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Performance measurement and control

3.5 Evaluation of the building block model as a performance measurement
tool

Advantages Disadvantages

The first five advantages discussed for The first six disadvantages discussed for
the balanced scorecard are relevant the balanced scorecard are relevant
here. In addition: here. In addition:

 It is tailored to the service sector  It is not suitable for non-service
organisations
 Targets should motivate staff due to
ownership, achievability and  It can be difficult to see the link to
fairness strategic objectives

 Reward system should motivate
staff due to it being clear and linked
to controllable factors

Illustrations and further practice

Now try TYU 6 ‘Standards and rewards’.

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