Keeping Track Using a Balanced Scorecard approach

The Balanced Scorecard (BSC) is a strategic management framework that helps organizations
translate their vision and strategy into a set of performance indicators, The key idea behind the
Balanced Scorecard is to provide a more comprehensive and balanced view of an organization's
performance beyond just financial measures.
1. Financial Perspective:
This perspective focuses on traditional financial metrics such as revenue growth,
profitability, and return on investment. It helps organizations track their financial performance
and ensure that their strategies contribute to long-term financial success.
2. Customer Perspective:
Organizations need to understand how they are perceived by their customers. Metrics in
this perspective may include customer satisfaction, market share, and customer retention. The
goal is to ensure that the organization is meeting the needs and expectations of its customers.
3. Internal Business Processes Perspective:
This perspective examines the internal processes critical to delivering value to customers
and achieving financial success. Key performance indicators (KPIs) may include efficiency,
quality, innovation, and cycle time. By focusing on internal processes, organizations can identify
areas for improvement and innovation.
4. Learning and Growth Perspective:
In order to sustain long-term success, organizations need to invest in their people,
systems, and organizational culture. Metrics in this perspective may include employee training,
employee satisfaction, and innovation capabilities. It reflects the organization's ability to adapt
and improve over time.
What contemporary issues do manager confront?
• Cultural Differences:
In global organizations, cultural nuances significantly influence how control systems are
implemented. For instance, in some cultures, direct supervision and hierarchical decision-making
are more accepted and effective, while others rely on extensive reporting and technological tools
due to dispersed operations and limited direct oversight.
These differences create a need for managers to understand and adapt their control strategies to
align with diverse cultural norms and expectations. It's crucial to strike a balance between
standardized control methods and culturally sensitive approaches to maintain efficiency while
respecting local practices.
• Legal Constraints:
Laws and regulations in different countries can pose challenges for global managers in
executing control measures. For instance, in some nations, strict labor laws limit managerial
options like downsizing or shutting down facilities, compelling them to seek alternative solutions
or approaches to address performance issues. Negotiating these legal limitations demands
creativity and strategic thinking from managers to maintain operational control while staying
within legal boundaries.
• Data Comparison Issues:
The disparity in labor intensity between different locations impacts cost-control
comparisons. For instance, a manufacturing facility in one country might focus on labor-
intensive production due to lower labor costs, while another location might rely more on
technology or automation. This diversity makes it challenging to create uniform performance
benchmarks or cost-control measures across global sites. Managers must devise adaptable
metrics that consider these differences to effectively evaluate and manage performance across
location
Given these challenges, global managers need to be flexible and agile in their approach. They
must employ a mix of standardized control mechanisms and localized strategies to align with
cultural norms and legal constraints, ensuring effective control without impeding local operations
or violating laws.
Managing Technology in Today Workplaces Monitoring Employees
Technological advances have made the process of managing an organization much easier And
technological advancements have also provided employers a means of sophisticated employee
monitoring. Although most of this monitoring is designed to enhance worker productivity, it
could, and has been, a source of concern over worker privacy. These advantages bring with them
difficult questions regarding what managers have the right to know about employees and how far
they can go in controlling employee behavior, both on and off the job
for example : The U.S. Internal Revenue Service’s internal audit group monitors a computer log
that shows employee access to taxpayers’ accounts. This monitoring activity allows management
to check and see what employees are doing on their computers or Companies like American
Express tracking call metrics and requiring employee badges that can transmit location data.
The issue of how much control employers should exert over employees' personal lives is a matter
of debate.Questions arise regarding whether employers have the right to regulate employees' off-
duty activities, such as hobbies, lifestyle choices, or leisure activities, to manage safety and
health insurance costs.
Although controlling employees’ behaviors on and off the job may appear unjust or unfair,
nothing in our legal system prevents employers from engaging in these practices. Rather, the law
is based on the premise that if employees don’t like the rules, they have the option of quitting.
Managers, too, typically defend their actions in terms of ensuring quality, productivity, and
proper employee behavior