Some companies use a "balanced scorecard" to judge managers' performance. The balanced scorecard includes financial measures as well as measures of customer satisfaction, productivity, and company training and innovation efforts. The use of a balanced scorecard can be seen as
A) A way for management to avoid measurement
B) Window dressing
C) A use of multiple measures to avoid the dysfunctional effects of focusing too much on financial measures
D) A response to government reporting requirements

Question

Quizplus · Accepted Answer

The use of a balanced scorecard is a way to avoid focusing too much on financial measures and instead use multiple measures to evaluate a manager's performance. It is not a way to avoid measurement, window dressing, or a response to government reporting requirements.

Some Companies Use a "Balanced Scorecard" to Judge Managers' Performance