In order to ensure that employee performance measures are aligned with the overall business model...

The goals and objectives of the supply management department should be developed at the senior executive level. Here’s a detailed explanation:

Senior Executive Involvement:

Alignment with Strategic Direction:Goals developed at the senior executive level ensure alignment with the overall business model and strategic direction of the organization.

Resource Allocation:Senior executives can provide the necessary resources and support for achieving these goals.

Strategic Oversight:Executive involvement ensures that the department’s objectives are integrated into the broader organizational strategy.

Why Not Other Options?

Established at the start of each calendar year (A):While setting goals annually is good practice, the critical factor is that they align with the strategic direction set by senior executives.

Approved by the chief financial officer (B):Financial oversight is important, but strategic alignment requires broader executive involvement.

Treated as confidential information (C):While some goals may be confidential, the key aspect is strategic alignment.

References:

Strategic alignment in supply chain management (Kaplan, R.S., Norton, D.P., The Balanced Scorecard, 1996).

Role of senior executives in setting organizational goals (Drucker, P.F., Management: Tasks, Responsibilities, Practices, 1974).