3L Electronic Corp. (3L), a leading manufacturer of high-end transformers in Taiwan, has implemented the balance scorecard to improve company-wide performance. After 3L had missed its targets for three successive quarters, the general manager realized that the reasons for the gap between the actual performance and the budgeted performance were internal rather than external. The managerial issues faced by the company before the introduction of the balanced scorecard had not been completely addressed because of shortcomings in its initial execution at both the department and personal level. Of most concern is how to link balanced scorecard to employee bonus in such a large organization with multiple layers of structure.
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