Question

    Which of the following is correct about Balance

    Scorecard? i. It is a strategy performance management tool that can be used by managers to keep track of the execution of activities. ii. It focuses on the strategic agenda of the organization concerned iii. It has a mix of financial and non-financial data item
    A Only ii Correct Answer Incorrect Answer
    B Only i and ii Correct Answer Incorrect Answer
    C Only ii and iii Correct Answer Incorrect Answer
    D Only i and iii Correct Answer Incorrect Answer
    E All the above Correct Answer Incorrect Answer

    Solution

    Balanced scorecard is an example of a closed-loop controller or cybernetic control applied to the management of the implementation of a strategy. Closed-loop or cybernetic control is where actual performance is measured, the measured value is compared to a reference value and based on the difference between the two corrective interventions are made as required. Such control requires three things to be effective: •a choice of data to measure, •the setting of a reference value for the data •the ability to make a corrective intervention.

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