Question

XYZ Co.’s balanced scorecard lists performance measures that belong to the following four perspectives: financial, customer, internal business processes, and learning and growth. Which of the following pairs does NOT belong to the same perspective?

	A.	Hours of in-house training per employee and employee turnover
	B.	Residual income and market share
	C.	Throughput time and manufacturing cycle efficiency
	D.	Customer satisfaction and number of customer complaints

Answer 1

Answer: XYZ Co.’s balanced scorecard lists performance measures that belong to the following four perspectives: financial, customer, internal business processes, and learning and growth

The option which does NOT belong to the same perspective is

Option A: Hours of in-house training per employee and employee turnover.

Explanation:

Option A: Hours of in-house training per employee and employee turnover.

(a) Hours of in-house training per employee belong to the learning and growth perspective as this perspective focuses on providing the employees an opportunity to develop and provide them relevant training. In this perspective, companies determine the activities and infrastructure that the company must build to create long term growth, which is necessary to achieve the objectives set in the previous three perspectives While employee turnover belongs to the internal business processes as this perspective identify processes and activities which are necessary to achieve the objectives as identified at financial perspectives and customer perspective stage. These objectives may be achieved by reassessing the value chain and making necessary changes to the existing operating activities.

(b)  Residual income and market share both belong to financial perspectives as Financial performance measures indicate whether the company’s strategy implementation and execution are contributing to its revenue and earnings.

(c) Throughput time and manufacturing cycle efficiency both belong to internal business processes perspectives as it focuses on “At What Must We Excel?” In this stage companies identify processes and activities which are necessary to achieve the objectives as identified at financial perspectives and customer perspective stage.

(d) Customer satisfaction and number of customer complaints both belong to Customer perspectives as it focuses on “How Do Customer View Us?” In this stage, companies identify customers and market segments in which they compete and also the means by which they provide value to these customers and markets.