Issues in Managerial Accounting

Trident University

Doryce Garcia

Module 5 CASE Assignment

ACC504: Issues in Managerial Accounting

Dr. Ralph Ezelle Jr.

23 March 2015

To: CEO

Date: 23 March 2015

Subject:  Design Performance Criteria for a new internal performance evaluation system

        The basic purpose of any measurement system is to provide feedback, relative to your

goals, that increases your chances of achieving these goals efficiently and effectively.

Measurement gains true value when used as the basis for timely decisions.  Improving

productivity in organizations is one of the cornerstones of many tools that have been developed

to make improvements.  In this memo, the focus is on a productivity measurement and

enhancement system.  This measurement is aimed at enhancing the productivity of work within

organizations through performance measurement and feedback.   Performance evaluations are a

key to success for present organizations.  Today most of the firms operate in a competitive

environment and find it really difficult to attain competitive advantage over their competitors.  In

this kind of environment, one key tool in regard to attaining competitive advantage is

performance evaluations to direct employees towards focusing on continuously improving their

performance and work at their best.  Today, employees are an asset to businesses, and everyone

emphasizes on recruiting and selecting highly skilled and talented employees.  Recruitment and

selection, is not only sufficient to improve employee performance on a continuous basis, as it

requires an effective performance evaluation system to be in place and work effectively.  

Performance can be evaluated internally as well as externally.  For evaluating the performance of

a manufacturing company, which manufactures automobile parts, the performance evaluation

system effect is an internal performance evaluation.  A manufacturing company, if not able to

control its performance, would not be able to serve its large automotive clients throughout the

globe.  A manufacturing firm can attain success, only when it is able to improve its productivity

on a continuous basis, and it can be done only when it has an effective internal performance