Question 1: Importance Of Performance Assessment. Understanding

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Question 1: Importance of Performance Assessment
Understanding your business is a crucial component of it operating efficiently and economically. Performance assessment is a tool to assist Yacker Transport in understanding their business and ensuring it is meeting its objectives. If a business is not meeting its objectives there could be negative financial, and even social or environmental implications. In the case of YT if one objective is to ensure at least 2 tonnes of freight are on each truck, and the actual result is only 1 tonne, YT will need to take corrective action. An implication of not meeting this objective could be increased transport costs, as twice as many trucks are required to transport the same amount of freight, which is …show more content…

A key resource for Yacker Transport in fuel for their fleet of vehicles. Fuel pricing within New Zealand is reasonably volatile, in response to supply of crude oil, and due to exchange rates of New Zealand dollars to United States Dollars (Energy, n.d.). These are two market forces which can have a significant impact of the variable costs of Yacker Transport’s operations, as such an increase in the cost of fuel will impact YT’s profitability, and thus potential return. Regulation, such as an increased tax on fuel, also will have similar impacts on YT’s performance. However, YT could benefit from regulations that enable higher volumes of freight to be transported, such as occurred in 2010 with high productivity motor vehicles rules (New Zealand Transport Agency, n.d.).
Many of YT’s employees likely have a reasonable amount of autonomy, due to the nature of the logistics and transport industry delivering to rural New Zealand. Consequently, employee motivation and goal congruence is an important factor that will influence YT’s performance. YT need to ensure that their employees are performing at their best, where there is not a strong level of management oversight, as employees are operating independently. If YT can ensure goal congruence, all of their staff will be working toward the same objectives, and as such improving YT’s performance. To achieve this YT need to understand what motivates their employees, whether it be intrinsic

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