Balanced Scorecard Systems for Small and Medium Enterprises

Performance management relates to an organization’s ability to implement a system to evaluate and advance employee performance. Achieving peak performance requires consistency, clear objectives, and constructive employee evaluation. According to Mithas, Ramasubbu, & Sambamurthy (2011), an organization must design the performance management system based on extensive research about the organization’s mission, and then properly communicate the purpose of the system to employees, stakeholders, and decision makers. After the performing the research, the information should be used to establish the appropriate performance management specialized for the organization. In addition, an effective performance management system should align

As stated by Peter F. Drucker, “Management is about human beings. Its task is to make people capable of joint performance, to make their strengths effective and their weaknesses irrelevant.” Performance management is essential to achieving an organization 's mission statement and business goals, and also in attracting, retaining, and motivating qualified employees. There are many benefits and reasons why an organization should execute a performance management system. Performance appraisals establish the basis for qualifying, recognizing, and rewarding employee contributions. In this paper, I will discuss what performance management is, the problems with the current performance management system at my organization, how other organizations have succeeded in their performance management system and how I would advise management at my current organization to improve our performance management system.

Performance management is one of the most important activities of HR. It is not enough to simply go through the business as usual and much disliked annual exercise of assessing performance and driving rewards based on a performance assessment. The information system will be drive and modifies goals as needed, assesses performance against goals, and provides instant feedback which will give them an indication of their strength and weaknesses thus focusing on skill development and motivate employees to stay with the organisation. However this may lead to Substitution of individual judgments and Challenge the nature of an organisation and the role of management

Introduction- To be competitive, organizations must be both strategic and tactical to the nth degree, must be proactive rather than reactive, and must find a way to measure this easily and accurately. One way to accomplish this is through a Balanced Scorecard approach; a tool often viewed as one of the best tools that helps organizations translate strategy into performance. In general the BSA (Balanced Scorecard Approach) allows for a clear strategic and tactical directions for the organization, retains financial measurements in a summation along with their links to performance, and highlights an important and robust measurement system that links and integrates customers, stakeholders, processes, resources, and performance into single measurement strategy.

Performance appraisal is an evaluation and grading exercise undertaken in organizations to achieve several objectives such as employee motivation, identification of training needs, rewards and remuneration, employee development through feedback etc. [Fig. 1]. All methods for performance appraisal have several advantages and disadvantages based on location of the firm, socio-economic environment, vision and mission of the firm, organizational structure and other factors. Organizations in different industrial sectors may have different focus areas of work and different values and thus, expectations from employees vary across sectors.

Titan Computer Company has enlisted the group to provide a plan to improve quality and decrease costs. The group will provide suggestions on improving current processes with the goal of reducing rework and quality inspection failures. The goal is to improve quality by 3%.

In this paper, I will discuss balanced scorecards and how they can be used for goal-setting and decision making within an organization. As an emerging business professional, it is important for you to understand balanced scorecards because “research has shown a strong a positive link between successfully implementing a social and environmental strategy and corporate value (Epstein 9).” Greater than 50% of Fortune 1,000 have implemented the model in some way. (Hendricks) Balanced scorecards help all units of an organization communicate their goals and succeed. First, I will describe what a balanced scorecard is and why it is useful to an organization. Second, I will discuss the advantages and disadvantages to be aware of when working with a balanced scorecard. Finally, I will explain how cascading the scorecard improves the functionality and communication within a business.

The continuous development improvement of human resource potential requires a successful performance system. Schermerhorn (1999, Pg. 250) defined Performance Management System as a system that ensures performance standards and objectives are set, that performance is regularly assessed for accomplishments and that actions are taken to improve performance potential in the future. The process of formally assessing someone’s work accomplishments and providing feedback is performance appraisal and it serves three basic purpose in maintenance of a quality workforce i.e.

The balanced scorecard is a strategic measurement strategy used in business and government as a measurement tool. The balanced scorecard should reflect businesses plans and strategic goals. The balance scorecard “was originated by Drs. Robert Kaplan (Harvard Business School) and David Norton (n.n October 8th, 2015). Balanced scorecard is used by managers not only to measure performance but to align their goals and execute the visions and missions of any agency. The balanced scorecard include metrics in different perspective views, these include “The learning and growth perspective, the business process perspective, the customer perspective and the financial perspective”.

The balanced scorecard (BSC), the index system is based on the strategic requirements of enterprise organizations and meticulous design. According to Kaplan and Norton's opinion, "The Balanced Scorecard is a performance management implement. It will decompose strategic goals step by step into a mixture of specific mutual balance of performance evaluation index system, and accomplish the status of these indicators assessment at different times, thus the completion of strategic objectives for the enterprise to establish a dependable implementation of the foundation. "

This report outlines the what the balanced scorecard is and how it is used as a tool used in the business industry. It outlines its historical development and analyses its usefulness and how it can be applied to key decisions.

Balanced scorecard is a measurement system that takes into financial as well as non-financial information into account. This system strongly affects the behaviour of managers and employees by aligning their goals to the company’s vision. Kaplan and Norton argues in ‘The Balanced Scorecard- Measures That Drives Performance, 1992’ that no single measure can provide a clear performance target or focus attention on critical areas, and by observing and working with many companies they found that senior executives do not rely on one set of measures.

For attaining high performance goal for organization, performance appraisal is an important tool of human resource management (MGS experts,2014). Performance appraisal provide support for selection and recruitment, development and training of current staff, and maintaining and motivating a quality human resource through proper and correct rewarding of their performance (Kumar, & Sumangali,2011). Generally, Performance appraisal includes performance management system that align and manage all the resources, systems in order to obtain the highest possible performance (Harris, 1998). (Kuvaas, 1994; Bård, 2002) argued that performance management engage in determining the plan of performance

Companies today are in the midst of a revolutionary transformation as Industrial age competition is shifting to Information age competition. The cut-throat competition that businesses faced in the last two decades has made them to look for improvement initiatives like Total Quality Management, Just-in-Time (JIT) systems, Employee empowerment and Re-engineering. Though these initiatives resulted in enhanced shareholder value, they were achieved merely by monitoring and controlling financial measures of past performance and focused on short-term goals. This collision between the irresistible force to build long-range competitive capabilities and the immovable object of the

The BSC was originally developed as a performance measurement system in 1992 by Dr. Robert Kaplan and Dr. David Norton at the Harvard Business School. Unlike earlier performance measurement systems, the BSC measures performance across a number of different perspectives—a financial perspective, a customer perspective, an internal business process perspective, and an innovation and