Apple's Performance Management System

Introduction:
Success of the organization depends on the performance of employees. Organizations
need to establish performance management system to monitor, evaluate and recognized
employee's performance. According to Cascio (2012) continuous evaluation increases the
performance of individual and also the organization, it also helped to attain organizational goals.
Rao, et al. (2019) stated the benefits of performance management system for the organization. As
they stated this system identify any deviation in employee's performance which can cause
adverse impact on organizational performance.
Different organizations use different methods to evaluate the performance of their
employees. Jackson (2022) discussed three main types of performance management including
the
 balanced scorecard
 management by objective
 budget driven business plans
In this study we focused on traditional performance measurement system which is
balanced scorecard. Famous Apple's company adopted balanced scorecard to evaluate the
performance of their employees. This approach helped the management by evaluating the
performance on the basis of four main key points which are financial, customer prospective,
internal processes and organizational capacity.
Pros and cons of balanced scorecard:
All performance management systems have their own strengths and weaknesses also.
Sometimes organizations need to adopt more than one performance management system at
workplace. Balanced scoreboard is a useful tool as it covers overall performance by adding
customer prospective. Here we elaborate the key strengths of this system.
 Focus on organizational goal:
Balanced scoreboard system emphasized on organizational goals. All evaluations
assembled to achieve organizational goals. It gave common standards for the evaluation of
 performance. Management of the organization developed strategies accordingly to fulfil the
gap between actual and expected findings.
 Develop better communication:
The balanced scoreboard helped the organization to develop better communication channel at
workplace. Employees can talk easily about strategies when there is a streamed line performance
management system.
 Facilitate the alignment of duties:
Organizations having balanced scoreboard, provides proper alignment of duties among their
employees. It helped employees to work efficiently and effectively.
 Review of strategies regularly:
Balanced scorecard enabled the organization to review its strategies regularly. So, the
organization can update the strategies accordingly if needed.
 Allow individual to align their goals:
Employees working in the organization having balanced scorecard as performance
management align their goals with organizational goals.
 Performance reporting:
Balanced scorecard showed performance of workforce on regular basis. It helped
management and employees, both to accomplish their goals.
 Enforced bonding between employee and organization:
Balanced scoreboard enhances the strong bonding between employee and the organization.
Because in this system management develop the strategies according to the strengths and
weaknesses of the employees.
Disadvantages of balanced scoreboard:
 It needs to be customized:
Every organization has its unique capabilities. So, one balanced scorecard not fulfil needs of
every organization. It must be customized accordingly.
 Must be implemented from bottom:
The main step to implement balanced scoreboard from the bottom. Leadership required to
adopt new strategies for convincing the entire workforce.
 Complicated to understand:
 Implementation of balanced scorecard required time. Organizations take time to understand
its working.

 Data requirement:
Most of the time balanced scoreboard required information from managers and employee
at same time. In this process the collection of complete information must be needed, which is
difficult to maintain at organizational level.

Discussion:
Big organizations like Apple company adopted balanced scorecard to assess and evaluate the
performance of their employee. This system is also needed to determine the effectiveness of
processes used by the organization. As we know balanced scorecard monitored customer
prospective about the organization. It clearly created a competitive advantage for organization if
implemented successfully. Here we discussed some improvements regarding balanced scorecard
which included the following:
 Start simple.
 Discussed with upper management.
 Managing the process with the help of software.
 Show flexibility in implementation of scorecard.
 References
Jackson, T. (2022). Types of performance management system (& how best to use them).

[online] Retrieved from: https://www.clearpointstrategy.com/types-of-performance-

management-systems/. [accessed: December 14, 2022]

Cascio, W. F. (2012). Global performance management. [online] Retrieved from:

https://www.researchgate.net/publication/287473584_Global_performance_management

_systems. [accessed: December 14, 2022]

Dannert, H. (2020). Balanced scorecard in 2020: advantages and disadvantages. [online]

Retrieved from: https://heartpace.com/blog/post/balanced-scorecard-in-2020-advantages-

and-disadvantages/. [accessed: December]