Management Fundamentals 7th Edition by Robert N. Lussier

Exercise 41

The following critical-thinking questions can be used for class discussion and/or as written assignments to develop communication skills. Be sure to give complete explanations for all questions.

The balanced scorecard (BSC) calls for measuring performance in four areas. If a business is making good profits, should it bother with the other three nonfinancing measures? Why or why not?

Step 1 of 4

The balanced scorecard measures financial, customer service, and internal business performance as well as learning and growth performance.

However If a business is making good profits then it means it is good in terms of financial aspects. However other factors like customer service, and internal business performance as well as learning and growth performance are equally important and results relate to one another through the systems effect.