Accounting Essay Example | Topics and Well Written Essays - 500 words - 39

Accounting - Essay Example Performance can be measured by using the financial measures. The measures give the financial indicators such as profits and growth. By using profit figures, a manager can easily tell whether their organization is performing or not. Profits are indicators of performance while loses will be used to indicate non-performance. Another way in which the balanced scorecard can be used to measure performance is through analyzing its innovation reports. By using the company’s ability to respond to changes and make new products, then one can easily tell its competitive nature. Because the scorecard gives parameters used to show success, meeting the parameters will imply that the company is performing. The customer perspective in the balanced scorecard can also be used to measure performance because it is linked to customer satisfaction. The tool can be used to analyze whether the customers are served on time, whether products are affordable and of quality. Coming up with the answers will be used as a performance indicator. The score card can as well be used as an appraisal tool in evaluating employee performance. The balance scorecard has four main perspective, the customer perspective, the innovation and learning perspective, the internal business perspective and the financial perspective (Kaplan & David, 1992). The customer perspective focuses on customer needs, the internal business perspective dwells on important internal operations, the financial perspective relates to profits and market share while the innovation perspective focuses on the ability to create new products. The internal business operations relates to the customer perspective in that, it is through analyzing the internal operations that the customers’ needs will be satisfied. The operations perspective requires that the managers establish what they have to excel in so that they can be able to meet the needs of the customers. The internal operations also relate to the