Question 1

A good balanced scorecard should contain:

Accepted Answer

A good balanced scorecard should contain both lagging and leading measures. Lagging measures are historical and tell how well the organization has performed in the past, while leading measures are predictive and show how well the organization is likely to perform in the future. A balanced scorecard should have a mix of both types of measures to provide a comprehensive view of the organization's performance.

Question 2

If a company finds that the level of employee satisfaction appears to predict turnover,then employee satisfaction represents ______ measure while turnover represents ______ measure.

Accepted Answer

Employee satisfaction is a leading measure because it predicts future turnover, while turnover is a lagging measure because it reflects past turnover.

Question 3

_____ is/are simply representation(s)of facts that come from some type of measurement process.

Accepted Answer

Data is simply a representation of facts that come from some type of measurement process. Measures, indicators, and information are all derived from data, but they are not the same thing as data itself.

Question 4

_____ is a useful financial performance indicator,which managers use to prioritize improvement projects and gauge the effectiveness of total quality efforts.

Accepted Answer

Cost of quality is a financial performance indicator that measures the cost to produce a quality product or service, including prevention costs, appraisal costs, internal failure costs, and external failure costs. By analyzing the cost of quality, managers can identify areas for improvement and allocate resources to quality improvement projects. This helps in prioritizing improvement projects and gauging the effectiveness of total quality efforts. Benchmarking is a process of comparing performance metrics with industry peers, direct costing is a costing method that only includes direct costs, and qualitative investment analysis is a method of evaluating investment options based on non-financial criteria.

Question 5

Which of the following is NOT a customer-focused outcome?

Accepted Answer

Response delays are not a customer-focused outcome as they can result in frustration and dissatisfaction for customers, rather than meeting their needs and wants. The other options, warranty claims, customer retention, and positive referrals, are all outcomes that can indicate a customer-focused approach to business.

Question 6

Companies that recognize the importance of reliable and appropriate data and information practice all of the following activities EXCEPT:

Accepted Answer

Collecting and analyzing data should not be solely performed by quality control departments. It is important for all departments to have access to data and be able to analyze it to make informed decisions. Therefore, companies that recognize the importance of reliable and appropriate data and information should involve all relevant departments in data collection and analysis.

Question 7

A set of financial,market,operational,and employee performance measures for management review and use is an example of:

Accepted Answer

A balanced scorecard is a framework that includes financial, market, operational, and employee performance measures for management review and use. It provides a comprehensive overview of the organization's performance and helps managers make informed decisions. An enterprise resource plan is a software system for managing a company's resources, an interlinking model is not a recognized business term, and a data mine is a large database used for analysis and decision-making. Therefore, the best choice is D.

Question 8

Traditionally,most organizations relied on the following performance data EXCEPT:

Accepted Answer

Traditionally, most organizations focused on financial metrics like return on investment and earnings per share, and operational metrics like machine utilization, rather than customer perspective, which is a more modern approach.

Question 9

Which of the following is NOT a benefit derived from good data and information management?

Accepted Answer

Large quantities of data-laden reports being generated is not a benefit but a potential downside of good data and information management. The focus should be on generating relevant and actionable information, not overwhelming reports.

Question 10

_____ is a measurement that is not a direct or exclusive measure of performance.

Accepted Answer

An indicator is a measurement that provides information about a process or outcome, but it does not directly measure performance. Performance is often measured by specific metrics or KPIs, whereas indicators can be more general and provide context or direction for performance improvement efforts. Examples of indicators might include customer satisfaction ratings, employee engagement surveys, or environmental impact assessments.

Question 11

Robert Kaplan and David Norton developed a balanced scorecard which had four perspectives.Which one of the following is NOT one of them?

Accepted Answer

The four perspectives in the balanced scorecard model are financial, customer, innovation and learning, and internal processes. "Industry" is not one of the perspectives.

Question 12

At the _____ level,operational performance data such as yields,cycle times,and productivity measures help middle managers determine accomplishment of their objectives,whether they are using resources effectively,and where improvement might be necessary.

Accepted Answer

Operational performance data such as yields, cycle times and productivity measures relate to process-level activities rather than individual, organizational or industry levels. Therefore, the best choice is B) process.

Question 13

Marketplace performance indicators could include all of the following EXCEPT:

Accepted Answer

Customer surveys on product and service performance are more related to customer satisfaction and feedback rather than direct marketplace performance indicators.

Question 14

Data and information support management at different levels.Which of the following is NOT an example of data at the individual level that helps provide real-time information for feedback and process control?

Accepted Answer

The answer of Data and information support management at different...

Question 15

Response time is an example of a:

Accepted Answer

Response time is a measure of how long it takes for a service to be completed. It is a customer-focused outcome because it measures the customer's experience with the service.

Question 16

_____ measures are generally tracked by senior leadership to gauge overall organizational performance.

Accepted Answer

Senior leadership typically tracks financial measures like revenue, profits, and expenses to assess overall organizational performance. These measurements are essential because they reflect the organization's ability to create value, generate income, and manage costs effectively. Customer, product, and service measures may also be important but are not generally tracked at the senior leadership level.

Question 17

The Malcolm Baldrige Criteria for Performance Excellence Results category groups performance measures into six sets.Which of the following is NOT one of them?

Accepted Answer

The six sets of performance measures in the Malcolm Baldrige Criteria for Performance Excellence Results category are Product and Service Outcomes, Customer-Focused Outcomes, Workforce-Focused Outcomes, Leadership and Governance Outcomes, Financial and Market Outcomes, and Process Effectiveness Outcomes. Industry-Focused Outcomes is not one of the sets.

Question 18

Perceived value is an example of a:

Accepted Answer

Perceived value is a customer-focused outcome as it refers to the customer's perception of the benefits they receive in relation to the cost they pay. It is a measure of how well a product or service meets the customer's needs and expectations.

Question 19

Absenteeism,turnover,training effectiveness,and engagement are examples of _____ outcomes.

Accepted Answer

Absenteeism, turnover, training effectiveness, and engagement are indicators of the workforce's well-being and productivity, making them workforce-focused outcomes.

Question 20

_____ outcomes include business-specific indicators,such as innovation rates and increased use of product and process yields,and Six Sigma initiative results.

Accepted Answer

The given outcomes, such as innovation rates and increased use of product and process yields, are indicators of process-effectiveness, which refers to the efficiency and productivity of the business processes. Six Sigma initiative results also indicate process-effectiveness as it aims to minimize process variations and defects. The other options - leadership, customer-focused, and marketplace performance - are not directly related to the given outcomes.

Quiz 8: Performance Measurement And Information Management