Running head: ABC INTERNATIONAL, INC. 1
ABC International, Inc. 5
ABC International, Inc.
Marquita Watkins
HRM5000 | Strategic Human Resource Management
South University - Online
April 20, 2020
A balanced scorecard (BBC) is a management system and strategic planning performance metric that organizations use to identify and enhance different internal functions and their external outcomes. A balanced scorecard was first introduced by Robert Kaplan and David Norton in 1992. They took previous performance metrics and reformed them to incorporate nonfinancial information. This paper will, therefore, evaluate the purpose of a balanced scorecard, recognise the categories on the balanced scorecard, defend the significance of a balanced scorecard, and, lastly, design a supplemental graphic of a balanced scorecard.
Purpose of a Balanced Scorecard
BSC has several purposes. Organizations can use BSC to communicate what they want to accomplish. They can also use a balanced scorecard to prioritize products, services, and projects (balancedscorecard.org). Besides that, they can use the balanced scorecard to monitor and measure progress and to align the everyday work that every employee is doing with the company’s strategy.
Many large companies all over the world use the balanced scorecard. More than half big companies in Asia, Europe, and the U.S. are using a balanced scorecard, with the use increasing in those areas as well as Africa and the Middle East. According to recent research, BSC is among the top ten mostly largely used performance metric around the world (balancedscorecard.org). Harvard Business Review editors have also selected BSC as one of the most influential management tools of the past seventy-five years.
Categories on the BSC
Traditional Categories
The four categories of BSC are customer, learning and growth, internal, and financial perspective. The financial perspective is normally traditional measures. They usually seek to answer the following question: how should an organization appear to shareholders in order to thrive financially? Financial measures usually convey the economic results for the specific actions already undertaken by the company and focus on measures that relate to profitability (Malgwi & Dahiru, 2014). Under financial perspectives, the most common measures used include Cash Flow, Revenue Growth, Net Operating Income, and Return on Investment. Financial Data such as expenditures, income, and sales are used to understand and evaluate financial performance.
Communication Flow
The content of an organizational BSC must be communicated to all stakeholders in a clear, timely, correct, structured, complete, and honest manner to arouse company-wide commitment and to gain buy-in for it. When the BSC has been communicated in this manner, the entire company will realize the significance of continuous improvement, strategic thinking, learning, and personal development.
The Role of HR Professionals
HR professional.
Running head ABC INTERNATIONAL, INC.1ABC International, Inc..docx
1. Running head: ABC INTERNATIONAL, INC. 1
ABC International, Inc. 5
ABC International, Inc.
Marquita Watkins
HRM5000 | Strategic Human Resource Management
South University - Online
April 20, 2020
A balanced scorecard (BBC) is a management system and
strategic planning performance metric that organizations use to
identify and enhance different internal functions and their
external outcomes. A balanced scorecard was first introduced by
Robert Kaplan and David Norton in 1992. They took previous
performance metrics and reformed them to incorporate
nonfinancial information. This paper will, therefore, evaluate
the purpose of a balanced scorecard, recognise the categories on
the balanced scorecard, defend the significance of a balanced
2. scorecard, and, lastly, design a supplemental graphic of a
balanced scorecard.
Purpose of a Balanced Scorecard
BSC has several purposes. Organizations can use BSC to
communicate what they want to accomplish. They can also use a
balanced scorecard to prioritize products, services, and projects
(balancedscorecard.org). Besides that, they can use the balanced
scorecard to monitor and measure progress and to align the
everyday work that every employee is doing with the company’s
strategy.
Many large companies all over the world use the balanced
scorecard. More than half big companies in Asia, Europe, and
the U.S. are using a balanced scorecard, with the use increasing
in those areas as well as Africa and the Middle East. According
to recent research, BSC is among the top ten mostly largely
used performance metric around the world
(balancedscorecard.org). Harvard Business Review editors have
also selected BSC as one of the most influential management
tools of the past seventy-five years.
Categories on the BSC
Traditional Categories
The four categories of BSC are customer, learning and growth,
internal, and financial perspective. The financial perspective is
normally traditional measures. They usually seek to answer the
following question: how should an organization appear to
shareholders in order to thrive financially? Financial measures
usually convey the economic results for the specific actions
already undertaken by the company and focus on measures that
relate to profitability (Malgwi & Dahiru, 2014). Under financial
perspectives, the most common measures used include Cash
Flow, Revenue Growth, Net Operating Income, and Return on
Investment. Financial Data such as expenditures, income, and
sales are used to understand and evaluate financial performance.
Communication Flow
3. The content of an organizational BSC must be communicated to
all stakeholders in a clear, timely, correct, structured, complete,
and honest manner to arouse company-wide commitment and to
gain buy-in for it. When the BSC has been communicated in this
manner, the entire company will realize the significance of
continuous improvement, strategic thinking, learning, and
personal development.
The Role of HR Professionals
HR professionals have several roles in a company. The roles of
HR professionals in improving the performance of the
organization includes formulating strategies that centre on
retaining and recruiting skilful workers as well as supervising
initiatives that enhance company productivity. The HR
professionals are also in charge of developing training and
development programs that enhances and strengthens quality
work in the organization.
Action Plan/Strategic Plan
A successful and effective BSC will always begin with goals or
a strategic plan of the entity. The plan or goals are then stated
based on the organization level to which the BSC pertains. A
BSC for an entire company will be wider and more general in
terms of measure and goals than a BSC designed for a unit
manager (opentextbc.ca). Once the strategic plan and goals are
restated for the appropriate level, the measures for every
category of the BSC will be created.
Employees’ Commitment
Employee’s commitment is essential to improve the
performance and productivity level of the organization. When
there is employees’ commitment, employees will realize the
significance of continuous improvement, strategic thinking,
learning, and personal development.
Importance of BSC
The balanced scorecard allows managers and other senior
employees to better understand and follow how their employees
are performing and how the performance links with the overall
4. company’s growth. Additionally, the information obtained from
the BSC offers wider understanding into how the current actions
in the organization impact the long term objectives of strategic
management and allow managers to make necessary changes to
make sure the company’s goals are attained (Tarver, 2020).
Organizations can also use BSC to easily recognize factors
obstructing business performance. Companies also use BCS to
develop strategic objectives and strategic initiatives.
It is important for organizations to align human capital with
decision-makers goals. Decision-makers and HR must handle all
the various variables that influence the ability of the
organization to achieve its goals. They must work together to
develop strategic initiatives and plans that meet the needs of
decision-makers.
A Supplemental Graphic of the Balanced Scorecard
ABC, INC.
Balanced Scorecard
Business Objectives
Measures
Target
Financial
Increase revenue
Sales revenues
Increase revenues 15% through improved sales
Lower costs
production costs
Reduce costs 5% through production efficiencies
Customer
Increase market share
5. Number of new customers
15% growth in market share
Improve customer satisfaction
Customer satisfaction survey
90% customer satisfaction rating.
Internal
Reduce production waste
Units of waste per every production.
15% reduction in production waste through better and efficient
production.
Minimise time from production to storefront/customer
Time from packaging to display or delivery.
15% reduction in total time from production of products to
display.
Learning & Growth
Increase employees’ empowerment and motivation
Training courses certificates awarded
30% increase in the number of workers completing various
training courses.
Increase employee retention
Employee satisfaction survey
98% rating on employee satisfaction and a 60% increase in
workers making use of the open-door policy.
References
https://balancedscorecard.org/bsc-basics-overview/
6. https://opentextbc.ca/principlesofaccountingv2openstax/chapter/
describe-the-balanced
scorecard-and-explain-how-it-is-used/
Malgwi, A. A., & Dahiru, H. (2014). Balanced Scorecard
financial measurement of
organizational performance: A review. IOSR Journal of
Economics and
Finance, 4(6), 1-10.
Tarver, E. (2020). Balanced Scorecard. Investopedia. Retrieved
from:
https://www.investopedia.com/terms/b/balancedscorecard.asp
Running head: WEEK 3 PROJECT: ABC INTERNATIONAL,
INC. 1
Week 3 Project: ABC International, Inc. 6
Week 3 Project: ABC International, Inc.
Marquita Watkins
HRM5000 | Strategic Human Resource Management
South University - Online
April 13, 2020
7. ABC International, Inc.
Organizational leadership is all about leading individuals in an
entity towards realising goals and objective. Leaders do that by
influencing workers behaviours in multiple ways. They set a
clear vision for the entity, set the tone of the business culture,
motivate and guide employees, and build morale within the
organization (Western, 2019). However, multiple leadership
issues may emerge in organizational leadership which can
obstruct the productivity and effectiveness of the organization.
Leadership Issues Affecting ABC Organization
One leadership issue affecting ABC organization is lack of
communication. Organizations usually use two forms of
communication: downward and upward communication. In ABC
organization, there is a lack of downward communication.
Leaders in the organization do not communicate with their
subordinates. The subordinates are, therefore, left without
purpose and direction and they end up losing motivation to do
their daily tasks.
The other leadership issue affecting the organization is the
inability of the leaders to provide opportunities for subordinates
to give feedback. As we all know, feedback usually gives a
voice to the subordinates in an entity. Feedback provides
subordinates with a sense of purpose. Lack of this opportunity
in ABC has limited the ability of the organization to implement
change because subordinates feel restricted, disrespected, and
limited.
Another leadership issue affecting ABC is incompetent
leadership style. Leaders in the organization are currently using
bureaucratic leadership style. Bureaucratic leadership is a type
of leadership where subordinates are forced to obey certain
rules established by their leaders (Yahaya & Ebrahim, 2016).
This form of leadership is not working with ABC employees as
it doesn’t offer freedom of innovation and creativity.
The other leadership issue is a lack of clear vision in the
organization. As is well known, an organization without a clear
8. vision is like a ship with no rudder and it might be in danger of
being wafted. Everything always begins with a vision. When
there is no vision, there will be no action and, hence, no results.
Leadership Plan
A leadership plan is a solution to any organization faced with
leadership issues. ABC Organization face multiple leadership
issues. The leadership plan below will, therefore, help the
organization solve those issues.
Objectives
Action
Success Measure
Target Date
To further develop leaders’ skills and abilities in formulating
direction for and communicating direction to subordinates.
Complete a leadership development program.
Conduct an assessment survey and provide the superiors with
the assessment report.
April 20, 2020
To enhance leaders’ abilities to formulate clear visions for the
organization.
Complete a leadership development program.
Communicate the organization’s objectives and vision to the
subordinates.
Conduct an assessment survey and provide the superiors with
the assessment report.
May 15, 2020
To widen leader’s understanding of leadership.
Complete a leadership development program.
Learn from more skilled and experienced leaders.
Conduct an assessment survey and provide the superiors with
the assessment report.
June 20, 2020
Compensation Package
We can define a compensation package as the combination of
salary and benefits an organization provides to the employees
9. (Mabaso & Dlamini, 2017). Based on the above leadership plan,
ABC managers and supervisors that can be able to complete a
leadership development program should receive an annual
salary of $50,000 and $30,000 per year respectively. They
should also receive a pay raise and bonuses. Those who will be
able to meet superiors’ expectations through the assessment
survey should receive their monthly salary and be given a free
vacation every three years.
Recommendations
Based on my assessment, I discovered that there is a lack of
downward communication in ABC organization. I will,
therefore, recommend the CEO to put an organised
communication system. This will ensure effective
communication among all stakeholders within the organization.
The inability of ABC leaders to provide opportunities for
subordinates to give feedback is also a leadership issue within
the organization. I will, therefore, recommend the CEO to
implement an open door policy. This will encourage and
motivate employees to share their ideas, desires, and concerns
with the leaders.
Another leadership issue affecting ABC is incompetent
leadership style. ABC leaders are currently using bureaucratic
leadership style. However, this form of leadership is not
working with ABC employees as it doesn’t offer freedom of
innovation and creativity. I will, therefore, recommend the CEO
to implement a democratic leadership style. This form of
leadership will encourage free-thinking, problem-solving, and
conceptual thinking.
I also discovered that ABC leaders do no set clear vision to
their subordinates. A vision is important for any organization. A
clear vision pulls in ideas, people, and other related resources.
A vision inspires subordinates and creates the will and energy
to implement change within the organization (Napolitano,
2016). As stated earlier, everything always begins with a vision.
When there is no vision, there will be no action and, hence, no
results. Most ABC subordinates couldn’t describe the
10. company’s vision and some couldn’t even describe how their
work backs the vision. I will, therefore, recommend the CEO to
create a persuasive vision for the company. The vision should
be able to motivate and inspire employees and keep them going
no matter what. This will ensure the organization’s core goals
and objectives are achieved.
References
Mabaso, C. M., & Dlamini, B. I. (2017). Impact of
compensation and benefits on job satisfaction. Research Journal
of Business Management, 11(2), 80-90.
Napolitano, B. (2016). Importance of a Vision: Licensure of
Medical Dosimetrists. In Leading Strategic Change in an Era of
Healthcare Transformation (pp. 161-168). Springer, Cham.
Western, S. (2019). Leadership: A critical text. SAGE
Publications Limited.
Yahaya, R., & Ebrahim, F. (2016). Leadership styles and
organizational commitment: literature review. Journal of
Management Development.