Balanced Scorecard in Performance Management is an approach to aligning employees to a company’s strategic plan. Alignment is a challenge that every organisation needs to do well. With large numbers of employees, it’s easy for individuals to spend time working hard on what seems important to them, but may not be directed toward the company’s strategic plan. To succeed in any endeavour it’s necessary to get people moving in the same direction. In other words, aligning them.
Applying a balanced scorecard approach to employee performance appraisal is an effective way of getting a complete look at an employee’s work performance, as well as align employees to the organization’s strategic plan. By using balanced measures at the organizational level, and by sharing the results with supervisors, teams, and employees, managers are providing the information needed to align employee performance plans with organizational goals. By balancing the measures used in employee performance plans, the performance picture becomes complete.
Goals are one of the primary methods available in performance management to align people to an organisation’s strategic plan. When done well an individual should be able to understand how each of their goals links to the company’s strategic plan. In other words, how they are contributing to the company’s overall goals. This helps people feel a sense of being part of something bigger and also ensures teams are moving in the same direction.
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