Balance Score Card

Balance Score Card

Introduction

The balanced score card is a system of measuring the performance of an organization. It has four quadrants along which organizations can analyze themselves in order to determine the areas where they need to improve. Since every organization has an objective to earn maximum profits, this framework helps to increase the efficiency and effectiveness of the organization in order to accomplish its goals. Monitoring each task of a company is not possible but by using this framework, the entire organization can be routinely checked. There are several frameworks to analyze organizations out of which the balanced score card is probably one of the best since it covers every aspect of the organization.

Futura's President, Susan John emphasized that instead of focusing on all four quadrants of the balanced score card; the company should only focus on the learning and growth quadrant. According to her, the organization depends on the quality of human resource employed. Therefore, if the organization is performing well, it is all because of its work force. When the employees are motivated and satisfied with their job, they can easily increase their productivity and efficiency. In this way, the profitability of the organization can be enhanced.

According to Susan, no other quadrant is as important as the learning and growth quadrant because of the influence it has on other quadrants. The other three quadrants namely, financial, customer, and internal business process are also important for the success of the organization but if analyzed in detail, it can be determined that these three quadrants depend on the workforce. Therefore it can be concluded that the learning and growth quadrants helps the organization as a whole to prosper.

Discussion / Analysis

In order to evaluate the company's performance, Futura determines the needs, and motivations of every employee. Since the organization focuses on its human resource, its primary measurement tool is the turnover of employees. They have an objective of hiring the best employees and retaining them for as long as possible so that the organization may benefit from their experience and skills developed during the period of employment (Hannabarger et al., 2011).

In order to increase employee satisfaction, the organization asks its employees for suggestions that can help motivate them and hence retain them. The appraisal is conducted after a pre-determined time frame. Apart from this appraisal, the organization also conducts appraisals in the birthday month of ever employee. During these ...