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Paper on Investigating Balanced Scorecard

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Added on  2019-10-09

Paper on Investigating Balanced Scorecard

   Added on 2019-10-09

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BALANCE SCORECARD
Paper on Investigating Balanced Scorecard_1
IntroductionBalanced Scorecard is considered as an important aspect of the management. A balancedscorecard is a new approach to strategic management which was developed in 1990 by RobertKaplan or David Norton. On the basis of vagueness and weakness of previous managementapproaches, balanced scorecard approach highlights clear prescriptions of the financialperspective of a business organization (Kaplan, 1996). The main motive of this paper is toinvestigate the role of the scorecard in enhancing and improving the performance of anorganization. Balanced scorecard mainly represents a central list of numbers which describeevery part of the organization's success like people, financials, suppliers, customers, andoperation. The represented number not only shows the important outcomes but also highlightsthe various factors which influence these outcomes significantly. The balanced scorecard is a popular management system which permits the organizations torecognize their vision and strategy and interpret them into action. The balanced scorecardprovides feedback of both the internal business processes and the external business processes(Kopecka, 2015). The Balanced Scorecard views the organization from four perspectives,namely, perspective related to the business process, perspective related to the growth process,different customer perspective, and financial perspective. All these perspectives are shown in thefollowing figure:1
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Balanced Scorecard and Organizational PerformanceThe balanced scorecard is considered as a framework of performance management activities thatestablish a suitable link between the day to day operations of a business organization and itsstrategy. Balanced scorecard provides a holistic view of the organization which is designed onthe basis of organization objectives. The organizations can build balanced scorecard forthemselves after analyzing their strategic objectives which describe the whole functioning. Theorganizations prescribe their four balanced scorecard perspectives, from which they can choosedifferent measures for fulfilling their predetermined objectives. These measures of the balancedscorecard represent the quantitative indicators of an organization which indicates that how theperformance of a strategic objective can be fulfilled (Lueg, 2013). The proper functioning of the organization can be supplemented by the balanced scorecardapproach. The use of non-traditional financial measures and the traditional financial measuresmainly focus on three other perspectives which are known as internal business processes,customers’ perspective and learning and growth perspective can be preferred. The balancedscorecard mainly helps the organization in fixing the compensation of the employees that will bea motivating factor for the employees. This will play an important role in improving the2
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