Moreover, the organization uses performance measurement tools to motivate the employees and identify the best performers within the organization as well. Performance measurement tools are not only restricted to these functions, but these tools can be helpful in analyzing where the organization has incurred high costs and to identify areas where productivity can be enhanced so that the profitability of the organization can be increased. Therefore performance measurement tools are beneficial for the organization in increasing their financial performances as well as their operational performances (Cardinaels, Paula, and Veen-Dirks. 2010). There are different performance measurement tools and one of the most widely used performance measurement tools is the balance scorecard that has been discussed in this report. Ridgway in the year 1956 came up with the concept of performance measurement and from that time, different organizations have used different types and concepts of measuring their performances. During the mid 1980s and 1990s the idea of measuring and managing performance was one of the most debatable and researched topics and different researchers came up with different ideas (Neely, 2005). During this particular time, it was revealed that performance measurement is not only about managing financial performances of the company, but it is about managing the overall performances of the organization as described by Kaplan and Norton using Balance Scorecard. According to Kaplan and Norton, performance of the organization is linked with different measures and not only the financial measures and therefore it is important to consider other aspects as well in order to improve the performances of the organization. This report discusses about this important and widely used performance measurement tools, balance scorecard as well as the report discusses about how balance scorecard is used as a performance measurement tool. Moreover, the report highlights the progress that has been made since the 1990s in balance scorecard as well as in managing performances and then the effectiveness and usefulness of balance scorecard today as a performance measurement tool has been analyzed. Balance Scorecard Balance scorecard is one of the most used performance management and performance measurement tools around the world. Balance scorecard has been developed by Robert Kaplan and David Norton in the year 1993 and since then it has been continuously refined. Previously, organizations have been relating performance management and performance measurement as the financial indicators, however balance scorecard shows that an organization has to consider different aspects and these aspects are linked with each other and by improving all these aspects an organization can improve its performance, otherwise only financial indicators cannot be improved if other factors are not improved (Geuser, Mooraj, and Oyon. 2009). Balance scorecard allows the organization to analyze and formulate strategies. According to balance scorecard, an organization has to consider four perspectives in order to formulate a strategy and these four perspectives are; financial performance, customer knowledge, internal business processes, and learning and growth. Kaplan and Norton have described balance scorecard
Introduction Performance measurement has become one of the most important functions of any business today. Performance measurement and performance management allows businesses to analyze how the department, individuals, processes, or the whole organization is operating…
Balanced Scorecard Approach: A Critical Review (Name) (Tutor’s Name) (Date) Balanced Scorecard Approach: A Critical Review Introduction Balanced Scorecard is a strategic performance management tool, which is mainly used by managers to regulate strategy execution activities and subsequent monitoring processes.
The manager should also be in a position of monitor the consequences resulting from these actions. Every organization aims at achieving growth and a competitive advantage. This means that the performance measurement tool they use should not only give information about the past results of the firm.
In order to fully understand the problems and suggest recommendations to the company, a critical analysis has been provided regarding the management accounting control systems along with its two components- formal planning process and responsibility accounting.
A number of management tools and techniques are used by the management to strategically manage and fulfil the organizational objectives. These are the performance prism, total quality management, value based management and the balanced score card method of which the balanced scorecard technique is the most popularly used management system used in order to improve the performance of the organization.
It critically evaluates the use of the "Balanced Scorecard as part of modern business management accounting. In addition the paper tries to understand the way in which performance can be assessed in terms of financial and non-financial measures and to appreciate the use of modern methods of performance measurement.
There have been several studies conducted on the subject of Balanced Scorecard to develop the concept adaptable to the changing circumstances and needs of the organizations. This paper presents some of the facets of balanced score card and an account of the approach in practice.
This objective cannot be achieved unless the company sets specific performance goals and the specific measures to evaluate the level of performance towards the achievement of these goals. As customer satisfaction is the main driver of the organization's profit target, it is of critical importance for the company to enhance its performance level to achieve its goals.
There have been several studies conducted on the subject of Balanced Scorecard to develop the concept adaptable to the changing circumstances and needs of the organizations. This paper presents some of the facets of balanced score card and an account of the approach in
The companys expansion strategy revolves around being the on-line travel leader by having a superior web-based e-commerce platform. This will enable the company to capture a larger share of the air travel market, in contrast to its old
This paper discusses the role of Balanced Scorecard in terms of performance measurement and reviews its effects on organizations with respect to critical situations. The key features of Balanced Scorecard are discussed and from the analysis its approaches and trends are ascertained especially in critical situations.
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