Asked by Kristian Johnston on Apr 30, 2024
Verified
Falco Industries is adopting a balanced scorecard. It would be a positive outcome of the process if Falco's employees fully embraced surrogation of the metrics.
Surrogation
The tendency to behave like the company’s performance metrics are the strategic objectives.
- Comprehend the elements and objectives of the balanced scorecard, encompassing its four typical viewpoints.
- Understand the significance of considering more than just financial metrics in evaluating management performance and strategic planning.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
False
Explanation :
Surrogation is a cognitive bias where a measure for a construct of interest becomes the target itself, potentially leading to a narrow focus that might overlook other important aspects of performance. Embracing surrogation could lead to misaligned priorities and not necessarily a positive outcome.
Learning Objectives
- Comprehend the elements and objectives of the balanced scorecard, encompassing its four typical viewpoints.
- Understand the significance of considering more than just financial metrics in evaluating management performance and strategic planning.
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