A balanced scorecard is a management system of measuring organizational strategies with performance objectives. The balanced scorecard concept originated back in 1992 by Dr. David Norton and Dr. Robert Kaplan that comprised of 4 perspectives they are :
The best way to define objectives is to align the BSC with the organization’s objectives and enable all the departments to define their objectives with reference to it. Here is an example for your better understanding.
E-commerce business started analyzing its performance based on the perspectives of the balanced scorecard.
A balanced scorecard gives a balanced perspective on all the categories such as financial, customer, internal process, learning, and growth. In simpler words, balanced scorecard gives a overall view on a company, business unit or a project.
Balanced scorecard is an strategic way to manage the effectiveness of a HR management of a company. It evaluates both the financial and non financial aspects of a company.
The benefits of balanced scorecard are mentioned below;
BSC helps you achieve your organizations strategic goals.It works in a bottom-up approach. To create an effective BSC, you should keep the following things in mind;
The disadvantages of a BSC are mentioned below;
Let your HR and workforce focus on most important business decisions while factoHR can reduce the burden of daily activities of the organization.