Hallenges faced by non profit organisations in developing performance measurement systems

Learning Objectives

To revise content on performance measurement in previous modules

To demonstrate critical awareness of a key management accounting issue and its relevance to the current practice of management accounting

To research a current management accounting issue independently, collecting a wide range of relevant resources

The first assignment is designed to build on your knowledge of a topic which should be familiar to you from your earlier studies. You will need to carry out independent research required by a synoptic module to develop this knowledge further. In order to answer the following questions, you are expected to use a wide range of resources, including books, journals, electronic databases and internet sources. This should not only include the text books and articles used on 50082 but also involve researching articles in high quality academic journals. In addition to the reading on 50082, we recommend that you use the articles below AND select a further 10 key articles from your research. This will involve researching a wide range of articles and selecting the additional academic articles which you judge to be most appropriate.


How do the challenges faced by non-profit organisations in developing performance measurement systems differ from those in for-profit organistions?

This can be addressed by looking at the following questions:

a? What makes a performance measurement system effective?

Use the Balanced scorecard and one other framework of your choice to illustrate this, by contrasting their attributes.

a? How do non-profit organisations differ from for-profit organisations?

What implications does this have for ensuring that their performance measurement systems are effective?

Your answer should be no longer than 2,000 words long, excluding your references/bibliography. Any appendix will contribute to this word count.

Indicative Reading List

Malina, M and Selto, F (2001) a?Communicating and Controlling Strategy: An Empirical Study of the Effectiveness of the Balanced Scorecarda Journal of Management Accounting Research 13 pp47-90

Ferreira, A. and Otley, D. (2009). The design and use of performance management systems: An extended framework for analysis. Management Accounting Research Vol 20 (4), pp.263-282

Fitzgerald,L (2007) in Performance measurement in a?Issues in Management Accountinga 3rd edition, ed Hopper,T. pp 223-241 FT/Prentice Hall : London

Kaplan, R.S. (2001) a?Strategic Performance Measurement and Management in Nonprofit Organisationsa Nonprofit Management and Leadership Vol 11(3) pp353-364

Otley,D. (2005) Performance Management in Berry,A.J., Broadbent,J. and
Otley,D. Management Control Theories, Issues and performance 2nd ed Palgrave Macmillan: Basingstoke