Abstract
The aim of this paper is to review if the implemented balanced scorecard is an efficient way to motivate people and increase their work effort. The empirical research had been conducted in one of the big multinational companies. Balanced scorecards for such companies are mainly driven by global, strategic measures. It is questionable, if employees of the Czech local branch are interested and motivated by the global results. Perhaps, it would make more sense to put emphasis on the individual performance measures in this case. Such questions and answers are part of the empirical study conducted for this paper.
Highlights
The paper is an outcome of the research, which aims to find out if employees feel motivated by their balanced scorecards
Research was conducted in the local branch of the big multinational company
I have deliberately selected the timing of my research in the period, which is right after the announcement of the balanced scorecard results
Summary
The paper is an outcome of the research, which aims to find out if employees feel motivated by their balanced scorecards. The theoretical foundation related to the measurement of the work effort is known as an asymmetric information problem, in particular the principal-agent model. Principal in this context is the owner (or employer) and the agent is the manager (or employee). Owners (or in the microeconomic terms the principals) delegate responsibilities and authorities for the managing the company to the managers (or agents) This situation is described by theory as asymmetric information and principal-agent model. Second model describes the situation, where agent has more/private information even before he signs the contract with principal Those are “hidden types” and typical examples are management skills and similar competencies. There are several review articles (Neely – Kennerley – Adams 2007), (Taticchi – Tonelli – Cagnazzo, 2010) or (Taticchi – Balachandranand – Tonelli, 2012) related to performance measurement and balanced scorecard
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