• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

The Usefulness of Balance Scorecard as a Tool in Performance Measurement in a Chinese Business Organisation

Extracts from this document...

Introduction

The Usefulness of Balance Scorecard as a Tool in Performance Measurement in a Chinese Business Organisation 1. BACKGROUND The circumstances of complexity and continuous change that characterise the current economic and production context have led companies to modify how their systems operate. Approaches such as Total Quality Management (TQM) and Just-In-Time (JIT) production both helps in developing more efficient and effective processes, thus, resulting into an improvement with respect to the generic parameters of quality, cost and time. It was precisely these actions in the area of production which brought to light the shortcomings of information derived from the use of only financial indicators to measure the success of organisations. It is increasingly recognised that measuring the success of organisations using purely financial criteria is no longer appropriate. As a result, many organisations are spending considerable amount of time, effort and resources in redesigning their measurement systems. Survey data suggests that between 40 and 60% of companies will have significantly changed their measurement systems between 1995 and 2000. (from: http://www.som.cranfield.ac.uk/som/cbp/Evolut.htm) In order to overcome the limitations of financial indicators, there is a need to monitor non-financial indicators both quantitatively and qualitatively. There is no doubt that the use of Balanced Scorecard, which focuses on the different dimensions of performance, is the best-known technique (Valentin, Azofra, 2003) to carry out such task. Balance Scorecard helps translate the organisation's strategy into tangible objectives and measures encompassing customers, internal process, learning and growth and financial perspectives. China is currently one of the most progressive countries in Asia. ...read more.

Middle

By creating measures under each of these headings, no important area would be missed. The Balanced Scorecard itself is just a framework and it doesn't say what the specific measures should be. "That is a matter for people within the organization to decide, and the set of measures for each organization (or even sections within the same organization) will be different. Much of the success of the scorecard depends on how the measures are agreed, the way they are implemented and how they are acted upon." (Source: http://www.dmem.strath.ac.uk/CSM/Research/IPMS.html ) So, the process of designing the scorecard is just as important as the scorecard itself. 4. RESEARCH METHODOLOGY The author has already sent electronic mails to the various companies who are taken Balanced Scorecard listed below to participate in the study. Beijing NaNO Sunshine Technology Co.Ltd, Coherent Beijing, ChengYin Technology Co.Ltd, Foctek Photonics. Inc, NanJing saifei Electro-optics Co.Ltd. However, none of the companies has given any response of interest yet as the moment. 4.1 Method of Data Collection Choosing the appropriate research method is very important because it affects the achievement of research. It will either strengthen or weaken the research effectiveness or efficiency.(Jacqueline, 2002, "Business Research Methodology") The data collection involves collection of primary and secondary data. The primary data is mainly gathered from questionnaire and interview. Because of the chosen topic, it is difficult to get a person who will agree to be interviewed. The questionnaire method designed with open-end and close-end questions will be carried out to get the relatively accurate information. ...read more.

Conclusion

A comparison of the different case companies will also be done. The advantages and disadvantages of using Balance Scorecard can be also be pinpointed as the data are analysed. Furthermore, its strengths and weaknesses will also be assessed. This will give the reader a clear picture of what factors can greatly affect the success of the utilisation of balanced scorecard. Depending on the results, the recommendations for successful implementing Balanced Scorecard will be presented. 4. Limitation of the Research Due to the chosen topic, methodologies such as participant observation, and experiment, can not be used, which usually takes several years. Furthermore, it is hard to find the company who are using Balanced Scorecard and if ever they are applying it does not necessarily mean they are willing to participate in this study because some companies are not willing to divulge their data. And because of limited time and resources, the number of case studies that will be presented will depend on the number of companies that are willing to participate (minimum of two companies). Due to financial and resource constraints, the questionnaire is only designed to be distributed to 100 people. It covers only small number of people so it can't represent all people's opinion. And there maybe have some bias information existing in the questionnaire. The open-close question gives the people freedom to write their opinions. In addition, Balanced Scorecard is a relatively new approach. There are still arguments existing about the usefulness of Balanced Scorecard. And some books and journals written are very subjective which may affect the quality of the information. Thus, this limitation may affect the outcome of report. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level ICT in Business section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level ICT in Business essays

  1. Marked by a teacher

    Unit 4 Business Studies

    4 star(s)

    helps them gain and retain more and more customers as they can offer huge benefits for their customer which will not drive them to go into liquidation. Autotrader are constantly evolving there are focused into providing effective and useful information which their target audience will need when buying a new car.

  2. For my business report I am investigating the Co-op erative society supermarket.

    Due to the fact that customers now expect a higher degree of quality from products, goods have to be produced to a standard wherein errors and mistakes are non-existent. Here are some of the methods co-op has introduced in order to ensure that the goods it produces are of the highest quality.

  1. Business Aims and Objectives.

    Tesco will have strict procedures regarding employee behaviour if an employee does something wrong, so the human resource department will issue warnings which if ignored may eventually lead to the person being sacked. The main method of communication in a business such as Tesco would be by written or verbal, so they must carry out the disciplinary procedure.

  2. Conseco Inc. Case Analysis

    270 awarded * Customer relationships * Commitment to customers * Customer Satisfaction determination * Customer Satisfaction results * Customer satisfaction comparisons * Future requirements and expectations A total of 860 points out of 1000 points possible was awarded. Although the corporate objective for process improvement was clearly stated in the

  1. Describe the key elements of research methodology

    This method of research can be a quick and effective way of gathering primary information. * Observations - Another form of primary research is the researchers own observations which would include watching how people react to certain questions. The researcher would have to plan carefully how this would fit into

  2. The purpose of this document is to define the Context of Cain Motors Information ...

    This might be a missing product or a product not meeting its specification. Outcome The term used to describe the totality of what the project is set up to deliver, consisting of all the specialist products. For example, this could be an installed computer system with trained staff to

  1. The Balanced Scorecard

    These non financial measures include measures on customer satisfaction, internal processes, the organisation's innovation and improvement activities. The Balanced Scorecard measures organizational performance across four different but inter-related perspectives: financial, customer, internal and learning and growth perspectives (Atkinson, Kaplan and Young, 2004).

  2. E-commerce in Business Companies of Bangladesh.

    By 2003, International Data estimates that 159 million people now connected online worldwide will have mushroomed to 510 million. This community is made up of usual mix of surfers and legitimate customers. Regardless of the projection one can make, the reality is that a significant increase of Internet commerce activity is expected within next two or three years.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work