Evaluate the Relevance and Adequacy of the Balanced Score Card as an Instrument for Perfomance Management.

The use of a balanced scorecard when gauging the performance of executives at Paradigm Toys is useful because it measures several key areas that measure past and real time performance that directly affects the company. A balance scorecard can contain both financial and nonfinancial measures as well as both quantitative and qualitative performance measures. Additionally because a balance scorecard can be tailored to the business’s specific targets it can measure the substance of performance better that basic financial indicators that are usually considered the basis of performance ratings. It is important to use more than just financial indicators, because other factors, those qualitative in nature, measure how an employee does their job and gives a larger picture of how well an employee performs. For example, in the case of sales concerning installation of home improvement products one might be measured by repeat buyers or customer satisfaction of how well the salesman followed up with their sale and installation. This kind of non-financial factor can be used to measure the company’s goal of repeat buyer and customer satisfaction which can translate into future sales and growth. Financial indicators are used in similar ways, but are more quantitative in nature. The main reason to use financial indicators is because they can provide a clear picture

1. (TCO B) Identify four categories of measures that might constitute a Balanced Scorecard of performance measures and provide an example of each. Also explain how a Balanced Scorecard could assist your organization. This answer must be in your own words—significant cut and paste from the text or other sources is not acceptable. (Points : 30)

There are four perspectives when it comes to balanced scorecard. First one is learning and growth which means how the information and knowledge are processed and turned into competitive advantage against other companies. Second is about product manufacturing and making sure that all the products are made the same without any defaults. Third one is about customer satisfaction and making sure that customers are happy with product, service and price. Fourth one is about financial performance and making sure that company’s financial data is used properly.

Balanced Scorecards positively impact in the business development of a company with an effective application of company values to sway customer perspective ADDIN EN.CITE Morgan2002317(Morgan &

“The balanced scorecard should translate a business unit’s mission and strategy into tangible objectives and measures. The measures represent a balance between external measures for shareholders and customers and internal measures of critical business processes, innovation and learning and growth. The measures are balance between outcome measures, the results of past efforts, and the measures that drive future performance. And the scorecard is balanced between objective, easily quantified outcome measures and subjective, somewhat judgmental, performance…”

A balanced scorecard is a performance measurement system, which takes into account the customers, internal business processes, learning and growth, as well as financial

Based on (Marr and Creelman, 2010) found that the balanced scorecard is used to ensure high-performance

The balanced scorecard includes four perspective areas focusing on financial and non-financial categories contributed to achieving the corporations’ strategic aims. The four broad categories are; financial performance, customer satisfaction, internal processes, and learning and growth (Blocher, 2013). By breaking the organization’s performance into four perspectives, organization leaders are able to quickly break down where the organization ranks measures that are most critical to success.

Performance evaluations are important parts of all employees and managers tools to ensure positive actions are rewarded while negative actions can be evaluated and fixed to decrease problems in the future. Performance evaluations benefit supervisors and employees by identifying how to bring out the employees best attributes for the company (Hamlett, nd.). Evaluations provide a look at how a worker is doing compared to earlier reviews of their skill, knowledge, initiative and participation in the company’s vision (Hamlett, nd.). Introducing performance review evaluations is important to most organization for the success of their organization and the advancement of its employees. Performance evaluations provide a way for managers and supervisors to manage the performance of an organization and the people who make of the human resources of the organization (McCarroll, nd.). When implementing a new system it is important to understand the process must be realistic, challenging, yet attainable for performance expectations and standards to be successful for employees and the organization (McCarroll, nd.). Balanced scorecards are utilized in performance evaluations to essentially provide a way for organizations to align their strategic plans with day to day operations (Balanced Scorecard Institute, 2015). Balanced scorecards look at traditional financial measures, which are past events and long-term investments like

The balanced scorecard is a strategic planning and management system is used to help align activities of the vision and strategy of the organization, and apply it to the overall

The balanced scorecard uses short- and long-term, internal and external, and financial and nonfinancial measures to evaluate performance. Management can analyze these measures and compare

Merriam Webster defines quality as a degree of excellence, or a distinguishing attribute. Managers strive for excellence in the workplace to improve customer satisfaction, increase the output in manufacturing while minimizing defects, as well as making the company more profitable. There are several different management systems or methodologies available for businesses to use, but the Balanced Scorecard and the Malcolm Baldrige Performance Excellence Program is the most common and widely used in the United States.

A balanced scorecard is the comprehensive collection of ongoing activities and processes that organizations use to systematically coordinate and align resources and actions with mission, vision and strategy throughout an organization making it a strategic planning and management system. (Balanced Scorecard Institute, 1998-2010). The scorecard exposes financial, customer, employee learning and growth, and internal business process objectives crucial to attaining goals of the vision and mission statements. When establishing such objectives, an evaluation of the company’s vision statement, mission statement, and furthermore, core values is

The main goal when defining the internal process perspective was to answer the following question “To satisfy our customers, at which processes must we excel” (BSI 2009, ¶5). Scents & things strategic goals should be developed in a way that will internally meet the customer’s needs and satisfaction. All strategic goals should be defined with the purpose of keeping the company running smoothly and in a way that will help to achieve the promises being made in the mission and vision statement. The strategic goals for Scents & things are to improve business processes and efficiencies, acquire additional services and business options, and improve marketing of store and the marketing of the products and services.

The Balanced Scorecard (BSC) is a performance measurement tool that originated in the business worlds. Performance measurement is a way to track performance over time to assess if goals are being met. Organizations measure their performance to monitor how they’re doing in achieving their overall mission and goals.