Performance Management 2

Question 1

A balanced scorecard

Answer 1

uses financial and nonfinancial performance measures to guide a company’s operations

Question 2

The order of components in a Balanced scorecard are

Answer 2

1) strategic objectives
2) performance measures
3) baseline (current) performance
4) targets
5) strategic initiatives

Question 3

After a performance measure has been accepted for a particular strategy,

Answer 3

1) Baseline performance
2) Targets levels are set
3) Strategic Initiatives are identified

Question 4

baseline performance

Answer 4

the current level of performance should be determined

Question 5

targets

Answer 5

a designated performance rate or a designated improvement rate should be set

Question 6

strategic initiatives

Answer 6

and actions needed to achieve those targets should be designated

Question 7

four general perspectives used to structure a balanced scorecard are

Answer 7

1) financial
2) customer
3) internal business processes
4) learning and growth

Question 8

learning and growth perspective

Answer 8

concerns the company’s ability to maximize employee loyalty and improve the company by good utilization of those employees

Question 9

value chain

Answer 9

“the sequential set of primary and support activities that an enterprise performs to turn inputs into value-added outputs for its external customers.”