Companies Sometimes Aim Too High in Setting Improvement Targets for Nonfinancial

question 18

Multiple Choice

Companies sometimes aim too high in setting improvement targets for nonfinancial measures of performance.Managers tend to make mistakes in this area by assuming:

• A) Leading and lagging variables do not influence time utility
• B) Qualitative metrics are more telling than quantitative metrics
• C) 100 percent customer satisfaction is the only important goal
• D) Statistical reliability and statistical validity are always important
• E) The improvement of non-financial measures leads to offensive marketing

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Definitions:

Denial of Reality

A psychological defense mechanism where an individual refuses to accept or acknowledge truths or facts of their situation.

SRRS

The Social Readjustment Rating Scale (SRRS) is a tool used to measure the stress load individuals carry by ranking different life events' impact.

Mental Health

A state of well-being in which individuals realize their own abilities, can cope with the normal stresses of life, can work productively, and are able to make contributions to their community.

Denial of Reality

A psychological defense mechanism where individuals refuse to accept the truth or reality of a situation.