Evaluating the Use of Balanced Scorecard in Modern Business Management Accounting Techniques

Recent developments in management reporting and its relevance

LO1) Demonstrate knowledge of recent developments in management accounting and its relevance and implications for control and decision making requirements.

LO2) Demonstrate a critical awareness of the development of management accounting control systems, using key numerical interpretation skills in areas of change.

LO3) Diagnose, evaluate and formulate appropriate solutions to problems, using problem solving skills around critical areas such as multiple constraints and how these can be resolved through linear programming and shadow pricing solutions

Recent developments in management reporting have sought to broaden the information presented, extending such reports beyond their traditional accounting focus.

Required:

Critically evaluate the use of the Balanced Scorecard (and other performance management models you are familiar with) as part of modern business management accounting techniques. You should use examples wherever possible to support your work.

Secondary Research Level HE6 - It is expected that the Reference List will contain between five to fifteen sources. As a MINIMUM the Reference List should include three referenced academic journals and four academic books.

First class:

Students will evaluate with expertise the effectiveness of the balanced scorecard.  They will show a wide ranging understanding of how it can best be compiled and employed, together with its shortcomings. Students will draw upon a range of highly relevant examples to underpin their conclusions. Extensive research demonstrating use of a wide range of current secondary research sources will be evident. Academic style and referencing will be excellent.  

Second class:

Students will evaluate competently the effectiveness of the Balanced Scorecard, and show a sound understanding of how it can best be compiled and employed, together with its shortcomings.  Students will draw on a number of valid examples to underpin their conclusions. Research demonstrating use of a wide range of current secondary research sources will be evident. Academic style and referencing will be good.  

Third class:

Students will evaluate satisfactorily the effectiveness of the balanced scorecard.  They will show some understanding of how it can best be compiled and employed, together with an appreciation of its shortcomings. Students will draw on a number of examples to underpin their conclusions. Research demonstrating use of a range of current secondary research sources will be evident. Academic style and referencing will be fair, with the report being produced to a satisfactory standard.  

Marks are awarded for structure and referencing of the essay as well as for the extent of the literature review, depth of analysis/evaluation and formation of a conclusion.

The current debate over the use of the Balanced Scorecard and other performance management models. This should include their effectiveness in moving beyond financial measures; the need for non-financial indicators; the arguments for and against the use of qualitative measures and the attributes necessary in a sound system of measurement

The link between the Scorecard, other performance management models and the company’s objectives and strategy. This incorporates the financial perspective – ratio analysis, cash flow and credit control; the customer perspective – market share, acquisition, retention, satisfaction and profitability; the internal business perspective – innovation, operations, post sales service; and the learning and growth perspective – employee skills, motivation etc

Examples used to effectively illustrate the points made.

Evaluation of the use of the balanced scorecard and other performance management models

Fail: Students who do not meet the requirements of a third class grade will not successfully complete the assessment activity.

Please also see Section 13 of the Module Guide for General Assessment criteria.

Submission Instructions:

See Section 11 Guidelines for the Preparation and Submission of written coursework, which will give you details on how to submit your work electronically.  You are required to submit only electronic copies of your written assessments, unless your Module Tutor advises you otherwise.

Advice:

·Do not cut and paste phrases or paragraphs from published sources. You should seek to use your own words to explain concepts and theory.

·If you wish to refer to specific quotes from published sources then you must use full Harvard presentation. See BISSTO for clear guidance.

·Do not share work with other students.