The roles and challenges of Balanced Scorecard (BSC) as strategic performance management tool

This research article is titled as the roles and challenges of BSC in human resource performance management. Its main objective is to point out the distinctive roles of BSC in performance management of Hr and common challenges in its implementation. The data were collected from various sources such as research papers, articles, references books, and websites and then qualitatively analyzed by synthesizing all facts from various points of view.

Balanced scorecard (BSC) plays pivotal role in quantifying long term outcomes, aligning long term goals with short term action and in setting measures to evaluate the progress of the performance. It helps to have a balanced view on performance from four perspectives: Financial, Customer, internal business process and learning and growth.

In addition to too few or too much measures designed for BSC and lack of formal performance review, the main Challenges of BSC that emanated from employees’ side are resistance to change, fear of failure and risk which may results in loss of job or position. The other roadblock for BSC implementation comes from top management: lack of commitment and poorly defined and centralized Scorecard responsibilities. BSC needs to be cascaded down in operational terms and needs commitment and fully engagement from both employee and management side.