Activity-based management

Activity-based Management is the process of using activities to improve process efficiency. Activity-based Management therefore provides managers with goals and targets in areas such as eliminating or reducing non-value added activities, increasing throughput and process efficiency. These goals and objectives are important aspects of management performance. Activity-based Management goals and objectives measure the quality of management decisions (embedded in some ABM activities) to achieve desired results. Activity-based Management's goals and targets are not limited to production managers. Nearly every strategic business unit manager in the organization contributes to Activity-based Management's goals. Activity-based Management is seen as an extension of Activity-based Costing.

References

• Kren, L. (2018). Activity Based Management (ABM) and Control System design. Accounting and Finance Research.

Author: Sven Korten