Question

Reid Company is implementing a balanced scorecard performance measurement system. Its senior management team assembled the measures shown below for possible inclusion in its scorecard. What is the purpose of implementing a balanced scorecard performance measurement system?

1) To evaluate the financial performance of the company
2) To assess the customer satisfaction levels
3) To measure the internal business processes
4) To track the learning and growth of the employees

Answer 1

A balanced scorecard performance measurement system is implemented to evaluate and track a company's performance from multiple perspectives, including financial, customer satisfaction, internal business processes, and learning and growth.

Step-by-step explanation:

The purpose of implementing a balanced scorecard performance measurement system is to evaluate and track the overall performance of a company from multiple perspectives. It provides a balanced view of the organization's performance by measuring four key areas:

1. Financial Performance: Assessing the company's financial health, profitability, and efficiency.
2. Customer Satisfaction: Measuring how well the company meets customer needs and expectations.
3. Internal Business Processes: Evaluating the efficiency and effectiveness of internal operations, such as production, supply chain, and quality control.
4. Learning and Growth: Tracking the development and improvement of employees' knowledge, skills, and abilities through training and professional growth.