Question

Managerial performance may be measured in many ways. For example, an internal nonfinancial measure is

A. Delivery performance.
B. Market share.
C. Manufacturing lead time.
D. Customer satisfaction.An example of an internal nonfinancial benchmark is
A. The average actual cost per pound of a specific product at the company's most efficient plant.
B. The labor rate of comparably skilled employees at a major competitor's plant.
C. A US $50,000 limit on the cost of employee training programs at each of the company's plants.
D. The percentage of customer orders delivered on time at the company's most efficient plant.

Answer 1

Managerial performance can be evaluated using nonfinancial metrics such as internal nonfinancial measures like customer satisfaction and the percentage of customer orders delivered on time. These measures offer insights into the company's service quality and operational efficiency, which reflect managerial effectiveness.

Step-by-step explanation:

Measuring managerial performance involves a variety of metrics beyond simply looking at financial outcomes. Managers may be evaluated based on both financial and nonfinancial performance measures. One important internal nonfinancial measure is customer satisfaction, as it reflects on the quality of service or product provided and can have a direct impact on future sales through repeat business and word-of-mouth recommendations.

Another significant nonfinancial benchmark within a company is the percentage of customer orders delivered on time. This is an internal measure of efficiency and reliability, indicating how well the company meets its commitments and can satisfy customer demands. Considering productivity, it's not only the quantity of work done but also the quality, and how processes and costs are managed. Managers look at various indicators, such as fixed costs, marginal costs, average total costs, and average variable costs to gain deep insights into the company's operations.

Furthermore, job satisfaction could be considered both a nonfinancial performance measure and a productivity measure. It often manifests after organizational changes and can show how these changes affect employees, which indirectly influence overall productivity.