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Q. Explain the Methods of measuring performing?
Balanced scorecard: the concept scorecard was originally developed by Kaplan and Norton 1922. They take the view that what you measure can provide a clear performance target or focus attention on the critical areas of the business. Managers want a balanced presentation of both financial and operational measures. Kaplan and Norton therefore devised what they call the balanced scorecard a set of measures that gives top managers a fast but comprehensive view of the business.
Four perspectives of balanced scorecard: the balanced scorecard method of Kaplan and Norton is a strategic approach and performance management system the enables organizations to translate a company vision and strategy into implementation working from 4 perspectives:
1 financial perspective.
2 customer perspective.
3 business process perspective.
4 learning and growth perspective.
The allows the monitoring of present performance but the method also tries to capture information about how well the organization is positioned to perform in the future.
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