Horizon Information Portal

MSOE Library Home

MSOE Library Home

Home

Replacing the traditional performance appraisal : using a Balanced Scorecard approach to strategically guide individual performance toward organizational goals / Lisa Strand.

by Strand, Lisa

Employees -- Rating of

Performance standards

Organizational effectiveness

v, 93 leaves : ill. ; 29 cm.

Advisor: Dr. Paul Hudec.

Committee members: Marty Gustafson, Timothy Charek.

Introduction -- Definition of the traditional performance appraisal -- Problems with the traditional performance appraisal -- Definition of the Balanced Scorecard -- The context of individual performance -- Using the Balanced Scorecard instead of the traditional performance appraisal -- Implementation steps -- Summary and conclusions -- Areas for further research -- Bibliography.

Both the traditional performance appraisal and the Balanced Scorecard ultimately seek to improve the performance of the organization. However, the focus is different in each approach -- the traditional performance appraisal focuses on individuals, while the Balanced Scorecard focuses on the organization as a whole. The goals of the traditional performance appraisal are worthy, but these functions have not been served adequately. The Balanced Scorecard could be used to cover most of the functions that the traditional performance appraisal sought to satisfy in a manner that is more appropriate in the context of today's organization. The main focus in this thesis will be to identify who traditional performance appraisals fail and how the Balanced Scorecard can address their shortcomings.

Topics addressed in this thesis include the intended purposes of the traditional performance appraisal, evidence that traditional performance appraisals cannot adequately serve their intended purposes, the basics of the Balanced Scorecard approach, the importance of managing the organization as a system, management's view of employees, and an explanation of using a Balanced Scorecard approach to invoke a cultural shift in the organization that can eliminate the need for the traditional performance appraisal.

The traditional performance appraisal is an artifact of the assumptions made regarding how and why people are motivated to perform in an organizational setting. Compelling evidence continues to mount pointing to the eliminiation of the TPA. Unfortunately, most resources on the subject do not indicate how to measure and guide performance without it. People within the organization may be convinced that the traditional performance appraisal serves important purposes within the organization and that it is a necessary part of life. For example, people within organizations may be concerned about how pay would be administered fairly without it. Resolving problems such as these requires an examination and reevaluation of the assumptions upon which the need is based. Management may need to adopt a different viewpoint regarding employees and how they function in and react to the organization as a system.

Several of management theories, namely McGregor's Theory Y, systems theory and a balanced scorecard approach, can be used in combination to solve a number of problems in today's organizations. McGregor's Theory Y indicates that individuals are intrinsically motivated to perform. Given the correct information regarding strategy along with a picture of how he or she fits into the organization, an employee will align their efforts with the goals of the organization. Systems theory provides the picture, while the balanced scorecard approach provides a means by which to communicate the strategy. The balanced scorecard also provides timely feedback regarding performance and a framework for linking compensation with outcomes.

Horizon Information Portal 3.25_9885

Powered by SirsiDynix

© 2001-2013 SirsiDynix All rights reserved.

Horizon Information Portal