MAB 2263_2

MAB 226311

UTM

UNIVERSlTI TEKNOLOGI MALAYSIA

FINAL EXAMINATION SEMESTER I, 2009/2010 SESSION COURSE CODE

MAB 2263

COURSE

PERFORMANCE MEASUREMENT AND REPORTING

PROGRAMME

MASTER OF PROJECT MANAGEMENT (MAZ)

DURATION

2 HOURS 30 MINUTES

DATE

31 OCTOBER 2009

MARKS

100 MARKS (CONTRIBUTING TO 30% PERCENT OF THE OVERALL MARKS)

INSTRUCTION TO CANDIDATES: 1. ANSWER THE QUESTION IN SECTION A. 2. ANSWER ALL QUESTIONS IN SECTION B. 3. ANSWER ONE (1) QUESTION ONLY IN SECTION C.

WARNING! Students caught copying/cheating during the examnination will be liable for deisciplinary actions and the faculty may recommend the stdent to be expelled from the study

This examination question consists of five (5) printed pages only including this page

MAB 226312

SECTION A Ql.

Refer to Case 21 (Mobil USM&R (A): Linking the Balanced Scorecard (pg. 544 in the text book) and answer the following questions. (a)

In the midst of major reorganization and new strategic directions at USM&R, why did Bob McCool initiate yet another initiative, the Balanced Scorecard? (5 marks)

(b)

Comment on the scorecard development process. What elements seem critical to the success of a Balanced Scorecard project? (7 marks)

(c)

Is it a good idea to link the scorecard to compensation, as described in the case? What are the advantages and the risks of linking the scorecard to compensation? (4 marks)

(d)

How is the scorecard being used at USM&R? Is it a performance measurement system or a performance management system? (4 marks)

(e)

What objectives and measures should the two customer teams (consumer sub-team, dealer sub-team) select for their core .customer outcomes? How can these teams measure what the dealer and Mobil must do well to achieve the desired customer outcomes? (6 marks)

(f)

What should be the objectives and measures for the internal business processes at USM&R? Remember, these objectives and measures must drive the desired financial and customer objectives. (4 marks) (30 marks)

MAB 226313

SECTIONB Q2.

The economic development currently experienced by much of business is characterised by continuous innovation, the spread of digital and communication technologies, the relevance of network forms of organisation, and the prevalence of soft, intangible and human factors in organisations. Firms operating within this so-called Intangible Economy derive much of their wealth from intellectual capital (IC) where the real competitive edge is located in the quality of relationships, structures and people (Segelod, 1998). Discuss the above statement in the context of performance measurement and reporting. (25marks)

Q3.

(a)

How do KPis improve project management? ( 10 marks)

(b)

What are the KPis for project management? (10 marks)

(c)

What are the challenges in implementing KPis in project management? (5 marks) (25 marks)

MAB 226314

lECTION C Q4.

(a)

With examples, measurement.

discuss

financial

and non-financial performance (15 marks)

Q5.

(b)

Describe the challenges of implementing a performance measurement framework. (5 marks) (20 marks)

(a)

Steward (1984) describes accountability in the public sector organizations in terms of a ladder. Explain the meaning of accountability in the context of public sector organizations by referring to the Steward's ladder of accountability. (5 marks)

(b)

Discuss the emergence of performance measurement in the public sector organizations. (5 marks)

(d)

According to Townley (1996), performance measurement is seen to be a tool to increase visibility in order for accountability to be put into effect. Discuss the above statement and to what extent do you agree with the above statement. (10 marks) (20 marks)

MAB 226315

Q6.

(a)

"The need for an efficient and effective performance management system (PMS) has increased over the last decade ..... Unfortunately, the failure rate of PMS implementation and usage projects is said to be around 70 percent (McCunn, 1998; Neely and Bourne, 2000), which causes a potential very useful management technique to be rejected by many organizations." (de Waal and Counet, 2009). Elaborate five (5) key features of a successful performance management system (PMS). (10 marks)

(b)

Explain how the use of dashboards improves performance reporting. (6 marks)

(c)

The balance scorecard (BSC) can be enhanced by including goals and objectives for risk management. Give two (2) examples of risk-related measures that should be integrated to the learning and growth, internal business processes, customer and financial perspectives of the BSC. (4 marks) (20 marks)