Financial; this
include measures, objectives and initiatives on how to succeed financially and
appear healthy to their shareholders.

Customer; this
includes measures, initiatives and objectives on how should the company appear
to the customer and achieve their vision (customer satisfaction)

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

Internal
Business Processes; this includes measures, initiatives and
objectives on which business processes must the company excel at to satisfy
their customers and shareholders.

Learning
and Growth; this includes measures, targets, initiatives
and objectives on how will the business sustain and the company ability to
improve and achieve their vision.

According to Kaplan (1992), the
BSC model gives the top manager a fast and wide view of the organization’s
business. The model includes measures that analyze past performance and future
actions by establishing a balanced and integrated form between customer
satisfaction, financial performance, innovations, improvements and the internal
processes- with all measures derived from the organization’s vision and
strategy.

The critic of this approach
from various researchers is that, the model is incomplete as it lacks a formal
dependence on some theory of the company behavior. But the mention limitation
cannot set off the positive contribution made by this approach. In a study
conducted by Dowing (2001), reveal that 52% of companies worldwide were using
the BSC, with 21% planning to use and 23% considering using.

1.1  
Value
for Money

Value for money is a performance measurement
approach that has been mostly used by donors and government authorities
particularly in procurement and implementation of programs. The model has
brought debate among stakeholders as cost and value has been a major
concern.  This approach involve a
relationship between efficiency, economy, effectiveness and currently equity;
the 4Es.

·            
Economy:  management concern is
minimizing cost to the lowest level without reducing the product quality

·            
Effectiveness:
product
produced ensure customer satisfactions

·            
Efficiency:
Maximizing
output with low cost measures without reducing the product quality.

·            
Equity:
benefit
obtained from the business is distributed equally to stakeholders.

 

1.2  
Stakeholder
Based Measures and Environmental Performance.

Environmental performance has currently become
one of the most important factor under the corporate social responsibilities
which consider the interest of stakeholders against their impacts on that
society. Companies are aware of the significance of environmental issues on
firm performance. The main reason to evaluate environmental performance is to
be ensured that the company is not exposed environmental risks.

Studies have been conducted to analyze the
impact of environment on firm performance with others with other researchers
argues that good environmental measures also produce economic benefits.

Key
Environmental Indicators includes;

·            
Environmental impacts from company’ activities

·            
Regulatory compliance

·            
Organizational processes (accounting, audit,
reporting)

 

1.3  
Evaluation
of Suitable Approach

From this evaluation I recommend Balance score
card as a significant to for performance evaluation as it considered important
stakeholders such as employees and customers as part and parcel of the company
success. Adding from the traditional approach, this model is able to evaluate
both past performance as well as future actions of the company.

1.4  
Transfer
Price and Performance Evaluation

Transfer pricing involves a mutual pricing
procedure on goods and service between tow companies or divisions of the
organizations. The term involves setting, analyzing, documenting and adjusting
for changes that are made between the two division on goods and services
supplied. Companies normally use transfer pricing for saving on tax, remittance
of dividend, changes in exchange rates and goal congruent decisions.

The problem caused by this practice includes; there
are situations where the market price is high compared to price of the division
this bring difficulties to decision making on division managers as they always
aim to sell at high price. Under some circumstances transfer price at market
value might provide incentives to use up the spare resources in order to
provide a marginal contribution to profit. 

Author