. Which of the following is not an advantage of a balanced scorecard?
A. Communicating a balanced scorecard helps employees understand the organization's goals and how they might contribute to these goals.
B. A balanced scorecard links external pay rates with internal job structures, allowing organizations to gain both internal and external pay equity.
C. A balanced scorecard balances the disadvantages of one type of incentive pay with the advantages of another type.
D. A balanced scorecard allows for a combination of performance measures that are directed toward both the company's long- and short-term objectives.
B
I disagree.
https://www.investopedia.com/terms/b/balancedscorecard.asp
To determine the correct answer, we need to analyze each option:
Option A states that communicating a balanced scorecard helps employees understand the organization's goals and how they might contribute to these goals. This is indeed an advantage of a balanced scorecard, as it improves alignment and engagement within the organization.
Option B suggests that a balanced scorecard links external pay rates with internal job structures, allowing organizations to gain both internal and external pay equity. This is not a generally recognized advantage of a balanced scorecard. While pay equity is an important aspect of organizational structure, it is not directly related to the purpose or function of a balanced scorecard. Therefore, option B is the correct answer.
Option C claims that a balanced scorecard balances the disadvantages of one type of incentive pay with the advantages of another type. This refers to the use of different types of incentives within a balanced scorecard approach, which is actually an advantage. It allows organizations to incorporate multiple performance measures and incentivize employees effectively.
Option D states that a balanced scorecard allows for a combination of performance measures that are directed toward both the company's long- and short-term objectives. This is another widely recognized advantage of a balanced scorecard, as it enables organizations to measure and manage performance across various time horizons.
Considering all the options, option B is not an advantage of a balanced scorecard, making it the correct answer.