FACULTY OF ECONOMIC AND FINANCE
DEPARTMENT OF FINANCE AND INVESTMENT
STUDENT COURSE GUIDE
PERFORMANCE MANAGEMENT V(PMG108G)
Department of Finance and Investment
NQF
NQF
QUALIFICATION
COURSE
LEVEL
CREDITS
NAME
CODE
7
240
PGD:FINANCIAL
MANAGEMENT
PMG108G
Complied by: M. D. Shaku
Date: October 2023
1
SAQA
QUALIFICATION
ID
111247
©COPYRIGHT: Tshwane University of Technology
Private Bag X680
PRETORIA
0001
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may be reproduced or transmitted in any form or by any means, electronic or
mechanical, including photocopy and recording, without permission in writing from
the publisher.
Printed and distributed by:
FACULTY OF ECONOMIC AND FINANCE
Tshwane University of Technology
Private Bag X680
Pretoria
0001
2
ORGANISATIONAL COMPONENTS CONTENTS
1. Welcome…………………………………………….………………….…….………..…..…….4
2. Staff………………………………………………….………………..…………..………………4
2.1. Contact details……………………………………………………..………………….4
2.2. Staff availability…………………………………………………………..….………..4
2.3. Class representative…………………………………………………………………..4
3. Requirements resources and recommended materials………………………………………5
3.1. Requirements for the course………………………………………………….………5
4. Code of Conduct……………………………………………………………………….…………5
4.1. Class Attendance…………………………………...………………….………………5
4.2. Class Behaviour…………………………………………...……………………….…...5
4.2.1. Usage of cell-phones in class……………………………………………....5
Learning Components………………………………………………………………………..………7
1. Overview of the course……………………………………………………………….……..7
1.1.
Purpose of the course…………………………………………..……………..……7
1.2.
Links to other courses………………………………………………….…………...7
1.3.
Course outcomes…………………………………..…….……….………...………7
1.4.
Critical cross field outcomes………………………………………………...……..8
2. Assessment………………………………………………………….…………………..….8
2.1.
Assessment methods and criteria…………………………………..………….....8
2.2.
Assessment rules…………………………………………………….…………..…8
2.3.
Grievance procedures……………………………………………………….……..8
2.4.
Full marks…………………………………………………………….….................9
2.5.
Promotion requirements…………………………….…………………...…………9
2.6.
Tests……...…………………………………………………..………………………9
2.7.
Assignment……..…………………………………………………………………..10
2.8.
Tutorials……………………………………………….……………………………10
2.9.
Academic dishonesty……………………….……………………………………10
3. Course contents and schedule…………………………………………….…………….11
3.1.
Code structure and schedule of test and assignment…………………..….….11
3.2.
Learning outcomes and assessment criteria…………………………...………13
4. Glossary of terms…………………………………………………………………………..22
3
1.WELCOME
As a lecturer for PERFORMANCE MANAGEMENT V (PMG108G), let me take this opportunity
by welcoming you to the class of 2024. I trust that you will successfully complete this module
at the end of the year. You are required to thoroughly go through this study guide carefully.
The study guide has got both the topics, expected outcomes, assessment criteria and test
weights for the whole year. After completion of this module a learner will have learned the
basics in performance management that applied by management of a business in evaluating
the performance of the business and that of employees. The subject is theoretical and practical
therefore a calculator required will be required.
2.STAFF
2.1.
Contact details
Mr Shaku M.D
Telephone
:
(012) 382 5669
Building
:
30 (PTA WEST CAMPUS)
Office no
:
370
Email
:
shakumd@tut.ac.za
2.1.
Consultation and staff availability
Tuesday
11h30-13h00
Wednesday
09h00-11h00
Friday
09h30-11h00
Students are still allowed to see a lecturer immediately after the class if during the lesson there
was any part of the lecture that they did not grasp very well.
2.2.
Class representative
It is in the constitution of TUT that each class should elect a class representative. The
responsibilities of which might be in the SRC constitution.
4
3. REQUIREMENTS, RESOURCES AND RECOMMENDED MATERIAL
3.1. Prescribes resources and Recommended resources
Name
Author/s
Management
Performance
control
Publisher
systems- Merchant, K.A & Van Der Stede
measurement,
Pearson
Education
Limited
Evaluation and Incentives
Management and Cost Accounting Colin Drury
Cengage
10th Edition
(Emea) Ltd
Learning
RECOMMENDED
Management and Cost Accounting Colin Drury
Cengage
11th Edition
(Emea) Ltd
Learning
4. CODE OF CONDUCT
4.1.
Class attendance
It is the responsibility of each student to attend the class, since it helps in being up to
date with your studies and addressing all subject related matters with your lecturer.
Since only assessments methods in the form of class tests, semester test, assignment
and examination can be used to accumulate the right mark for a pass. The student
must not use class attendance a guarantee for a pass.
4.2.
Classroom behaviour
All students must adhere to the code of conduct and rules of TUT. One of the major
requirements is that cell-phones must be switched off at all times during lecture.
For more rules, Refer to your prospectus
5
SECTION
B
LEARNING COMPONENT
1. OVERVIEW OF THE COURSE
The subject performance management is meant to introduce the students pursuing PGD:
Financial Management to various approached used in measuring performance.
1.1 PURPOSE OF THE COURSE
The module PMG108G serves as introduction to various performance management
techniques used in business. This module is meant to help the students in understanding how
various performance measures are set and applied.
1.2
LINKS TO OTHER SUBJECTS
The subject performance management is not linked to any subject and therefore no
prerequisite.
1.3
COURSE OUTCOMES
After completion of this module a learner will able to apply the various approaches learned in
setting goals and measuring performance.
6
1.4
CRITICAL CROSS FIELD OUTCOMES
Performance Management for PGD: Financial Management is structured in such a way that
after a learner has completed the module a learner will be able to identify various types of
risks, measure the likelihood of happening and select the best possible strategy to alleviate
the risk. Module has got eleven (10) chapters each with its own outcomes and interrelated in
such a way that a learner will be able to build on the knowledge learned from the previous
chapters.
2.
ASSESSMENT
2.1. Assessment methods and criteria
One written exam at the end of the year,3 tests, 1 online tests and one assignment are the
major assessment for this module. A minimum of 40% must be achieved for a learner to be
able to sit for the exam at the end of the year.
2.2.
Assessment rules
Refer to Tut assessment rules
2.3 Grievance Procedure
Most if not all of the major grievances arise after a test or assignment was marked and handed
to students. In such instances where a student has got complain that concerns test or
assignment mark. I will advise students to exercise their rights by re-submitting their scripts
for remarking immediately the scripts are returned and not wait for the year to end and realise
that they will not pass the module and start complaining. In such instances complain can no
longer be entertained.
7
2.4. Full Mark
The student will be assessed by means of two tests and one assignment. The final mark is
calculated as follows:
Tests, Online tests and assignment
50%
Examination
50%
Total
100%
2.5.
Promotion requirements
A student needs an average mark of 40% to qualify for exam and 50% to pass the module. A
three hour paper will be written at the end of the year. The final mark will be calculated as
shown above.
2.6.
Tests:
Test 1
20%
Test 2
20%
Test 3
20%
Online tests
20%
Assignment
20%
100%
Apologies for not attending classes or writing tests will only be accepted by the
submission of either an original medical certificate , a letter from the student's employer
and a copy of death certificate(in case of students attending funerals of a close relative)
within 48 hours before or after the test. No such prove will be used in case of
assignment since assignment can be submitted before the due date or emailed to the
lecturer. All follow-up (sick) tests will only be granted if the above is adhered to.
Written tests will be returned to the Learner two weeks after the test date. Learners must
make sure that they are in class to receive your test script.
Corrections will only be made immediately after the test script has been returned to the
Learner. You must thus immediately check your test script. After a week changes can
no longer be made.
8
Should it happen that a student(s) test answer book is stolen, lost or accidentally destroyed;
the student(s) will rewrite the test
2.7.
Assignments
One project will be given to students during the year and it will contribute 20% to the year
mark.
2.8.
Tutorials
There will be no tutorials for this module, only revision or extra sessions can be arranged in
cases where students fail to understand a topic.
2.9.
Academic dishonesty
In academic circles the biggest fraud is called Plagiarism. Plagiarism is defined as copying
someone’s work without acknowledging the original owner of the work. Therefore it is
discouraged for a student to take someone’s’ work and uses as his/her own.
Students who submit other peoples’ work as his/her will be penalised. Plagiarism includes the
following:
•
Copying or photocopying without permission,
•
Paraphrasing,
•
To steal and pass off (the ideas or words of another) as one's own
•
To use (another's production) without crediting the source
•
To commit literary theft
•
To present as new and original an idea or product derived from an
existing source.
•
Turning in someone else's work as your own
•
Copying words or ideas from someone else without giving credit
•
Failing to put a quotation in quotation marks
•
Giving incorrect information about the source of a quotation
•
Changing words but copying the sentence structure of a source
without giving credit
.
9
Please familiarise yourself with the rules and regulations for TUT in terms of academic
dishonesty. Refer to prospectus
3. COURSE STRUCTURE AND SCHEDULE OF TESTS AND ASSIGNMENTS
Number
of Notional
Contact
Hours
Dates
Topics
Study activities
lessons
3
Contact 1.5 Hr
sessions
Management control Additional
systems
reading:
Read
similar
topics
from
recommended
reading lists
3
Contact 1.5 Hr
sessions
Control
systems Additional
costs
reading:
Read
similar
topics
from
recommended
reading lists
3
Contact 1.5 Hr
sessions
Designing
evaluating
systems
and Additional
control reading:
similar
Read
topics
from
recommended
reading lists
3
Contact 1.5 Hr
sessions
Specialist cost and Additional
management
reading:
Read
accounting
similar
topics
techniques
from
recommended
reading lists
3
Contact 1.5 Hr
sessions
Decision
techniques
making Additional
reading:
Read
similar
topics
from
10
recommended
reading lists
3
Contact 1.5 Hr
sessions
Enterprise
Additional
performance
reading:
Read
measurement
similar
topics
systems
from
recommended
reading lists
3
Contact 1.5 Hr
sessions
Financial
Additional
responsibility
reading:
Read
centres
similar
topics
from
recommended
reading lists
3
Contact 1.5 Hr
sessions
Financial
planning Additional
and budgeting
reading:
Read
similar
topics
from
recommended
reading lists
3
Contact 1.5 Hr
sessions
Incentive
Additional
compensation
reading:
Read
systems
similar
topics
from
recommended
reading lists
3
Contact 1.5 Hr
sessions
Financial
Additional
performance
reading:
measures and their similar
effects
Read
topics
from
recommended
reading lists
11
3.1. LEARNING OUTCOMES AND ASSESSMENT CRITERIA
UNIT 1: Management control system
Reading resources:
•
Merchant,
K.A
&
Management
Van
control
Der
Stede,2017,
W.A,
systems-Performance
measurement, Evaluation and Incentives
•
Recommended reading list
•
Additional notes on Mytutor,
Outcomes:
•
Functions of management control system will be
discussed
•
Various management control systems will be discussed
and applied
•
Behavioural implications of control systems will be
analysed and evaluated
Assessment criteria:
•
Discuss the function of management control systems
•
Describe the concepts of management and control
system
•
Analyse
and
apply
behavioural
implication
management control systems will defined
Assessment methods:
•
Test and class test
•
Assignment
•
Examination
12
of
Teaching and learning activities:
•
End of chapter case study questions
•
Attempt extra activities on Mytutor
UNIT 2: Control system costs
Reading resources:
•
•
Management and Cost Accounting Colin Drury 10th
Edition
Merchant, K.A & Van Der Stede,2017, W.A,
Management
control
systems-Performance
measurement, Evaluation and Incentives
•
Recommended reading list
•
Additional notes on Mytutor,
Outcomes:
•
Understand a range of theoretical and practitioner
perspectives on management accounting control.
•
Analyse and compare the key concepts and
functions of possible management accounting
control
systems
within
different
types
of
organisations.
•
Evaluate
and
discuss
the
impacts
and
effectiveness of management accounting control
systems in performance management in different
organisations.
•
Understand
how
management
accounting
techniques can affect decision making and
employee behaviours.
13
Assessment criteria:
•
The concept of out of pocket cost will be defined and
measured
•
The concept of behavioural displacement will be
discussed
•
Operating delays and negative attitudes will be
discussed
Assessment method:
•
Test and class test
•
Assignment
•
Examination
Teaching and learning activities:
•
End of chapter questions
•
Extra questions on myTUTor
Unit 3: Designing and evaluating management control
systems
Reading resources:
•
•
Merchant, K.A & Van Der Stede,2017, W.A,
Management control systems-Performance
measurement, Evaluation and Incentives
Recommended reading list
•
Additional notes on Mytutor,
Outcomes:
•
Familiarise with the attributes of MCS
•
Explain the concepts of Management Information
System (MIS) and identify the important design
considerations in designing MIS
14
•
Highlight the importance of behavioural
aspects in
creating conditions within organisations for goal
congruence
Assessment criteria:
•
Demonstrate what is desired and likely desired in
designing a control system
•
Describe the choices of different control systems
•
Discuss choices of management control systems
Assessment methods:
•
Test and class test
•
Assignment
•
Examination
Teaching and learning activities:
•
End of chapter questions
•
Extra questions on myTUTor
Unit 4: Specialist cost and management accounting
techniques
Reading resources:
•
Management and Cost Accounting Colin Drury 10th
Edition
•
Recommended reading list
•
Additional notes on Mytutor,
Outcomes:
The following management accounting techniques will be
applied, analysed and evaluated.
•
Activity based costing
•
Value chain analysis
•
Target costing
•
Lifecycle costing
15
•
Throughput accounting
•
Discounting (Capital budgeting)
•
Strategic cost management
Assessment criteria:
•
Apply various cost and management accounting
techniques
•
Analyse and interpret various scenarios using cost and
management accounting techniques
•
Appraise various business alternatives using cost and
management accounting techniques
Assessment methods:
•
Test and class test
•
Assignment
•
Examination
Teaching and learning activities:
•
End of chapter questions
•
Extra questions on mytutor
Unit
5:
Decision
making
techniques
(Managerial
Accounting and Finance)
Reading resources:
•
Management and Cost Accounting Colin Drury
10th Edition
•
Recommended reading list
•
Additional notes on Mytutor,
Outcomes:
The following decision making models will be discussed,
analysed and applied:
•
Relevant costs
•
Sensitivity analysis/CVP
16
•
Probabilistic models
•
Expected value theory and decision tree
•
Coefficient variation (Beta coefficient)
•
Mathematical/statistical
application
to
managerial
problems (Learning curves and linear programming)
•
Quantitative techniques used in business decisions
Assessment criteria:
•
Discuss, evaluate and apply the various decision
making models
Assessment methods:
•
Test and class test
•
Assignment
•
Examination
Teaching and learning activities:
•
End of chapter questions
•
Extra questions on myTUTor
Unit 6: Enterprise performance measurement system
Reading resources:
•
Management and Cost Accounting Colin Drury
•
10th Edition
•
Recommended reading list
•
Additional notes on Mytutor,
17
Outcomes:
•
Balanced scorecard will be discussed
•
Four perspectives of balanced score card will be used
to analyse performance of the business
Assessment criteria:
•
Discuss balanced scorecard
•
Analyse business performance using four perspectives
of balanced scorecard
•
Discuss and apply standard costing and variance
analysis
Assessment methods:
•
Test and class test
•
Assignment
•
Examination
Teaching and learning activities:
•
End of chapter questions
•
Extra questions on mytutor
Unit 7: Financial responsibility centres
Reading resources:
•
Merchant,
K.A
Management
&
Van
control
Der
Stede,2017,
systems-Performance
measurement, Evaluation and Incentives
•
Recommended reading list
•
Additional notes on Mytutor
18
W.A,
Outcomes:
•
Advantages of financial results control systems will be
discussed
•
Types of financial responsibility centres will be
discussed
•
Choice of financial responsibility centres will be
discussed
•
Transfer pricing problem will be discussed, evaluated
and analysed
Assessment criteria:
•
Discuss the advantages of financial results control
system
•
Discuss the types of financial responsibility centres
•
Discuss the choice of financial responsibility centres
•
Discuss,
evaluate
and
analyse
transfer
problems
Assessment methods:
•
Tests and class test
•
Assignment
•
Examination
Teaching and learning activities:
•
End of chapter questions and
•
Questions on myTUTor
Unit 8: Planning and budgeting
Reading resources:
•
Management and Cost Accounting Colin Drury
•
10th Edition
•
Recommended reading list
•
Additional notes on Mytutor
19
pricing
Outcomes:
•
The purpose of planning and budgeting systems be
discussed
•
Planning cycles will be defined and described
•
Performance targets will be compared
•
Companies’ planning and budgeting processes will be
critiqued
•
Variance analysis and standard costing will discussed and
applied
Assessment criteria:
•
Discuss the purpose of planning and budgeting
•
Describe various planning cycles
•
Compare and contrast various performance targets
•
Critique companies’ planning and budgeting processes
Assessment Methods:
•
Test and class test
•
Assignment
•
Examination
Teaching and learning activities:
•
End of chapter questions
•
Extra questions on my tutor
Unit 9: Incentive compensation systems
Reading resources:
•
Merchant, K.A & Van Der Stede,2017, W.A, Management
control systems-Performance measurement, Evaluation
and Incentives
•
Recommended reading list
•
Additional notes on Mytutor
20
Outcomes:
•
The purpose of incentives will be discussed
•
Various monetary incentives will be described, classified
and discussed
•
Various incentive system will be designed
•
Criteria for evaluating incentive systems will be discussed
•
Group rewards will be discussed and evaluated
Assessment criteria:
•
Discuss the purpose of incentive schemes
•
Classify, describe and discuss various monetary incentives
•
Design the appropriate incentives system
•
Discuss the criteria for evaluating incentive system
•
Discuss and evaluate various group rewards
Assessment methods:
•
Test and class test
•
Assignment
•
Examination
Teaching and learning activities:
•
End of chapter questions
•
Extra questions on myTUTor
Unit 10: Financial performance measures and their effects
Reading resources:
•
Recommended reading list in FINANCIAL MANAGEMENT
•
Additional notes on Mytutor,
21
Outcomes:
•
Define value creation: the primary goal of for profit
organisation
•
Market measures of performance will be applied and
evaluated
•
Accounting
measures
of
performance
applied
and
evaluated
•
Investment and operating myopia will be discussed
•
Return on investment measures of performance will be
analysed
•
Residual income measure of performance be applied and
analysed
Assessment criteria:
•
The primary goals of a for profit organisation will be defined
•
Apply and evaluate market measures of performance
•
Apply and evaluate accounting measures of performance
•
Discuss investment and operating myopia
•
Analyse performance using return on investment
•
Apply and analyse using residual income measure
of
performance
Assessment methods:
•
Test and Class test
•
Assignment
•
Examination
Teaching and learning activities:
•
End of chapter questions
•
Extra questions on myTUTor
4. GLOSSARY OF TERMS
Management Control Systems (MCS) is a system which gathers and uses information to
evaluate the performance of different organizational resources like human, physical, financial
and also the organization as a whole considering the organizational strategies.
22
Management control is the process by which managers influence other members of the
organization to implement the organization’s strategies
System is a set of interacting or interdependent entities, real or abstract, forming an integrated
whole
Management accounting is concerned with the provision and use of accounting information
to managers within organizations, to facilitate the managers in their decision making and
management control functions.
Boundary systems are a statement of what the company is not going to do
Standard Cost Centres can be exemplified by foremen in a factory whose responsibility is
specified in standard quantities of direct labour and material required for each unit of output
Revenue Centres can be best illustrated by the sales departments whose managers do not
have the authority to lower prices but are judged by the sales revenue.
Profit Centres are units such as a product division, where the manager is responsible for
maximizing the profit, i.e., revenue minus cost.
Investment Centres are units where the manager is responsible for maximizing profitability
Organisation -an organized group of people with a particular purpose, such as a business or
government department
Strategy-a plan of action designed to achieve a long-term or overall aim
Standard-something used as a measure, norm, or model in comparative evaluations
Uncertainty-chance that something might happen not the way expected
23