Performance Measurement (6)

Question 1

What is a balance scorecard usually used for?

Answer 1

Non-profit organisations and the public sector

Question 2

What is the aim of a balanced scorecard?

Answer 2

To establish goals for each together with measures which can be used to evaluate whether these goals have been achieved

Question 3

What are the four different perspectives of a scorecard?

Answer 3

Financial perspective

Internal business perspective

Innovation and learning perspective

Customer perspective

Question 4

What are traditional measures mainly?

Answer 4

Inward looking and narrow in focus with over emphasis on financial measures and short-term goals

Question 5

What does the balanced scorecard focus on?

Answer 5

Internal and external factors and links performance measures to key elements of a company’s strategy

Question 6

What requires a balanced consideration in a scorecard?

Answer 6

Financial and non-financial gaols to prevent improvements being made in area at expense of another

Question 7

What does a scorecard attempt to identify?

Answer 7

The needs and concerns of customers

Question 8

What can info used in scorecard be used for?

Answer 8

Info can then be used to identify new products and markets. Comparison with competitors can be made to establish best practice

Question 9

How can performance management system in a service organisation be analysed?

Answer 9

Through combination of building blocks. Which are dimensions of performance, standards, rewards

Question 10

What are dimensions of performance?

Answer 10

Profit
Comeptitiveness
Quality
Resource utilisation
Flexibility
Innovation

Question 11

What are standards of performance?

Answer 11

Ownership
Achievability
Equity

Question 12

What are rewards of performance?

Answer 12

Clarity
Motivation
Controllability

Question 13

What is meant by quality in performance?

Answer 13

Being reliability, courtesy, competenence and availability

Question 14

What is meant by flexibility in performance?

Answer 14

Ability to deliver at right time, response to customer requirements and changes in demand

Question 15

What is meant by resource utilisation in performance?

Answer 15

Best use of inputs to create outputs. Measured in terms of productivity

Question 16

What is meant by innovation in performance?

Answer 16

Ability to develop new products or services, move into new markets and continuous improvement

Question 17

Aspect to setting standards of performance (individuals own)

Answer 17

Individuals need to feel that they own the standards and targets for which they are made responsible

Question 18

Aspect to setting standards of performance (realistic)

Answer 18

Individuals need to feel that targets or standards are realistic and achievable

Question 19

Aspect to setting standards of performance (fair and equitable)

Answer 19

Standards and targets should be seen as fair and equitable for all managers in the organiastion

Question 20

Aspects in the reward system (setting targets)

Answer 20

System of setting targets and rewarding individuals for achieving targets should be clear. Clarity will improve motivation to achieve targets

Question 21

Aspects in the reward system (performance targets)

Answer 21

Achievement of performance targets should be suitably rewarded

Question 22

Aspects in the reward system (position to control)

Answer 22

Individuals should be made responsible only for aspects of performance they are in position to control