The learning and growth perspectives, which are key components of balanced scorecard system, involve the development of company personnel. Trainings and skills development as well as reorientation towards company goals are important in motivating company personnel. Employees can be driven to work optimally and to perform tasks at maximum efforts because of high satisfaction level. It would be easier then for companies to realize the success of other key performance index such as good client relationship, quality business operations, and improved financial performance.
Modern companies today are increasingly moving towards knowledge based work and processes. Knowledge based companies need employees that have sufficient aptitude to perform complicated knowledge-based tasks. Constant development of these knowledge workers is therefore essential in ensuring that company goals can be achieved. The knowledge and skills of employees should be aligned to the technical advances made by company business procedures. Because employees link the business operations to clients, they should possess enough skills to work efficiently. Employees can also be pushed to perform better if they are properly motivated by the company.
Managers should ensure that enough time and resources are allocated for the development of human resources. This aspect is often overlooked by company executives in the past. However, through the implementation of balanced scorecard system the human resource development component can now enjoy sufficient attention. This is important in order to ensure the sustainability of company growth and efficiency of performance. Human resource development can also ensure increasing company profitability because of high productivity of employees.