Literature Review of Implementation of Balanced Scorecard

Of Implementation of Balanced Scorecard - Literature review Example This essay stresses that performance management can be described as a process by which supervisors tries to measure and control the performance of the employees. With this process, both the involved parties try to get a shared understanding of the goals and work expectations. This also facilitates exchange of performance feedbacks, evaluate the performance results and at the same time identify the learning and development opportunities. This study however, principally focused on balanced scorecard as a performance measurement tool. Dechow enumerates that balanced scorecard is a key tool that assists a company in transforming the talent of people thereby enhancing their level of expertise and skills. This paper rmakes a conclusion that Some companies considers only the financial perspective in reviewing the performance of the firm, whereas some companies takes a holistic approach and give importance to the factors such as financial perspective, customer perspective, innovation and learning perspective, internal business perspective. The study found that among the available forms of performance measurement like total quality management (TQM), activity-based costing, benchmarking, balanced scorecard and capital budgeting, the most common one is balanced scorecard. However, clear differences in the methodologies of performance measurement in the not for profit making organizations were identified.