Balanced Scorecard Essay

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Running Head: PERFORMANCE MEASURES Balance Scorecard and Economic Value Added Method Balanced Scorecard . Balanced scorecard is a system which used by the organizations globally for doing various operations and activities. Through the balanced scorecard the external and internal communication system can be improved. The balanced scorecard also ensures and helps the monitoring and comparison of the organization is improving. It also provide the idea of the parameters set by the organization in past and compare it with the result of the organization. The balanced scorecard performance measure require the organization to pay attention to customer satisfaction, internal business process, financial management and the objectives for growth and learning of the employees and organization. The balanced scorecard overall contributes to the development of an organization. Economic Value Added Economic value added method is a performance measure related to the financial management and performance of an organization. This specific performance measure considers the financial of the organization for the purpose of determining the overall status of the organization. This method does not consider any other specific areas and performance into consideration (Niven, 2006). Selection of Performance Measure The selected performance measure through the organization should be of such type which can consider various areas of the performance of an organization. it should not cover any specific single area. The balanced scorecard takes four areas into consideration for shaping the performance of an organization. At the other side the economical value added method only consider the financial performance of the organization. Through this way the measure of the balance scorecard should be choose over economic value added method. References Niven P. (2006). Balanced Scorecard

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