Page 436 - F2 - MA Integrated Workbook STUDENT 2018-19
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Chapter 16
The balanced scorecard
4.1 Definition
To get an effective system of performance appraisal a business should use a
combination of financial and non-financial measures.
One of the major developments in performance measurement techniques in recent
years that has been widely adopted is the balanced scorecard.
The concept was developed by Kaplan and Norton, 1993 at Harvard. It is a device for
planning that enables managers to set a range of targets linked with appropriate
objectives and performance measures.
4.2 The four perspectives
financial
customer
internal business processes
learning and growth.
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