Performance Assessment Systems Are Critical Research Paper

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By the nature of their work, they have access to a lot of valuable information that can be used to provide measures in performance assessment systems. Additionally, management accountants are already oriented towards many actions that focus on improving efficient, productivity and profitability. Management accountants therefore have the expertise needed to understand what measures are best aligned with the company's objectives. If they are involved in the development of assessment systems, the systems will be stronger.

For the most part, the measures in performance assessment systems are reliable and accurate. The emphasis that these systems has on quantitative analysis means that most measure are not subject to much subjectivity.

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The systems are, however, only as good as the quality of the measurement processes. If there are faults in the measurement process then there will also be faults in the data, and ultimately in the interpretation of that data. It is worth noting as well that if these systems are relying on variance analysis, then the quality of the targets used is also an important consideration. Variance is only a problem if the variance is from a sound and reasonable target. Variance from an unreasonable target is unlikely to shed much light for the organization, and is therefore unlikely to drive meaningful change within the organization either.

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