Bus 104 - Describe the Components of Equity Theory and the Role of Justice

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The primary benefit of the balanced scorecard model is to create an organisational culture based on achieving strategic targets through high performance (Niven 2014). This is achieved by transferring a strategic plan into action (Person 2009) – the fundamental purpose of the balanced scorecard. The balanced scorecard assists in transferring strategy into action by compelling managers to take a more specialised approach towards other perspectives (Kaplan & Norton 1992), which helps especially within current dynamic environments (McWilliams & Williams 2014). The extended strategic focus upon stakeholders supplements traditional financial measures, providing a balanced and more complete outlook on potential future financial success (Hannabarger, Buchman & Economy 2007). As a result of an improved range of focus McWilliams & Williams (2014) also suggest the balanced scorecard concept of control decreases the likelihood of sub-optimisation.

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4. Explain the difference between the ISO 9000 and the Australian Business Excellence Framework

The ISO 9000 and the Australian Business Excellence Framework (abbreviated to ABEF) although similar in their intentions, are entirely distinctive concepts (Baldridge National Quality Program [BNQP] 2013). The ISO 9000 is an internationally recognized set of standards (Terlaak & King 2006), used to attain assurances of consistency within quality management (International Standard Organisation [ISO} 2002, McWilliams & Williams 2014). The resultant focus upon quality management promotes an innovative organisational culture (Huo, Han & Prajogo 2014; Terziovski & Power 2007), which is likely to improve operation systems such as product, and process flows (Huo, Han & Prajogo 2014; Naveh & Marcus 2005) in turn improving the performance of certified firms (Corbett et. al. 2002; Litsikas 1997; Rao, Ragu & Solis 1997). Specifications of the ISO 9000 are consistent with achieving benchmarks (Castka et. al. 2015) through providence and incorporation of an organisation’s own set of quality processes and procedures (Boiral 2003). These are subsequently reviewed and verified by a non-financial auditor to determine the achievement of compliance and certification (Pivka 2004).

There are profound differences between the ISO 9000 and the ABEF, for example, the ABEF, is a national framework operational within Australia rather than global and also extends its influence beyond quality management (Williams & McWilliams 2014). Whereas the ISO 9000 intends on its members solely meeting standards in relation to quality, the ABEF emphasises on results within seven common managerial activities (Australian Business Excellence Awards 2000; Khoo & Tan 2002), most notably – results, as the highly influential Baldridge Award would suggest (BNQP 2013). Rather than proving a necessity to trade, as the ISO 9000 is often required (Briscoe, Fawcett & Todd 2005), the ABEF provides tools for greater engagement in relation to Business Excellence (McWilliams & Williams 2014) in addition to acknowledging successful application of the framework via its annual Australian Business Excellence Awards (Grigg & Mann 2008).

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