Author Question: Benchmarks for a company must be created based on the previous performance of the company. ... (Read 154 times)

ap345 · **on:** Jul 6, 2018

Benchmarks for a company must be created based on the previous performance of the company.

Indicate whether the statement is true or false.

Question 2

List and discuss four performance control tools used for monitoring and measuring organizational performance.

What will be an ideal response?

ultraflyy23 · **Reply #1 on:** Jul 6, 2018

Answer to Question 1

Answer: FALSE

Answer to Question 2

Answer:
a. Financial controls one of the primary purposes of every business firm is to earn a profit. In pursuit of this objective, managers need financial controls. They might perform several financial ratio tests to ensure that sufficient cash is available to pay ongoing expenses, that debt levels haven't become too high, or that assets are being used productively.
b. Information controls information can be critical to monitoring and measuring an organization's performance. Managers need the right information at the right time and in the right amount. Inaccurate, incomplete, or delayed information can seriously impede organizational performance. Managers need information about the standards in order to be able to compare actual performance with the standard. They rely on information to help them determine if deviations are acceptable. They also rely on information to help them develop appropriate courses of action.
c. Balanced scorecard this is a performance measurement that was introduced as a way to evaluate organizational performance from more than just the financial perspective. The balanced scorecard is a performance measurement tool that looks at four areasfinancial, customer, internal processes, and people/innovation/growth assetsthat contribute to a company's performance. According to this approach, managers should develop goals in each of the four areas and measure to determine if these goals are being met.
d. Benchmarking of best practices benchmarking is the search for the best practices among competitors or noncompetitors that lead to their superior performance. At its most fundamental level, benchmarking means learning from others. As a tool for monitoring and measuring organizational performance, benchmarking can be used to help identify specific performance gaps and potential areas for improvement. Students can choose any three to elaborate on.