$1$

Developing a Balanced Scorecard

Developing a Balanced Scorecard$2$pointsIncentive pay has certain advantages and disadvantages. Sometimes, relying on individual incentives, like merit pay, produces a workforce that wants to meet those objectives but does so at the expense of cooperating among employees to meet organizational goals. On the other side, reliance on profit sharing or stock ownership may increase cooperation but provide little motivation for individual performance. One way to accomplish the goals of both types of incentive pay is to use a balanced scorecard. The balanced scorecard is a combination of performance measures directed toward the company's long$-$ and short$-$term goals and is used as the basis for awarding incentive pay.An organization would use a balanced scorecard to set financial goals to satisfy its shareholders or stockholders $($owners$),$ to set quality$-$ and price$-$related goals to satisfy its customers, to set efficiency goals to ensure better operations, and to set goals related to acquiring skills and knowledge for the future to fully utilize its employees. The following scenario guides you through an academic administrator's dilemma of determining what to focus on when using a balanced scorecard in a not$-$forprofit setting of a public university.Read the case below and answer the questions that follow.Barry Volkner is the dean of the school of business at a local college. He is interested in evaluating the effectiveness of the business school and decides to develop a balanced scorecard. The long$-$term vision is $"$to create an environment in which the development and dissemination of business knowledge can flourish." The mission is $"$to advance scientific research and development in the field of business, to provide the highest quality instruction in business, and to serve the business community through the effective design and delivery of value$-$added programs." Barry knows that the purpose of the balanced scorecard is to translate an organization's strategy into operational terms by measuring performance across several categories. Thus, he determines that he is going to consider the four categories of customer, internal employees, innovation, and financial performance on the balanced scorecard for the business school. Answer the following questions to help Barry determine the metrics that should be used to develop a balanced scorecard for the business school$\mathrm{.}1$a$.$ What market should be used as a comparison in creating the balanced scorecard?What market should be used as a comparison in creating the balanced scorecard?