizational goals and to what extent it is etc.