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In the last blog, we have discussed two perspectives namely Financial Perspective and Internal Process perspective out of four perspectives of BSC. let's look at the remaining two perspectives.


Customer Perspective:

We all know that the 'Customer is the king of market'  and that's why we need to ensure that we have satisfied customer Group in Market. 

Each organization serves a specific need in the market and this is done with a target group in mind, for instance, the Quality, Price, Service, and acceptable margins on the products and/or services.

The organization always try to meet customers' expectation in the market and that's why any organization need to keep eyes on the market and ready to adapt changes quickly.

The existence of alternatives( competitors ) has a huge influence on customers' expectations and we need to focus on overall market trends to build satisfied buyers in the market.

This perspective answer the question:

"How attractive should we appear to our customers?"

In short we need to focus on three points-

  1. Target Group in Market
  2.  Expectation of the Customers
  3.  Our Competitors 
  4. after focusing on these points definitely, we will able to lure maximum potential customers in the market.


Learning and Growth Perspective:

In today's comitative era, if we are not ready/capable to learn something new then it's next to impossible to survive in the market as 'nothing is constant only the change is constant '  Here the only knowledge is not important but advancing knowledge plays a vital role. The organization's learning ability and innovation indicated whether an organization is capable of continuous improvement and growth in a dynamic environment. The dynamic environment subject to change on daily basis due to new laws, economical changes, technological changes, or even increasing competition.

This perspective answer the questions:

"How can we sustain our ability to achieve our chosen strategy ?"  


To know more about the BSC please read my upcoming weekly Blog.














January 18, 20212 minutesauthorMariyam Bemat
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In the last Blog we have discussed the basics of BSC, let's start a discussion about four perspectives of BSC.

A Balance Scorecard looks at an organization from four different perspectives to measure its health, each of these perspectives focuses on various sides of the company and creating a balanced view of the organization.

And yes all four areas of BSC are interrelated we cannot ignore any out of four to the success of the organization.



 

Financial Perspective:

This perspective views organizational financial performance and the uses of financial resources.


We need to focus on two points:

  • Is the company achieving its financial goals?
  • How well the strategies and operations contribute to improving financial health?


Well, now the question is how we can measure the output of the financial perspective?

these data always past focused, we need to gather two types of data. 

  1. Historical Data: How did we do last month, last week, last year, and so on.
  2. Current Data: How we are doing right now, Today?

For instance, 

  1. our net profit for the year versus last year
  2. Our sales revenue this year versus last year

These measures of corporate performance are based on history and also vary from organization to organization. 


As the BSC is holistic approach, any key objectives that is related to company's financial health and the performance may include in this perspective as given below:

  • Cost Saving and Efficiencies [Specified Goals: Reduced production cost 10% by 2021]
  • Profit Margins [increase operational profit Margins]
  • Revenue Sources [adding new revenue channels/department/products]

In the end, 

  • Are you making money?
  • Are your investors happy?   
    If yes then be happy...

The financial health of your organisation may be the indicators of your past decisions but still incredibly important.

' Money keeps the company alive ' and the financial perspective focus solely on this. 


Internal Process Perspective:

This perspective views various organizational processes and the efficiency of the particular process. 


  1. from this view, the question should be asked what internal processes have added values within the organization and what activities need to carry in the organization (In all three perspectives).
  2.  The internal Process perspective looks at how smoothly your business is running (Here, Efficiency is important )
  3. It's all about,
  • Reducing waste, 
  • Speeding process/ production
  • Doing more with less


We need to focus on three points:

  • Is the company improving the critical process?
  • Are there any obstacles standing between ideas and execution?
  • How quickly you can adapt to changing business conditions?


This perspective answer the question :

"what process we must excel at to satisfy our shareholders/financial Backers and customers?"


To know more about BSC please read my weekly Blog.



January 09, 20212 minutesauthorMariyam Bemat
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Development:








The Balanced Scorecard (BSC) was originally developed by Robert Kaplan of Harvard University and Dr. David Northon as a framework for measuring organizational performance using the more " BALANCED " set of performance measures.

Traditionally companies used only short-term financial performance as a measure of success but now non-financial strategic measures also added in order to focus on long-term success.
The BSC system evolved over the years and is now considered a fully integrated "Strategic Management System".

What is a Balanced Scorecard (BSC)?








  • A Balanced Scorecard is a performance metric used to identify, improve, and control a business's various internal processes and resulting outcomes.
  • Balance Scorecard is a framework to implement and manage strategies.
  • The Balance scorecard is derived from the idea of looking at strategic measures to get a more balanced view of performance. The concept of a Balanced Scorecard evolved beyond the simple use of perspectives, every business can implement it according to the requirements and therefore it is a holistic system for managing strategy.

Why do we need to implement it?








  • The key benefit of using a BSC framework is that it gives way to the organization  to "Connect the Dots" between various components of strategic planning and management and it means there will be a visible connection between Projects and Programs that people are working on it.
  • BSC framework also helps management to meet pre-decided targets.

Perspectives of Balanced Scorecard:







Indeed balanced scorecard plays a significant role to aid management to keep updated internal processes and the external Business world as well.
The framework Balanced Scorecard divided into four areas (perspectives) that are critical to business success as given below.
balanced_scorecard_perspectives.png 223.33 KB
  1. Financial 
  2. Internal process 
  3. Learning and Growth 
  4. Customer 
The BSC suggests that we view the Organization from four Perspectives to develop Objectives, Measures, Targets, and initiatives (relative to each of these points of view).

To know more details about all four perspectives, read my upcoming weekly Blogs.

January 02, 20212 minutesauthorMariyam Bemat
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As we discussed earlier that we cannot measure Employee Morale directly but we need to look at other organizational aspects. Let’s discuss which aspect we can use and how we can measure employee morale.

Measurement of Morale 
  • Observation 
  • Survey 
  • Periodic Interview
  • Attitude Measurement  
  • Opinion Analysis
  • Morale Indicators
    • Productivity
    • Absenteeism
    • Turnover
    • No. of accident
  • Use suggestion Box 

Observation

We can observe things like how employees are performing their role, their work attitude, and behavior at the workplace. These things can be done by superior by observing subordinates. However the observation method is not used frequently to measure Employee Morale as it has many demerits like overburden on employees, Superior may be bias etc.

Survey
We can use the Survey method to check morale levels in the organization. We can design  questions according to our purpose of measuring morale & Organizational Goals.

Periodic Interview
Management can ensure the efficiency of work by taking regular interviews in the organization. Management can do the job satisfaction survey to know the level of Morale in the organization.

Attitude Measurement 
The attitude survey is also known as the morale Survey. We can use the questionnaire or can take face-to-face personal interviews with employees. If the employee strength is high then we can use a random sampling method. We can design the question about their job, co-workers, Supervision, and Organization. But we need to pre-decide the questions & keep them in written documents. 

Opinion Analysis
We can do opinion analysis as well. We can ask for various quotations from employees regarding existing Policies, Strategies, Rules, and Regulations in the organization. 

Morale Indicators
We can use morale indicators like Productivity, Absenteeism, Turnover. No. of Accident etc. low Productivity, high Absenteeism, and high Turnover are signs of low morale in the organization. On the other hand, the high Productivity, low Absenteeism, low Turnover rate are the sign of high Employee Morale in organization. 

Use Suggestion Box
We can use a Suggestion Box where the employees can give their Inputs related to their work and workplace. By doing this we came to know about the employees’ likes & dislikes.

Importance of High Morale-
We cannot underestimate morale at our workplace as we know that happy employees are more productive. Job satisfaction matters to keep the workforce happy. Happy employees bring success to organizations by their efficient work, loyalty, and commitment which has a direct impact on organizational growth and profitability.

Demerits of Low Employee Morale-
The low morale leads to many problems in the organization as the employees are not happy with their work. high turnover, absenteeism, unclear expectation from both side Employees as well as Employer, increase in grievances and complain, lack of peaceful industrial relation, increase accident rate, Increase in industrial disputes, etc. there all problem decreased the profitability, competency in market & Goodwill, so the workforce with low morale seems dangerous for the organization.

To pen down, we can say that we need to take care of our employees, make them happy and they will take care of our business. For this, we need to maintain high morale in our organization.


December 15, 20203 minutesauthorMariyam Bemat
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After doing all the right things to boost productivity and still employees' productivity plunging or not increasing, we need to look at the Employee Morale. employee Morale is a decisive factor in an Organisation whether it is the Service sector or Manufacturing unit. It is one of the cornerstones of the business, only a few organizations pay attention to morale among employees in their organization and this is the major mistake from their side as it affects productivity which ultimately reflects in Organizational Growth & Productivity.

Let’s Discuss:

  • What’s Employee Morale?
  • Characteristics of Employee Morale.
  • Relation between Morale & Productivity.
What is Employee Morale ?

In simple terms employee morale is the standard of behavior of an employee which directly affects the productivity of the organization but it is a complex concept as there are ample factors that affect employee morale.

Definition :

Edwin Flippo : “ Morale is a mental condition or attitude of individual and groups which determines their willingness to cooperate”

Characteristics :

  • Psychological concept
  • Dynamic Nature
  • Group phenomenon
  • Reflect others
Psychological Concept:

Morale is the psychological phenomenon, it is the internal feeling of confidence, attitude, Zest, enthusiasm, satisfaction, etc. Moreover, it is the state of mind and emotions affecting the attitude and willingness to work that affect individual and organizational objectives.

Dynamic Nature:

Morale is Dynamic in nature; we cannot develop it overnight. Management has to make continuous efforts to build and maintain high morale among employees in the organization. It is a long term concept.

Group Phenomenon:

Morale is not an individual phenomenon but it's the sum of the total employee’s attitude, feelings, and sentiments.

Reflect others:

We cannot measure morale directly but it is reflected in productivity, discipline, turnover, etc. To measure morale we need to look at other factors.

Relations between Morale and Productivity:

Davis Designed that there is not always a positive link between Productivity and Employee morale. There can be four combinations of Morale and Productivity

1. High morale-High productivity

This situation is likely to occur when the employees are fully motivated to achieve high performance not only this but satisfied with all financial & nonfinancial rewards & highly satisfied with their job role. Feeling proud to be part of the organization/team.

2. High morale-low productivity

This situation occurs when the employees waste their time in the workplace or use the time to satisfy their personal goals. They don't care about organizational goals. There are many factors responsible for this kind of Employee Attitude in the workplace such as-

  1. lack of proper training,
  2. Lack of support by co-workers or leader,
  3. leaders/Superior behavior with him,
  4. Irresponsible Management (If we talk about It or another small service sector Irresponsible HR )
  5. Ineffective Supervision
  6. Restrictive norms of the informal group
  7. Outdated Technology & Methods
3.Low morale-High productivity

In a short period, it may be possible that with low morale Employee's productivity seems high but it is for a temporary or short span of time. Low Morale can not result in high productivity for a long time. this situation occurs when

  1. fear of losing a job,
  2. less availability of alternatives
  3. Strict Supervision, Rules & Regulations
  4. Punishment
  5. Policies and strategies focus on high productivity only.
4. Low morale-Low productivity

This situation occurs when the organizational & individual both goals are not satisfied & other factors like

  1. Lack of motivation
  2. Unclear Job role
  3. Lack of harmonious Superior-Subordinate relationship
These all factors result in frustration, tension and grievances develop against managers which reflect low productivity To pen down, morale is the paramount factor that gives a direct impact on productivity, Productivity impact on profitability, profitability impact on organizational growth. If the Morale is high then it will be possible to gain more fruits in the future but if it's low than it's Red Signal for any organization even the productivity is high but it will be for a short period of time only

I am not going to end the topic of Morale but will continue in the next blog with -

  1. Factor determining morale
  2. Significance of high morale
  3. Impact of low morale
  4. Measurement of morale
To know about these please read my upcoming blogs of Human Resource…..

November 28, 20203 minutesauthorMariyam Bemat
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Organisational Culture is an aspect that impacts every organization’s functioning. Keeping in view the vital role that plays in the success of any Organisation. I would like to mention the desired culture is the “OCTAPACE” Culture.

“OCTAPACE” culture is the best initiative for any Organisation, whether it’s an IT or Non-IT organization.

Let’s look at- what is “OCTAPACE” culture? How will it be helpful to Organisational Growth?

OCTAPACE Meaning Outcome
O - Openness
  • Freedom to communicate.
  • It signifies the transparency of the environment in the organization.
  • It helps to improve the implementation of any system & bring innovation by free interaction among team members, clarity in setting objects, and common Goals.
C - Confrontation
  • Facing problems and challenges.
  • The person is facing it boldly and not shying.
  • Improve Problem Solving.
  • Clarity in work.
  • Group discussion to resolve particular problems.
T - Trust
  • Maintaining confidentiality.
  • Building trust in each other.
  • Do not share anything to others or outside of the organization.
  • Higher Empathy.
  • Timely Support.
  • Reduce Stress.
A - Authenticity
  • No or narrowest gap between said value & Actual behaviour.
  • Person’s commitment to work/Assigned tasks & Actual performance should be the same.
  • Everyone has attitude “Jo me bolta hu wo me karta hu”
  • Develop mutuality culture.
  • Sharing of feeling freely.
  • Improve interpersonal communication.
  • Reduce the distortion in Communication.
P- Pro-Active
  • Taking Initiative.
  • Pre- Planning.
  • It prepared everyone for upcoming challenges.
  • Reduce uncertainty.
  • One step ahead (advance team)
  • Prepare everyone to accept changes with time.
A- Autonomy
  • Freedom to plan & act at one’s own level.
  • Organisation must avoid an Autocratic type of environment and give chance to all members to use their power in a positive way.
  • Develop mutual relationship.
  • Feeling of Pride.
  • Self Motivation
  • work satisfaction.
C- Collaboration
  • Involves working together for common cause.
  • individuales share their concerns and prepare strategies for working out plans, actions & implementing them together.
  • Timely work.
  • Resource sharing.
  • Improve Communication.
E-Experimentation
  • Trying out new ways to deal with problems/Tasks.
  • Organisation should allow all to experiment new ways and encourage them to find the best ways.
  • Accurate problem solutions.
  • Development of new products.
  • Development of New methods.


To recapitulate, Organisational culture represents Values, Beliefs, behaviors & Capabilities acquired by the members of the firm. We can truly say if the Organisation has all Dimensions of “OCTAPACE”, it is on the way to SUCCESS……….

November 20, 20202 MinutesauthorMariyam Bemat