Identify a true statement about models of organizational performance.
A) The theory of the balanced scorecard states that leadership drives the system that creates business results.
B) The Service-Profit Chain model focuses on learning, internal business, customers, and financial performance.
C) The five performance perspectives of the balanced scorecard model are cost, time, quality, flexibility, and innovation.
D) The Service-Profit Chain model is based on a set of cause-and-effect linkages between internal and external performance.

Question

Quizplus · Accepted Answer

The statement that the Service-Profit Chain model is based on a set of cause-and-effect linkages between internal and external performance is true. Option A is incorrect because the balanced scorecard theory states that a system of connected and interdependent measures drives the business results, not just leadership. Option B is incorrect because it is a description of the Service-Profit Chain model, not the five perspectives of the balanced scorecard. Option C is incorrect because the five perspectives of the balanced scorecard are financial, customer, internal business process, learning and growth, and not cost, time, quality, flexibility, and innovation.

Identify a True Statement About Models of Organizational Performance