Question
The balanced scorecard (BSC)approach involves setting objectives and developing appropriate measures and targets on four main areas. Which of the following is not one of those areas: Staff development and business growth Customers Internal business processes Taxation Financial returns
Answer
4.1
(168 Votes)
Uriela
Master · Tutor for 5 years
Answer
Taxation
Explanation
## Step1: As stated in the above example, the Balanced Scorecard approach to strategic planning views an organization from four separate perspectives, which align to set objectives, develop measures, and decides targets for the organization. It aims for organizational performance measurement. The four measures of a Balanced Scorecard are:### 1. Financial: This perspective sees through an enterprise's ultimate bottom line relating to financial achievements. It focuses on revenue, earnings, return on capital, and risk from a finance providers' perspective.### 2. Customers: This viewpoint considers optimizing customer-oriented outcomes like customer satisfaction ratings, customer retention, acquisition rates, and market share figures.### 3. Internal business processes: The perspective revolves around the processes that create the most value for the organisation, such as operational processes, manufacturing processes, professional procedures etc.### 4. Learning and growth: Also known as Organizational Capacity/Stakeholder relationships/ Sustainability, broadly studies training effectiveness, satisfaction among personals.## Step2: Comparing the following options with the main area which lacks alignment with Balanced Scorecard components:1. Staff development and business growth aligns with the "Learning and Growth" perspective2. Customers corresponds to the "Customers" viewpoint3. 'Internal business processes' alludes to the "Internal business Processes" perspective4. Taxation is an exceptional alternative as it doesn't straightforwardly fall into any of the four perspectives of the BSC5. Financial returns relate to the 'Financial' division of the ScorecardSo from options 1st to 5th, except 'Taxation', rest all directly fall under standard components of a balanced scorecard. Thus "Taxation" isn't a standard perspective addressed by a Balanced Scorecard.