How to Make Informed Business Decisions Using the Balanced Scorecard Method

Describe the balanced scorecard method for decision making. More than one answer may be correct. Check All That Apply

The balanced scorecard is used to structure an organization's strategic plan. Managers rely on information from ESS to populate areas of a balanced scorecard. Balanced scorecards include measurable outcomes such as financial information and information about internal business processes. Balanced scorecards also include information pertaining to an organization's identified key performance indicators (KPIs).

Components of Balanced Scorecard Method

The balanced scorecard is a strategic planning and management system that is used to align business activities to the vision and strategy of the organization. It includes various components that help in making informed decisions:

  • Financial perspective: This component focuses on financial performance metrics like revenue, profit margins, and return on investment. It helps in assessing the financial health and progress of the organization.
  • Customer perspective: This component measures customer satisfaction, retention rates, and market share. It ensures that the organization is meeting customer needs and expectations.
  • Internal business processes perspective: This component evaluates the efficiency and effectiveness of internal operations. It aims to improve processes to deliver value to customers and achieve organizational goals.
  • Learning and growth perspective: This component focuses on employee training, skills development, and innovation. It measures the organization's ability to adapt and improve over time.
Henry Mintzberg classifies management roles into three types. Which of the following roles does this researcher identify? More than one answer may be correct. Check All That Apply

The researcher identifies interpersonal, informational, and decisional roles as classification of management roles.

Management Roles Classification by Henry Mintzberg

Henry Mintzberg, a renowned researcher in management studies, classifies management roles into three main categories:

  • Interpersonal roles: These roles involve interactions with others inside and outside the organization. Examples include figurehead, leader, and liaison roles.
  • Informational roles: These roles involve processing information for decision-making. Examples include monitor, disseminator, and spokesperson roles.
  • Decisional roles: These roles involve making decisions that affect the organization. Examples include entrepreneur, disturbance handler, resource allocator, and negotiator roles.
List characteristics of information quality that ensure the information being used to make informed business decisions is of a high quality. More than one answer may be correct. Check All That Apply

The characteristics of information quality include accuracy, relevance, and timeliness.

Characteristics of High-Quality Information

High-quality information is essential for making informed business decisions. The following characteristics ensure the reliability and usefulness of information:

  • Accuracy: Information should be free from errors and reflect the true state of affairs in the organization.
  • Relevance: Information should be pertinent to the decision at hand and help in addressing specific business needs.
  • Timeliness: Information should be available when needed to enable timely decision-making and action.
If a food delivery company has received complaints about cold food, what actions could be taken during the implementation phase to solve the problem? More than one answer may be correct. Check All That Apply

The company could provide its drivers with insulated bags, hire more drivers to reduce delivery time, ask drivers about the average delivery time, and survey recent customers to assess the extent of the problem.

Actions to Solve Food Delivery Problem

When faced with complaints about cold food deliveries, a food delivery company can take several actions during the implementation phase to address the issue:

  • Provide insulated bags: Equipping drivers with insulated bags designed to maintain food temperature during delivery.
  • Hire more drivers: Increasing the number of drivers to reduce the delivery time and ensure prompt service.
  • Feedback from drivers: Asking drivers about their average delivery time to identify bottlenecks in the process.
  • Customer survey: Conducting a survey among recent customers to determine the scope and impact of the problem.
← How to develop a budget for 50 000 in the next 12 months Ensuring online safety how to identify legitimate websites →

More Posts: