Investigation of the effect of the balanced scorecard on the performance of the for profit organisations - Dissertation Example

The researcher states that it is important to first understand and comprehend the basic concept of balanced scorecard before investigating its impact on the performance of the organisations. The balanced scorecard provides a new and changed approach towards the management of the performance of the organisation. It is important to manage, monitor, and control the organisational performance in order to make sure that the organisation is able to accomplish the objectives, vision, and mission defined by the top management.

There have been several research studies in order to understand the implementation of the balanced scorecard in effective and efficient manner. The research study will be beneficial for the business analysts and organisations who are looking for the methods and techniques for successful implementation of the balanced scorecard strategic tool in order to manage the overall performance. The method of balanced scorecard allows the organisation in the process of identifying the issues with the previous strategic management tools being used and provides the organisation with clear definition of the objects and elements which should be measured and monitored.

This in turn allows the organisation to accomplish the main financial objectives. The main motivation or encouragement behind the research study is to explore the effectiveness of the balanced scorecard in the process of increasing the overall performance and profits of the organisation. The approach of balanced scorecard has been gaining rapid popularity and is being used by several organisations as a strategic management tool.. The approach of balanced scorecard has been gaining rapid popularity and is being used by several organisations as a strategic management tool (Geuser, Mooraj, and Oyon, 2009).

Hence, it is important to understand the factors which influence the successful implementation of the balanced scorecard. In this way, organisations will be able to use the balanced scorecard in effective and efficient manner and will avoid any pitfalls and negative implications. 1.5. Aim and Objectives of the Research Study: The main aim behind this research study is: ‘to explore the effect of the balanced scorecard on the performance of the for profit organisations’. The objectives which will be tried to fulfill by the research study are as follow: To explore the advantages and benefits of balanced scorecard for the organisations.

To investigate the relationship between the implementation of the balanced scorecard and the performance of the organisation. To identify the differences in the performance of the organisation which have implemented balanced scorecard and the performance of the organisation which have not implemented balanced scorecard. 2. LITERATURE REVIEW: 2.1. Overview of Balanced Scorecard: A balanced scorecard is a tool utilised in an organisation to integrate their objectives, strategy and performance. This tool is unique as it can be used as a performance-measurement system, a strategic management system and a communication system.

A balanced scorecard integrates each business activity of an organisation with its organisational strategy, and assesses the performance of each business activity in achieving a strategic goal (Cardinaels, Paula, and Veen-Dirks, 2010). This in term helps the