Answer the following statements true (T) or false (F)

Question

1. Measurement-managed companies are those in which senior management agrees on measureable criteria to determine strategic success. 
2. One of the reasons that measurement-managed firms succeed is that their organizational cultures tend to minimize risk taking. 
3. Informal feedback systems interfere with effective measurement.
4. A formal financial projection is known as a budget. 

Answer 1

1. TRUE
In a survey, measurement-managed companies were those in which senior management reportedly agreed on measurable criteria for determining strategic success, and management updated and reviewed semiannual performance measures in three or more of six primary performance areas. The six areas were financial performance, operating efficiency, customer satisfaction, employee performance, innovation/change, and community/environment.
2. FALSE
Managers in measurement-managed companies more frequently reported strong teamwork and cooperation among the management team and more willingness to take risks.
3. TRUE
Managers put too much trust in informal feedback systems. Managers tend to overrate feedback mechanisms such as customer complaints or sales-force criticisms about products. But these mechanisms aren't necessarily accurate.
4. TRUE
A budget is a formal financial projection. It states an organization's planned activities for a given period of time in quantitative terms, such as dollars, hours, or number of products.