Limitations of Balanced Scorecard - Term Paper Example

Comments (1) Cite this document
The paper 'Limitations of Balanced Scorecard' concerns the dynamic environment, it is crucial for every organization to ensure that their performance level is measured from time to time and one of the most effective ways is to use Balanced Scorecard…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.3% of users find it useful
Limitations of Balanced Scorecard
Read TextPreview

Extract of sample "Limitations of Balanced Scorecard"

Download file to see previous pages Many researchers have researched the various purposes of the balanced scorecards along with their role in enhancing the organization’s performance. The company has to manage the strategies for its survival and growth and it can respond to the environmental changes only by operations management. It is vital for every organization to ensure that the strategy is supported by effective business operations and systems; hence, it is important that the organization has to ensure that proper mechanisms are in place so that everything is appropriately placed. The company needs to ensure that four of its key problems are rectified regarding production, marketing activities, internal processes, and employee satisfaction. Hence, the management of the company must strive to apply the Balanced Scorecard as identified in the report and try to implement it in the organization. The management needs to set the short-term goals as well for the purpose of performance improvement by the implementation of the new system in the organization; it should ensure that appropriate mechanisms are in place that supports the organization in improving its performance. Introduction to Balanced Scorecard In today’s dynamic environment, it is crucial for every organization to ensure that their performance level is measured from time to time and one of the most effective ways is to use Balanced Scorecard (Figgie et al., 2002 and McGillicuddy, 2009). The scorecard is found to have strategic importance as the card is developed in linkage with the vision and goals of the organization and adequate awareness is created within the organization so that every stakeholder is well-aware of the importance of its implementation in the business activities. Many researchers have researched the various purposes of the balanced scorecards along with their role in enhancing the organization’s performance (Lawson et al., 2003 and Mintrop and Trujillo,2005). Considering the situation being faced by Rainbow Lighting Ltd., it has been found that the existing management of the company has been unable to increase the production and performance of the company. The sales of the company have not been increasing at an accelerating rate and the product range has been accelerating simultaneously; the product ranges of the company are classified as Alpha and Beta ranges. In the industrial sector, the company introduced bulbs by the name Everlasting Halogen Spotlight (EHS) bulb and the problems highlighted by its users created bad publicity in the market; it was reported that there was a fault in the manufacturing sector and the annual sales revenue decreased by 5%. Another problem faced by the company is that the sales order processing time is longer i.e. 21 days and the distributors are not satisfied with such a long time duration. The price of the bulbs was increased but the sales did not increase as compared to the total increase in the market. The rejection rate of the bulbs has increased from 3.6% to 5.4% and the production efficiency has decreased significantly. The employee turnover has increased to 6% from last year which was 5%; the employees are dissatisfied with the compensation package and their morale level is extremely low. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“A Report about the Rainbow Lighting Ltd focusing on the use of Essay”, n.d.)
A Report about the Rainbow Lighting Ltd focusing on the use of Essay. Retrieved from
(A Report about the Rainbow Lighting Ltd Focusing on the Use of Essay)
A Report about the Rainbow Lighting Ltd Focusing on the Use of Essay.
“A Report about the Rainbow Lighting Ltd Focusing on the Use of Essay”, n.d.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
isaac98 added comment 1 month ago
Student rated this paper as
Nice paper! Used it to complete an assignment for a business course. It was easy as ABC, for the first time in my life.

CHECK THESE SAMPLES OF Limitations of Balanced Scorecard

Balanced Scorecard

...customer, internal business processes, and learning and growth (pp.76-77). This tool was periodically modified and it became popular across the globe by the end of the 20th century. However, modern management experts argue that this model is not sufficient enough to manage complex strategy implementation processes. This paper will critically analyze the potential limitations of the approach while comparing it with the emerging approaches to organizational strategy. Limitations of the Balanced Scorecard approach It is identified that the Balanced Scorecard model of Kaplan and Norton is not really effective. In the modern complex business...
8 Pages(2000 words)Essay

Balanced Scorecard

...?Running head: Balanced Scorecard Balanced Scorecard Insert Insert Grade Insert 12 March Balanced Scorecard Introduction The Balanced Scorecard was first developed in the early 1990s to solve organization and business measurement problems, although its use has evolved among companies into more important functionalities. Business and organizational operation environments have increasingly become complex, thus necessitating more complex applications rather than just measuring performance in this era of information. Although organizations measured their performance even before emergence of the...
10 Pages(2500 words)Essay


...? BALANCED SCORECARD WEEK 6 Executive Summary Balanced Scorecard is an important tool developed to measure the level of performance mainly of the employees in an organization. Procter and Gamble (P&G) is a reputed FMCG company which operates its business worldwide. It is headquartered at Ohio, United States. The company is engaged in the business of offering consumer goods to its customers in packaged form. The sales and marketing division of P&G group is committed towards providing best services to its customers. This study entails the preparation of a balanced scorecard for the strategies to be implemented in the sales and marketing...
10 Pages(2500 words)Essay

Balanced Scorecard

...? Balanced scorecard [Semester] Balanced scorecard Introduction A balanced scorecard is a performance measurement tool used in strategic management to discover and develop a variety of internal processes as well as assessing of the impacts of the external factors. In particular, the purpose of this technique is to measure and assist organizations in the implementation of their goals and strategies. The balanced scorecard method is used by organizations for different purposes including strategic planning, organizational and strategic positioning, improvement of communication and management...
8 Pages(2000 words)Assignment

Balanced Scorecard

...Introduction This paper provides a study of balanced scorecard measure and the significant of its measures in achieving the goals set by an organization. The most important of the company's activities lies in driving maximum level of customer satisfaction through enhanced performance on the part of the company and its people. This objective cannot be achieved unless the company sets specific performance goals and the specific measures to evaluate the level of performance towards the achievement of these goals. As customer satisfaction is the main driver of the organization's profit target, it is of critical importance for the company to enhance its performance level to achieve its goals....
5 Pages(1250 words)Essay

Balanced Scorecard

...Question The expectation of Halifax, Inc. in Balanced Scorecards were to supply efficient and evaluative operational performance, focus on the achievement of core missions, comprehension of the internal and financial performance through analysis of the views and opinions of staff, clarity and definition of customer relations and outlook of managers on improvement and critical performance (Kaplan & Norton 1998). The team assured that every material needed by the scorecard existed. Moreover, they wanted the appropriate modifications on cultural change possible. This held the Customer Focus programme, where the perspective starts at performance management and personal development. Halifax...
12 Pages(3000 words)Essay

Balanced Scorecard

...The Balanced Scorecard s Introduction This present research paper mainly focuses on the Balance Scorecard of Dual-Tech Inc, which is a fictional organization that specializes in the selling and distribution of electrical appliances. The research paper will seek to describe how the balanced scorecard helps the management of Dual-Tech Inc to identify important information requirement. Secondly, the research paper will identify the information systems that Dual-Tech Inc will use to obtain information pertaining to each scorecard component. The Balanced Scorecard Kaplan and Norton (1996), in...
2 Pages(500 words)Research Paper

Balanced Scorecard

...September 8, Summary: Balanced Scorecard Balanced scorecard is reportedly a strategic management tool that provides measures or techniques which enable managers to determine the ability of the organization to apply strategies that achieve organizational goals. As indicated, these measures include both financial and operational measures, internal processes, as well as innovation and improvement activities. There have been four crucial perspectives in the balance scorecard concept, such as: the customer, internal, financial, and innovation and learning. The noted benefits of using balanced scorecard as a...
1 Pages(250 words)Essay

Balanced scorecard

...Balanced Scorecard for Charitable Organization ID Balanced Scorecard for Charitable Organization Introduction In strategicmanagement for any organization ranging from non profit to profit making organizations, there is need to include balanced scorecards to help create a sense of direction for the management to follow during the process of running the organization (Hannabarger, Buchman & Economy, 2011). During strategic management, a number of goals may be developed aiming at improving service delivery and the general aspects that the organization engages in. though balanced score cards, it becomes easy for the...
8 Pages(2000 words)Essay

Balanced Scorecard

...HUMAN RESOURCE- BALANCED SCORECARD Lecturer’s Balanced scorecard Managers in organizations want a balanced presentation of the operational and financial measures to ensure organizational success. The balanced scorecard helps in achieving this by tracking all the essential elements of the organizational strategy from partnership, teamwork, continuous improvement and global scale. The scorecard provides managers with a set of measures that provide the results of actions already taken. It is important for complementing the financial measures on customer satisfaction, organizational innovation, its...
3 Pages(750 words)Book Report/Review
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Term Paper on topic Limitations of Balanced Scorecard for FREE!

Contact Us