It also helps organizations to have a mechanism of getting feedback on the improved efforts of service delivery. In addition to this due to the fact that measurement of performance is closely related to achievement of an organizations goals and objectives, it provides the management with an opportunity to control and monitor all the processes of the organization geared towards the achievement if the organizations overall vision and mission through the vigorous implementation of the chosen strategies (Aid mark 2001). However, with ever changing business environment and embracing of new strategies by the different organizations, dissatisfaction and discontent with the traditional methods of measuring performance is growing. This has consequently resulted into many organizations interrogating and being critical of the new methods of measuring performance within their structures while identifying the shortcomings and agitating for change. Consequently the old methods are shelved since they are seen to be inefficient and inappropriate to the growth and development of the organizations. As a result the senior management of many organizations are forced to face a number challenges in regards to the assessment of measuring performance of different employees within their respective organizations and institution.
In the current world and business environment that is highly dynamic, the survival and viability of any organization is mostly influenced by the new strategies they either choose to embrace or reject. According to Eccles (1991) these new strategies coupled with the realities of cut throat competition in the markets, need new systems of measurement because the old systems that apply a lot of pressure on the financial indicators can no longer meet the high demands of the modern business organizations. He argues the globalization, cut throat competition, increased sophistication of the public as well an informed population of consumers that are actively pursuing their rights, have all contributed to the shift in performance of the systems of measurements that manifest themselves towards thematic indicators that are non-financial in nature such as customer satisfaction as well as quality of service offered to customers.
To maintain the same levels of success as well as be competitive, organizations need to have a holistic and balanced approach while measuring their performance. These systems should not only display past consequences as displayed by the financial indicators but should also be capable to predict the future expected in the future through utilization of the measures that are non-financial, commonly called forward looking,( MacStravic.1999). As the trend of measuring performance move towards this direction, concerns that need to be addressed but the senior management in a more explicit...
Balanced Scorecard (BSC) is special strategic performance management framework that enables organizations to effectively manage as well as measure the process of strategy delivery (Kaplan & Norton,1992). The concept was proposed by Robert Kaplan and his counterpart David Norton as has so far been voted as one of the most important business ideas of the last couple of decades.The idea involves the application of four generic viewpoints/perspectives that covers
Balance Scorecard Applications in Healthcare Organizations Balanced Scorecard The Learning & Growth Perspective The Business Process Perspective The Financial Perspective Strategy Mapping General Perspective of Performance Management Performance Planning Ongoing Performance Feedback Employee Input Performance Evaluation & Review Performance Management in Healthcare Organizations Healthcare Organization as Learning Organization Principles of Performance Management in Healthcare Organizations Performance Measurement & Evaluation Methods Used In Healthcare Organizations Setting Up Performance Management Systems Dimensions and Approaches to Performance Management in Health Care Taken From the British National Health Service Induction Programs Performance Monitoring Personal
CMBS overcomes resistance to change by concentrating on quantifying customer satisfaction by asking for ratings of each aspect of a system installation after it has been installed. This gives each member of the team a high level of ownership in the metrics being measured, and over time they improve as CMBS system integration teams become more attuned to the unmet needs of their customers purchasing systems. In this regard
This particular perspective is used in the accurate identification of infrastructure that a given company must acquire so as to compete in the future dynamic and highly competitive global market place. The Balanced Scorecard has not just been praised for its theoretical soundness but has actually produced real results. Prickett (2003) noted that in 2003, a study that involved 35 firms in the UK proved that the best performance measurement
Balanced scorecard seeks to provide a sense of strategic balance to an organization by focusing on four distinct perspectives, rather than having the organization orient itself strictly to maximizing shareholder wealth (Kaplan & Norton, 1996). The underlying logic of the balanced scorecard is that there are certain congruencies between the different perspectives. By understanding these perspectives, the firm is in a position where it can optimize its performance by maximizing
In conclusion, these two books and their related concepts show how critical it is for a strategist to consider both the qualitative and quantitative aspects of a business model. There must be a balance of the tasks and vision ownership to the overall measured results of strategies as well. Both books together forma strong foundation for long-term planning that takes into account the need for change management at the executive
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now