Organization Culture in The perspective of Balanced Scorecard

6 employees and company’s environment so it can be strong culture in supporting company’s development and goals. Hofstede et al. 1990 devide corporate culture into six culture orientations, as follows: 1 process-oriented vs result-oriented, 2 employee-oriented vs job oriented, 3 pragmatic vs normatif, 4 parochial vs profesional, 5 open system vs closed sstem, dan loose control vs tight control.

2.3 Organization Culture in The perspective of Balanced Scorecard

The performance of an organization is the organization’s achievement level. Traditional view assesses cooperative’s performance only from financial perspective. However, Balanced Scorecard approach has changed the orientation of performance measurement that so far more prioritizes the achievement from the financial performance side. It results from the development of business management that is getting more complex and competitive these days, that financial perspective is not used as the only indicator of a company’s performance measurement. The concept of performance by Kaplan and Norton 1996, states that financial measurement is not enough to lead company’s journey through compatitive environment. Balanced scorecard leads personal attention and business to non-financial targets: learning and growth, customer, and internal business process. This is caused by the fact that non- financial perspective is where the real driver of a company’s financial performance lies. The reason behind it is that the value of company market in this information technology is more triggered by intangible assets than tangible assets, Mulyadi, 2005. That is why company needs to build a system of performance measurement which covers the two aspects, financial and non-financial aspects. Balanced Scorecard translates mission and strategy into various goals and measures, which classified into four perspectives: 1 the aspect of learning perspective which includes: employee empowerment and personal accountability 2 the aspect of financial perspective which includes income growth 3 the aspect of customer perspective which includes: the number of new customers and customer loyalty 4 the aspect if internal business perspective which includes: innovation ability. 7 There are a few advantages of balanced scorecard BSC performance implementation compared with traditional performance which only focus only on financial aspect, such as 1 Traditional performance measurement only pays attention to short term goals, while BS pays attention to both short and long term goals 2 BSC covers financial and non-financial measurement, 3 BSC sees performance measurement both from internal and external perspective, and 4 BSC is more than just performance measurement, because BS can be used as framework for strategic management process.

2.7 Hypothesis Development