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9. To be successful, a balanced scorecard must encourage managers and employees to achieve strategic objectives. Tying manager and employee compensation directly to performance metrics

9. To be successful, a balanced scorecard must encourage managers and employees to achieve strategic objectives. Tying manager and employee compensation directly to performance metrics and targets encourages and motivates managers and employees to achieve strategic objectives. However, social psychologists have found that linking compensation to performance measures may "crowd out" other intrinsic motivations.

A. True

B. False: To be successful, a balanced scorecard need not encourage managers and employees to achieve strategic objectives.

C. False: Tying manager and employee compensation directly to performance metrics and targets discourages and demotivates managers and employees to achieve strategic objectives.

D. False: IN addition, social psychologists have found that linking compensation to performance measures never "crowd outs" other intrinsic motivations.

E. B, C, and D

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