A firm using the balanced scorecard has included among its strategies 'to improve bottom-line profit we need to improve working conditions'. Which of the following statements best describes the evaluation of the firm's success in implementing the strategy?

A) It is impossible to determine whether the strategy has been successful.
B) The only way to measure success is to survey employees.
C) A number of performance evaluation measures will need to be put in place, but even with favourable results on those measures, the firm cannot conclude that the profit resulted from the improvement in working conditions.
D) If managers can observe employees' motivation they will have a good idea of the success or otherwise of the strategy.

Question

Kirby Munson · Accepted Answer

Final Answer : C, Explanation :  In order to evaluate the success of the strategy, the firm will need to put in place performance evaluation measures, such as measuring employee satisfaction, productivity, or turnover. However, even if these measures show positive results, it is not possible to conclude that the profit resulted solely from the improvement in working conditions. Other factors may have played a role, such as an increase in sales or a reduction in costs. Therefore, a number of measures will need to be put in place to evaluate the success of the strategy.

Definitions

Learning Objectives

Learning Objectives

Related questions