The Importance of Measuring Individual Performance to Increase Organizational Performance

Management theory and practice suggest a wide range of instruments used in organizations in order to measure performance, whether individual or organizational. The purpose of this paper is to mention some of these tools, with an emphasis on the balanced scorecard. Although numerous organizations have adopted the balanced scorecard as a means to increase organizational performance, few of them have succeeded in making it really work. Moreover, individual performance appraisal is often regarded as a coercive instrument rather than a procedure meant to foster the employee’s performance which, in turn, should contribute to enhancing the organization’s overall performance. The hereby article aims at highlighting some of the advantages, as well as shortcomings of the balanced scorecard, followed by drawing conclusions regarding the way in which the balanced scorecard can and must contribute to organization’s well being.