The paper “ Performance Management of Human Resources” is a motivating example of an essay on human resources. A balanced scorecard is a strategic management tool that is used in both business and business organizations to align activities to vision, mission, and strategies of the organization, enhancing internal control, and evaluating organizational performance. A balanced scorecard is a performance measurement tool that adds non-financial performance measures to traditional performance measures which only utilized financial results as a performance measure of an organization. The balanced scorecard gives executives and managers an intensive and balanced view of the performance of organizations thus leading to effective strategy development and implementation.
According to a balanced scorecard, an organization is supposed to be viewed in four perspectives which include learning and growth, business process, customer perspective, and financial perspectives. Besides, managers are required to develop metrics, gather data, and execute an analysis based on the four perspectives (Balanced Scorecard, Inc, 2009). The balanced scorecard has become popular and has been adopted by many business and non-business organizations such as Hilton Hotels, Wells Fargo, Chemical Bank, and the U. S.
Army among other organizations. The balanced scorecard supports corporate strategies better than other performance measures. Most importantly a balanced scorecard improves the effectiveness of the performance measurement system since it not only focuses on financial performance but also other non-financial aspects of an organization (Frigo, 2002, p. 9). One of the strengths of the balanced scorecard is that it enables managers to align investments, initiatives and actions with strategic goals of a business organization. Besides, it utilizes both financial and non-financial aspects to determine the performance of an organization. Its ability to be applied in business and not-for-profit organizations is also a major strength (Kanji, 2002, p. 157).
However, the balanced scorecard has some weaknesses which have made some managers reluctant to adopt it.
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