Question 1

Which of the following is true about the practical guidelines suggested by Mark Graham Brown for designing a performance measurement system?

Accepted Answer

Mark Graham Brown suggests that measures should be based around the needs of customers, shareholders, and other key stakeholders. This ensures that the performance measurement system is aligned with the organization's overall strategy and goals. Option A is incorrect because measuring a large number of trivial variables may lead to confusion and unnecessary complexity. Option B is incorrect because adjusting measures as the environment and strategy changes is important to ensure the relevance and effectiveness of the system. Option D is incorrect because the measures should flow from the top-down, i.e., from the strategic objectives to the operational level.

Question 2

Which of the following perspectives of the balanced scorecard directs attention to the basis of a future success -the organization's people and infrastructure?

Accepted Answer

The Innovation and Learning perspective of the balanced scorecard focuses on the organization's people, infrastructure, and technology. It emphasizes the importance of investing in employees' skills and knowledge, as well as creating a culture of innovation and continuous learning. This perspective is critical for achieving the organization's long-term success and competitiveness.

Question 3

Which of the following perspectives of the balanced scorecard include service levels,satisfaction ratings,and repeat business?

Accepted Answer

The perspective that includes service levels, satisfaction ratings, and repeat business is the customer perspective of the balanced scorecard. This perspective focuses on measuring customer satisfaction and retention, which are crucial for the long-term success of a business. The financial perspective looks at the financial performance of the organization, while the internal perspective focuses on improving internal processes, and the innovation perspective looks at the organization's ability to innovate and adapt to change.

Question 4

Which of the following perspectives of the balanced scorecard focuses on market share?

Accepted Answer

The customer perspective of the balanced scorecard focuses on measuring customer satisfaction, retention, and market share. This perspective helps organizations understand how well they are meeting the needs and expectations of their customers and how they are performing in the marketplace compared to their competitors.

Question 5

With respect to the Baldrige criteria performance measures,_____ performance indicators include measures of business growth and percentage of new product sales.

Accepted Answer

The marketplace category in the Baldrige criteria includes performance measures related to customer satisfaction, market share, business growth, and percentage of new product sales. Therefore, option C is the best choice. Other options such as governance, leadership, and process-based do not directly include these performance indicators.

Question 6

Physical and financial assets have become more important than knowledge assets in many organizations.

Accepted Answer

Knowledge assets, such as intellectual property, expertise, and organizational know-how, are increasingly recognized as critical for innovation, competitive advantage, and value creation in many organizations, often surpassing the importance of physical and financial assets.

Question 7

An effective knowledge management system should include a common framework for managing knowledge and some way of validating and synthesizing new knowledge as it is acquired.

Accepted Answer

An effective knowledge management system should have a common framework that enables effective management of knowledge as well as processes for validating and synthesizing new knowledge as they come. This ensures that the system remains effective in storing and disseminating knowledge.

Question 8

Which of the following perspectives of the balanced scorecard includes profitability,revenue growth,return on investment,economic value added (EVA),and shareholder value?

Accepted Answer

The financial perspective of the balanced scorecard focuses on financial measures such as profitability, revenue growth, return on investment, economic value added (EVA), and shareholder value. Therefore, the best choice is D.

Question 9

Compared to money,labor,and capital equipment,knowledge is always the easiest to manage.

Accepted Answer

Knowledge is not always the easiest to manage as it requires continuous updates and improvements, and may be at risk of being lost or stolen. Money, labor, and capital equipment can be more easily quantified and controlled.

Question 10

To achieve a high level of performance excellence,an organization requires a much broader set of performance measures that are aligned to an organization's strategy; this became known as the:

Accepted Answer

The balanced scorecard is a set of performance measures that are aligned to an organization's strategy and cover a broad range of areas such as financial, customer, internal processes, and learning and growth. The other options - quality trilogy, quincunx, and Taguchi loss function - do not accurately describe this concept.

Question 11

The transfer of knowledge within organizations and the identification and sharing of best practices often set high-performing organizations apart from the rest.

Accepted Answer

The transfer and sharing of knowledge and best practices help organizations to perform better and achieve higher success rates in their operations. Therefore, it is true that these factors set high-performing organizations apart from the rest.

Question 12

A knowledge-enabled culture is created when an organization employs a system of aligned human resource policies,tactics,processes,and practices that ensure knowledge is created,captured,used,and reused to achieve superior organizational results as a sustainable advantage.

Accepted Answer

A knowledge-enabled culture is indeed created when an organization employs a system of aligned human resource policies, tactics, processes, and practices that ensure knowledge is created, captured, used, and reused to achieve superior organizational results as a sustainable advantage.

Question 13

Which of the following perspectives of the balanced scorecard measures the ultimate results that the business provides to its shareholders?

Accepted Answer

The financial perspective of the balanced scorecard measures the ultimate results that the business provides to its shareholders, such as profitability, revenue growth, and return on investment. This perspective focuses on the financial outcomes that are critical to the success and sustainability of the business.

Question 14

Who among the following first developed the concept of a balanced scorecard?

Accepted Answer

Art Schneiderman is credited with developing the concept of a balanced scorecard in the early 1990s while working at Analog Devices, a semiconductor company in the US. Edwards Deming, Joseph Juran, and Kaoru Ishikawa are all notable figures in the field of quality management, but they did not specifically develop the balanced scorecard concept.

Question 15

Which of the following measures of the Baldrige criteria of performance measurement includes internal quality measurements,defect levels,service errors,and response times?

Accepted Answer

The measures of the Baldrige criteria of performance measurement that include internal quality measurements, defect levels, service errors, and response times fall under the Product outcomes category. This category emphasizes the importance of product and service performance, as well as quality control and improvement processes.

Question 16

Which of the following perspectives of the balanced scorecard includes intellectual assets,employee satisfaction,market innovation,and skills development?

Accepted Answer

The perspective that includes intellectual assets, employee satisfaction, market innovation, and skills development is the innovation and learning perspective of the balanced scorecard.

Question 17

_____ balanced scorecard is the only version of performance measurement systems that have emerged as organizations recognized the need for a broad set of performance measures that provide a comprehensive view of business performance.

Accepted Answer

The balanced scorecard was developed by Robert Kaplan and David Norton and has emerged as the most popular performance measurement system adopted by organizations, as it provides a comprehensive view of business performance by incorporating both financial and non-financial measures. Raytheon, Deming, Juran, and Schneiderman are not associated with the balanced scorecard.

Question 18

Which of the following measures of the Baldrige criteria of performance measurement includes revenue,return on equity,return on investment,and operating profit?

Accepted Answer

The financial outcomes measure includes revenue, return on equity, return on investment, and operating profit. It looks at the organization's financial performance and its ability to achieve sustainable financial success.

Question 19

Which of the following perspectives of the balanced scorecard includes such measures as quality levels,productivity,cycle time,and cost?

Accepted Answer

The Internal perspective of the Balanced Scorecard includes measures related to the efficiency and effectiveness of the organization's internal processes, such as quality levels, productivity, cycle time, and cost. This perspective focuses on improving the organization's internal operations to better support the achievement of its financial and customer-related goals.

Question 20

The American Productivity and Quality Center (APQC)noted that executives have long felt frustrated by their inability to identify or transfer outstanding practices from one location or function to another.

Accepted Answer

The statement is true as it is mentioned in the sentence that executives have long felt frustrated by their inability to identify or transfer outstanding practices.

Quiz 12: Measurement and Knowledge Management for Performance Excellence