CompanyIntroduction
Balance Scorecard and KPI helps in decision-making within oil and gas industry so that continuous improvement and innovation can be attained. Balance Scorecard is the measure through which the performance is measured, which assist the employees to focus upon quality and aids in improving business performance (Wu, 2012). Further, KPI's are another performance management measure which has been adopted by the top management to make effective decisions so that productivity of the firm can be improved. Both these methods aid in developing innovative and learning perspectives so that competitive success can be attained.
Effects of Balance Scorecard and KPI's on decision-making
Following are the effects of balance scorecard and KPI's on the final decision of top management, such as:
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It is essential for the top management to make effective decisions regarding finance so that balance scorecard and KPI's can measure the performance of individual to attain success within oil and gas sector (Sainaghi, Phillips and Corti, 2013).
Customer Perspectives
Both these methods help the top management make decision regarding identifying customers needs and providing them with innovative products so that satisfaction can be attained. Thus, introducing new methods within oil and gas sector helps in evaluating the customer enhancement.
Learning And Growth Perspective
effect of Balance Scorecard and KPI on the final decision aids the management of oil and gas sector to obtain effective learning and growth perspective so that best results can be attained (Grigoroudis, Orfanoudaki and Zopounidis, 2012). Thus, it facilitates the firm to create value and innovation to achieve maturity stage within the product life cycle.
Internal Business Process Perspectives
It affects the top management to improve and identify the measures so that customers can be satisfied. Such methods assist the internal processes and help the company of oil and gas industry to yield and develop new product innovation to enhance the performance (Northcott and Smith, 2011).
Marketing Effect
It is essential for the organization to make decision regarding marketing and promotional strategies so that oil and gas industry can attain the desired success. Improving marketing opportunity aids in improving performance of the company in market.
Human Resource Management
HRM effect also plays a crucial role within oil and gas sector to measure the productivity of the workers. Thus, it is essential for HR manager to effectively measure workers performance and enhance their skills towards organizational goals (Niven, 2011).
Improving Implementation Of Strategies And Objectives
Through implementing balance scorecard strategy, it assists in significantly implementing the strategies and tactics so that proper monitoring can be done over business success. With regard to this, it aids in making effective decisions, which results in obtaining high performance (Elyna Myeda, Nizam Kamaruzzaman and Pitt, 2011).
Management Effect
Balance Scorecard and KPI affect the business performance and thus aid the firm in bringing improvement in achieving the desired success. It is essential for oil and gas sector to enhance the operations of the firm towards business goals.
Team Work
Balance Scorecard and KPI helps in developing effective team work and enhance the overall team performance. Also, such objectives facilitate employees in working as a team, which enhances the sales and profitability of the organization.
Strategic Goals
It assesses that business are required to develop effective strategic goals as it affects the functioning of enterprise and thus employ skilled candidates so that they can efficiently work towards business goals (Soderberg et al., 2011).
Causal Delays
It can be assessed that if such factors are not carried out effectively by the firm, it will impact the performance of individuals and carry out causal delays that affect the working culture of firm.
Long-Term Profit Generation
Managers of oil and gas industry assess that the organization is required to execute the balance scorecard and KPI's, which results in attaining long-term profits. Thus, it will affect the business if profit maximization situation is not attained in an effective way (Kurien and Qureshi, 2012).
Total Quality Management
It can be stated that balance scorecard and KPI's affect the total quality management of firm if employees are not rendered appropriate training programs. Hence, it is essential for the oil and gas sector workers to employ effective strategies to maintain appropriate quality within firm and attain success.
Improve Stakeholder Value
It also affects the organisation if they does not value the stakeholder appropriately. As it is essential for the enterprise to value their stakeholders and provide them with proper information regarding business operations so that desired targets can be
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