Balance score card is having four major aspects in it.

They are financial planning, customer

planning, internal process and learning and growth. The company frames balance scorecard
keeping all the vision, mission, goals, short term plans and long term plans. Balance score card is
prepared for the individual employees or a team. In the balance score card, the weight age is
given in certain percentage to each and every aspect. For every company, financial aspects are
more important. It is seen in most of the balance scorecard more weight age is given to it. They
directly show how the company is benefited in the monetary terms. The next important is
customer planning or management, internal process and learning and growth. For an example in
the percentage of 100%, 60% will be given for finance; remaining 40 % is distributed among the
other three aspects. On the basis on the score on the balance score card, the company rewards the
employee.

The financial aspect in the scorecard is done to see how the company has increased its revenues.
The customer management is done to see how the customers can be satisfied and what next can
be done for the customers. Internal process depends upon how the employee has did marketing
and how he has come up with new idea in the decision making process. Leaning and growth is
nothing but to know how the technology in the organization has been used and what next can be
implemented for the employees to do their work more easily and quickly.

On the basis on the score, the company decides the rewards for the employee. When the
employee is able to get maximum score in the finance, he will be awarded with more in terms of
money, such as bonus, increment in salary and others etc. On the basis on the score of other
three aspects the company, will reward the employee in terms of promotion, increase in the
responsibility etc. When reward management is done, various factors are also considered.
Factors such as market, job role, job evaluation, and employee benefit. All these factors will
decide the total pay of the employee.

Thus the balance scorecard is used for the reward management.