|
|
This is only a preview of the paper
Click here to register and get the full text.
Existing members click here to login
|
|
|
...
• Sharon the owner of HCS has recognized that there is a problem with the demand and service provided by her company and has considered implementing the Balanced Scorecard into the firm to overcome the problem. ...
BALANCED SCORECARD FOR HOLLOWAY CONSULTING SERVICES.
The balanced scorecard is typically categorized into four categories: learning and growth, internal business process, customer and financial. ... A feedback from the employees about the new measurement and the balanced scorecard. ...
Would you recommend to Sharon that the balanced scorecard be linked to compensation?
From research on the linkage between the balanced scorecard and compensation, we would recommend Sharon not to link the two. ... P (1992) in the article titled “The Balanced Scorecard Measures That Drive Performance” Published in the Harvard Business Review, January – February p 71-79 described a potential disadvantage of the linkage “If the driver and outcome measures are changing over time, the compensation system will also have to change, leading to confusion on the part of the managers and undermines the alignment of employee effort that the Balanced Scorecard seeks to achieve”. ... Although we can development a relationship exists between the measures and our drivers in the Balanced Scorecard, practically it is a difficult relationship to achieve as the “measures for each of the perspectives on the Balanced Scorecard will be complex because the driver and the outcome measures for the various perspectives are interlinked” (Wade D, 1997, Measuring Performance with a Balanced Scorecard, Managers Handbook, July. ... 2, No 7, p6-7)
The article continued by demonstrating that the linkage between the Balanced Scorecard and compensation can lead to the development of the employees focusing on compensation targets rather than on the targets outlined in their personal scorecards. ...
An article by Kersnar J (1999) titled Hitting the Mark, CFO Europe, February p 46-49, it was suggested that the linkage between the Balanced Scorecard and compensation is most suitable for firms which have a long lead time between management action and financial benefit and that it will be less suitable for firms with short term focus.
Approximate Word count = 1464
Approximate Pages = 5.9
(250 words per page double spaced)
|
|
|
|
|
|