The Application of Balanced Scorecard in Hospitality Industry

Seminar paper from the year 2018 in the subject Economy - Health Economics, grade: 1, , language: English, abstract: This essay will focus on the use of BSC in the hospitality industry, and our case study the Hilton Hotels worldwide. The essay will show how BSC has been used in Hilton Hotel to measure the company performance. It will also discuss how the management compensation plan has been linked with the BSC.The increase in competition in the hospitality industry for instance, in the hotel sector has attracted interest in quality improvement and implementation of performance measurement systems in these organizations so as to achieve a competitive advantage in the global market. A good example of the performance measurement system is the use of the Balanced Scorecard (BSC) to translate the strategic goals of the company for instance, research and development into performance measures. Continuous quality improvement in the hospitality industry is essential and it has been used by managers to measure their performance in four different perspectives, customer, financial, internal business process, and learning and innovation. BSC is important to managers because it helps them achieve their strategic goals in one area without having to hurt the other area. On that note, BSC has been used by managers to overcome strategic management problems because BSC is strategy-driven hence important in the implementation of a business strategy.