Answer:
The main difficulty in implementing nonfinancial performance measurement systems is fixation on financial measures.
Step-by-step explanation:
Implementing nonfinancial performance measurement systems can bring several challenges. However, among the options provided, the primary difficulty not typically associated with such systems is the "fixation on financial measures."
Nonfinancial performance measurement systems are designed to complement traditional financial metrics by assessing aspects like customer satisfaction, employee engagement, product quality, and innovation. The goal is to provide a more comprehensive view of an organization's performance beyond just monetary outcomes.
Here's why "fixation on financial measures" is not a difficulty in implementing nonfinancial performance measurement systems:
Diverse Metrics: Nonfinancial performance measurement systems aim to diversify the range of metrics used for evaluation. Instead of solely focusing on financial indicators, they encourage organizations to consider a broader set of measures, including customer feedback, employee productivity, and product quality.
Balanced Perspective: By incorporating nonfinancial measures, organizations can gain a more balanced and holistic perspective of their performance. This can lead to better decision-making and strategic planning, as they are not fixated solely on financial outcomes.
Improved Accountability: Nonfinancial measures promote accountability throughout the organization. Employees and managers become responsible for achieving goals related to customer satisfaction, product quality, and other nonfinancial aspects, in addition to financial targets.
In summary, while challenges like the lack of correlation between nonfinancial measures and financial results, reliability of nonfinancial measures, and their potential impact on goal congruence can be obstacles in implementing nonfinancial performance measurement systems, fixation on financial measures is not typically one of them. Instead, these systems aim to reduce such fixation by encouraging a more comprehensive evaluation of organizational performance.