Balanced Scorecard (BSC)

The Balanced Scorecard (BSC) is a performance measurement system that combines financial, operational, and customer perspectives with strategic vision.  It's based on the idea that organizations have multiple priorities, so they need to set goals for each area of focus. A balanced scorecard has four perspectives: financial, customer, internal business processes, and learning & growth.

A balanced scorecard using in HRM,  it’s a pretty good tool. It's a way of measuring more than just your finances, which is what many businesses focus on. A BSC can help you measure your business strategy, customer satisfaction and employee satisfaction as well.

According to the definition of the balanced scorecard, it is a strategic planning tool for managing and monitoring organizational success that helps organizations to:

• Improve the organization's performance.
• Enhance customer satisfaction.
• Increase employee engagement and motivation.
• Create better alignment between business strategy and operations.

According to the meaning of balanced scorecard, it’s a good tool for measuring performance, but it's not perfect. While it’s an effective system in most cases, there are some drawbacks to using it:

Pros:

• The BSC can help you measure your employees' performance, which can be useful when trying to determine if they meet expectations or need improvement in certain areas. 
• It also provides insight into how well your HR department is performing overall, which can be beneficial when conducting annual reviews or planning future initiatives. 
• Additionally, using this strategy allows you to see if your organization is succeeding at its strategic goals, — a valuable thing when establishing new initiatives or making changes within an existing framework.

Cons: 

• Firstly — and perhaps most importantly, — if you remember what does balanced scorecard mean, you may be noticed, that it doesn't take into account subjective factors such as culture fit between employees and managers/supervisors; these elements are important but aren't always reflected accurately through numbers alone since different people have different preferences when working together.
• The BSC is a useful tool for measuring financial goals, but it doesn't capture all the goals of your company. 
• If you're not careful, your BSC can become a bureaucratic nightmare. If you're not aligned with your company's overall strategy and goals, it will be difficult to manage the BSC effectively.