UNIVERSITY OF THE WEST OF SCOTLAND-LONDONCAMPUSCOURSE NAME: MANAGINGORGANISATIONAL HEALTH LECTURER: MERVYN SOOKUN MS S A PALAN SPTUTORIAL LAWRENCE MENSAH AKWETEY LA DAVID CHITAKUNYE DCTSTUDENT NAME: PATRICK CHARLES MAKUNDIBANNNER ID: B00337431COHORT: 13ESSAY TOPIC : Explain andevaluate the contribution of Balanced scorecards to organisational performancemanagement(1,000 words) SUBMISSION DEADLINE: 17 JANUARY 2017 Table of Contents Introduction 4 Balanced Scorecard( BSC) 4 Organisational Performance Management(OPM) 4 Contribution of the balanced scorecard in the OPM 7 Conclusion 8 References 10 Bibliography 11 LIST OF FIGURES1. The Balance scorecard model by Norton and Kaplan(1992)52.Strategic managing processes that can be implemented in OPM8 1.0 INTRODUCTIONOVERVIEWOrganisational performance management system can transfer theorganisation or a particular business to the desired level but when only if thesystem is designed and implemented in a proper particular way.
There are numbertools, approaches and techniques, that variousresearchers worldwide have introduced to assist in the transformation of anyparticular organisation’s vision and missioninto the desire action. By the introduction of various essential practicalapproaches into the system and how the decisionmaker may participate in conveying their knowledge and skills into the successof the organisation, these tools have assist into the transformation of traditionalapproaches into new ways of thinking, organising and accessing organisation’s resources and people in term of the objectivesversus performances and predicting the organisation’s future. Logical processesand easy to understand that makes performance management very important system by assisting to get into every level of thebusiness through way of raising critical questions and come up with desire solution.Most organisation had traditional way of practising theactivities in their organisation by simply focus on measurement on the profit maximization,(they concentrated more on financial measurement ). However in modern business environmentit has been proven the need of non financial measurement growing rapidly. Inearly 1990s Robert Kaplan and Ken Nortonintroduced the concept of balanced score which give the need organisation toadopt into framework that will include the involvement measurement beyond nonfinancial matters.2.
1 BALANCED SCORECARDTHEORYBalanced scorecards isthe famous strategic performance management tools that can used by anyorganisation environment to transform the mission and vision into the practicalaction, setting up the objectives, measure performances versus objectives andpredict the future by aligning the financials part, people, customers and learningand development. The methodology was developed by Dr.Kaplan and Dr.Norton in 1992 after series of research or examination of thesuccessful business around the world. Balanced scorecard plays a major role inthe performance management systems in any particular organisation by analysing different four perspective inany given organisation.Norton and Kaplan identified four main icon in the balanced scorecardfor the any particular organisation to analyse their current performance andultimately predict the future or the direction of the organisation with the firstpublished article by Harvard university with 4 business perspectives1.
Financial 2.Customers/external3.Processess/internal 4.Innovationand learning Fig. 1.1 The Balance scorecard model by Norton andKaplan(1992)The balanced scorecards above depict various essentialelement that whoever who is encounters in decision making process must adhereto, by setting goals in each perspective and set up the measure for instance inthe financial perspective one of the overall question decision maker has totake into account it so to ask themselves how should we appear into ourshareholders mind, by setting goals on profit, growth of the organisation and profitabilityand set up measures such as checking cash flow(in and out), market share andreturn on equity. ORGANISATIONALPERFORMANCE MANAGEMENT MODELUdineand Spa2018 discussthat the meaning of operation performance management as the process by whichthe organisation link or integrate between the plan that are strategic andorganisation practise/operation. According to these author the operation performancemanagement serve as a system that replace the traditional organisation way of practicesuch as top down techniques in which information flow from the high management to the rest of theorganisation with less integration in departmentsor between people.
M.Bourne and P.Bourne(2011) discuss that majority of the business operationculture is based on the ‘tick box practice’when engaging in performance management process. Operation performancemanagement should have a number of people equipped with necessary skills and knowledgeto the run the organisational, the system should touch every staff and by theway the of the integration the systeminto the organisation without leading into the wrong direction of theorganisation..The salient features when organisation performance managementis put in place in any organisation it must includes expenditure control and efficiencygain, results based management, improve performance and competitiveness, accountability, good governance,stakeholder involvement and communication, effectiveness and success.
All thesefeatures are to ensure that the organisation run smooth in all internal affairthat is within the organisation departments relationship a and external affairssuch as government affairs and shareholdersaffairs. On the words the operationperformance management will assist the relevant managers in the organisationwith overview of their current performance/trend and be able to predict the directionof the organisation by making correct decision. CONTRIBUTION OF THEBALANCED SCORECARD (BSC) IN THE ORGANASTION PERFOMANCE MANAGMENT(OPM)The balanced score provide an opportunity to bring together differencesview for managers into the internal objectives of the company. It provides broadview of the company long term strategies and the company directions in general.As a result it provide them with ability to transform these understandings intothe high level of commitment during the company operationIt serve as the way to signal to every employee or individualwithin the organisational and stakeholder about what the company is trying toachieve by weighting the currentobjective versus the performance .
According various writers it said that it is essential thatin organisational operation performance adhere with the strategies that are achievableand can be implemented and measure during organisation growth from time totime. With the balanced scorecard the decision maker at all level are guidedwith for strategies S.Kaplan and P.Norton( 1993).a) translating the vision that is to say that the organisationis provided itself with opportunity to clarify the vision and put itself inposition that there is agreed comments by the group as whole. This enable the effectivesoperation performance management since that from the top level management tothe lower level everyone is aware of the company visionb)Communicating and linking different departmental/individualsby ensuring that education is well provided, clear goal setting and linkingrewards based on the performance of the individuals .c)Business planning and let the members must be aware aboutthe current plan and future plan.
The balanced scorecard provide the light bywhich the organisation can set goals/target target, initiatives, allocatingresources and out clear established milestone.d) Feedback and learning within the organisation, thebalanced scored card bring together the share vision , feedback and provide thefirms with opportunity to review their result and learn. Fig.1.
2. The figure above Depict the 4 strategic managing processes that can be implemented in operationperformance management system, originally suggested by S.Kaplan and P.Norton(1992)CONCLUSIONThe balanced scorecard has assisted into the overall linkagein between financial perceptive and non financial perceptive especially towardsimproving the organisation performance management in the developing economicsector such as in countries like Russia, Brazil India, and China. It is importantto make utilise of the use of balanced scorecard for better result of theoperation performance management system, as the study show that in Americaalone more than 60% of the companies have used the balanced scorecard R.K.
Tyagi and P.Gupta,2008. It is expected that the top decision maker to utilise the useof balance scorecard components in order to gain the efficiency in organisation performance management.As discussed, the balanced scorecard has assist the firm to visualize the theirorganisation performance management not only from the provider side but alsofrom the customer perspective as discussed by aligning the organisationobjectives and corporate objectives and strategies REFERENCES· Rajesh K.
T and Praveen G.(2008) A complete andBalanced Service Scorecard. Upper Saddle River, New Jersey.· StefanoT. andLuca Q. ( 2010) Performance Measurement.(online) Available:https://link.springer.
com/content/pdf/10.1007%2F978-3-642-13235-3.pdf ( Accessed24 December 2017).· M.Bourne andP.Bourne (2011) Corporate Performance Management.
(online) Available: https://www.dawsonera.com/readonline/9781119953470/startPage/17/1(Accessed 26 December 2017).· Udine, U. andSpa, S. (2018). Performance Measurement | SpringerLink.
onlineLink.springer.com. Available at:https://link.springer.com/content/pdf/10.1007%2F978-3-642-13235-3.
pdf Accessed13 Jan. 2018. BIBLIOGRAPHY· Steve C. andScott R.2008 100 Ways to Motivate Yourself Ghaziabad, India: Clear Book Publication