Measuring Organisational Performance

This article discusses the importance of measuring organisational performance and the tools used for it. It explores how Balanced Scorecard can benefit Apple Inc. and its disadvantages. The article also highlights the five performance indicators used by Apple Inc. to measure their performance.

Measuring Organisational Performance
1

Measuring Organisational Performance
In an organisation, it is important that organisational performance is measured effectively
so that performance standards can be achieved, strategy developed by the organisation can be
monitored and also to measure the competitive advantage gained by the organisation (Austin,
2013). In this manner, it can be stated that measuring organisational performance helps an
organisation in gaining competitive advantage and manage the external factors that impact the
performance of the organisation. Measurement of organisational also helps the employees in
understanding the goals and strategy of the organisation so that they can contribute towards the
improved performance (Austin, 2013). In order to measure performance, there are certain
performance measurement tools, such as the Balanced Scorecard and the EFQM Excellence
Model (Austin, 2013). On the basis of my prior experience, if Balanced Scorecard Framework is
applied in Apple Inc., it could benefit the organisation by helping them in developing their
objectives, taking suitable actions for improving performance, accomplish their targets and
measure their performance indicators.
Over EFQM Excellence Model, Balanced Scorecard Framework is beneficial for Apple
Inc. in innovating and improving their performance by satisfying the needs of the customers.
There are five performance indicators that are used by Apple Inc., in order to measure their
performance. These indicators are shareholder value, customer satisfaction, employee
commitment, core competencies and market share (Tudorache, 2017). With the help of Balanced
Scorecard, Apple Inc. can easily measure their performance for organisational success. This is
due to the fact that Balanced Scorecard helps in keeping track of all the activities and monitors
the actions taken by the organisation (Biazzo and Garengo, 2012). In the views of Taticchi
(2010), Balanced Scorecard tool is an efficient tool, which is used by the organisations, in order
2

to communicate their strategies so that they can accomplish their goal. In addition to this, the tool
is beneficial in prioritising tasks, and measuring the strategic targets (Taticchi, 2010). It can be
stated that Balanced Scorecard can impact Apple Inc. due to its disadvantages.
It has been explored that with the help of the tool performance is measured with
encouraging the employees towards improved performance by monitoring the actions taken and
the activities undertaken. Therefore, organisation can be impacted, if the tool is used as a
tracking system for the employees of the organisation, which is the disadvantage of Balanced
Scorecard (Kammerer, 2013). Apple Inc. can be benefited from Balanced Scorecard tool, by
considering the advantages and disadvantages associated with it, as the tool impacts the
organisation as a whole in the form of organisational performance and the performance of the
employees. It has been explored that an organisation must identify their strategic options as these
help the organisation in improving their organisational performance and gain advantage in the
competitive business environment. It has been analysed that it is important for an organisation to
measure its performance so that targets can be achieved regarding the performance of the
organisation. With the help of evaluation of strategic options, appropriate performance
measurement tool can be adopted by an organisation, which can help the organisation in
monitoring their activities and improve their organisational performance (Jenkins and
Williamson, 2015).
3

References
Austin, R.D. 2013. Measuring and Managing Performance in Organizations. Addison-Wesley.
Biazzo, S. and Garengo, P. 2012. Performance Measurement with the Balanced Scorecard: A
Practical Approach to Implementation within SMEs. London: Springer Science & Business
Media.
Jenkins, W. and Williamson, D. 2015. Strategic Management and Business Analysis. London:
Routledge.
Kammerer, M. 2013. The Balanced Scorecard - Advantages and Disadvantages. GRIN Verlag.
Taticchi, P. 2010. Business Performance Measurement and Management: New Contexts, Themes
and Challenges. London: Springer Science & Business Media.
Tudorache, A. 2017. How Apple uses the Balanced Scorecard. [Online]. Available at:
https://www.performancemagazine.org/apple-balance-scorecard/ [Accessed on: 09 June 2018].
4