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Management Theory and Balanced Scorecard

Gerardo Farley

South Texas College

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Introduction to Management Theory

The organization comprises people from different cultural backgrounds. There are

diverse organizational structures, technologies and systems; thus, numerous challenges arise.

Effective management of the people and situations are vital for efficacy and increased

productivity. Managers face difficulties in managing people and controlling the activities

within a firm. The modern management theory was proposed by Fayol and is infamously

known as Fayol’s management theory with five functions in its composition. Parker (2016)

asserts that financial, technical, security, commercial; management and accounting are the

five components of the classical management approach.

P-O-L-C Framework

P-O-L-C is a management principle which is divided into four vital policies. Planning,

organization, leading and controlling forms the components of the P-O-L-C. The framework

is essential in that it provides necessary guidance for effective managerial skills. The

managers can undertake their crucial roles despite the rapid changes in the environment of

their workplaces (Hongyan, 2018). The POLC approach aids a manager in creatively solving

a problem. The notion of planning implies the formulation of strategy in a business

enterprise. Organization function applies in a situation where resources and employees get

mobilized towards a firm's objectives. The leading policy applies to a situation where

efficacy in leadership and inspiration of workers. The function of control applies when

monitoring performance and standards of an organization.

Balanced Scorecard

Balanced scorecard refers to a business tool that aid organizations in management

through the structuring of reports, keeping track of tasks executed by the employees through

control and monitoring of repercussions from the activities (Keyes, 2016). The BSC is

essential as it enables firms to make plans, analysis of performance in a way that assets,
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decisions and operations get aligned to adding business value. Business and customer's voice

are essential fundamentals of any company in the identification of market strengths and

weakness for better adjustments. The information on the voices above is derived from the

business scorecards. Communication is a vital backbone of a business premise and is

promoted by the BSC. Besides, time frames get reduced, enhanced decision-making

processes and improvised solutions result from the usage of the scorecards.
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References

Parker, L. D. (2016). From scientific to activity based office management: A mirage of

change. Journal of Accounting & Organizational Change.

Hongyan, Z. H. O. U. (2018). MANAGEMENT OF UNIVERSTIY FACTORS TO SUPPORT

LIFELONG LEARNING OF FACULTY MEMBERS (Doctoral dissertation, Dhurakij

Pundit University).

Keyes, J. (2016). Implementing the IT balanced scorecard: Aligning IT with corporate

strategy. CRC Press.