Employee Performance and the Balanced Scorecard Philosophy In measuring organizational and employee performance, which is more crucial and can the balanced scorecard approach be used in assessing both performances? Both are equally vital. First, let us look at organizational performance. Measuring organizational performance can be done in a variety of ways; however, the results of an organization’s performance are often elusive, misleading and incomplete. Traditionally federal agencies and large organizations have measured their performance by solely focusing on the internal or process performance by looking at factors such as the number of programs being controlled by an agency or company, or perhaps the size of the budget for the fiscal year. In contrast, private sector organizations and companies usually focus on the financial measures or diagnostics of their bottom line such as return on investment, net present value, profitability and market share. Although each of these measures is effective, none of these really provide a full perspective of an organization’s performance that leadership needs to be able to manage effectively. The science behind utilizing the Balanced Scorecard Approach is actively balancing the internal and process measurements with the financial measurements. By balancing these processes and measurements, company leadership, project and program managers will have a more complete picture and know where to make the necessary improvements. With this approach in mind, a few questions still linger. What about individual and employee performance? Where does this come in and how critical is it? Can this philosophy be applied to employee performance in addition to its use in measuring an organization’s per... ... middle of paper ... ... By utilizing balanced measures at the organizational level, and by sharing the results with supervisors, teams and employees, managers are providing the information to align employee performance plans with organizational goals. By balancing the measures used in employee performance plans, the actual true gauge of performance comes into complete view. As in Kaplan and Norton’s balanced scorecard philosophical comparison with piloting an aircraft, for the purpose of this article, let us add focus particularly on an aircraft type that is crew oriented, in addition to the pilot. All performance indicators must be carefully and skillfully viewed, in addition to how the crew performs collectively with the overall goal in mind. Assessing the performance of the crew (employees) often defines how successful the mission was and whether or not the objectives fully achieved.
The NHS has adopted a performance measurement system that is based on the concept of balanced scorecard in order to obtain a broader view of performance within the organisation (Department of Health, 2001). Although, measuring performance evaluation of health care system could be difficult, it can on the other hand serve several purposes and can help facilitate change and improvements in the effectiveness and quality of health care. It seems peculiar to focus on performance measures in organisation such as NHS, but even NHS is facing increasing competitive pressures when considering ageing populations increasing demand, improved treatment...
The "balanced scorecard is a model and performance tool used to monitor financial and quality performance" (Pane, 2011) and "translates mission and strategy into outcomes and
Performance challenges are faced in the same manner on both types of organizations non-profit and for profit organization. However they might be measured in a different way due to the different types of mission they have set for themselves and the different outcome they might expect. There are different ways that a manager can measure the work performance of their employees, by what they produce, b...
The Mayo Clinic (Mayo) provides a compelling and instructive example of the critical role of performance measurement in managing performance behaviors. An analysis of the Mayo approach offers insightful understanding of effective performance management practices. Accordingly, this paper reviews the Mayo performance management system from four perspectives (a) leadership strategy, (b) performance measurements, (c) human resources management, and (d) the alignment of performance with strategy. The discussion concludes with an assessment of the alignment of the elements comprising the Mayo performance management system with recommendations for strengthening those alignments.
In the mid 1980s, and into the 1990s, business leaders realized that a renewed focus on quality was required to continue to compete in an expanding global market. (NIST, 2010) Consequently, several strategic frameworks were developed for managing, and measuring organizational performance. Among them were the Malcomb Baldrige National Quality Award, which was created by and act of congress and signed into law by the President in 1987, and The Balanced Scorecard, which is a performance management tool that was born out of research conducted in the late 1980s and early 1990s by Robert S. Kaplan, and David P. Norton published in 1996 (Kaplan, 1996). Initially the renewed emphasis on quality management systems was a reaction to the LEAN approach
The purpose was to show how employees could contribute to the company's objectives. Employees were able to understand the terminology and best practices of the scorecard as it related to strategic planning. KPI’s where they saw improvement were in the company’s operating cash flow, total revenue of bids submitted, and number of preventable environmental excursions. (2013) The balance scorecard allowed Veolia to develop a framework to measure their goals and show progress.
A Balanced Scorecard can be defined as a “performance management tool which began as a concept for measuring whether the smaller-scale operational activities of a company are aligned with its larger-scale objectives in terms of vision and strategy” (Wikipedia 2009, ¶ 1). Scents & Things will need to develop a balanced scorecard that will assist in meeting and help define the company’s values, mission, vision, and SWOT analysis. The balance scorecard is made up of four perspectives; financial, customer, learning and growing, and internal process. This paper will define each of the four perspectives objectives, performance measures, targets, and initiatives. The paper will also show how the perspectives relate to Scents & Things vision, mission, values, and SWOTT analysis.
The Balanced Scorecard has emerged in recent years as a performance measurement system in various organizations. This paper will discuss the origin and concept of the balanced scorecard and how it was first implemented. We will then review the criticisms on the balanced scorecard methodology as well as analyse the strengths and weaknesses of this performance measurement tool.
Prior to 1959, faulty equipment was the probable cause for many airplane accidents, but with the advent of jet engines, faulty equipment became less of a threat, while human factors gained prominence in accident investigations (Kanki, Helmreich & Anca, 2010). From 1959 to 1989, pilot error was the cause of 70% of accident resulting in the loss of hull worldwide (Kanki, Helmreich & Anca, 2010). Due to these alarming statistics, in 1979 the National Aeronautics and Space Administration (NASA) implemented a workshop called “Resource Management on the Flightdeck” that led to what is now known as Crew Resource Management (CRM) or also known as Cockpit Resource Management (Rodrigues & Cusick, 2012). CRM is a concept that has been attributed to reducing human factors as a probable cause in aviation accidents. The concepts of CRM weren’t widely accepted by the aviation industry, but through its history, concepts, and eventual implementation, Crew Resource Management has become an invaluable resource for pilots as well as other unrelated industries around the world.
The hospitality and tourism industry plays an essential role in global growth around the world. One of the biggest key players is an airline industry. An airline industry contains both hospitality and tourism. One of the key players to this industry is the cabin crew. However, “ with recent economic decline the airline industry is not in good health in terms of operation and customer service organization” said (Laszlo, 1999). It is therefore, important to understand that the crews must perform function as key player in an airline industry by providing various types of customer service, safety and security threats, sales and promotion.
The intent of this research is to provide the reader with insight on how Crew Resource Management (CRM) improves safety in aviation organizations. This research will also present how CRM establishes a set of guidelines, behavioral norms, and standard operational practices that enables an organization to utilize all resources available to conduct safe and efficient flight operations. CRM encompasses a wide range of knowledge, skills and attitudes including communications, situational awareness, problem solving, aeronautical decision-making, information management, and teamwork (Royal Aeronautical Society, 1999). CRM is also a synergistic approach to managing flight operations, and allows crews to dynamically multi-task and prioritize work efforts in order to conduct their operations more efficiently and safely. Over the last three decades, the NTSB, NASA, the FAA, ICAO, the military, and the airline industry have created CRM programs, and extensively researched and tested new and innovative ways to incorporate CRM with cockpit automation.
Performance management is a useful and powerful tool that can be used by managers to identify what areas of their organisation they need to improve to increase the organisation’s overall performance. The idea of a balanced scorecard enforces a sensible distribution of resources and effort across all aspect of performance an organisation is, or should be, concerned with.
Organization is a group of people brought to gather to achieve specific goals. Goals can be achieved if team member are performing well. Performance is the results of activities given to the employees in an organization to be achieved within specific period of time. Evaluating the current performance of employees against past performances and organizational standards is known as Performance Appraisal (Dessler, 2005). Furthermore performance appraisal helps the company know how individual employees are performing and how to improve their performance thus improving the performance of the company (Grubb, 2007). A performance appraisal is propose in which the performance management system in an organizations set work goals, determine performance standards, provide performance feedback, determine training and development needs and distribute rewards as well as evaluating an employee’s job performance during a period of time. The performance of team member is much more than appraising individuals’ works, it is managing the business, so the performance of an employee is influences by the performance of an organization. It is target to achieve the best results for the planned strategic by managing activities of employees. There are many different opinions on the performance appraisals, some organizations do performance appraisals without any aim just follow others., where some organizations do performance appraisals to make sure they have a record of a piece of paper in the employee’s file – they are careless about do corrective action. But successful organizations understand the importance of combining performance appraisals into their performance management process and strategy plan as the success of any organizatio...
There are several reasons organizations initiate performance evaluations, however the standard purpose for performance evaluations is to discuss performance expectations; not only from the employers perspective but to engage in a formal collaboration where the employee and the manager are both able to provide feedback in a formal discourse. There are many different processes an organization should follow when developing its performance evaluation tool; in addition essential characteristics that must accompany an effective performance appraisal process. I will discuss in detail the intent of a performance evaluation, the process an organization should follow in using its performance evaluation tool, along with the characteristics of an effective
Network Solutions, Inc. is a worldwide leader in hardware, software, and services essential to computer networking (Aguinis, 2013, p.31). In the past, this company has used over 50 different systems to measure performance management. Even with the large amounts of different systems to measure performance, only a fraction of employees were receiving performance reviews, and less than 5% of employees received the lowest category of ratings. Also, the organization had no recognition program for employees with a higher category of ratings. In addition to the lack of employees not receiving reviews, it was noticed in the organization that performance problems were not being addressed or resolved.