Managing Business Performance : Tools and Techniques
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Added on 2020-01-07
Managing Business Performance : Tools and Techniques
Added on 2020-01-07
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MANAGING BUSINESSPERFORMANCE
INTRODUCTIONMeasuring performance is the very important part of each and every organisation whichsupports to the management in order to take several business decisions. Apart from this, on thebasis of business performance, entity able to make strategies for achieving objectives and goals.In order to assess performance of the firm different measurements are used by the enterprise. Thepresent case study focuses on the Balanced Score Card (BSC) approach as well as KeyPerformance Indicators (KPIs) in context to the Tesco Plc retailer company. It shows about thebasic four types of perspectives or aspects of the BSC along with its relation with the cited firm.Apart from this, regrading to the KPIs which are implemented by the selected retailer are alsodiscussed at the current project. At the end of report, problems and limitations of theperformance measurement tool like BSC are explained. TASK ABalanced Score Card (BSC) approach along with its usefulnessAccording to Duarte and Cruz-Machado (2015) performance is an element which playscrucial role in each and every sector of businesses because it shows that, in which directionentity performs within industry. If the firm easily able to determine its performance trend as wellas level then able to make strategies in order to meet with the agreed goals and purposes.Through this, if management founds that it performs poor then easily able to take effectualbusiness decisions. Moreover,Perlman (2013) states thatdifferent kinds of approaches and toolsare used by the firms in order to assess or measure its presentation in the relevant market sectorwhere it operates. The measurement techniques are like key performance indicators, balancedscore card, 360 degree performance appraisal tool, checklists, graphic and rating scales etc. Thepresent report is based on the only two approaches like BSC as well as KPIs. Balanced scorecard is one of the highly used approach and technique by majority of the firms as it is moreeffective. It has several kinds of benefits and useful which are discussed below:In contrary to this Lin and et.al., (2013) says that, very basic and general use of the BSCis that, it is highly supportive for the company in order to know that which kind of trend is thereof it in terms of performance in the market. It uses in order to assess that business performswhether in the positive ways or negative and on the basis of this further tactics are to beprepared.1
It provides very clear structure and per-forma of the firm's strategy by which leader able to assessthat in the further business techniques any kind of changes and modifications are required or not.Moreover, Karpagam and Suganthi (2012) states that through this Tesco entity able to keep itsobjectives and aims in the centre and achieve in proper manner. It is useful in order to measureseveral features and criteria of the chosen firm which are like financial, learning and growth,business process relating to internal as well as customers.In the opinion of Perkins, Grey and Remmers (2014) BSC is supportive in terms ofcommunication with the team members and subordinates regarding to the objectives as well asframed schedules to achieve it. It helps to make clear the strategies in front of employees whichlead to meet with the objectives in proper manner along with at the deadlines. Moreover,Pimentel and Major (2014) says that alignment among various departments, functions anddivisions can be done with the help of BSC in fruitful manner which is sign of raising overallperformance. In addition to this, workforce easily able to link or connect their personal goalswith the strategies and tactics framed by the organisation. Four basic perspectives of the Balanced Score CardCoe and Letza (2014) mentioned that Balanced score card is the concept which is used bythe businesses for assessing and measuring their performance in the industry. Among variousavailable performance measurement tools it is one of the highly important and appropriateapproach. It helps to the firm in order to measure basically four aspects. Moreover, fourperspectives of the BSC are explained below:2
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