Balanced Scorecard Assignment 2022

Running Head: BALANCED SCORECARD
BALANCED SCORECARD
Name of the Student
Name of the University
Author Note

1BALANCED SCORECARD
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Balance scorecard...................................................................................................................2
Need for Measurement of Organizational and Managerial Performance..............................3
Traditional PerformanceMeasures.........................................................................................5
Theory of Balance scorecard as Performance Measurement.................................................6
Balance scorecard as Performance Measurement..................................................................8
Conclusion..................................................................................................................................9
Reference..................................................................................................................................11

2BALANCED SCORECARD
Introduction
The increasingly complexity of the business environment, dependency on only the
financial measures is no longer adequate to manage the organizations particularly where the
knowledge based assets as well as intellectual capital are critical for the success. Hence, the
concept of balancescorecard has been developed.It is the strategic model of performance
measurement that is developed by the Robert Kaplan as well as David Norton. It aims for
translating the vision and mission of the company into the actual actions. It is one of the most
important metric used by the organization to identify as well as improve the various
businesses internal functions as well as its resulting external outcomes (Muda, Erlina and AA
2018). Hence, under this assignment, discussion will be done on the advantages as well as
disadvantages of the balance scorecard. Moreover, explanation will be done on the need for
the measurement of the organizational and managerial performance will be discussed. Lastly,
balance scorecard as the performancemeasurement will be discussed.
Discussion
Balance scorecard
Balance scorecard of Kaplan & Norton was developed in early 1990 as the attempt for
helping the firms for measuring the business organizations performance with the help of the
financial as well as non-financial data. Balance scorecard has the aim for aligning the
activities of the business to the strategy and vision of the business, improving the internal as
well as external communication and monitoring the performance of the business against the
strategic goals. The four perspectives of balance scorecard include financial perspective,
customer perspectives, organizational capacity perspectives and internal processes
(Awadallah and Allam 2015).
Advantages

3BALANCED SCORECARD
 This method has the advantage that by looking the four aspects of the performance of
the company, balanced view of the company’s performance can be known.
 This helps in giving the full picture about the company that whether it is able to meets
its objectives or not.
Disadvantages
 It is not just thetool that is usedfor solving the problem rather it recommends for
holding the meeting for planning about the goals that company would be making in
reaching in four areas.
 Some organizations use this metrics, which are not applicable to their business
situations. The metric would be meaningless if this metric does not apply to the needs
of the business organization (Kalender and Vayvay 2016).
Need for Measurement of Organizational and Managerial Performance
Measuring the performance is the vital part of organization’s monitoring progress. It
includes measuring the outcomes of the actual performance of the organization against their
intended goals. This requires the approach of top-down for setting the criteria of performance
against the bottom-top approaches, which often occurs in many companies. The strategic plan
helps in providing the organization’s performance targets by setting the direction of corporate
(Boscia and McAfee 2014). The performance measurement endorses the process perspective
that focusses on the internal process for quantifying efficiency and effectiveness of the action
with the set of metrics. This indicators as well as measures acts as the proxies and surrogates
for the phenomena of organizations. The measurement of the performance helps in
representing the management and the system of control, which produces the information that
has to be produced with the internal as well as external users. It helps in encompassing all the
aspects of the cycle of the business management. The model of performance measurement