Balance scorecard is necessary for achieving Goals of performance management

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Balance scorecard is necessary for achieving Goals of performance management

Balance scorecard is very important and one of the prime tools, used to measure performance. Balance scorecard helps to deal with strategic planning and performance management. Balance scorecard is a great boon in Human Resource industry given by Kaplan and Norton. This helps the managers and employer to decide the performance appraisal for each employee as per their productivity and ability. Balanced scorecard helps to drive out financial and non financial outcomes which overall indicates the performance and strategic output.

Balance scorecard not only helps to do performance management but also helps to evaluate the strategic planning, how it was executed and what are the loopholes. Balance Scorecard is now widely accepted and regularly used in various parts of the world. One recent global study has declared that balance scorecard is one of the top ten management tools used to measure performance management worldwide in various companies.

Benefits of using Balance scorecard as a management tool:

  • It is used to track and record the data.
  • It helps to measure the financial and non financial outputs and inputs.
  • It helps to find out the loopholes of strategic plan followed out with proper results
  • It is very effective in measuring performance.

Balance scorecard helps to develop the strategic planning and reporting methodology of the organization in four different parts:

  • Financial
  • Operational
  • People
  • Customer

From these perspectives company can get a picture what to implement, where to implement and how to implement.

 

The vision and strategy must be on the grounds of:

  • Financial
  • Customer
  • Growth and Learning
  • Internal Business process

For each ground, organization must concentrate on:

  • Objective
  • Measure
  • Target
  • Initiative

How Balance Scorecard helps in achieving the goals of Performance Management:

Balance scorecard helps to evaluate the performance of the employees in the following ways:

  • What is the strategic plan?
  • How they are implementing it and on what respect?
  • What is the financial investment and return ration?
  • What is the time invested?
  • What is the new product developed?
  • What is the feedback from customers?

Not only for the company, “balance scorecard” has also helped to evaluate the internal business process via operational process, innovation, customer relationship and various regulatory process.

The strategic evaluation which is done through balance scorecard is:

  • What is the outcome or result of strategic implementation?
  • What is the feedback from customers?
  • How we can do it in a much better way?
  • How we can develop the new products?
  • What are the improvements and changes required?
  • How to balance the stake holders and financial output?
  • How we can develop the learning process in a much better way?

Balance scorecard also helps in overall development of employees- their capability, managerial skills, leadership, skills and competencies.

Balance scorecard helps to find out the leadership quality among the employees, their capability, their outcome and their development which helps employers or senior management to decide to do their performance appraisal. Balance scorecard helps to move out of traditional barriers and reach new heights of success as this process helps in continuous development.


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Balance scorecard is necessary for achieving Goals of performance management
Types of Employee Engagement Process implemented in the companies
How to identify and apply performance management to get the best output from it?
How the job analysis can best benefit to the company
img
How to identify and apply performance management to get the best output from it?
Balance scorecard is necessary for achieving Goals of performance management
Types of Employee Engagement Process implemented in the companies
How the job analysis can best benefit to the company
img
How to identify and apply performance management to get the best output from it?
Types of Employee Engagement Process implemented in the companies
Balance scorecard is necessary for achieving Goals of performance management
How the job analysis can best benefit to the company