Performance management is defined as getting better results by managing performance within what?

Prepare for the ACCA Accountant In Business (F1) Exam with flashcards and multiple-choice questions, including hints and explanations. Get ready for your certification!

Multiple Choice

Performance management is defined as getting better results by managing performance within what?

Explanation:
The correct answer is rooted in the concept of performance management as a systematic approach aimed at improving results through the effective understanding and alignment of goals. An agreed framework of goals establishes clarity and direction for employees and teams, ensuring that everyone understands what is expected of them and how their contributions fit into the larger organizational objectives. This framework motivates individuals by providing purpose and measurable targets that they can strive to achieve. When performance management is framed within agreed-upon goals, it fosters collaboration, accountability, and can improve both individual and organizational performance over time. In contrast, options like a strict hierarchy of roles or a rigid set of rules could impose limitations on creativity and flexibility, potentially stifling innovation and responsiveness to changing conditions. These approaches might not create a conducive environment for performance improvement, as they could focus more on compliance rather than on engaging employees in the pursuit of shared goals. Likewise, an optional set of standards lacks the necessary binding commitments that an agreed framework provides, making it less effective for driving consistent performance management.

The correct answer is rooted in the concept of performance management as a systematic approach aimed at improving results through the effective understanding and alignment of goals. An agreed framework of goals establishes clarity and direction for employees and teams, ensuring that everyone understands what is expected of them and how their contributions fit into the larger organizational objectives.

This framework motivates individuals by providing purpose and measurable targets that they can strive to achieve. When performance management is framed within agreed-upon goals, it fosters collaboration, accountability, and can improve both individual and organizational performance over time.

In contrast, options like a strict hierarchy of roles or a rigid set of rules could impose limitations on creativity and flexibility, potentially stifling innovation and responsiveness to changing conditions. These approaches might not create a conducive environment for performance improvement, as they could focus more on compliance rather than on engaging employees in the pursuit of shared goals. Likewise, an optional set of standards lacks the necessary binding commitments that an agreed framework provides, making it less effective for driving consistent performance management.

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