Transparency and Organizational Performance


This paper dwells upon transparency in organizations and its benefits. A model aimed at improving an organization’s transparency is provided. The advantages of the use of balanced scorecards and strategic diversity are considered in this paper. The approach is applied to the implementation strategy of particular strategic goals.

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Transparency and personal use of a company’s computers

Transparency has become one of the most valued features attributed to modern organizations. Berggren and Bernshteyn (2007) stress that transparency positively correlates with the employees’ motivation. People are more willing to work in an organization where transparency is one of the organizational values. Leonard and Cronan (2005) also note that transparency is important for people. However, transparency is also associated with various threats to the confidentiality and informational security of the company. Leonard and Cronan (2005) argue that people are ready to behave ethically if they understand the consequences of their behavior. The legal environment is still important but not decisive for making ethical (or unethical) decisions in organizations (Leonard & Cronan, 2005).

It is possible to develop a model that can ensure confidentiality and improve transparency within organizations. First, it is essential to develop a corresponding organizational culture. Employees should understand what is ethical and unethical (Nickels, McHugh & McHugh, 2013).

They should also know that unethical conduct will lead to particular negative consequences that can be translated into fines. Secondly, to ensure compliance with the new culture, employees should receive the corresponding training. This method does not require significant funding, which is an important advantage as companies often have limited resources. At that, there will be no need to develop or purchase certain software to ensure confidentiality. Employees will be able to use their work or private emails, as well as social networks, to communicate with people within and outside the organization.

Balanced Scorecard and Strategic Diversity

It has been acknowledged that Balanced Scorecards are important for organizational effective performance (Weinstein, 2009). At that, Rich (2007) argues that managers often fail to utilize this method adequately as they do not consider all the meaningful components. Pangarkar and Kirkwood (2008) emphasize that the use of balanced scorecards is efficient and should incorporate innovation that is one of the most important components.

Therefore, it is essential to apply this approach when developing organizational goals. It is possible to identify two strategic goals. These can be achieving organizational excellence and outreach excellence. The first will be manifested in the provision of high-quality services that are based on innovation and creative approach. The second strategy will be manifested through the development of effective partnerships with the community.

To monitor the organizational performance and adherence to (as well as achievability of) the strategic goals identified, it is necessary to use balanced scorecards that are always under changes. The scores should be updated weekly and monthly to make sure that all the components of the scorecard are evaluated properly (Rich, 2007). Specific attention should be paid to the knowledge and innovation segment. The manager should take into account such activities as the development of new ideas, implementation of innovative methods in work, efficient communication that resulted in the successful completion of a project. To obtain these data, it is possible to use weekly reports. Employees can evaluate their performance, report about their activities, achievements, and concerns. They can also evaluate others. The reports should be brief and have a particular outline.

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Reference List

Berggren, E., & Bernshteyn, R. (2007) Organizational transparency drives company performance. Journal of Management Development, 26, 411-417.

Leonard, L.N.K., & Cronan, T.P. (2005). Attitude toward ethical behavior in computer use: A shifting model. Industrial Management & Data Systems, 105(9), 1150-1171.

Nickels, W.G., McHugh, J.M., & McHugh, S.M. (2013). Understanding business. New York, NY: McGraw-Hill/Irwin.

Pangarkar, A.M., & Kirkwood, T. (2008). Strategic alignment: Linking your learning strategy to the balanced scorecard. Industrial and Commercial Training, 40(2), 95-101.

Rich, V. (2007). Interpreting the balanced scorecard: An investigation into performance analysis and bias. Measuring Business Excellence, 11(1), 4-11.

Weinstein, L. (2009). Achieving top quality: How and why to integrate the Baldrige criteria and the balanced scorecard processes. Strategic Finance, 46-51.

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StudyCorgi. (2021) 'Transparency and Organizational Performance'. 1 March.

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