Management Ch 16: Control Systems And Quality Managem 457010

Management Ch 16 Control Systems Quality Management Techniques F

Management, Ch. 16: Control Systems & Quality Management: Techniques for Enhancing Organizational Effectiveness Planning and Measuring Performance Review the Example and Practice sections of the Balanced Scorecard Module to practice reading and evaluating the information it presents. Complete the Assignment section of the Balanced Scorecard Module to evaluate the performance of the organization against established standards. Complete the following: Identify the performance gaps. Recommend actions to reduce performance gaps.

Note. The Balanced Scorecard Module will give you an option to save your assignment in a document on your desktop. Balanced Scorecard ? During this activity, you learn what a balanced scorecard is, the information it provides, and how to best utilize this information. After viewing an example, you will have an opportunity to practice identifying gaps.

For your graded assignment, you will identify gaps and make appropriate recommendations. What is a balanced scorecard? At its core, the balanced scorecard is a tool an organization can use to measure its performance. Unlike other tools that may focus just on financial measures, for example, the balanced scorecard takes many segments of the organization into account. This creates a more holistic view of the organization's performance without focusing too heavily on any one set of controls.

The balanced scorecard generally looks at four aspects of company performance: financial, customer, internal processes, and people/innovation/growth assets. When using a balanced scorecard, a manager will set goals in each of these four areas and measure the organization's process against these goals.

Paper For Above instruction

The balanced scorecard (BSC) is an essential strategic management tool that enables organizations to measure performance across multiple dimensions beyond traditional financial metrics. Its holistic approach helps organizations align their activities with strategic goals, ensuring a comprehensive evaluation of organizational health and effectiveness. This paper discusses the concept of the balanced scorecard, the identification of performance gaps, and recommended actions to mitigate these gaps, within the framework of management control systems and quality management techniques.

Understanding the Balanced Scorecard

The balanced scorecard, developed by Robert Kaplan and David Norton, encompasses four critical perspectives: financial, customer, internal processes, and learning and growth. This multidimensional framework ensures organizations evaluate their performance not merely through financial outcomes but also through customer satisfaction, operational efficiencies, and the development of organizational capabilities.

Financial measures, while vital, only provide a partial view of organizational success. The customer perspective assesses satisfaction and loyalty, internal process metrics examine operational efficiencies, and learning and growth focus on innovation, employee skills, and organizational culture. By integrating these perspectives, organizations can develop balanced objectives, leading to strategic movement aligned with comprehensive performance metrics.

Implementing a balanced scorecard involves setting strategic goals within each perspective, establishing performance measures, and monitoring progress. This process promotes transparency, accountability, and strategic alignment, subsequently facilitating targeted decision-making.

Identifying Performance Gaps Using the Balanced Scorecard

Performance gaps can be identified by analyzing variances between actual results and established targets across the four perspectives. For instance, a company might meet its financial targets but underperform in customer satisfaction, indicating a potential gap in the customer perspective. Similarly, deficits in internal processes—such as delays or defect rates—highlight operational inefficiencies that require attention.

Gathering data through the BSC enables management to pinpoint where performance does not meet standards and to understand the underlying causes. For example, a decline in customer satisfaction could stem from insufficient staff training or product quality issues, while internal process inefficiencies could be due to outdated technology or poor workflow design.

Effective diagnosis involves cross-referencing multiple perspectives to determine whether gaps are symptomatic of broader strategic issues. This comprehensive analysis aids in forming targeted and effective corrective actions.

Recommendations for Reducing Performance Gaps

Once gaps are identified, organizations must formulate strategies to close them. For gaps in customer satisfaction, recommendations might include enhancing customer service training, improving product quality, or innovating service delivery. For internal process inefficiencies, investments in technology, process re-engineering, or staff training are advisable.

In the financial area, improving operational efficiencies and cost controls can augment profitability and resource allocation. Regarding learning and growth, fostering an organizational culture of continuous improvement and innovation is pivotal, facilitating sustainable performance enhancement.

Implementing continuous feedback mechanisms, such as regular reviews of the balanced scorecard data, ensures that corrective actions are monitored and adjusted as needed. Training managers and staff to interpret BSC data and embed strategic objectives into daily activities further enhances effectiveness.

Additionally, developing cross-functional teams to address specific gaps can foster collaborative problem-solving and innovation. Leadership commitment and clear communication are essential for aligning organizational efforts toward closing performance gaps.

Conclusion

The balanced scorecard provides a comprehensive framework for organizational performance measurement and management. By systematically evaluating financial, customer, internal process, and learning and growth perspectives, organizations can identify performance gaps accurately. Strategic recommendations—ranging from process improvements and technological investments to customer engagement strategies—enable organizations to enhance overall effectiveness. The integration of the balanced scorecard into control systems and quality management techniques fosters a culture of continuous improvement, strategic alignment, and sustainable success in dynamic competitive landscapes.

References

• Kaplan, R. S., & Norton, D. P. (1996). The Balanced Scorecard: Translating Strategy into Action. Harvard Business Review Press.
• Norton, D. P., & Kaplan, R. S. (2001). The Strategy Focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment. Harvard Business School Press.
• Chenhall, R. H. (2003). Management control systems design within its organizational context: Findings from contingency-based research and directions for the future. Accounting, Organizations and Society, 28(2-3), 127-168.
• Kaplan, R. S., & Norton, D. P. (2004). Measuring the Strategic Readiness of Intangible Assets. Harvard Business Review, 82(2), 52-63.
• Otley, D. (1999). Performance management: a framework for management control systems research. Management Accounting Research, 10(4), 363-382.
• Simons, R. (1995). Levers of Control: How Managers Use Innovative Control Systems to Drive Strategic Renewal. Harvard Business School Press.
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• Economist Intelligence Unit. (2017). The Role of the Balanced Scorecard in Strategic Management. The Economist.
• Sharma, P., & Kumar, R. (2014). Strategic Performance Management System Using Balanced Scorecard. International Journal of Business and Management Invention, 3(2), 1-8.
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