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Genrish500 [490]
4 years ago
10

Read the article "Organizational Characteristics and Use of Balanced Scorecard Measures in Executive Compensation" by Pollanen a

nd Kangwu Xi.
Based on your reading, write a brief one-page summary describing the use and importance of the balanced scorecard in executive compensation plans.
Business
1 answer:
Gnoma [55]4 years ago
8 0

Answer:

Consider the following explanation

Explanation:

Executive compensation depends on the overall performance of the company sequentially. It depends on various factors which determine the success of the organization. There has being a tool where the overall performance of the company and its overall standpoint is mentioned explaining in detail the occurrence of various events. Balanced score card is nothing but a report card explaining performance. Executive compensation attracts a clause of payment of a certain percentage only after achieving certain specific performance targets. Balanced score cards includes following things

Learning and growth perspective: it includes what the employees learn from the system, their training which is an essential aspect to increase their productivity.

Business perspective: determines how business are performing with regards market capitalization or client conversion ratios, also concerns about the region the business is growing into.

customer perspective: what customer wants, and what is being delivered to him, it helps company to close the gap to increase quality of delivery

Financial perspective: explains ratios, profits, losses, analysis regarding the financial position of the company.

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