Contribution of Balance Scorecards to Organizational Performance

This report provides an evaluation of the contribution of balance scorecards to organizational performance management. It begins by introducing the balance scorecard as a performance metric used to improve internal business functions and measure enterprise success across financial, customer, innovation, and internal process perspectives. The main body delves into the goals of the balance scorecard, emphasizing its role in aiding managers in decision-making, communication, prioritizing projects, and monitoring progress towards strategic targets. The report highlights the advantages of the balance scorecard, such as its effectiveness in visualizing and communicating organizational activities, and its usefulness in measuring short-term financial performance and achieving long-term success. It also discusses the need for performance management software and 360-degree reviews to analyze employee performance. Furthermore, the report outlines the advantages and disadvantages of the system, including its benefits in strategic planning, employee evaluation, and the requirement for significant investment and training expenses. The conclusion reinforces the balance scorecard's value in strategic planning and performance evaluation.

MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Evaluation on contribution of balance scorecards as per the organizational performance
management. ..............................................................................................................................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
The balance scorecard is one of performance metric which works as to identify and
improve various internal function of business. This is one of the effective method in terms to
measure and provide feedback to enterprise. It is the kind of set of performance which will be
inclusive of financial, customer, innovation and internal process (Nugraheni,2018). It is the kind
of performance indicator which explains that how enterprise is evaluating its major success.
Thus, it is helpful in terms to measure success which is based on specific business targets and
goals.
MAIN BODY
1. Evaluation on contribution of balance scorecards as per the organizational performance
management.
In this, one of the main goals of balance scorecard goals is to provide help to manager of
firm in order to make better allocation and prioritizing the decision and this all factor are useful
in order to meet the organizational objectives (Advantages & Disadvantages of a Balanced
Scorecard. 2017). This is very useful method in terms make proper communication, day to day
working activities, providing prioritize projects, products and services, measuring and
monitoring progress towards the strategic target of the firm. IN this term it can be said that BSC
is the term which is effective and there are number of powerful elements in which the BSC
methodologies will be useful visualize and communicate the organisational activities.
Thus, BSC is the system which has introduced and developed by the Dr. Robert Kaplan and in
this framework is using of Dr. David Norton. It is very helpful framework in order to measure
the organisation performance(Nugraheni,2018). It is very helpful method in order to measure
short term financial performance. With help of this better focus can be given and this will be
helpful in order to achieve the long term success.
In this. It can be said that the once in the enterprise balance scorecard system developed and
implemented than performance management software system is need to be used in order to get
the right person information in the right time. It is very helpful method in order bring effective
performance management so that desire objectives can be achieved. There are many
organisations which works as to measure the performance with help of 360 degree review and
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this all reporting, reviewing and analyse the performance of enterprise. The one of the major aim
in this relation is to prepare strategic function. In this way, I must say that balance scorecard
system is very helpful in order to analyse the performance of each individual so that objectives of
an enterprise can be carried systematically. With help of this technique the performance of
employees can be easily targetted. It is one of the effective which will be useful in order to
allows supervisors and manager of firm in relation to analyse the employees' performance and
contribution to enterprise. In the present scenario the each enterprise is taking the various steps in
order to develop Balance scorecard system so activities of employees can be appreciated. It is
one of the effective way of looking the overall performance of employees (Yusof and et.al.,
2018). It is helpful in order to take the feedback from customers, internal process and growth. It
is one of the effective method in order to analyse the employee performance and contribution to
business enterprise in large manner. This kind of function will be suitable in order to process the
activities of enterprise in systematically manner.
Objective of balance score card system-
In this one of primary objective of balance scorecard is that it gives executives and senior
management are need to be taken actions which works as to outlines the goals and strategies of
firm in order to maintain the performance level of employees. With help of this there can be
effective communication with the various level of management. The effective framework and
reporting will be helpful in order to process business activities in systematic manner. The one of
the major aim in this relation is to evaluate the performance of employees.
Advantage of Balance score card system-
In this, it can be said that balance score card system is very useful in terms to both kind of
aspects as financial and human. With help of focussing over performance of employees the
business activities need to run its function in effective and appropriate manner. It is one of the
suitable function in order to monitor goals and objectives of business enterprise. This is helpful
in order to evaluating the better performance of employees. Effective Balance card record system
will be helpful in order to deal with strategic objectives of an enterprise (Puspita, 2018).
Disadvantages of Balance score card system-
The balanced scorecards system is helpful in terms to measure the performance of
employees and this also works as to affects the encouragement level of employees. Sometimes,
the system of Scorecard is need to be perverted and it is also works as to employee monitoring
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tool. This kind of activities will be helpful in order to process the business activities in
systematically manner. The one of the major disadvantage in this relation is that it requires the
significant investment (Siadat, Abdollahi and Garshasbi, 2017). It's also involve the training
expenses as the firm need to provide training to its employees that how this system can be
operate.
CONCLUSION
From above report it can be concludes that Balance Score Card system is very helpful in
order to frame strategic planning in effective manner. This report will also be helpful in terms to
put its major focus over Evaluation on the contribution of Balance Scorecards system. The one of
main objectives in this relation is to review the overall performance.
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Advantages & Disadvantages of a Balanced Scorecard. 2017REFERENCES
Book & Journal
Nugraheni, P.P.A., 2018. PENERAPAN CORPORATE GOVERNANCE DENGAN
MENGGUNAKAN BALANCE SCORECARD PADA BANK MANDIRI
JEMBER. Jurnal Bisnis dan Manajemen. 11(3). pp.378-389.
Yusof, Z.M and et.al., 2018. Improving Labor Productivity in Iskandar Malaysia: Insights from
Site Supervisors. Advanced Science Letters. 24(6). pp.4162-4165.
Puspita, H., 2018. Kepuasan Hubungan Kerja dan Tekanan Psikologis Sebagai Sarana dalam
Memprediksi Prestasi Pekerjaan. Jurnal Industri Elektro dan Penerbangan.
Siadat, S.H., Abdollahi, A. and Garshasbi, L., 2017. Evaluating the Impact of Information
Technology on Knowledge Management Performance with Balance Scorecard
Approach. International Journal of Knowledge-Based Organizations (IJKBO). 7(2). pp.27-
42.
Online
Advantages & Disadvantages of a Balanced Scorecard. 2017 [Online]. Available through:
<https://bizfluent.com/facts-7631410-advantages-disadvantages-balanced-scorecard.html>.
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