Management control system is a system used to achieve the goals of an organization. This means that we must be able to measure the performance of organizational managers in terms of their achievement of the goals that have been set in strategy making. One of the tools that can be used to measure the performance of managers is to use Balanced Scorecard. Kaplan and Norton (2000) explain that the balanced scorecard can be used for two purposes. The first objective is to do strategic mapping. With this strategic mapping, it is hoped that all parts of the organization can understand very well how to achieve the main goals of the organization.
This strategy mapping can be known because of the causal relationship between the main goal and the goals below it, so that managers will be able to find out how to achieve the main goal through smaller goals below it. Another goal that can be achieved is that the balanced scorecard can be used as a performance measurement system. The balanced scorecard is the goals that are made based on several perspectives, so that when the performance of the organization cannot achieve the goals that have been determined, the balanced scorecard will be able to show it. Another thing that can be obtained from the balanced scorecard is information about the parts that must be improved when the company’s goals are not achieved. Because there is a causal relationship, the things that cause the main goals of the organization are not achieved will be seen in the balanced scorecard that is made. This can be a consideration for top management to be able to improve performance, or adapt strategies that are more appropriate to the organizational situation.
There are four assessment perspectives used in making the balanced scorecard, namely financial, customer, internal business, and innovation and learning perspectives. Kaplan and Norton ranked the financial perspective first as the main goal of the company, followed by other perspectives in order. This is clear because, in business companies, the financial side is indeed the main factor of the goal 14 the company. The company was created to increase profits so as to maximize shareholder value. This becomes a problem when Kaplan and Norton’s version of the balanced scorecard is used for non-profit organizations. The main goal of non-profit organizations is not measured by financial factors, but non-financial factors.
This is a problem because the formulation of strategies applied for business companies with non-profit organizations is different, which means that the balanced scorecard that has a financial perspective on its main objective becomes unusable for non-profit organizations. Another thing that is important in measuring performance is the pricing of the products or services of non-profit organizations. Most non-profit organizations seem to ignore the pricing factor of the products or services they produce. In fact, pricing can be a factor that can be used to measure a person’s performance. In a non-profit organization, a manager must be able to manage the limited resources at their disposal to achieve their goals. This means that these limited resources must be managed efficiently in order to achieve maximum goals. So pricing must be made in such a way as to reflect the performance of the management of the nonprofit organization.