The Use of Balanced Scorecard to Measure Performance

Since it was formulated in the early 1990s, the balanced scorecard has been known to be an effective tool to measure performance, not only applied to the organization as a whole, but to each working individual as well. This has been one of the processes involved in the implementation of balanced scorecard on any organization, which is to define strategic objectives and link them to individual performance. This will give employees better understanding of the process and increase their level of awareness of company goals. As a result, employees will be more productive, a great indication that process improvement will most likely succeed.

There are some companies that use balanced scorecard as basis for salary appraisal. Usually, a scorecard is generated on a regular basis to determine performance of an employee. The metrics that will be used depend on the nature of the job. A metric that will be used for accounting associates may not be the same to those who work in the engineering department. Accuracy may be included as a metric for quality analysts, but for regular agents who work in the technical support department, greater weight on performance will be given to those who have high resolution rates.

However, measuring employee performance through the use of balanced scorecard may not only be limited to the evaluation for the actual job performance of a certain individual. There are several other aspects that should be measured such as attitude, attendance, and work behaviors etc. Not meeting such good expectations also means failure to meet company objectives and goals. This will not only reflect on an individual ‘s performance but the company as well. Full dedication and focus are therefore needed to take advantage of better employee rewards and privileges.

mfx brokermeizu m3 note grayru topodin