Excluding non-financial measures when evaluating performance might reduce the significance and importance that managers give to non-financial measures reflected in the balanced scorecard.

Question

Quizplus · Accepted Answer

Excluding non-financial measures from performance evaluation may lead to an overemphasis on financial measures and may reduce the significance and importance that managers give to non-financial measures reflected in the balanced scorecard. Including non-financial measures in the evaluation process is important for achieving a balanced view of performance.

Excluding Non-Financial Measures When Evaluating Performance Might Reduce the Significance