Which of the following statements is True regarding balanced scorecard-based incentive systems?
A) Incentive rewards are based on financial performance only
B) Balanced scorecards should never be used in incentive systems because of their subjective nature
C) Explicit incentives should be tied to performance measures
D) Only the financial aspects of balanced scorecards should be used as incentive measures

Question

Quizplus · Accepted Answer

Balanced scorecard-based incentive systems incorporate various performance measures, including financial, customer, internal business processes, and learning and growth perspectives. Tying explicit incentives to these performance measures encourages employees to focus on key areas that contribute to the organization's overall success, not just financial performance.

Which of the Following Statements Is True Regarding Balanced Scorecard-Based