Positive Management and the Balanced Scorecard: A Successful Strategy for Organizations

Abstract

This study investigated whether the balanced scorecard (BSC), a performance measurement system, has an impact on positive management (PM) in organizations. Positive management is a form of HR management that adopts ‘positive psychology’, which is defined as focusing on the current strengths of employees, not on their deficits and weaknesses, and on motivating them, caring about their well-being, and allowing them to feel appreciated. This study revealed whether the BSC is a strategic management tool that enables the education and development of employees and is concerned about their happiness. The impact of the BSC on positive management was investigated with both qualitative and quantitative measurement methods. The respondents who were surveyed for this study consisted of 27,334 employees of a public entity (the State of Michigan), and the survey data were analysed using the Statistical Package for Social Sciences (SPSS) 28.

The results of the literature research showed that the BSC strategies implemented in the public entity improved the organizational performance from the four perspectives of finance, customers, internal process, and learning and growth. The statistical results of the surveys indicated that the BSC has an impact on positive management by 56.70% (R-squared: 0.567). With the BSC strategy and the learning–growth perspective that has been in effect for 20 years in the State of Michigan, employee productivity has increased, and positive management has been prioritized.