ACC5502 Accounting and Financial Management an Organization

1.Critically evaluate the above quote in regards to contemporary balance scorecard practice. You should review current business and academic literature relevant to management application and use of balance scorecards. Use appropriate sources to summarise and support your personal views about balance scorecards. Ensure you relate your discussion to the above quote. You should also make a determination as to whether you agree or disagree with this point of view.

2.Using your knowledge of balanced scorecards and performance evaluation systems address the following:

Answer: 1

This section of the paper is focus on evaluating the given quote in the context of contemporary balance scorecard practice. Additionally, this research study is critically evaluates the roles and impact of balanced scorecard in traditional financial measures. In addition to this, it is also analyzed that, a balanced scorecard approach or method is also helps the business firms in measuring all the financial aspects by telling the story of past events. Simply, it suggests innovative, best and dynamic ways to the business firms that could be used by business firms or companies to take the long term investment decisions, attain competitive scope and develop strong relationships with the key stakeholders and customers effectively. But, in the current time, business firms must focus on developing value by investing money in the customers, business process, employees, innovation and technology. Both the aspects of this quote are more valuable, significant, effective and meaningful for the overall success and growth of business firms. I am agreed on both the different aspects. For example, in the current time a company or firm should adopt a balanced score cards approach in enhancing the overall performance of company (Gitman, and McDaniel, 2007).

In addition to this, it is accessed that, in the present time, a balanced scorecard approach is more profitable, huge and basic for every one of the sorts of business firms to enhance association's execution, lessen costs, spur representatives and accomplish upper hands by measuring the money related perspectives. A BSC (Balanced Scorecard) approach is enhances hierarchical execution as well as bring advancement and improvement at the work environment that is more critical to spur and support the representatives. Thus, it helps the business firms and their representatives to accomplish center and key hierarchical destinations in a more powerful way. For instance, with the compelling utilization of Balanced Scorecard, an organization might enhance diverse business territories and bring vital changes rapidly (Friedrichs, 2011).

Balanced Scorecard is also a strategic management or planning instruments that help an organization to conquer a few genuine business difficulties and issues viably by going to past money related occasions and measures. Adjusted Scorecard is additionally real device of development for an organization that specifically or in a roundabout way enhances basic leadership capacities of an organization, its staff and administration in light of the past occasions. For instance, Balanced Scorecard enables organizations to take choices in view of the past choices in more entangled business circumstance and accomplish upper hands. Similarly, Balanced Scorecard gives a considerable measure of substantial and impalpable present and future business chances to the business firms to enhance their money related and non monetary execution (Griffin, 2009).

Balanced Scorecard is a strategic planning device or technique or strategy utilized by the organization to quantify the hierarchical execution for the reason to enhance authoritative efficiency, productivity and development. Besides, Balanced Scorecard is additionally give key course to the administration of an organization about how to bring advancement, improvement at the work environment by enhancing the present and future business execution. It gives an immediate outline to the administration about the distinctive business regions. Balanced Scorecard enables organizations to tract their business capacities and execution against the decided guidelines. Adjusted Scorecard is the key administration system that helps business firms or associations to gauge their vital execution in a compelling and appropriate way (Gitman, and McDaniel, 2007).

Balanced Scorecard is plays a ton of creative and particular parts in upgrading the execution of associations. For instance, Balanced Scorecard helps the associations to accomplish upper hands from the market by lessening business issues and overhead expenses. It is on the grounds that BSC enables organizations to investigate the distinctive zones of business. Likewise, with the compelling utilization of BSC, organizations might diminish a few overhead expenses and enhance business execution. Additionally, BSC is likewise enhances basic leadership capacities of an organization and its administration so they could take vital choices in more unpredictable business circumstance. BSC is gives key bearing to the money related organizations about how to make, detail and outline business technique for the aggregate achievement of the association. For case, BSC is additionally enables the budgetary organizations to upgrade the inspiration of their workers by adjusting the center authoritative technique to the conduct and mentality of their representatives (Friedrichs, 2011).

BSC is also play an extensive variety of essential parts in imparting the business destinations in the organization and give vital arrangement to the monetary organizations with the goal that it can take vital activities. In addition, it is likewise bring incremental enhancements, advancement and improvement inside the hierarchical procedure, methodologies and strategies. For instance, using SPMSs, an organization can have the capacity to impart its monetary and in addition non money related results to the key partners. Thusly, it enhances adaptability, responsibility, and noteworthiness of the organization according to its key partners and results in execution upgrades. BSC is likewise have a key impact in improving the corporate brand picture and notoriety. For instance, with the assistance of BSC, an organization could propel and energize all the level of representatives and advance execution change culture at the working environment. It shows that, BSC has capacity to cultivate hierarchical learning and enhancing execution (Gitman, and McDaniel, 2007).

It is also promote open correspondence and enhance authoritative correspondence handle that is essential to create solid associations with the outside partners. BSC is additionally functions as specialized devices for the organizations and these apparatuses utilized by the organizations to present center and key estimation of the association in the market. BSC is likewise assume a key part in contributing new and huge business open doors for the organizations with the goal that they can develop and extend their business operation and capacity at the worldwide level. Besides, BSC is likewise enables the organization to gather and utilize critical data and information about the execution to actualize key goals successfully. BSC is additionally help the organizations in imparting their key objectives, vision, mission, long haul goals in the market. Then again, by utilizing BSC, a monetary organization could likewise dispense its budgetary and non money related assets including cash, hardware and time (Griffin, 2009). 

Furthermore, BSC is likewise helps the organizations to set the objectives, targets and objectives of their workers. This provides assistance in enhancing the present and future execution. In the present time, a large portion of organizations are utilizing balance score card as a key arranging approach enables the budgetary organizations to enhance their business execution in the distinctive business zones. For example, an organization enhances its execution by survey on the distinctive parts of their business including monetary, clients, inside business and learning and development. For instance, the monetary point of view is helps the budgetary organizations in including the incentive for its key partners (Needles, Powers, and Crosson, 2010). This is additionally enables an organization to get to its key money related methodology and decide if the technique is creating and including the incentive for their client or not. If not, then the organization utilizes distinctive particular strategies or approaches to include the incentive for their key shareholders. Then again, the customer see gives data to the organizations that their money related items and administrations are according to the desires or not. Are the organization's items and administrations satisfying the requirements and needs of their client or not. On the off chance that the present items/administrations are not fulfilling the desire of their clients, organizations present and dispatch new items/benefits according to the desire, needs and needs of their customers (Friedrichs, 2011).

At the same time, the business & production process view gives important data to the organizations about the inner execution of the organization. At last, learning and development point of view is offer critical data to an organization about association's potential future execution. Generally speaking, one might say that, an adjust score card is a most critical instrument or structure and system for the administration of a firm to gauge the present and future execution. In addition to this, it can be said that, BSC helps the organizations in following their money related strength of the association. For case, an adjust score card offers an unmistakable picture about the present and future firm execution straightforwardly or by implication. It is additionally demonstrate a money related organization that their objectives and destinations are according to hierarchical vision and statements of purpose. If not, particular strategies could be utilized to defeat such issues. Besides, the partners of the organizations could likewise get to the money related and non monetary execution of the organization (Gitman, and McDaniel, 2007).

Moreover, it is likewise enables the workers of an organization to observe into their own objectives and destinations and bring fundamental upgrades to achieve the key objectives. With the compelling utilization of BSC, the organizations can increase substantial and impalpable advantages incorporating lessening in the time allotments, enhance basic leadership, give better arrangement of the issues and enhance current business handle by bringing advancement and improvement. Consequently, BSC is the most profitable devices and system for the organizations to enhance and measure the present and future association's execution. Besides, it can be inferred that, BSC toll is assuming significant part in enhancing the execution of associations. In addition, it is additionally broke down that, in today's globalized business period, distinctive sorts of issues are experienced by the organizations. Along these lines, with a specific end goal to defeat such issues (Mather, 2005).

Hence, on the basis of above discussion, it can be concluded that, a balanced scorecard system is more valuable tools for the top management and their company to measure the financial performance of the company in an effective and significant manner. By measuring the past events, a company could make strategic plans and enhance organizational efficiency effectively. It is also provide opportunities to develop relations with the key customers for the long time period and generate more profit effectively. On the other hand, in today’s digital era, it is also valuable and essential for the companies and their management to focus on creating future value by using balanced scorecard. This approach would help the companies in reducing of various investment costs that spent by a company in their customers, suppliers, employees, processes, technology, and innovation.

Answer: 2

Refinements to the Balanced Scorecard system: There are a lot of significant and valuable refinement should be in the balance scorecard approach so that business firms could attain their key goals in a very short time. For example, balanced scorecard must focus on translating a business unit’s strategy, mission, vision and objectives in the tangible goals and objectives. In the same way, such objectives as well as measures must reflect a specific balance among the external measures for customers and shareholders. On the other hand, internal measures of the critical business process, innovation, leaning and growth. At the same time, BSC should also play a key role in improving the strategic feedbacks and learning within the firm in order to deal with the future business issues (Mather, 2005).

Along with this, a BSC approach should also translate a company’s vision and strategy in a most innovative and dynamic manner. Along with this, it is also important to know that, the founders of the balanced card approach namely Kaplan and Norton have refined this approach to explain and define strategic management from the different important process. For instance, the primary angle is clearing up and making an interpretation of vision into procedure – recognizing vital targets and catching them in a vital guide. This requires the business pioneers to achieve accord on what the key targets genuinely are, and that all destinations are connected to expectations to keep away from "pet undertakings. Then again, conveying key goals and measures and connecting them to operations – this incorporates setting up a two-path interchanges with partners to urge exchange to refine forms and advance criticism. Arranging and setting focuses to adjust vital activities are incorporates recognizing focuses of each of the destinations measured by the KPIs. In a perfect world, singular targets are set for vital destinations and tasks, which are thusly connected to the bigger vital goals. Improving key criticism and learning is the last refinement in the adjusted score card that incorporates gaining from execution data and utilizing the discoveries from the adjusted scorecard to refine basic leadership (Griffin, 2009).

Individual Performance measurement and their advantages and disadvantages: n the present time, guaranteeing the efficiency in the work environment can challenge. Cases of worker execution estimation incorporate an assortment of techniques managers utilize in view of the representative's occupation classification, worker chief relationship and working environment culture. They run from entirely quantitative assessments, for example, realistic rating scales to 360-degree criticism execution estimations that include input from something other than the representative's boss. In addition to this, it is also important that, the individual productivity of an employee should be evaluated and measure based on their quality work, knowledge, skills, abilities, efficiency, training programs, individual goals, objectives, and task. On the basis of these factors the individual performance of the employees can be measure in an effective and proper manner. Measuring the performance could be more valuable and beneficial for the individual and company (Griffin, 2009).

 For case, the workplace skills, and knowledge can be improve. On the other hand, the current and future performance of both employees and company can be improved without any extra cost. In the same way, they would be able to look into their weakness and focus on improving their strengths by minimizing the weakness. Overall, it is provide a lot of benefits and advantages for the long term not only to the individual but also to the company in an effective and proper manner. In contrast, it may hide the strengths of the individual and de-motivate him for the company success and growth. In the same way, it may bring a lot of issues in the front of the company. In addition to this, it may be very costly and time consuming for both the company and individual employees. For example, a company has to spend more money in measuring the performance of the employees. In addition to this, a company would also require to hire professional to measure the individual performance that may increase the direct cost for the company. Overall, it can be said that, measuring the individual performance can be beneficial or not. Based on the above analysis, it can be said that, measuring the individual performance is one of the more complicated and complex task for the business firm that require more efforts and time to generate expected results (Blokdijk, 2008). .

Refinements to the performance evaluation system: The performance evaluation method or system should not only focus on identifying the weakness or weak areas of employee. It is be focus on improving the strong areas so that the weakness could be effectively address and improve. In addition to this, performance evaluation should be based on the various factors not limited variables. It should also be on regular time period with the key objective to improve performance. On the other hand, performance evaluation should also be based on the operational, statistical and scientific method so that accurate information and results could be generated in an effective and proper manner. Moreover, it is also important to know that, performance evaluation must also focus on the various principles and applications such as: integrity, comprehensive etc. Moreover, evaluation index systems should be developed to measure the performance effectively. Along with this, there are several factors should be considered in evaluating the performance in order to make systems more dynamic and effective. At the same time, it would also be important to determine specific and scientific criteria to conduct the performance evaluation systems. Hence, all these are the major refinements that should be in the performance evaluation systems. This would provide accurate and reliable results in an effective and significant manner (Blokdijk, 2008).

References

Blokdijk, G. (2008). Balanced Scorecard 100 Success Secrets, 100 Most Asked Questions on

Approach, Development, Management, Measures, Performance and Strategy. USA: Lulu.com.

Friedrichs, C. (2011). An analysis how the Balanced Score Card approach could enhance the

personal contentedness considering the change in the society from a Work/Life balance to a

multi-duty-life of individuals in consulting companies in Germany. USA: Diplomarbeiten Agentur.

Gitman, L.J. and McDaniel, C.D. (2007). The Future of Business: The Essentials: The Essentials. USA: Cengage Learning.

Griffin, M.P. (2009). MBA Fundamentals Accounting and Finance. USA: Kaplan Publishing.

Mather, D. (2005). The Maintenance Scorecard: Creating Strategic Advantage. USA: Industrial Press Inc.

Needles, B.E., Powers, M. and Crosson, S.V. (2010). Financial & Managerial Accounting. USA: Cengage Learning.