Which of the following statements about performance evaluation is true?
A)Nonfinancial measures are less useful than financial measures because they are not as objective
B)Financial measures are less useful than nonfinancial measures because they are biased
C)A combination of financial and nonfinancial measures gives a more useful picture of organizational performance than either one alone
D)Only one or two nonfinancial performance measures should be used

Question

Quizplus · Accepted Answer

A combination of financial and nonfinancial measures gives a more comprehensive view of organizational performance, as financial measures alone may not capture important aspects such as employee satisfaction, customer loyalty, or innovation. However, it is not necessary to limit nonfinancial measures to only one or two; a range of relevant measures should be used to provide a balanced perspective. It is also important to ensure that nonfinancial measures are appropriately defined and measured, and that they align with the organization's strategy and goals.

Which of the Following Statements About Performance Evaluation Is True