Tactical Decisions

Abstract

The purpose of this report is to critically evaluate Balanced Scorecard (BSC) as a performance measurement tool available to Management Accountants. In conducting this study, classical and modern literature on BSC as well as its real world applications in a potentially global company was reviewed. It was found that BSC provides valuable information that supports managers in taking strategic as well as tactical decisions. In addition, BSC appears to be positively associated with profitability and managers’ job satisfaction. In terms of real world application, BSC was found to be widely applied among businesses. It is used mainly as a tool of ‘Strategic Decision Making’ but exerts greatest influence on ‘Business Actions’.

Contents Page 1. Introduction 6 2. The Need for Performance Evaluation Systems 7
2.1 Performance measurement as a tool 7 3. Origins of Balanced Score Card (BSC) 8
3.1 Customer Domain 9
3.2 Financial Domain 10
3.3 Internal – Business – Process Domain 10
3.4 Learning and Growth Domain 10 4. The Merits Balanced Score Card 11
4.1. The Relationship between Balanced Scorecard Characteristics and
Manager 's Job Satisfaction 12
4.1.1. Perspective framework 12
4.2. BSC and Strategy 13
4.3. Managers’ job satisfaction 14 5. Demerits of Balanced Score Card 15 6. Case Studies 16
6.1. Zenith Systems 16
6.2. Health Care Industry 17 7. Balanced Scorecard Business Survey 18
7.1 Uses of Balanced Scorecard 18
7.2. Influence of BSC on Processes 19
7.3. Reporting Frequency 19 8. Conclusion 20 9. Recommendation 20 10. References 21-22

List of figures Page
Table 1 8
Figure 1

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