Role of Balance Score Card

Therefore, it is essential for a firm to develop a strategy that will ensure it attains maximum benefits from its employees. A balance score cars helps a firm in maintaining and monitoring of how employees perform in their various activities. Both employees and management can benefit from balance score card in the following ways. The use of the balanced scorecard is a tool used by managers to follow up on the staff’s performance of their activities. Improved Communication Strategies The balanced scorecard strategy enables organizations to communicate their strategies easily both in the inside of the organization and on the outside (Robert and David, 1993). Linking Compensation to the Balanced Scorecard Compensation should not be linked to the balanced scorecard. Linking compensation to the balanced scorecard would make the strategy extremely cumbersome and expensive.