In the previous module, we explored capital budgeting techniques and you
submitted Final Project II. In this module, the readings will focus on
performance evaluation at the firm and employee level.
Chapter 12 introduces the balanced scorecard method of evaluating
performance. The balanced scorecard approach measures performance
from four different perspectives: the financial perspective, customer
perspective, internal business process perspective, and learning and growth
perspective. “A major benefit of the balanced scorecard is that it promotes
causal thinking . . . where improvement in one activity causes improvement
in another . . . Managers must search for empirical evidence (rather than rely
on intuition alone) to test the validity and strength of the various
connections” (Datar & Rajan, 2017). Chapter 19 focuses specifically on
measures related to quality and time, while Chapter 23 introduces both
financial and nonfinancial measures that can be used with the balanced
scorecard and explains how measures of firm performance relate to
manager performance.
Just as it is important for companies to evaluate performance against
strategic objectives and goals, it is important for you as a student to
evaluate your own experiences and how they relate to your personal goals.
For your final discussion, you will reflect on your experiences in this course
and how they relate to your career goals.
Reference
Datar, S. M., & Rajan, M. (2017).Horngren’s cost accounting (16th ed.). Boston, MA:
Pearson.
