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On a Balanced Scorecard, which is not included as a component?

a. Financial Performance
b. Customer/Stakeholder
c. Internal Process
d. Employee Capacity

1 Answer

1 vote

Final answer:

The balanced scorecard consists of four traditional components: financial performance, customer/stakeholder, internal process, and learning and growth. 'Employee Capacity' is not a separate main component but is often included under the Learning and Growth perspective. The correct option is d. Employee Capacity.

Step-by-step explanation:

The Balanced Scorecard is an extensive framework used for implementing and managing strategy at all levels of an enterprise by linking objectives, initiatives, and measures to an organization's strategy. The scorecard provides a mix of financial and non-financial measures of performance. The main components of a balanced scorecard include:

  • Financial Performance
  • Customer/Stakeholder
  • Internal Process
  • Learning and Growth (sometimes referred to as Employee Capacity or Human Capital)

However, 'Employee Capacity' is not traditionally listed as a component, but it can be considered a sub-category of the Learning and Growth perspective. The learning and growth perspective focuses on the intangible assets of an organization, chiefly human capital, information capital, and organizational capital.

Thus, in the context of the traditional four categories of the Balanced Scorecard, the answer to the question is 'Employee Capacity', since it is part of the Learning and Growth perspective and not listed as a separate main component.

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