Deliverable Length: 3-4 pages (introduction, body, conclusion & references)The President of EEC has...

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Deliverable Length: 3-4 pages (introduction, body, conclusion & references) The President of EEC has decided to adopt the balanced scorecard. The balanced scorecard translates an organization’s...

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Deliverable Length: 3-4 pages (introduction, body, conclusion & references)

The President of EEC has decided to adopt the balanced scorecard. The balanced scorecard translates an organization’s mission and strategy into operational objectives and performance measures for 4 different perspectives. You received an e-mail from him asking about tying compensation with performance measures. Discuss the following in your response:

Discuss unethical behavior that can result if the wrong performance measures are used to tie performance measures to compensation.
How can EEC avoid these behaviors?
How should EEC tie performance measures to compensation?
Who is responsible for establishing the performance measures?

(Please use U.S references only)

005_6wlbjo-n53kegsi.xls

Answered Same Day Dec 24, 2021

Robert · Accepted Answer

Introduction 
The President of Eddison Electronics Company (EEC) planned to take up the balanced 
scorecard for performance evaluation measures related to the company. These assessments 
will be divided into four groups, namely the financial perspective, the customer perspective, 
the internal business processes, and the innovative and learning perspective. Also, I attempted 
to propose how to bind the four performance measure groups of the balanced scorecard to 
compensation. In addition, I will have responded to the question of how immoral behaviour 
can occur if the company practices incorrect way of tying up wrong performance measures to 
compensation procedures.   
Performance Measures 
The balanced scorecard is a perfect tool to assist in relating compensation system to 
performance evaluation because it explicitly communicates the expectations of each of the  
department without there being any sort of distraction enabling them to not lose focus on the 
core function that each department is expected to play in pursuit of success strategy of the 
company. However, the degree of contribution of each employee towards the objectives of 
the company and their focus on the job assignments within the company will directly depend 
upon their understanding of the role of enhancing the performance of the operational 
activities of the business, as well as the incentives implicated for them in setting out and 
making continuous improvements that the company needs to be booming. 
Immoral Behaviour 
It’s the company’s responsibility to ensure that every employee is treated with equality when 
developing a compensation system so that the compensation system is fair and just for 
everyone working in the organization. This will minimize the possibility of immoral 
behaviour being present in the system. When the compensation arrangements are not 
adequate or the company doesn’t follow a fair assessment, employees will follow their own 
interests with a total disregard for the company's goals.

Deliverable Length: 3-4 pages (introduction, body, conclusion & references) The President of EEC has decided to adopt the balanced scorecard. The balanced scorecard translates an organization’s...

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