Research proposal

Research proposal

The balanced scorecard (BSC) refers to a strategic management and planning system used in aligning the business activities to the organization strategy and vision. Balance scorecard tends to be a performance measurement tool that considers the financial measures, business process, learning outcomes, and customer satisfaction. The balancedscorecard (BSC) topic tends to be an essential topic in management. In today’s competitive marketplace, managers should ensure that they use performance measurement tools so as to create measurable milestones in implementing their organization’s visions and strategy. Balance scorecard tends to be a management system mapping the strategic objectives of the organization into performance. Balance scorecard is gaining increasing popularity as being an effective management tool aligning the employee action and goals with the corporate strategy. There are a lot of research studies done on the topic of balance scorecard; however, there is no enough studies done on the issue of balance scorecard and its relations with organization performance. Thus, I intend to find out the relationship between balance scorecard and organization performance.

Business organizations should ensure that they follow rules and regulations. However, it is also important to have performance measurement of the organization. In accordance with this aspect, the balanced scorecard is normally a good tool used in measuring performance. Without proper implementation and perfect measurement of the business, the management cannot be able to take any decisions regarding the organization (Oliveira 2001). Thus, it is necessary to know what is happening in the business and what is significant to the business. Balance scorecard tends to be the proper solution for measuring the perfect performance. Hence, I consider it important to study the relationship between the BSC and organization performance.

The background of this study is that most organizations in different industries are using performance measurement using BSC. According to proponents of BSC, they argue that the approach offers a powerful and also meaningful way of translating the vision and strategy of the organization into a tool that effectively communicate the strategic intent. It also motivates performance against those already established strategic goals (Kaplan & Norton 2001).

Organization performance measurement systems are useful in providing information to both the external third parties and internal parties to the organization. BSC is a popular tool in the recent times that combines the use of nonfinancial with financial measures. Atkinson & Epstein, (2000) argues that managers must focus on non-financial and financial measures, to achieve the goals of an organization. Balance comes from tracking financial performance measures and also the non-financial measure. The need for tracking non-financial measures is because the measures are probably to facilitate organizational actions and decisions supporting strategies based on stakeholders needs.  It is a technique that emphasize on the linking of a strategy to the organization performance measure.

 In simple terms, BSC is a report card for the organization providing users with information on what the organization is performing well and what is not working. It is important for organizations to consider using a measurement tool that can help them identify what aspects of their business is performing well and which area needs improvement. The appropriate tool in this aspect is using the balanced scorecard method. In my research, I look forward to providing an in-depth analysis of how BSC helps the organization in measuring performance and how organizations can benefit and are benefiting from using the method.

Understanding the importance of BSC is essential before conducting the study. Several companies are using BSC, and their experience with the tool demonstrates that it meets various managerial needs. According to (Atkinson & Epstein, 2000), BSC usually brings together many of the seemingly disparate elements of the competitive agenda of the company. The competitive agenda includes shortening response time, reducing new product launch time, emphasizing teamwork, and becoming customer oriented. BSC tend to guard against sub-optimization. The measure usually forces senior managers to consider important operational measures together; thus, allowing employees to see whether improvement in one area can achieve at the expense of the other.

Balance scorecard is essential management equipment in the assessment of the effectiveness of the entire organization. It is significant to study the relationship of balance scorecard and organization performance. It is because the tool not only describe the existing performance of the organization, but is also a driver for the coming year’s performance of the organization. Those organizations that have well-defined core business and also strategic plan for meeting their customer objectives are usually leaders within their industry. While studying BSC, it is significant to know that the key to organizational growth and success is its ability to translate organizational strategy into the operational terms and also the ability to measure performance.

While conducting my study, I will also evaluate how the balanced scorecard is a mechanism for communication. In order to understand how BSC relate to the performance of the organization I also have to consider the performance of employees. I have already performed a thorough research on the topic and according to my findings, I realize that BSC links the internal components of performance and also helps in connecting them. Leaders and managers in the organization are usually the link between communicating strategic mission and objective to employees. Employees are vital assets of the organization and normally at the forefront of the organization representing the organization’s values to customers. Thus, they are in a critical position to make negative and positive impact on the satisfaction and perception of customers. A successful firm must communicate its strategy to its employees so as to meet the objectives of customers and achieve their success (Northcott & Tuivaiti 2012). BSC represent a mechanism for communicating strategy and defining the level of success. My research will also help to understand how BSC through communicating the organization strategy help the organization to improve their performance.

When conducting this study, it will help in breaking down the new ground in the field of BSC and mostly in those industries where BSC is less applied. When I conduct this study, the findings will, be very valuable to organizations that wish to use BSC to measure their performance, and it will also provide a better understanding of BSC. Also, my study findings will be valuable to the academicians as they will gain new ideas for future research. This research is significant in the field of management because the findings that I will get after conducting my research will help improve the perception of managers and employees about the importance and value of measuring performance.

Most organizations tend to be struggling with the early stages for implementing performance measurement. My study is of great relevance because it will help lift the skill level of managers regarding BSC and using the measure to support their decision. Balance scorecard arose from the need of improving planning, performance measures, and control of management accounting (Malmi, 2001). Due to the rise in BSC popularity and benefits attributed to the tool, there is a significant development in management accounting that deserves the intense research attention. Researchers claim that BSC combines important concepts and practices from different theories and disciplines in a single performance measurement system for the aim of improving performance. Hence, I believe it is will be of great importance to add more literature to the existing one on how BSC relate to organization performance whether it is a positive or negative effect. 

Performing this research study will be beneficial to companies that consider measurement as not being an essential part of their strategy. Some managers are usually afraid of introducing new measures for monitoring new processes and goals and consider using the old measure. However, this study will provide findings that will help managers to consider the importance of using the new performance measurement tool, the BSC, in measuring the performance of their activities. It is necessary for managers to consider effective measurement as an integral part of the management process. The new tool, BSC, can be able to provide performance measurement that motivates breakthrough improvement in several areas in the organization. While conducting my study, I will have to perform a thorough investigation using sample organizations. I will also go through several literatures so as to clearly understand the concept of balance scorecard and also find out its actual impact on performance.

Reference

Atkinson, A., and Epstein, M. (2000). Measure for measure CMA Management, 74(7), 22-28

Kaplan, S. & Norton, P. (2001). Transforming Balanced Scorecard from Performance Measurement to Strategic Management Accounting Horizons, 15(1), pp. 87-104

Malmi, T., (2001). Balanced scorecards in the Finnish Companies Management Accounting Research, 12(2), pp. 207–220

Northcott, D & Tuivaiti T. (2012). Using balanced scorecard to manage performance in the organizations The International Journal of Public Sector Management 25(3), pp. 166-191

Oliveira, J. (2001). The balanced scorecard Healthcare Financial Management, 55(5), pp.42-6

Sherry Roberts is the author of this paper. A senior editor at MeldaResearch.Com in best nursing essay writers. If you need a similar paper you can place your order from custom nursing papers.