Balanced Scorecard Systems for Small and Medium Enterprises

796 Words Feb 24th, 2018 3 Pages
More importantly, it’s a vital part of an organization’s business strategy and performance system. In SMEs the role of performance management becomes more essential because the workforce is now operating at an optimum level. In small and medium enterprises (SMEs) the employees are less in number than in larger organizations. Without a proper structured performance measurement and appraisal system, direction, expectations and their roles cannot be effectively communicated to them. Workforce is critical to any business – but how does the firm evaluate their performance? Are the objectives such that are strategically aligned with the business requirements and communicated clearly throughout the workforce? If not, this can be costly for a business, but at the same time very easy to rectify.
In a firm with employees around 250, like EA consultants, a BSC system will work amazingly and effectively. BSC system is not as common in SMEs as in larger firms however these small firms and enterprises are realizing the importance of BSC system and implementing it. Measurement of performance is the first step towards management of performance indeed. When we inquired about EA’s performance management system, they started to talk about their appraisal system. Although appraisal system is in fact a part of performance management, however, performance measurement is an integral part as well.

EA consultants’ PVT ltd emphasized on the use…