SCOPE AND METHODICAL CORRECTNESS OF USING THE BALANCED SCORECARD METHOD FOR MANAGEMENT PERFORMANCE-BASED COMPENSATION IN MID-SIZE CZECH COMPANIES: A QUALITATIVE SURVEY.

Performance remuneration of managers using the balanced scorecard (BSC) method has two main advantages. The first is the motivational criteria derived directly corporate strategy, the second is the "balanced" nature of remuneration based on other performance targets in addition to “traditional” financial indicators. However, the prerequisite for the effectiveness of this method is its correct use, which assumes that the essence of the method and the individual components of its methodology are correctly understood and applied. The article deals with the extent of occurrence of this method as a tool for performance remuneration in Czech companies, and the extent to which its practical application corresponds to its methodological assumptions and requirements. The paper uses a qualitative survey carried out in mid-size and large enterprises in the Czech Republic to determine to what extent the prevailing way in which the method is used can be regarded as a tool increasing the value added of performance-based management compensation, what are the basic prerequisites for an effective use of this method, and what main modifications/adaptations leading to its higher effectiveness the method allows without losing its rationale. [ABSTRACT FROM AUTHOR]