THE INSTITUTE OF FINANCE MANAGEMENT

FACULTY OF ACCOUNTING, BANKING AND FINANCE

DEPARTMENT OF ACCOUNTING AND FINANCE
BACHELOR DEGREE IN ACCOUNTANCY
2019/2020
INDIVIDUAL ASSIGNMENT
AFU08607: PERFORMANCE MANAGEMENT

NAME NEEMA A MGONDE

REG NUMBER IMC/BAC/17/80764

SUBMISSION DATE 03RG JULY 2020

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 TABLE OF CONTENTS

TABLE OF CONTENTS.................................................................................................................I
LIST OF ABBREVIATION...........................................................................................................II
1.1 INTRODUCTION.....................................................................................................................1
2.1 METHODOLOGY....................................................................................................................2
3.1 LITERATURE REVIEW..........................................................................................................4
3.2 DIFFERENCE MANAGEMENT CONTROL SYSTEMS......................................................4
3.3 DIFFERENCE BETWEEN MANAGEMENT CONTROL SYSTEM.....................................5
3.4 ADVANTAGE AND DISADVANTAGE OF CONTROL SYSTEM.....................................5
4.1 FINDINGS.................................................................................................................................6
5.1 DISCUSSION............................................................................................................................7
6.1 CONCLUSION..........................................................................................................................7
REFERENCES................................................................................................................................9
LIST OF ABBREVIATION

UTTL : Unilever Tea Tanzania Limited

IFM :The institute of Finance Management
FFCs :Feedforward controlling system
FBCs : Feedback control system
PMCs : Perfomance Management
1.1 INTRODUCTION
Performance Management Control System is a system which gathers and use information to
evaluate the performance of different organization resources like human, physical, financial and
also the organization as whole in order to improve organization effectiveness in accomplishment
of organization mission and objective. PMSs influence the behavior of organization resources to
implement organizational strategies. According to Simons (1995), Management Control system
are the formal, information-based routines and procedures managers use to maintain or alter
pattern in organization activities. According to Maciariallo et al (1994) PMSs it concerned with
coordination, resource allocation, motivation, and performance measurement

1.1.1Background of the Company

Tanganyika Tea Company a subsidiary of Brooke Bond limited, London was formed in 1940
when Brook bond was requested by the Government to administer the former German’s owned
properties in Mufindi. The company continue to use that name until 2000 where the new name
reflecting its mother company was launched to replace BrookBoond Tanzania Ltd hence the
formation of Unilever Tea Tanzania ltd which is still used up to now.

Unilever Tea Tanzania has launched a five year expansion project to double the current size of
production through establishment of new estates. Vision “Our purpose is to make sustainable
living commonplace” we work to create a better future everyday with brand and service that
help people feel good ,look good and get more out of life. Mission “our mission is to add vitality
to life”

1.1.2 Objective of the study

The study was based on the following objective;
I. To examine the way performance management system are being implemented at
UNILEVER TEA TANZANIA
II. To explore the impact of performance management system on the performance of
UNILEVER TEA TANZANIA
III. To identify how the challenges at UNILEVER TEA TANZANIA affect the
implementation of performance management control system.

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2.1 METHODOLOGY
A part of research methodology. The scope of research methodology is wider than that of
research methods. Thus, When we talk of research methodology we do not only talk of the
research methods but also consider the logic behind the methods we use in the context of our
research study and explain why we are using Research methodology is a way to systematically
solve the research problem. It may be understood as a science of studying how research is done
scientifically. Research methodology has many dimension and research is done scientifically.
Research methodology has many dimension and research method do constitute a particular
method or technique and why we are not using other so that research result are capable of being
evaluated either by the researchers himself or by others.(Bhattacharyya 51)

2.1.1 Area of the study

The study is covered at Uttl which is located at Iringa Regional specifically Mufindi District
,where it easy on collecting due to familiarity of the Organization the information concern the
assign task on what kind of control system which UTTL used in management control system,

2.1.2 Research Strategy/Design

Research Design is the framework of research method and techniques chosen by a researcher,
The design allow researcher to hone in on research method that are suitable for the subject matter
and set up their studies up for success, The design phase will determined which tools to use and
how they are used, They are two forms of research design which are Quantitative and
Qualitative design

This study work applied a combination of Quantitative and Qualitative methods where
Qualitative approach interview method where used which help to get the quality data concern
the study and Quantity approach interview and questioner where used all approach provide the
quality data to the study has been explained more about the research questions.

2.1.3 Nature of the data required

The data required for the study has been collected from difference sources such as primary and
secondary sources with the help of written documents/ sources like journals

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Primary Data
Primary data is a type of data that is collected by researchers directly from main sources through
interview, surveys, experiments etc. Primary data are usually collected from the source where the
data originally originates from and are regarded as the best kind of data in research.

The study applied interview and questioner but most of the information obtained through
interview specifically telephonic interview which are carried out over the phone through ordinary
voice call and the UTTL staff participated properly in providing primary data.

Secondary Data
Is the a research method that involves using already existing data it include published report and
similar document, The document can be made available in website and firms journals. This study
employed secondary data so as to get relevant information about the research and to collect
useful references from specific UTTL journal, procedures and standard policies guiding UTTL

2.1.4 Data Collection Method and Tools

Data collection is the process of gathering quantitative and qualitative information on specific
variables with the aim of evaluating outcomes or gleaning actionable insights. There are two
mainly data collection method which are primary and secondary method. Good data collection
requires a clear process to ensure the data collected is clean, consistent and reliable. The study
based on both primary and secondary data as follow

Interviews
This is the method used to collect data where two parties involved the interviewer and the
interviewee which was conducted over the phone through ordinary call, This method help
interviewer to get more information concern the UTTL control system because the interviewee
was free since there is no physical contact between interviewee and interviewer. A lot of
question where ask and getting the answer clearly without any question to be left over

Documentation method

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This is the evidence to prove or support for the information been provided ,In the study various
document where reviewed including UTTL reports, UTTL website and Journals all where be
reviewed in gathering the data.

3.1 LITERATURE REVIEW

Literature Review is a scholarly paper which included the current knowledge including
substantive findings as well as theoretical and methodological contribution to a particular topic.
Reviewed has been done on PMCS, different between FBC and FFC, advantage and dis
advantage of control system.

Under this section the reviewed has been done on performance management system where the
PMS is the systematic approach to measure the performance of employees. It is a process
through which the organization their mission, goals and objectives with available resources.

Also Bititci,Carrie& Mc Devitt 1997 define PMS as the process by which the company manage
its performance in line with its corporate and functional strategies and objectives. Performance
management system as referred to by (Cook, 2003) is the process of achieving organizational
objectives by making productive use of people. Other scholars say that performance management
includes the process of designing formal systems that ensure the efficient and effective use of
human talent to achieve organizational objectives (Burgess et al., 2007).

3.2 DIFFERENCE MANAGEMENT CONTROL SYSTEMS

They are three forms of Performance Management control system which are feed forward,
feedback and cybernetic control.

Feed forward control system is a mechanism in a system for preventing problems before they
occur by monitoring performance inputs and reacting to maintain an identified level .Example
looks at the command and sets an actuator without seeing the result of it adjustment.

Feedback control system is a system whose output is controlled using its measurement as
feedback signal. This feedback signal is compared with a reference signal to generate an error

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signal which is filtered by a controller to produce the system`s control input, FBC s is used after
the occurrence of the problem.

Cybernetic control is a system of control through which a critical resources is held at the desired
level by a self-regulating mechanism. For cybernetic control to work standards must be set actual
results must be reliably measured ,standard and results must be compared and resulting
comparison must be feedback to management for action.

3.3 DIFFERENCE BETWEEN MANAGEMENT CONTROL

SYSTEM.
Despite there are three forms of control system but most of the scholars explain cybernetic
control as feedback control, FFC is used to reduce the effects of measurable disturbances before
they occurred while FBC trim compensates for inaccuracies in the process model, measurement
error, and unmeasured disturbances, it action after the occurrence of the problem, Also FFC
based on prediction and expectation on future outcome while FBC is based on taking action
after outcome already been occurred.

3.4 ADVANTAGE AND DISADVANTAGE OF CONTROL

SYSTEM
Both control system are important techniques that are widely used by the firms which depend
on nature and size of firm .Some firms apply both form of control system.

The following are the adavanges of FFC, it prevents and reduce the disturbances before they
occurs hence reduce the risk that might be encountered due to the facts that action are undertaken
before the occurrence of the problem .but on other hand FFC has its side effect which is it not
account for all potential disturbances in the input, leading to the basic concept of FFC is to
measure important disturbance variable and take corrective action before they upset the process.

On the other hand FBC has both advantages and its dis advantage as follows, It increase
efficiency and workers accountability so as to fit the target by solving all the hindrance
discovered by the fims.it improve control by automatically adjusting the controller output to
reduce the error which will help to reduce the effects of dynamic disturbances also it add stability
to an unstable process ensuring a repeatable and reliable control loop. FBC has some of dis

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advantages like a lot of sign and commands will be send to the firms controller if a system is to
sensitive to changes in the command and signal it can produce unreliable movements since the
controller will be try to over correct I self.

4.1 FINDINGS
This chapter gives the detailed study or examination of things which have been explained in
literature review according to different authors in connection with theory learnt in the class, in
UTTL they used both feed forward and feedback control system but highly they used feed
forward control system.

4.1.1 Nature of Current Performance Management System

Under UTTL Feed forward control system is used when the plantation process is undertaken by
introduce new techniques and workers motivation through bonus so as to harvest more
tealeaves hence to attain they are target goal ,In additional to that new and modern techniques in
transporting the tealeaves to the firms before they are been spoil. Example UTTL enter in a
contract with JILANJO vehicles for immediately transporting tealeaves to the firms and made tea
to the local customers.

In some circumstance UTTL used Feedback control system on they are operation this is due to
uncertainty and environmental factor which bring difficult in expecting the outcomes. For
example The budget of raw material for plantation process is happen to be short that to low
production hence UTTL are forced to buy a new raw material to overcome the problem.

Good Management control system been introduced by UTTL made them to attain they are
objective effective by ensure that the resources obtained by Organization used effectively and
efficiency in accomplishment of Organizational objective, This is done by a Manager properly
monitoring they are activity which are been delegated to employee , Monitory activity help
UTTL to undertaken the precaution without the risk be occurred.

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5.1 DISCUSSION
This chapter presents discussions of the key findings presented in chapter four, conclusions
drawn based on such findings on performance management systems on UTTL. Based on data
obtained from UTTL it shown that they are internal control system is effective and well managed
that helps Organisational to reduce errors and minimum uncertainty

6.1 CONCLUSION
This chapter explain about conclusion and recommendations on PMS, the kind of control system
been used it depend with nature and size of the firm. the study was premised on three specific
objectives, that is, to examine impact of these PMCs ,the challenges encounter by the UTTL in
implementation process, forms of PMCs wit it advantages and dis advantages.

The stud reviewed various literals work that related to performance management control system,
where by the Author try to review on what has be written with what happen in a market with the
use of information from UTTL, The Author did not recognize any gap on what has been tough in
class vice the market application.

6.1.1 Recommendation
IFM assignment enhancing program designed for students to learn and understand the challenges
necessary for their career. Most things taught theoretically are put in really world situation
during field attachment. This will enables students to experience working environment before
being exposed to work after completion of their studies. Furthermore, a practical assignment
opens up employment prospects for the students due to the fact that student conduct they are
field training and getting the required information of the same firm for researchers matters , The
fact of been familiar with the same firm bring chance for a student to be more confidence and
even high chance of getting employment on that firm.

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6.1.2 Recommendation to Unilever Tea Tanzania
Performance management control system is benchmark for UTTl to attain they goals hence
UTTL should review it internal control system and eliminate all factor which make they are
internal control to be week like to provide education to it staff about the meaning and important
of management control system this will bring more success in control system, Also UTTL
should provide the required document to a student who conduct research in they are firm for the
aim of getting more and accurate data which will accelerate to eliminate the firms problems.

6.1.3 Recommendation to The Institute Of Finance Management

Performance Management model should be taught well in a class and the assignment should be
provided at a right time so as student will having enough time for finding the required data, Also
the Institute should provide a means which will help a student to get information to a certain
firm. More over the assignment allocated to student should be within the student coverage area
lectures should reduce the act of provided the assignment which is out of they are coverage to the
student.

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REFERENCES
Unilever Tea Tanzania Limited Journal
Performance Appraisal Management by Kelvin R.Murphy- University of Limerick Ireland,
Jeanette Cleveland and Madson E Hanscom
Next generation performance management by Allan L. Colquitt
Clardy, A. (2013). A general framework for performance management systems: Structure,
design and analysis. Performance Management Improvement,52(2), pp. 5-13.

Baker T (2013) The end of the performance review .Basingstoke;Palgrave macmimillan.

Also Bititci,Carrie& Mc Devitt 1997 Handbook of reward management practice