What does the term "performance management" typically involve in the context of a Balanced Scorecard?

The term "performance management" in the context of a Balanced Scorecard primarily involves aligning various performance aspects with strategic objectives. The Balanced Scorecard is a strategic management tool that translates an organization's vision and strategy into a comprehensive set of performance measures. This approach allows organizations to monitor and manage their performance across multiple perspectives: financial, customer, internal processes, and learning and growth.

By focusing on the alignment of performance measures with strategic objectives, organizations can ensure that they are not just achieving short-term financial outcomes but are also enhancing customer satisfaction, improving operational processes, and fostering employee development. This holistic view supports informed decision-making that drives organizational success in a balanced manner, ensuring that all areas of the business work in sync towards common goals.

The other choices provided do not fully encompass the breadth of performance management within the Balanced Scorecard framework. Monitoring only financial results focuses too narrowly and neglects other crucial perspectives. Evaluating employee performance is a component of performance management but does not capture the strategic alignment aspect. Conducting risk assessments, while important in strategic management, is not a central element of performance management within the Balanced Scorecard context. Hence, the alignment of various performance aspects with strategic objectives is the most accurate representation of performance management in this framework.