In management compensation, the use of the balanced scorecard achieves:
A)Fairness.
B)Alignment of manager's incentives and the organization's strategy.
C)The desired ethical environment.
D)Revenue generation and cost control.
E)A specific non-financial measurement.

Question

Quizplus · Accepted Answer

The use of balanced scorecard in management compensation achieves alignment of manager's incentives and the organization's strategy. The balanced scorecard considers both financial and non-financial measures, providing a framework to align the manager's goals and objectives with that of the organization's strategy, and encourages managers to take a holistic approach to their decision-making. This helps in ensuring that manager's reward is based on their contribution to the overall growth of the organization.

In Management Compensation, the Use of the Balanced Scorecard Achieves