Academic journal article Asian Social Science

Peculiarities of Staff Performance Appraisal with the Use of Balanced Scorecard in the Area of Public and Corporate Management

Academic journal article Asian Social Science

Peculiarities of Staff Performance Appraisal with the Use of Balanced Scorecard in the Area of Public and Corporate Management

Article excerpt


The total globalization of all aspects of the modern society's life changes paradigm of the traditional management. In contrast to the views of F. Taylor, H. Gantt, P. Drucker, R. Kaplan, D. Norton and other recognized guru of management, in the modern context the public and corporate management face a primary target to develop organization's internal resources. It becomes more and more important to maximize the use of internal potential which is possible only with the application of up-to-date management innovations such as the balanced scorecard strategy and KPI which is a basis of the modern appraisal of staff performance.

Keywords: performance appraisal, KPI, management, balanced scorecard, regional management

1. Introduction

The traditional management by itself does not meet the economic tendencies of the modern world. The most reputed theoretical and practical experts of management worked out a concept "Management 2.0: The new version for a new century" with 25 most long-term tasks the management of the 21st century face (Harvard Business Review, 2009). The most important task of the new version was a task "to work out complex systems for appraisal of performance both of the organization as a whole and of its separate subsystems including a system of salaries and bonus payments". The traditional systems for performance appraisal have a lot of disadvantages, e.g. there is no regard for personal qualities which have an influence on success in a new innovation economy; a quick profit earning is excessively evaluated to the detriment of other important tasks such as search for new directions of growth; that is why managers need to stop sacrificing long-term goals for momentary profit as well as they need to stimulate a process of search for new ways of mobilization and organization of human resource capabilities. This task is especially actualized with the fact that for efficient work of 88-90% of typical company's staff members it is necessary to set goals and tasks correctly and it is obligatory to control their implementation (Harvard Business Review, 2004).

A need for new relevant methods for staff performance appraisal determines scientific and practical significance of the problem under study.

2. Method

Studies on industrial enterprises of the Astrakhan region and public authorities (Akmaeva, 2007; Akmaeva et al., 2011; Lunev et al., 2011; Bulatov et al., 2011; Epifanova, 2013) on the basis of joint use of different analytical methods (questionnaire surveys, statistical methods of multidimensional analysis: cluster and factor analysis, correlation and regression analysis, analysis of operations functions, etc.) allowed to mark out key factors determining efficiency of regional companies' activities.

These studies allowed to conclude that in the context of innovation economy the main source for companies' development would be internal resources which depend on management and full use of staff's potential because only effective transformation of their personal and professional characteristics can lead to a progressive development of organizations. Today both in corporate and public companies, constant adoption of management innovations is a sustainable source of development.

The factor analysis proved a conclusion that regional enterprises did not master all range of analytical methods for strategic management, such as balanced scorecard, interrelation between strategic goals and key performance indicators (KPI), modern approaches to performance appraisal. At the same time, it should be noted that a specific feature of management innovations is staff's high resistance to changes.

Here we face a paradox. On the one hand, the company's development requires adoption of advanced management instruments including the issues of individual performance appraisal of staff members who are the main source of development. On the other hand, staff "sabotages" innovations. …

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