Contents
Introduction 2- Balanced Scorecard 2
- Current Performance measures adopted by Alpha Manufacturing 6
- Advantages of Ratio Analysis 6
- Disadvantages of Ratio Analysis 7
- Advantages of Budgetary System 7
- Disadvantages of Budgetary System 7
- Extent to which these performance measures captures balanced scorecard 8
- Ways to improve these performance measures 9
- Conclusion 9
- Reference 10
Description
The industrial world has decidedly moved on from being producer of tangible outputs and palpable services to one that purveys knowledge. This quantum alteration of the characteristic of industrial sphere urged top management levels to search for alternate tools for evaluating and assessing levels of efficiency of an organization. This search for alternate surely did not any way undermine the necessity of evaluations based on financial figures. But managers did realize financial evaluations were not enough in times where substantial investments in training and development of human capital and forging secure bonds with customers are absolutely essential for survival and prosperity. Also, there is a need to project the organization as a responsible citizen and sufficient attention must be paid to ensure that all statutory obligations are adequately fulfilled. Thus, with a marked shift in focus, the need for measures that transcend usual financial benchmarks became more and more acute.
