Page 458 - Fundamentals of Management Myths Debunked (2017)_Flat

4 Keeping track using a balanced Scorecard

approach

26
balanced scorecard approach looks at more than the financial perspective by
typically looking at four areas that contribute to a company’s performance:

1 Financial

2 Customer

3 Internal processes

4 People/innovation/
growth assets

Sharifulin Valery/Itar-Tass Photos/Newscom
Managers should: develop goals for each of the
four areas and then measure whether goals

are being met.

balanced scorecard
A performance measurement tool that looks at more than just the
financial perspective

27
Feedback controls do have two advantages. First, feedback gives managers meaningful
information on how effective their planning efforts were. Feedback that shows little variance
between standard and actual performance indicates that the planning was generally on target.
If the deviation is significant, a manager can use that information to formulate new plans.
Second, feedback can enhance motivation. People want to know how well they’re doing, and
feedback provides that information.

try it!
If your professor has assigned this, go to the Assignments section of mymanagementlab.com to
complete the Simulation: Controlling.

457