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Unformatted text preview: lanced Scorecard Approach to Performance Evaluation
The Balance Scorecard in Operation 42
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5 Tools for Enterprise Performance Evaluation Tools for Enterprise Performance Evaluation Tools for Enterprise Performance Evaluation Your goals for this “performance evaluation” chapter are to learn about: Concepts in responsibility accounting and management by exception. Using flexible budgets to adapt outcome assessments to variable scenarios. Developing and using standard costs. Traditional variance calculations for monitoring cost and efficiency. The balanced scorecard approach to measuring business performance. Download free ebooks at bookboon.com
6 Responsibility Accounting and Management by Exception Tools for Enterprise Performance Evaluation 1. Responsibility Accounting and Management
Perhaps you have worked some of the questions and problems accompanying this text. What
purpose do they serve? After all, they are actually quite redundant with the material in the text.
Hopefully, you will see this question as merely rhetorical. The questions and problems serve as a
self test to help you identify areas where your understanding is not clear. They provide feedback on
areas where additional study is needed. Such “performance evaluations” are an important part of
managing and improving your education.
Clearly, your professors rely on some form of performance evaluation in assigning grades. This is
one of the least desirable tasks for most educators. But, it is through this feedback method that
students are able to sense areas of strength and weakness, as well as providing a key “motivator” to
study and learn. Excellent students are rewarded. Poor students are signaled to work harder or
consider alternative fields of study. Performance evaluations can be harsh, but are generally viewed
as necessary in striving toward an end result. As you will see, businesses must also adopt
performance evaluation methods.
Earlier chapters have focused on techniques used for costing products and services, understanding
cost behavior, budgeting, and so forth. These basic devices are essential to a well managed
organization. But, one must also be mindful that managers must be held accountable for the results
of their decisions and related execution. Without performance-related feedback, the business will
not perform at its best possible level, and opportunities for improvement may go unnoticed...
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