Final answer:
The balanced scorecard framework is justified by managers because it evaluates both financial and non-financial aspects of performance, including customer and employee satisfaction, which are important for comprehensive organizational assessment.
Step-by-step explanation:
Managers can justify using the balanced scorecard framework as it provides a comprehensive view of organizational performance. This framework facilitates the evaluation of both financial and non-financial performance aspects. Financial performance is a classic measure of success, indicating how well the organization is doing economically.
On the other hand, non-financial performance, which includes customer satisfaction, employee satisfaction, and internal business processes, offers a more holistic view of the organization's health and prospects. These non-financial measures can provide insights into how effectively the organization is operating internally and how well it is engaging with its customers and workforce.
Studies have shown that evaluating both financial and non-financial areas can lead to improvements in overall performance and strategic alignment within the organization. The balanced scorecard's ability to integrate these dimensions makes it a valuable tool for managers.