Question 1

Partial factor productivity is the ratio of the value of output to the value of all key inputs.This is total factor productivity.

Accepted Answer

Partial factor productivity is a measure of productivity that compares output to one specific input. On the other hand, total factor productivity is the ratio of output to all factors of production (labor, capital, materials, etc.), not just one key input.

Question 2

The number of defective units is an example of a subjective performance measure.This is an objective measure.

Accepted Answer

The number of defective units is an objective performance measure, as it can be measured and verified through a specific procedure. A subjective measure would be based on personal judgement or opinion rather than tangible data.

Question 3

Improving the efficiency of the manufacturing cycle involves decreasing the time spent processing a good.Efficiency is improved by reducing the time spent moving,storing,and inspecting the product.

Accepted Answer

False

Question 4

A balanced scorecard uses only nonfinancial measures to determine how well the organization is doing in view of competing stakeholder concerns.Financial and nonfinancial measures are used.

Accepted Answer

A balanced scorecard uses both financial and nonfinancial measures to evaluate organizational performance across different perspectives like customer, financial, internal processes, and learning and growth. It aims to provide a comprehensive view of how well the organization is achieving its objectives, taking into account varied stakeholder concerns.

Question 5

A balanced scorecard is basically a balance sheet prepared using nonfinancial measures.A balanced scorecard is more than multiple performance measures.

Accepted Answer

A balanced scorecard is a strategic management tool that includes financial and non-financial measures to provide a comprehensive view of organizational performance, not just a balance sheet.

Question 6

The concept of a balanced scorecard is to measure how well the organization is doing from the view of employees,suppliers,customers,business partners,and the community,as well as the shareholders.This is the basic idea behind the balanced scorecard.

Accepted Answer

The statement accurately describes the concept of a balanced scorecard.

Question 7

Employees empowered with real decision-making authority are more likely to be more responsive to customer concerns.They have the ability to satisfy customer demands.

Accepted Answer

When employees have decision-making authority, they can make quick decisions to address customer concerns and solve their problems. This leads to improved customer satisfaction and loyalty. Hence, the given statement is true.

Question 8

A business model is a description of how different levels and employees in the organization must perform for the organization to achieve its goals and objectives.This is the definition of a business model.

Accepted Answer

The definition provided accurately describes a business model.

Question 9

One question that an organization's mission statement should answer is how the organization will evaluate its performance relative to its competitors.A mission statement describes internal values and responsibilities.

Accepted Answer

An organization's mission statement should outline its purpose and goals, as well as its core values and the principles that guide its decision-making. While some mission statements may reference competitors, their primary focus is on the organization's own objectives and strategies, not how it compares to others in the field.

Question 10

One disadvantage of using nonfinancial measures to evaluate performance is that they are only available on a monthly,quarterly,or annual basis.They are available in shorter time periods or in real-time.

Accepted Answer

Nonfinancial measures can be available in shorter time periods or even in real-time, making them more timely than traditional financial measures.

Question 11

In general,the use of multiple measures to evaluate performance is better than the use of a single performance measure.Single measures can only reflect a single characteristic while a manager's job is multi-faceted.

Accepted Answer

Multiple measures provide a more comprehensive evaluation of a manager's performance as it takes into account various aspects of their job. A single measure, on the other hand, may not provide a complete picture of their performance.

Question 12

Continuous improvement involves the search for and implementation of the best way to do something as practiced by other organizations or in other parts of one's own organization.This is benchmarking.

Accepted Answer

The answer of Continuous improvement involves the search for and...

Question 13

Employee involvement in setting performance objectives is likely to increase the employee's commitment to the organization.The employee has a sense of ownership.

Accepted Answer

When employees are involved in setting their own performance objectives, they are more likely to feel that they have a stake in the organization's success and are committed to achieving their goals. This sense of ownership can lead to increased motivation, engagement, and job satisfaction, as well as better performance outcomes.

Question 14

One reason financial measures are used to evaluate performance is that they are easily quantifiable.Financial measures by definition are quantitative.

Accepted Answer

Financial measures are typically expressed in numerical terms such as dollars or percentages, and can be easily measured and compared.

Question 15

In general,performance measures-financial and nonfinancial-should relate to what managers at different levels control.Managers should be measured on what they can control.

Accepted Answer

Performance measures should be relevant to what managers can control in order to accurately assess their performance and hold them accountable for their actions. This includes both financial and nonfinancial measures that can help evaluate their effectiveness in achieving organizational goals.

Question 16

One advantage of nonfinancial measures is that managers directly involved in operations are likely to understand them.The managers understand the components of the measures.

Accepted Answer

Nonfinancial measures are often related to operational aspects of the business, which managers directly involved in the operations are likely to understand. Therefore, they can provide a clearer picture of overall performance to these managers.

Question 17

One of the important guidelines of benchmarking is to not benchmark everything at the best-in-the-business level;no organization can be the best at everything.This is a true concept.

Accepted Answer

Benchmarking is about identifying areas where an organization can improve its performance by learning from others. It is unrealistic to strive to be the best at everything, so organizations should focus on benchmarking specific areas where they can learn and improve.

Question 18

Manufacturing cycle time is the total time involved in processing,moving,storing,and inspecting a good or providing a service.This is the definition of manufacturing cycle time.

Accepted Answer

The given definition accurately describes the concept of manufacturing cycle time.

Question 19

The primary objective of benchmarking is to evaluate performance of an activity,operation,or organization relative to the performance by other companies.This is a basic definition of benchmarking.

Accepted Answer

The given definition of benchmarking states the primary objective clearly and accurately, making option A the correct choice.

Question 20

In general,all managers in a given organization are responsible for the same things and should be evaluated using the same financial and nonfinancial measures.Managers are responsible for diverse operations and need specialized measures.

Accepted Answer

While managers may have some general responsibilities, their specific duties and operations can vary greatly. Therefore, specialized measures are often necessary to evaluate their performance effectively.

Quiz 18: Performance Measurement to Support Business Strategy