Organizational Performance Essay Example | Topics and Well Written Essays - 2000 words

Organizational Performance - Essay Example This paper brings out a critical evaluation of Balanced Scorecard models developed by Kaplan and Norton as also the EFQM excellence model promoted by the European Foundation for Quality Management. With a view to measuring a firm's activities in terms of its vision and strategies and to give the manager's a comprehensive view of the performance of a business, a concept which is described as Balanced Scorecard was introduced by Robert S. Kaplan and David Norton in the year 1992. There have been several studies conducted on the subject of Balanced Scorecard to develop the concept further. "The Balanced Scorecard method of Kaplan and Norton is a strategic approach and performance management system that enables the organizations to translate a company's vision and strategy into implementation working from four perspectives." (12 Manage) Measures: Once the objectives are established the next logical step is to identify the proper tools and parameters and define them to measure the organisational's performance towards achieving these objectives. For example the growth in the net margin or the sales in a particular region may well act as the measurement parameters. Targets: When the measurement parameters are established suitable targets need to be evolved to transform the organizational objectives into reality. Achieving a reduction in the manufacturing cost to the extent of 5% annually may be fixed as a target. Initiatives: Proper initiatives in the form of projects of programmes need to be developed as a support for achieving the set targets. If the targets are supported by initiatives, it may not be possible for the organization to achieve its goals. 2.2 FEATURES OF BALANCED SCORECARD: The monitoring of the perspectives of the Balanced Scorecard involves the development and usage of the following features within the broad organizational performance arena. Double-Loop Feedback: It is always essential, in order to exercise a proper control on the performance measures, there need to be data feedback to enable the mangers to determine the cause of variations and identify the processes with significant problems. This would enable the managers to focus their attention on repairing the