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

1974 Words Mar 12th, 2012 8 Pages
Question

(a)Evaluate the relevance and adequacy of the Balanced Score Card as an instrument for perfomance management.

Introduction

The Balanced Scorecard is a strategic performance management framework that has been designed to help an organisation monitor its performance and manage the execution of its strategy. Kaplan and Norton (1996a, 1996b) pointed out that the implementation of the Balance Score Card is to attain the following goals clarify and translate vision and strategy, communicate and link objectives and measures, plan, set targets, and align strategic initiatives; and enhance strategic feedback and learning.

A growing number of firms are replacing their financially-based performance measurement and compensation
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David Norton 1992).With The Balance score card managers the organization is able to cover customer objectives such as customer satisfaction, market share goals as well as product and service attributes.

Internal Business Processes

Internal processes that lead to high financial goals for example quality and product reliability, speed in fulfilling customer needs and also speed in response to customer complaints and these elements will have an impact on the service to customers. According to Arifinfo June 2, 2011, the internal processes include improving the quality and reliability products lowering the number of products that fail, increase speed of service developing innovation process and develop production capacity hence performance management is enhanced. Again organizations can cover internal operational goals and outlines the key processes necessary to deliver the customer objectives.

Learning and Growth

The Balance Scorecard is relevant and its adequacy lies on that it gives the organization the ability of employees, technology tools and effects of change to support organizational goals. A learning-and-growth metric (or employee metric) is a framework for quantitatively assessing employee satisfaction, productivity, and retention in the framework of the balanced scorecard (BSC).A metric that is not just behavioral and