Question 1

Joint participation means that the personnel responsible for each measure participate in developing the measure or establishing the measure's performance objective.

Accepted Answer

Joint participation involves the cooperation and collaboration of personnel responsible for a measure in order to establish and meet performance objectives.

Question 2

The measurement system should rely on quantitative data instead of qualitative feelings and assessments.

Accepted Answer

Quantitative data provides measurable and objective information, which is crucial for accurate and reliable measurement. Qualitative feelings and assessments are subjective and open to interpretation, which can lead to inconsistency and bias in the measurement process.

Question 3

Each location of an organization must use the same performance objectives or performance criteria.

Accepted Answer

Each location may have different goals and objectives based on their local market, resources, and customer needs. It is important for each location to have customized performance objectives that align with the overall goals of the organization but also cater to their specific needs.

Question 4

All aspects of performance lend themselves to quantitative measurement.

Accepted Answer

Some aspects of performance, such as creativity, teamwork, and leadership, are qualitative and do not easily lend themselves to quantitative measurement.

Question 5

The original premise of the balanced scorecard was that a total reliance on financial measures was leading organizations to make poor decisions.

Accepted Answer

The original premise of the balanced scorecard was indeed that a total reliance on financial measures was leading organizations to make poor decisions, and that a more comprehensive and balanced approach was needed to achieve long-term success.

Question 6

Performance measurement systems receiving their data from automated or computerized systems are generally more susceptible to data manipulation.

Accepted Answer

The answer of Performance measurement systems receiving their data from...

Question 7

Historical data provide substantial insight about the performance capabilities of competitors or other leading firms.

Accepted Answer

The answer of Historical data provide substantial insight about the...

Question 8

A single, overall productivity measure representing purchasing and supply chain performance is feasible.

Accepted Answer

Purchasing and supply chain performance involve multiple processes, tasks, and activities. It is not feasible to represent their overall productivity with a single measure. Different performance measures, such as supplier performance, inventory turnover, delivery time, and cost reduction, should be used to evaluate purchasing and supply chain performance comprehensively.

Question 9

Some individuals resist the benchmarking process because of a reluctance to recognize the value of a competitor's way of doing business - the "not invented here" syndrome.

Accepted Answer

The statement describes the "not invented here" syndrome, which is a common reason why some people resist benchmarking.

Question 10

A performance objective must reflect the realities of the firm's competitive environment.

Accepted Answer

Performance objectives should be aligned with the firm's competitive environment, as they are designed to help the firm achieve a competitive advantage. By reflecting the realities of the competitive environment, the firm can set objectives that are realistic and relevant to its competitive position, and that can help it achieve its strategic goals.

Question 11

The most common method of establishing a budget uses the current administrative budget as a starting point.

Accepted Answer

This statement is true. Many organizations use their current administrative budget as a starting point when establishing a new budget for the upcoming period. However, this is not the only method of budgeting and different approaches may be used depending on the organization's goals and financial situation.

Question 12

A common misconception is that a performance evaluation system should not measure every activity.

Accepted Answer

A performance evaluation system should ideally measure every activity related to the employee's job responsibilities, so that a comprehensive assessment of their performance can be made. Not measuring every activity can lead to gaps in judgment and may result in a flawed evaluation. Therefore, the correct statement is that a performance evaluation system should measure every activity to provide an accurate evaluation.

Question 13

Purchasing requires measures that reflect its ability to support overall corporate and functional goals, which means a reduced emphasis on pure efficiency measures and greater emphasis on effectiveness measures.

Accepted Answer

Purchasing should not only focus on efficiency but also on effectiveness measures that can support corporate and functional goals.

Question 14

Supply managers should emphasize purchasing efficiency over purchasing effectiveness as a strict measure of performance.

Accepted Answer

This statement is incorrect. While purchasing efficiency is important and can lead to cost savings, it should not be prioritized over purchasing effectiveness, which involves selecting the best suppliers and products to meet the organization's needs and goals. A balance between both efficiency and effectiveness should be maintained for optimal performance.

Question 15

Well-defined measures use data that are available and accurate.

Accepted Answer

Well-defined measures require reliable and accurate data to ensure accurate and meaningful results.

Question 16

Purchasing and supply chain managers often use the historical approach with effectiveness-related measures.

Accepted Answer

The answer of Purchasing and supply chain managers often use...

Question 17

A sound measurement and evaluation system provides sporadic reporting of performance results.

Accepted Answer

A sound measurement and evaluation system should provide regular and consistent reporting of performance results, not sporadic reporting.

Question 18

Measurement is virtually free.

Accepted Answer

Measurement often involves costs related to acquiring measurement tools, training personnel, and maintaining accuracy over time, making it not virtually free.

Question 19

There is no one best way to measure performance.

Accepted Answer

Performance measurement is complex and multifaceted, and there are a variety of methods and tools that can be used to effectively measure performance depending on the context and objectives of the organization. Therefore, there is no one size fits all approach to performance measurement, and different methods may be appropriate for different situations.

Question 20

With the current budget plus adjustment approach, the administrative budget for purchasing is a percentage of another measure that reflects purchasing's workload.

Accepted Answer

The answer of With the current budget plus adjustment approach,...

Quiz 19: Performance Measurement and Evaluation