Strategic Management is the process of converting information regarding the state of the system and environment to purposeful activities that transform the system from the current state to the desired preset (Martello, Watson & Fischer, 2008). A special place in the management takes the control staff for personnel, as it is the main resource, the driving force of the production process, intellectual component assets.
People are the source of creativity, initiative and energy to achieve the goals of the enterprise. There is no organization, which can function without personnel management – either large or small, commercial or nonprofit. Personnel management aims to achieve efficiency and equity of the interaction between employees. Personnel management often refers to a purposeful activity of the management and the relevant departments, including the development of personnel policies and management decisions regarding strategic management in the enterprise (Martello, Watson & Fischer, 2008). This includes involvement and training for employees, their motivation, incentives, the development of the team and the posting of workers. Nowadays, an organization can obtain a competitive advantage only through the effective personnel management. Unfortunately, the leaders of the enterprises rather poorly implement the activities of new approaches to the management of personnel, examining this system in isolation from the others. Although in recent years people are trying to change outdated concept of personnel management, but the results are not that satisfactory. In a highly competitive market information period the most important thing is a long-term development, the main factors of which are competent strategic management, efficiency of business processes, capital embodied in knowledge and skills. In accordance to the organization's ability to retain and attract new customers, corporate culture that encourages innovation and organizational improvement, investment in information technology the company builds the way to success (Martello, Watson & Fischer, 2008). We believe that organic combination of incentives and strategic management systems will optimize the work in all its areas.
In 1975 Stephen Coeur, summing up the activities of many companies concluded the need to use different systems of measuring the performance of companies with different purposes. However, the largest contribution to solving this problem was done by two Americans – Director of NorlanNorton Institute David Norton, now head of Balanced Scorecard Collaborative, and Robert Kaplan - Professor of Harvard Business School, who was invited as a scientific consultant of the project (Martello, Watson & Fischer, 2008). In 1990, they investigated 12 large companies that are trying to extend their measuring systems by including them in the non-financial indicators that would enable them to expand the information base for decision-making. As the basis for the future project, participants chose the following hypothesis: "basing methodology for assessing effectiveness of the company solely on financial performance does not ensure future economic growth in the value of the organization." (Martello, Watson & Fischer, 2008).
The research results have contributed to the emergence of the concept of Balanced Scorecard, which was called "balanced" because a comprehensive approach to assessing both material and intangible assets, based on four components - finance, marketing, internal business processes, training and increased personnel. Balanced Scorecard - a mechanism for implementing the strategy; a tool that aims to company strategy for long-term success that translates the vision of the company and its strategies set of interrelated balanced scorecard evaluating critical factors not only current but also the future of the organization.
The reasons for the use of BSC for strategic management believe the desire to obtain competitive advantages using advanced technologies in production and management, and to improve the efficiency of the enterprise. This system allows you to: highlight the work of staff priorities to ensure implementation of the strategy as a whole; assess the contribution of each unit in the implementation of the chosen strategy; to control personnel costs; Outcome measure not only performance, but also outstrip, which can assess the direction of change taking place.
According to researchers, for most companies strategy - a declarative statement of its top managers, which received approval from the business owners. This is the practical implementation of the strategic plans of becoming her biggest test. To implement the strategic objectives at the lowest cost and in the shortest possible time top management of the company shall coordinate the many individual measures and actions of employees. On this basis, they produce such axioms BSC: first axiom - the planning and coordination of departments and employees in achieving strategic objectives. The second axiom - management based on measurement of indicators (qualitative and quantitative). After all, to achieve the strategic goal possible when there are numeric indicators that directly indicate what to do to achieve it and whether in terms of achieving the goal that is now. The third axiom - the input current and regular monitoring of the implementation of the strategy. The fourth axiom - the union of disparate policy ideas in a single complex interdependent. The fifth axiom - the emphasis assess the effectiveness of the company is on non-financial performance during the current ratio analysis. This score is used in numerical terms even at first glance, it's hard to measurable aspects of, for example, the degree of customer loyalty or innovation potential of the company.
Reference
Martello, M., Watson, J., & Fischer, M. (2008). Implementing A Balanced Scorecard In A Not-For-Profit Organization. Journal Of Business & Economics Research, 6(9).
