responses
Article 1:
Question: Review at least 4 articles on Balanced Scorecard and complete the following activities:
1. Write annotated summary of each article. Use APA throughout.
2. As an IT professional, discuss how you will use Balanced Scorecard to manage IT resources efficiently.
To begin with the topic, balanced scorecard, let’s have a look at what is balanced scorecard? In general, balanced scorecard is one kind of a management concept that is developed to measure the efficiency and accuracy of the organization through various points. Generally organizations used to measure their performances through the production and financial aspects and check the ability of the organization but there are some other aspects too which should be considered because only a financial aspect can’t let you decide the ability of the organization. Balanced scorecard gives the right measures to be analyzed in order to get the right results.
The first paper analyses the use of balanced scorecard in the reporting and control of small business networks. the study shows how the network of small Italian companies gain the benefits of the balanced scorecard method using different approaches of the balanced scorecard method to evaluate the control and management of strategic and operational tools of the companies and also the financial performance and the communication of the performance reporting’s to the various stakeholders of the business. (Aureli, S., Cardoni, A., Del Baldo, M., & Lombardi, R. (2018). The balanced scorecard logic in the management control and reporting of small business company networks: A case study.)
The second paper analyses the creation of the value through the use of the balanced scorecard method in the business measuring the application of the balanced scorecard and the outcomes in the business. The paper focuses on the benefits gained from the use of balanced scorecard and learning the value of investment in human resources. Generally the workers or the employees are considered as the human assets or resources of the organization. (Perramon, J., Rocafort, A., Bagur-Femenias, L., & Llach, J. (2016). Learning to create value through the ‘balanced scorecard' model: an empirical study.)
The third paper studies the outcomes of the two different measures of the balanced scorecard method and determine how they are effective towards the long term profit of an organization in a diverse decision making environment. This experimental study shows the effects of two various aspects of balanced scorecard method on the profit performance of the organization. The two aspects are 1- casual linkages without delays and 2- casual linkages with delays. (Humphreys, K. A., Gary, M. S., & Trotman, K. T. (2016). Dynamic Decision Making Using the Balanced Scorecard Framework.)
The fourth paper studies the effects of balanced scorecard method on the performance of an organization. This study using a primary data methodology, suggests that the implementation of the balanced scorecard methods in the organization affects the overall organizational environment and performance and improves the commitment from employees and job satisfaction and dedication towards the job among the employees of the organization.it helps the human resource management to better their activities.( Calderón Molina, M. Á., Palacios Florencio, B., Hurtado González, J. M., & Galán González, J. L. (2016). Implementing the balanced scorecard: its effect on the job environment.)
As an IT professional I will definitely use the balanced scorecard method for the organization as it gives you the benefits of measurement from various points. Also it is a god way fo measuring the performance of the organization not only form the financial perspectives but also from the strategic and human resources perspectives too.
Article 2:
Question: Review at least 4 articles on Balanced Scorecard and complete the following activities:
1. Write annotated summary of each article. Use APA throughout.
2. As an IT professional, discuss how you will use Balanced Scorecard to manage IT resources efficiently.
Rostami, M., Goudarzi, A., & Zaj, M. (2015). Defining balanced scorecard aspects in banking industry using FAHP approach. International Journal of Economics and Business Administration, 1(1), 25-38.
The article provides background information about the balanced scorecard. According to the article, a balanced scorecard is a strategic tool that is used in keeping the check on the activities that are carried out in an organization while identifying the issues arising in the monitoring process. It forms a typical performance management report toll for the organization. The article provides a survey on the trending use of balanced scorecard in organizations today. About 45% of the organization had implemented or shown interest in using the tool as a performance management report by 2012. Many companies continue to adopt the tool for operational and strategic management, and it is beneficial.
Busco, C., & Quattrone, P. (2015). Exploring how the Balanced Scorecard engages and unfolds: Articulating the visual power of accounting inscriptions. Contemporary Accounting Research, 32(3), 1236-1262.
The article centers on the characteristics of a balanced scorecard. According to the authors, there are specific features that an ideal balanced scorecard should possess. The article explores three distinct characteristics. The first characteristic dwells on the focus of the tool. A good balanced scorecard focuses on strategic issues and agenda in the organization. Secondly, balanced scorecard should have a choice of selection in parameters to monitor. Usually, it should center o important aspects of organizational performance. The third feature involves the mix of both non-financial and financial data.
Harden, J. W., & Upton, D. R. (2016). An Introduction to the use of the Balanced Scorecard for performance evaluation by financial professionals. Journal of financial service professionals, 70(2), 81-88.
The article explores the use of balanced scorecard. The article asserts that the use of a balanced scorecard as a performance management tool can be both simple and complex. The simplicity or complexity of organizational information determines the approach of use. In managing simple data, a single balanced scorecard is efficient. However, in the case of complex and voluminous data, the organization can use more than one balanced scorecard then merge the results for evaluation. The article also touches on trends in reporting balanced scorecards. Today, there is automated software that assists in the reporting to minimize possible loss or errors.
Nistor, C. S. (2016). Performance management and Balanced Scorecard.
The fourth article focuses on the balanced scorecard as a typical performance management tool for organizations. The article reports that the tool is typically applied in monitoring performance in an organization. The actual performance is measured based n the set indicators of performance then the value is recorded. The values are then compared to existing reference values to make an inference on the performance level. In using the balanced scorecards, there is the need for effective control. Effective control is achieved through the choice of data to be measured, setting and defining reference standards and implementing corrective interventions. The article concludes that the performance monitoring tool has impacted the strategic and operational management of performance in many organizations since inception.
Using Balanced Scorecard as an IT professional
As an IT professional, the effective use of a balanced scorecard will reflect the results. In IT systems, the balanced scorecards can be automated. In this approach, the balanced score tools are customized to specific data centers to record intended information. A cross-check of completeness is then carried out before compilation and strategic evaluation based on the recorded data. The tool can be used in qualitative and quantitative evaluation for non-numerical financial data and numerical financial data respectively. It is important to control the IT access to such information especially when automated. As an IT professional, integrating balanced scorecards into the IT system s will further make work easier. Continuous review of the IT updates on use of balanced scorecards is essential especially when integrated with technology (Nistor, 2016).