Question

How do goals and controls relate to the culture of a firm? How does the balanced scorecard create company culture along each of its four aspects?

Answer 1

Goals and control relates to company’s culture in the way that if system has a hierarchy and a structured way of doing tasks, it means that the culture is very goal oriented and controls are there at each step in the way of things getting on production, hence this is termed as a better culture that can survive for longer periods of time. If the company is goal oriented then the culture adapts itself such that all employees work towards a shared objective.

A balance scorecard creates the culture within an organisation in a way that if the company looks at financial perspective and what is that we must start improving at, this paves a path for the employees a swell to work hard and this mind-set is at times called as Adhocracy. Other 2 aspects of the balance scorecard i.e. what is the image of the company in the minds of the customer and also what could be best possible innovative ways that should be adopted, helps in gaining better stability and the end results starts to improve in the long run.