Question

Which of the following is correct about balanced scorecards?

a) If one performance measure improvement on a balanced scorecard shouldlead to improvement in another performance measure but doesn’t, employees must work harder.

b) If the balanced scorecard is constructed correctly, the performance measures should be independent of each other so that bad performance in one measure will not result in bad performance on another measure.

c) A balanced scorecard contains both customer and internal business process performance measures because improvements in internal process should result in improvements in customer satisfaction.

d) Incentive compensation, such as bonuses, should be tied to balanced scorecard performance only if management is sure the performance measures are easily manipulated by employees.

Answer 1

c) A balanced scorecard contains both customer and internal business process performance measures because improvements in internal process should result in improvements in customer satisfaction.

Other all are not relevant to balanced scorecard,Since balanced score card is based on four elements within key performance indicators those are a) financial perspective b)Customer perspective c)Internal process perspective d)growth perspective.

So, out of all (C) option is more relevant since it has performance indicators correct statement.