Answer To: Assignment Instructions1.This assignmentinvolves youconducting research onthe Balanced Scorecard...
Aarti J answered on Sep 23 2020
Balanced Scorecard
Balanced Scorecard
Introduction
Performance toolintroduced by Kalpan and Norton
Analysis tangible as well as intangibles resources of the company
Gives analytical way to analyze company’s performance
Widely used and accepted by the companies.
Balanced scorecard, one of the performance measurement tool which was introduced by Kalpan and Norton in the year 1992 and 1996. The balance scorecard is the performance evaluation tool which helps in analysing the performance from the tangible as well as intangible perspective (Kaplan & Norton, 1992, 1996). In 1992, Kalpan stated that the current performance measure is basically through the internal financial data and does not consider any other perspective while analysing the performance of the company. The organization just used the obsolete data to analyse the performance of the company. The balanced score card gave a more analytical way which gave a balanced approach to the company which includes financial, customer, internal processes and learning and growth. The performance of the company is analysed from different perspective to analyze the performance of the company. Which can help in implementing different strategies which can help in improving the performance of the company. (Kaplan & Norton, 2006).
Over the past researches, there has been different performance evaluation tools which was introduced by the researchers and balanced score card being one of the most popular research. (Weller, 2006). The balanced scorecard is one of the tools which has been widely accepted by the companies across the globe and has been considered as one of the most important development in the management accounting. (Atkinson, Balakrishnan, Booth, Cote, Grout, Malmi, Roberts, Uliana, and Wu 1997).
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Balanced score card
Helps in translating mission to strategy
Helps in developing different management and strategic perspective
Scorecard is referred as the approach which is used in documenting the results attained from the analysis
As per Kaplan and Norton (1996), the balanced scorecard is a tool and the performance evaluation metrics which helps in translating an organization's mission and strategy using different measuring tool which can help the company to evaluate the performance from different perspectives and help the company in providing an adequate framework for the strategic performance of the company. Balanced scorecard a performance measurement framework added the strategic non-financial performance measures to analyse the performance of the company. Balanced scorecard has helped in development of different management and strategic concepts that are widely used today. Balanced is the word that is referred by Greek playwright, Euripides, who stated that the organization should have balanced requirement and the performance should be analysed adequately, a balanced analysis of the performance of the organization is the heart to the strategy of the company. (Bromiley & Cummings, 1989) while scorecard is referred as the approach which is used in documenting the results attained from the analysis.
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Competitive edge
Different functions like human resource, technology and other aspects
Does not just rely on financial function
Analysis overall performance of the company
Balanced scorecard is said to be a strategic management technique which helps in communicating and aligning the strategies of the company to its goals and objectives
Today, the organizations have varied functions which they perform which includes the human resource, technology, and other aspects which are used for evaluating the performance of the company. The company’s performance does not totally rely on the financial aspect in todays’ world but also certain different aspects which helps to the company to attain the competitive edge.
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Perspective of balanced scorecard
There are four major perspectives which are considered in the balanced score card which includes
financial,
customer,
internal business processes and
learning and growth perspectives.
Balanced scorecard is said to be a strategic management technique which helps in communicating and aligning the strategies of the company to its goals and objectives. As per Atarere and Oroka, balanced score card is the tool which represents the share division of...