Applying the Goal Setting Practice in the Dynamic Balance Scorecard Learning and Growth Perspective

The purpose of the present paper is to build a system dynamics model for goal dynamics in organizations within a Dynamics Balanced Scorecard framework. In this paper it is proposed a model of goal dynamics in which Goal Setting and two other related Human Resources practices (Management by Objectives and Training) is viewed as a managerial tool able to enhance workers’ goal commitment, and therefore, improve organizational performance. In the first part of this paper, an analysis of Dynamic Balanced Scorecard to measure performance in dynamically complex systems and Goal Setting Theory in bettering worker’s performance are stressed. In the second part, a case-study, the causal loop and a quantitative model of goal dynamics in organizations are described. In the third part, the stock and flow model is depicted. Finally, scenario analysis is presented. Key-words: goal setting theory, management by objective, dynamic balanced scorecard.