11) The performance measurement system should provide incentives for coordinating activities of the subunits and focusing them toward the overall company objectives. This statement reflects which of the following performance measurement goals?
A) Motivating unit managers
B) Promoting goal congruence
C) Providing feedback
D) Benchmarking
12) The performance measurement system should compare the company's performance against the best practices in the industry. This statement reflects which of the following performance measurement goals?
A) Motivating unit managers
B) Promoting goal congruence
C) Providing feedback
D) Benchmarking
13) The performance measurement system must ensure that managers know the specific goals and targets for the subunits. This statement reflects which of the following performance measurement goals?
A) Motivating unit managers
B) Communicating expectations
C) Providing feedback
D) Motivating managers
14) The performance measurement system lets upper management know whether the subunits are achieving their goals and targets or not. This statement reflects which of the following performance measurement goals?
A) Motivating unit managers
B) Communicating expectations
C) Providing feedback
D) Motivating managers
Learning Objective 24-3
1) In a balanced scorecard system, the key performance indicators (KPIs) are ways to measure whether the company is meeting its goals.
2) Each one of the four perspectives of a strong balanced scorecard should have as many KPIs as management can devise, to create a more effective and efficient system.
3) A company that uses a balanced scorecard has established a KPI for employee turnover. If the KPI is negative, that implies a very low rate of employee turnover.
4) In designing a balanced scorecard, the company begins with company goals, then develops KPIs, and finally, based on the KPIs that are established, the company identifies the company's critical factors.
5) A good balanced scorecard focuses only on leading indicators, because lagging indicators that relate to past performance are not important for the scorecard.
6) Which of the following is NOT one of the four perspectives of a balanced scorecard?
A) Financial perspective
B) Customer perspective
C) Technological perspective
D) Learning and growth perspective