Question

Strategic Risk Management——“Balanced Scorecard”

Assume you are presenting (as a consultant) the concept of the Balanced Scorecard to the executive team at a company that is considering implementing it for strategy execution the presentation. The Chief Human Resource Office (CHRO) asks the following question: What strategic objectives and performance measures relating to human resources are usually included in a Balanced Scorecard? In one short paragraph, please describe how you would reply to this question.

Answer 1

Balance Scorecard

Balance Scorecard(BSC) is the strategic technique and tool to analyze the performance of the employees. In other words, we can say that the arrangement of employee tasks based on various weighted. The Focus behind the BSC is every task of the job because every parameter will affect the business and employees. Example: Bank Employees need to work on various activities arranging all activity in the system manner helps to evaluate employee performance. Example: Weighted of Employee Task like Customer Service-30%, Record Maintain-20%, New Customer-50%.

Strategic Objectives of Balance Scorecard

There are various objectives behind the application of Balanced Scorecard in Business Organisations. let's understand it.

1. To Improve Employee Performance: Balanced Scorecard is the most important tool of modern tecniques to creates opportunities and improve the performance of the employee for the achievement of business goals.

2. To Improve Product Quality: Every Organisation working to improve the quality of products and services which attract and maintain the customer, it can happen after a critical analysis of the performance of each employee.

3. To Improve Customer Satisfaction: Every Business wants to capture more market share and it can happen. It is possible through continuously improving employee performance.

4. To Employee Development: Employee development helps the business to ready for the next challenges for organizations that help to remove the barriers and tackles the problems.

5. To Management of Resources: Company pays compensation to every employee based on their work and performance, managing the resources through balance scorecards helps the business for effective management.

Performance Measures in a Balanced Scorecard

1. Time: Time is the factor to measures the speed and strength of the employee to understand how effectively they complete the task with stipulated timelines.

2. Cost: Cost is the factor that affects the business profit and expenses, cost reduction by the employee by reducing the wastage helps the business to improve profit and save money.

3. Quality: Quality of employee performance helps the business to maintain the quality of products and services. That helps to face competition and to maintain customers.

4. Service: Employee service helps to the analysis of the relation of the employee with the customer that helps to satisfy the customer and timely resolve their queries.

5. Performance: Employee performance is the tool to analyze the role of each employee in the organization which helps the business to focus on removing the unskilled employees from the business.

In short, we conclude that a Balanced Scorecard is an effective tool for evaluating the performance employee each task. That helps to motivate the employee for every task.

All the very best, take care.