Formulaic approaches for using balanced scorecard results
A) Are an excellent idea because of their objectivity
B) Can lead to suboptimal decisions
C) Are aligned with the overall purpose of the balanced scorecard
D) Ensure that all employees are treated fairly

Question

Quizplus · Accepted Answer

While formulaic approaches may seem objective and aligned with the purpose of the balanced scorecard, they can be rigid and overlook important contextual factors. This can lead to suboptimal decisions, as a more holistic approach that considers both the quantitative results of the balanced scorecard and qualitative factors such as organizational culture and stakeholder perspectives is often necessary. Additionally, formulaic approaches do not necessarily ensure that all employees are treated fairly, as they may not account for unique individual circumstances.

Formulaic Approaches for Using Balanced Scorecard Results