BUSN11080 Managing Organisational Health Assignment Sample 2023
Introduction
Organisational performance management can be identified as one of the vital processes to ensure that the company resources are being effectively used for pursuing the company goals (Bellisario and Pavlov, 2018). Nowadays the perspective of performance management can be applied for employee development. Balanced Scorecard can be identified as a strategy performance management tool. It also ensures that the concept of management reporting can focus on diverse important strategic constraints and could help diverse companies to monitor the entire managerial execution of their business plan. Through circumstantial reports it is found that those organisations that often tend to use Balanced Scorecard often tend to outperform without having a formal approach to their strategic management.
In both private and public sector organisations the use of Balanced Scorecard can be found to improve internal operations for attaining better external outcomes. The study will focus on the significance of Balanced Scorecard and how it can be adopted.
Discussion
According to Muda et al., (2018), the Balanced Scorecard is used by most of the organisations to provide appropriate guidance to the design of dashboards and performance reports. There are several justifications that can be found to understand the usefulness of a Balanced Scorecard.
It ensures better and effective strategic planning to the companies.
With the help of Balanced Scorecard a firm can be able to develop the most suitable and effective communication strategy for the employees. On the other hand, the use of a Balanced Scorecard ensures effective strategy execution and communication among the stakeholders. Using the tool helps to develop a ‘plan on a page’ that could facilitate the understanding and development of the strategy. Moreover, it also helps the companies to easily engage external stakeholders and staff for the review and delivery of the strategy. The stakeholders become able to know and understand the entire picture of the organisational strategy and pursue the goals.
Additionally, the application of Balanced Scorecard helps to derive appropriate alignment between the initiatives and projects. As opined by Benková et al., (2020), the use of Balanced Scorecard helps the firms to easily map the initiatives and projects towards diverse strategic objectives. Similarly, in return the tool ensures that all the organisational initiatives and projects are sufficiently focused for delivering the best suited strategic objectives in the workplace.
To achieve better management information the application of Balanced Scorecard has been found with huge response. According to Frederico et al., (2020), the Balanced Scorecard approach plays a vital role to assist different organisations for designing key performance indicators that are suitable for achieving multiple strategic objectives. It equally ensures that different firms are involved in measuring and examining the most important factors. To examine the usefulness of Balanced Scorecard it can be illustrated that it plays a vital role in improving performance reporting. With the help of Balanced Scorecard an association can be able to guide the employees about the entire workplace design regarding the dashboards and performance reports.
In both private and public enterprises the use of Balanced Scorecard has received huge importance. It also plays a vital role for developing better alignment among the organisational activities. From the point of view of Quesado et al., (2018), the use of Balanced Scorecard helps the companies for better alignment within their strategic objectives and organisational structure. Along with organisational alignment to pursue process alignment use of Balanced Scorecard plays a vital role. With an effective implementation of Balanced Scorecards the organisational owners could be able to create alignment between various organisational processes for example, risk management, budgeting and analytics with the organisational strategic priorities. Governments of different countries are involved in the implementation of diverse concepts related to Performance Management. Across the World they have implemented several performance management concepts and the use of Balanced Scorecard has attained enough importance in this context. The most common applications done by the Government are results-based management and performance budgeting.
There are several theoretical concepts related to Organisational Performance that can be applied in the workplace.
System Theory Systems states that there is a firm opposition found in reductionism and it is also involved in promoting holism (Duarte Ortigueira and Tenreiro Machado, 2019). Instead of reducing an entity to the elements of its elements, the concept of system theory implies focus on the combination of and relation among the elements that could connect the human being with whole. It also emphasises interconnectedness, openness and interdependence.
There is another theoretical aspect that can be found such as Goal Setting Theory. According to the Goal Setting Theory, personal empirical evidence puts focus on addressing organisational goals. Through the implementation of Goal Setting Theory different goal conflicts may arise that can motivate the employees about incompatible actions and it has enough potential for impacting performance.
In this context it can be stated that the Balanced Scorecard is originally developed for overcoming performance measurement issues in different businesses. Therefore the use of a balanced scorecard is found highly relevant within the public sector. In the Public sector the concept of “balanced” notion is being used to refer to the concept of combinations. The use of a balanced scorecard is applied in the public sector organisations for combining customer, internal process, financial, learning and growth perspectives and provides a holistic performance structure. The concerned approach of Balanced Scorecard is being implemented to overcome certain difficulties that are strongly associated with the process of implementation and understanding performance management within the government sectors. In diverse public organisations the Balanced Scorecard is being used for through exercise of balancing performance requirements that could make the balanced scorecard sufficiently compelling for both the public sector organisations and government.
For example, the UK Government has been involved to use a Balanced Scorecard for using the purchasing power. It has been done to support the country’s economic growth by the introduction of a balanced scorecard system. Moreover, under the supervision of the Government a new scorecard system can be designed for ensuring effective and major government procurements that could imply a positive impact upon the country’s economic growth (www.gov.uk, 2022). On the other hand, Balanced Scorecard has been implemented within the Governmental Organisations for achieving utmost value to the taxpayer.
Similarly there are different private companies found in the UK context that have used Balanced Scorecard in its business context. On the other hand, to examine the extent to which a Balanced Scorecard could be used in Private Companies it can be found that it is mainly used for improving business performance.
According to Quesado et al., (2018), a balanced scorecard is found as one of the strategic management performance metrics that can be helpful for the private companies to improve and identify their internal business activities to assist their external business outcomes.
By the incorporation of a Balanced Scoreboard, Volkswagen has become able to identify a company’s strategy and vision. It helps the firm to understand their financial goals and the ways that can be used for serving the customers by identifying diverse internal business processes that are important to offer value to the consumers. Similarly through the use of Balanced Scoreboard The Ford Company has become successfully able to identify its cultural metrics and relatable benchmarks as well. The company has ranked 2nd among its competitors and rated by the employees.
To examine the use of Balanced Scoreboard in different companies it is found that it helps to shift the business activities towards the customer satisfaction level. In Apple, the business managerial team uses the tool for equipping the employees with diverse innovative solutions such as effective distribution system and user friendly interfaces (How Apple uses the Balanced Scorecard, 2022). These applications are helpful for developing business competencies. Apple Inc. believes upon the terms of alignment and commitment among the employees. That is why they have conducted an employee survey in almost different organisational branches once every two years.
Conclusion
It can be concluded that to improve organisational performance the implementation of Balanced Scoreboard has played a vital role. Similarly it also can be stated that for executing the plan with utmost affirmation, the firms must ensure that diverse support functions and business units are being involved in working towards a particular set of goals. Thus, cascading the use of Balanced Scorecard within these units can be helpful for achieving the alignment and linking strategies to diverse business operations. On the other hand, investigating different research papers it can be understood that those establishments which are having a BSC approach often have tendencies to attain better decision-making and increasing quality management information. It simultaneously ensures that the organisational management reporting emphasis on essential strategic constraints and equally helps the companies for monitoring and executing the plan. By using Balanced Scorecard metrics the companies are being involved in measuring past performance related data and annual reports to provide the organisations with profitable and useful feedback on how better decisions can be made in the future.
It would also help the firms for creating an authentic and effective strategy focused establishment. After knowing the usefulness of the Balanced Scorecard, to what extent it can be used by both private and public sector organisations needs to be defined. It also helps the managers to think about both the cause and effects of the relationships among diverse strategic objectives. By using the scoreboard a Strategy Map can be developed for ensuring that the organisational consensus has been reached to the set of interrelated strategic objectives. Here certain examples can be attached that could reflect the use of Balanced Scorecard in different private enterprises. The Ford Motor Company and Volkswagen have taken initiatives to implement a Balanced Scorecard. The utilisation of Balanced Scoreboard helps the companies to enhance internal operations. The application of the tool has huge implementation in both private and public sector organisations.
References
Bellisario, A. and Pavlov, A., 2018. Performance management practices in lean manufacturing organizations: a systematic review of research evidence. Production Planning & Control, 29(5), pp.367-385.
Benková, E., Gallo, P., Balogová, B. and Nemec, J., 2020. Factors affecting the use of balanced scorecard in measuring company performance. Sustainability, 12(3), p.1178.
Duarte Ortigueira, M. and Tenreiro Machado, J., 2019. Fractional derivatives: The perspective of system theory. Mathematics, 7(2), p.150.
Frederico, G.F., Garza-Reyes, J.A., Kumar, A. and Kumar, V., 2020. Performance measurement for supply chains in the Industry 4.0 era: a balanced scorecard approach. International Journal of Productivity and Performance Management.
Muda, I., Erlina, I.Y. and AA, N., 2018. Performance audit and balanced scorecard perspective. International Journal of Civil Engineering and Technology, 9(5), pp.1321-1333.
Performancemagazine.org. 2022. How Apple uses the Balanced Scorecard. [online] Available at: <https://www.performancemagazine.org/apple-balance-scorecard/> [Accessed 25 February 2022].
Quesado, P.R., Aibar Guzmán, B. and Lima Rodrigues, L., 2018. Advantages and contributions in the balanced scorecard implementation. Intangible capital, 14(1), pp.186-201.
Quesado, P.R., Aibar Guzmán, B. and Lima Rodrigues, L., 2018. Advantages and contributions in the balanced scorecard implementation. Intangible capital, 14(1), pp.186-201.
www.gov.uk. 2022. www.gov.uk. [online] Available at: <https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.gov.uk/government/news/launch-of-the-procuring-for-growth-balanced-scorecard%23:~:text%3DGovernment%2520will%2520use%2520its%2520huge,of%2520a%2520balanced%2520scorecard%2520system.%26text%3DThe%2520new%2520scorecard%2520system%2520has,best%2520value%2520for%2520the%2520taxpayer.&ved=2ahUKEwjzrZKdo5r2AhXASWwGHQySDRQQFnoECAUQBQ&usg=AOvVaw0rC_CmBItxb8fCmhankYcb> [Accessed 25 February 2022].
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