The Research Of Balanced Scorecard Application In Non-profit Organization

As a strategic management tool, Balanced Scorecard has been favored by scholars since it’s brought forward. Balanced Scorecard is developed for for-profit enterprises with a purpose of providing a more favorable strategic management, thus creating more profits. However, with a gradually faster development of non-profit organizations in recent years, the operating management of them also needs a more scientific approach to meet their growing requirements of sustainable development.Though different from the for-profit organization whose purpose is to create profit, non-profit organization that’s aimed to create social value also needs a long-term strategic plan to tap out its potentiality in order to make greater contributions for society. An effective strategic management can ensure a clear mission and fighting goal for a non-profit organization, and the staff can reach consensus with its guidance to realize the final goal, thus winning a survival advantage for the non-profit organization in the competition and create more social value to serve the community.Therefore, this paper is to study the way of establishment, application and significance of the Balanced Scorecard as a strategic management tool in the non-profit organizations.The first part of the thesis consists of introduction and literature review, giving a brief description of the research background and significance, the research methods and the current research situation of Balanced Scorecard in non-profit organizations both abroad and at home.The second part is to elaborate the connotations and the features of Balanced Scorecard and the non-profit organization. According to the analysis of the current shortcomings on performance appraisal and strategic management in the non-profit organization, we could suggest introducing Balanced Scorecard as a new performance appraisal method and then give a research of its application possibility.The third part is to further elaborate the performance appraisal pattern based on Balanced Scorecard and the functions of its four dimensions in non-profit organization as well as the difference of Balanced Scorecard between for-profit organization and non-profit organization so as to affirm the features of Balanced Scorecard in the latter one. Then according to the analysis and description above to make out the methods and procedures of Balanced Scorecard which are aimed for non-profit organization.The forth part is to try to build Balanced Scorecard system that’s suitable for ET organization by analyzing the organization structure and operating situation of ET organization on the base of the research of the previous three parts and then to give an overlook and analysis of its performance appraisal, which would be compared with in other two non-profit organizations so as to summarize the problems of Balanced Scorecard that should be noticed in non-profit organization.The fifth part, as the ending part, is to point out the contribution and limits of this thesis and put forward the hope of the research in the future.The contributions of this thesis lie in the summarization of the research situation on theory and application of Balanced Scorecard both abroad and at home, the description of features of Balanced Scorecard and non-profit organization as well as the suggestion of introducing the strategic performance appraisal pattern of Balanced Scorecard into non-profit organization so as to improve its performance appraisal and realize its sustainable development. The limits of this thesis are due to the lack of actual use of Balanced Scorecard in the case, which needs further practical research to make sure whether Balanced Scorecard that’s on trial can achieve the desirable result in non-profit organization. It is hoped that Balanced Scorecard should be applied to practical work to provide more useful and meaningful research findings for its application in non-profit organization.