Discussions : PMSTUTORIAL JULY 2017JAN 2018JULY 2020TOPIC 6
Traditional financial performance measures have limitations and not sufficient to manage an organization. One of the main limitations of these measures is that financial performance measure emphasis only one perspective of performance and they provide limited guidance for future actions. Business need to manage the determinants of their future financial performance, and this is where strategy plays a role. The balanced scorecard introduced by Kaplan and Norton in 1992, is a tool that translates an organisation’smission, objectives and strategies into performance measures. (Langfield-smith et al., 2015)Required:Explain three (3)characteristics of a balanced scorecard that translate a strategy into performance measurements. (15 marks)July 2017GROUP 1
July 2017Recent interest on the use ofnon-financial measures(e.g. Balancedscorecard)generallyassumesthatsuchmeasuresareessentialtoovercome the inadequacies of financial measures. However, it remainsunclear if thebehavioural effectsof these non-financial measures aredifferent from those of financial measures; and whether these effects areinfluenced by the relative importance of non-financial measures vis-à-visfinancial measures.(Chong & Sholihin, 2005)Required:Explain four (4) advantages and one (1) disadvantage of non-financial measures used in a manufacturing company.