Performance Measures and Balanced Score Card

A scorecard is a systematically maintained measure of performance determined by various performance categories. The Balanced Scorecard is a metric used by top-level managers to present various aspects of their organization at a glance (Grigoroudis et al, 2012). It can be displayed in the form of a matrix with multiple rows and columns. Measure performance against organizational goals and mission statements. Break down your organization’s goals so that everyone, including your employees, not only understands those goals but participates in their achievement. Elements that can be presented in the scorecard (i) Financial perspective - This focuses on growth strategies, here its main aim is to raise the income of the institution where it increases revenue through new sources or by increasing customers value. It also focuses on increasing the organizations profit by reduction of costs and improving the assets are used.

It is this aspect that deals with the shareholders and all strategies in this regard, be they profits or dividends all concern how well the shareholders wealth is maximized. It not only deals with increasing the market share buy also ensuring that they realize a return on their investment( (Kaplan et al, 2010).

(ii)Learning and Growth Perspective- Focuses on assets of an organization that cannot be perceived by the senses like employee skills, knowledge and training. The institutions use these skills by aligning them with the institutions requirements. On matters growth, the balanced scorecard can dictate what new product are introduced into the market ensuring that these products are unique and different from already existing products.

iii)Business Perspective -It is composed of groups of people who work hand in hand with Information Technology to promote their institution. It matches the institutions mission with its day to-day activities. The leadership ensures that the internal activities of the institution are aimed at the customer’s satisfaction.

iv)Customers Perspective- This is the degree of importance which an organizations gives its customers by producing more sales to the aimed group of customers. The balanced score card ensures that attributes such as the quality of products, the lead time within which such products are delivered as well as the price that those products are availed to the market is acceptable to the consumer. It also features the feedback from the customers, which act as an important tool for improvement.

EEC Company should adopt the scorecard strategy since IT is a method of the institutions achievement tangible and perceivable. Scorecard improves performance of all employees since it cuts across all the departments of the organization. The scorecard also guarantees that the proper measures are applied.

The scorecard , by allowing ball stakeholders understand the directions and purpose the organizations is meant to take, ensure that the daily activities are aligned towards the same. It also fosters communication between different levels of management making sure that there no miscommunication.

The performance measurement acts a morale booster since the employees would want their records to have excellent performance. The organization also rewards those who prove to have worked the hardest and in the best way possible to ensure their work station produces the desired results.

Part II

Unethical Behavior if Wrong Performance Measures are Applied

This will happen when the company implements incorrect or improper performance measures that are not conforming to acceptable usage to their employees. This will kill the employee’s motivation which they will regard as unfair

Some of them include deception where employees deliberately give untrue information like reporting sales that belong to another sales person or hiding information that was gathered by another employee. It could even take the form of an employee receiving rewards that in fact deserve to be given to another.

Another way is by making person commit unethical behavior like being harassed sexually on the threat that if you don’t, you might lose the job. It also involves making another employee mostly of a lower rank to do things that are against their conscience.

Other unethical behavior is in regard to acts that are in themselves unlawful such as selling companies assets for personal gain or manipulating the organization’s financial statements to cater for personal expenses. It could also take the form of asking for bribes from the organizations clients.

Method of Avoiding Unethical Behavior

The company should set satisfactory and probable goals to reduce and make sure the unethical behaviors will no longer exist. The company should also set a code of ethics that will control everybody equally. The executives should lead by example, they should display the values they want their employees to practice. The company should go for bench marking for the best practices from better performing companies to help them to be in a position to set fair measures.

The organization should also have a forum where the employees can present their grievances without having to reveal their identities. The organization should also make sure that the employees that they bring on board are qualified and have the capability to handle the job as it can minimize the employees having to engage in unethical practices to hide their inability to perform their roles (Thomas & Dienhart, 2004).

How to tie Performance Measure to Compensation

The employer should acknowledge and prize high performers.

The employer should raise chances of accomplishing the organizations goals.

The leadership should always create an environment of improving productivity (Thomas & Dienhart, 2004).

Responsibility for Tying Performance Measures

The Vice President of EEC is directly responsible for the real ratifying of the performance measure and the employees compensation plan. Finance department is also supposed to be directly involved to ensure there are funds to compensate for the performance.

References

Kaplan, R. S., Norton, D. P., & Rugelsjoen, B. (2010). Managing alliances with the balanced scorecard. Harvard Business Review, 88(1), 114-120.

Grigoroudis, E., Orfanoudaki, E., & Zopounidis, C. (2012). Strategic performance measurement in an organisation: A multiple criteria approach based on balanced scorecard. Omega, 40(1), 104-119.

Thomas, T., Schermerhorn, J. R., & Dienhart, J. W. (2004). Strategic leadership of ethical behavior in business. The Academy of Management Executive, 18(2), 56-66.