Explain the concepts of the Balanced Score Card

The balance scorecard (BSC) is a system of strategic management and planning that is developed by the organizations. The balanced scorecard communicates with the strategies and planning of the companies (Yourarticlelibrary. com, 2018). In the balance scorecard all the day to day work is mentioned about the project, product, services and strategies. There are four basic viewpoints of balanced scorecard that includes financial perspective, customer perspective, internal process perspective, and growth of innovative perspectives (Balancedscorecard. org, 2018). The set of performance deals with the employees, suppliers, shareholders, and customers.

The balance scorecard demonstrates the performance of organization regarding the perspective of stakeholders (Yourarticlelibrary. com, 2018). The growth and learning perspectives of the organization is indicated by the strength of strategy and the contribution of operations for the financial health. The customer perspective in the balanced score card shows the added values of operations and customers (Balancedscorecard. org, 2018).

1. Explain the use of incentives, evaluation and performance measurement?

The incentives and the reward system are effective factors that induces impact on the performance of employees, managers and workers. The incentives improves the performance measurement and managerial efforts (Business. illinois. edu, 2013). The information system by the balanced scorecard improves the congruity for the incentives of firms. The incentives depends on the achievements of goals in the different areas particular in the financial area. (Business. illinois. edu, 2013).

The balanced score card evaluates the performance of managers and workers and provides them with rewards. The scorecard enables to evaluate multidimensional system of rewards and demonstrates the usefulness in the financial measures (Business. illinois. edu, 2013). The performance measures and reward system induces impact on the effort allocations (Business. illinois. edu, 2013). The reward system depends on the fixed payment system, subjective evaluation, one dimensional incentives, and formula based incentives. The structure of reward system measures the incentive schemes (Business. illinois. edu, 2013).

The balanced scorecard implements for the magnitude and timing of the managers and the financial performance. The non-financial performance along with financial performance determines the multidimensional reward system. The evaluation for the business unit mangers becomes easy by using the balanced score card (Business. illinois. edu, 2013).        

2. Why might a balanced scorecard like the one in Table13.2 of your textbook be more effective than simply using merit pay for a manager?

The recognition of vagueness as well as weakness is essential for the management approaches. The use of balanced scorecard approaches in the organization provides clear prescription about the performance and the effectiveness of employees and managers in the organization. The balanced score card is used to balance the financial perspectives and to measure effectiveness (Your article library. com, 2018).

The balanced scorecard is used as performance metric for the strategic management for the identification of internal structures and functions of organizations. The feedback of organization depends on the improvement and identification of performance. The quantitative analysis depends on the data and information collection interprets decisions and performance of managers and executives (Your article library. com, 2018).     

The thematic analysis in the scorecard provides four values for the performance. The use of balanced Scorecard in the cross case analysis is based on the generic research and provides effective communication and the strategies (Balancedscorecard. org, 2018). The deep connection between the performance, vision, mission and values can be analyzed by the organizational communication. The balanced score card have applications in building of conditions in the workplace, creativity, employee working capabilities, and the quality control system in the organization (Yourarticlelibrary. com, 2018).             

3. How can the way an organization creates and carries out its incentive plan improve the effectiveness of that plan?

The organizations working in the competitive market try to develop competitive advantage through improving the performance of their workers and employees. There are several ways to bring improvement in the performance of the employees as through performance appraisal, reducing barriers that causes to influence the performance in negative ways and by providing incentives and rewards systems. Incentive develop motivation in the employees. In fact incentives works as a technique of reinforcement that encourage the employees to bring improvement in their performance in order to get monetary or non-monetary benefits and incentives in reward. However, to get positive results from incentives management of the company need to introduce appropriate plan for incentives. They should evaluate the performance of employees on fair basis without discrimination and any kind of personal biasness, to provide incentives to the most dissevering person. Only fair plans for incentives can be considered as effective incentive plans.           

References of the concepts of the Balanced Score Card

Balancedscorecard. org. (2018). Balanced Scorecard Basics. Retrieved from www.balancedscorecard.org: https://www.balancedscorecard.org/BSC-Basics/About-the-Balanced-Scorecard

Business. illinois. edu. (2013). INCENTIVES, PERFORMANCE MEASUREMENT SYSTEMS AND MANAGERIAL EFFORT ALLOCATION. Retrieved from business.illinois.edu: https://business.illinois.edu/accountancy/wp-content/uploads/sites/12/2013/03/Incentives-Performance-Measurement-Systems.pdf

Yourarticlelibrary. com. (2018). Perspectives in Balanced Scorecard (4 Perspectives ). Retrieved from www.yourarticlelibrary.com: http://www.yourarticlelibrary.com/accounting/performance-measurement/perspectives-in-balanced-scorecard-4-perspectives/53100