Balanced Scorecard Advantages And Disadvantages
Balanced Scorecard (BSC) is a quantitative performance evaluation method of measuring Key Performance Indicator (KPI) of business units and departments of an organization. It is a set of objectives that do determinate success and accomplishments of stockholders, respective employees and decision makers in an organization. These objectives shall be fulfilled in regular and period timeframe, for instance, on the quarterly basis, upon achieving targets on a specific date or before the deadline it will indicate the drive of performance improvement in the organization itself.
Lueg & Lousia Vu (2015) has indicated that Balanced Scorecard is initiated by Kaplan and Norton in 1992 claiming that the Balanced Scorecard allows organizations to reflect their vision, mission and strategy into quantifiable outputs this comes through linking strategic objectives and measures; plan, set targets, align strategic initiatives; enhance …show more content…
The approach itself reflects on 4 aspects, finance, customers, internal process and learning growth, the approach hasn't focused in-depth leadership, human resources and cooperate social responsibility.
In leadership, though Balanced Scorecard enhances the leadership position of decision makers, however, true leader are those employees who function the internal process which means the strength in organization hierarchy is more strong in the bottom to up than top to down. In other words, leadership capabilities are developed more with employees than decision makers.
Balanced Scorecard has emphasized on the essentials of learning and development. Learning and development work parallel with human resources management departments. The approach lacked in highlighting in how may recruitment, employee relation...etc. department are correlated with each other in setting the strategic aims of