Strategic Performance Measurement

Employee satisfaction, absenteeism and employee suggestions implemented are measures related to:

• Financial perspective

• customer perspective

• internal business processes

• learning and growth

What is the primary purpose of strategic performance measurements in an organization?

• To increase employee workload

• To monitor and evaluate progress towards organizational goals

• To eliminate competition

• To reduce operational costs

Which of the following statements is/are false?

i. Non-financial measures are only applicable when profit is not a principle goal of the firm.

ii. It is often difficult to take any action because of non-financial measures.

iii. At the operational level, it is often easier to relate to non-financial measures.

• ii and iii

• i and iii

• i and ii

• All of the given answers

Why is it important for organizations to set clear and specific goals?

• To confuse employees

• To provide a direction for efforts

• To eliminate competition

• To discourage employee motivation

Employee turnover percentage is an example of which performance measure category?

• Internal business processes

• Customer

• Financial

• Learning and Growth

Listed below are the objectives of performance measurement systems:

 

i. Encourage   goal   congruence   as   it   communicates   the   strategy   and   plans   of   the business and align employees’ goal with those of the organization.

ii. The technique is considered perfectly adequate to meet the needs of business for management of performance.

iii. It is used to evaluate subordinates’ performance and as the basis for rewards.

iv. Guide the senior managers in developing future strategies and operations.

• i, ii and iii

• ii, iii and iv

• i, iii and iv

• All of the above

Choose any two types of performance measurement in financial perspective.

• Balance scorecard

• Return on Investment (ROI)

• Residual Income

• Benchmarking

How does the Balanced Scorecard framework contribute to strategic performance measurements?

• By focusing solely on financial metrics

• By providing a comprehensive view with financial and non-financial metrics

• By ignoring customer perspectives

• By emphasizing short-term goals only

Which of the following are NOT the types of benchmarking

• Functional benchmarking

• Process benchmarking

• Customer benchmarking

• Internal benchmarking

State any two perspective of balance scorecard ?