Implementation Of Balanced Scorecard Research Articles

Contribution of Balanced Scorecard Implementation in Performance Management System to Enhance Job Satisfaction: Empirical Evidence from FMCG Sector of Pakistan

Many conglomerates employ various performance measurements tools to monitor the performance of their employees. Most of these performance measures only concentrate on the financial dimension of the performance. The Balance score card is one such tool that measures multiple performance dimensions. This study investigated the impact of Balance score card implementation in performance measurement system towards employee satisfaction in the FMCG Sector of Pakistan. To achieve this objective, a review of relevant literature was done. Based on literature review, eight hypotheses were postulated to test the significance of the research problems. A quantitative study was designed on FMCGs, and primary data was gathered using a Likert scale questionnaire format administered to 218 respondents. Results indicate that employee satisfaction experience improved after implementation of Balance Score Card in the Performance management System of the organizations. Moreover, the mediating role of Performance Management System in the relationship between Balance Score Card and Employee Satisfaction was also partially proved.

Impact of a management innovation on professional subcultures – the case of a balanced scorecard implementation in a Chinese hospital

Purpose The balanced scorecard (BSC) has been a popular management innovation in health care. Implementing an innovation like the BSC can change the professional subcultures of a hospital. The purpose of this paper is to measure subcultures to establish the level of change during the implementation of a management innovation in a single Chinese public hospital. Design/methodology/approach Four surveys were administered to the staff of a single hospital, and a 100,000-word research diary was compiled from observation of the research process. A longitudinal case study design was administered from 2006 to 2009. The competing values tool was administered twice to assess organizational cultural change. Findings There was a change in the culture of different professional groups. The group with the strongest dominating culture type, which relies on cohesion, morale and employee participation in decision-making, shows the most positive change in cultural types during the BSC implementation process. Management innovations such as the BSC can create more balance in each professional group. Practical implications The successful implementation of a management innovation in a hospital requires the managers to consider meeting the demand of medical professional groups and achieve desired culture type change, which in turn may help to achieve the expected results. Originality/value This paper provides support to the finding that groups with a dominant group culture are more receptive to change and implementing a management innovation can influence professional group’s culture. It also provides evidence that the implementation of BSC can create more balance in each professional group’s culture. Although these findings come from health care, it may have relevance to other contexts in China.

Total Quality Management in an Insurance Company: Use of Balanced Scorecards to Meet the Interests of Stakeholders

The insurance company is a financial intermediary between stakeholders - a set of participants in the insurance process and those who have received the right to insurance payment, as well as insuring parties who purchase insurance coverage and shareholders whose capital is involved in its guarantee. Satisfaction of stakeholders creates a company’s free access to exchanged resources, thereby optimizing operations and increasing the efficiency of capital use. The implementation of the Total Quality Management (TQM) system, which could help achieve the goal, is complicated in insurance companies by dividing the personnel who create the insurance service, by the factor of time, since it is possible to check the quality only after the client has used it, which does not always arise in insurance, and often by the factor of location of units at geographically different points, which makes it virtually impossible for the simultaneous and equal participation of personnel in production processes, that requires innovative management tools.
 The purpose of this study is to study the effect of introducing a Total Quality Management (TQM) system and a balanced scorecard (BSC) on the activities of an insurance company, including the one aimed at achieving the satisfaction of its stakeholders. Using the methods of induction and synthesis of freely available data of SOGAZ, Rosgosstrakh, and ROSNO companies, a complex of dependent corporate goals was identified that were ranked relative to the organizational level.
 The results of the study allow concluding that the concept of balanced indicators allows to indicatively monitor the quality of meeting the interests of the main stakeholders of the company, which creates new effective tools for improving resource exchange and does not allow distortions in management. The integration of strategic planning and TQM opens up new market growth opportunities for insurance companies in the context of a limited portfolio of services for a strictly limited audience. The paper provides specific recommendations for organizations to resolve problems that impede the successful implementation of TQM.
 The results of this study can be used by officials of insurance companies in developing strategies and tactics for their development, including the implementation of BSC and TQM, as well as scientists for a deeper study of the results of the implementation of BSC and TQM, both in the insurance industry and other sectors of the economy.

Applying a Balanced Scorecard Approach in Egyptian Travel Agencies: Opportunities and Obstacles

It is widely acknowledged that Egyptian travel agencies face more competition and need to apply the Balanced Scorecard (BSC) as effective performance measurement systems in order to be competitive and to remain in existence. The purpose of this study is to determine the availability of the basic ingredients for BSC application and its opportunities and obstacles. 300 questionnaire forms targeted managers of head offices and their branches. The Statistical Package for Social Sciences (SPSS) version 26 was used to analyze collected data. The result of the study showed that Egyptian travel agencies could apply the BSC. The obstacles do not significantly affect the application of BSC. There are significant differences between the head offices and branches regarding the availability of the BSC basic ingredients and its perspectives application. The study recommends that travel agencies need to support intensives and training programs to their staff to awareness them by the BSC implementation and its use to monitor the performance.

Implementation of balanced scorecard in Vietnamese enteprises

Balanced scorecard is a highly effective method for performance measurement and strategic management in organizations and enterprises. The number of companies applying this method in Vietnam currently is not very high. For this reason, this paper aims to determine key factors for success when implementing balanced scorecard in Vietnamese enterprises. Then, it assesses the possibility for applying the method in companies who are planning to apply it. The data was collected from a survey of 6 companies who have applied balanced scorecard successfully and 19 companies who want to apply it. The data analysis result from the 6companies who have had success with the balanced scorecard shows four major success factors, including balanced scorecard usefulness, balanced scorecard design, company human resource capacity, and balanced scorecard implementation process. Then, these factors were applied into 19 companies who have interest in implement the balanced scorecard to evaluate the ability to apply balanced scorecard. The result show that senior leaders’ point of views, strategy planning and execution, performance assessment, human resource capacity, and operation management of the company could affect to balanced scorecard implementation. Therefore, business leaders need to focus on these factors in order to successfully implement balanced scorecard in Vietnamese enterprises. Qualitative analysis were applied in this study.

Critical Success Factors (CSFs) of Balanced Scorecard Implementation in Public Sector Institution (A Study in the Ministry of Foreign Affairs (MoFA) Indonesia)

Implementing Balanced Scorecard (BSC) in public sector’s performance management system is interesting, due to public sector’s concern for performance measurement. As one promising performance management tools, BSC was originally designed for the private sector institution, but later gaining its popularity among the public institutions. How well BSC implementation is possibly determined by some Critical Success Factors (CSFs). This study examined some CSFs in the BSC implementation in the Ministry of Foreign Affairs (MoFA) Indonesia using a qualitative study with an interactive model by Miles at al., (2014). This study found that BSC implementation brought changes in the MoFA’s performance, despite the absence of organizational changes for BSC adaptation. Top and middle management attention for the implementation and training and education are the most determining factors in the BSC implementation in MoFA. This study support the importance of the four CSFs examined in this study in implementing BSC in public sector.

Identifying the key factors and proposing a roadmap for successful lean transformation in Vietnamese manufacturing firms

This study is conducted to identify the key factors and propose a roadmap for successful lean transformation in Vietnamese manufacturing firms. Eight managers of two companies having successful lean performances and two lean experts from university and consulting company are invited to participate in semi-structured interviews to verify key factors of a successful lean transformation as well as to promote a lean roadmap with tools used for lean transformation in the context of Vietnam. The research results show that 10 key factors promoting a successful lean transformation are Role of management, Involvement and Commitment to change, Balanced scorecard implementation, Corporate vision and values, Corporate culture of change, Persuasive situation for change, Change projects, KPI application, Lean consultants, and Stakeholder communication. The respondents also adopt a roadmap for a successful lean transformation in Vietnamese companies including 3 phases (preparation, implementation, maintenance and improvement) in which 5S, Visual Control, and Work Standardization are the three most remarkable tools for lean transformation.

Examining the Achievements of the Balanced Scorecard as Public Sector Reform Tool: The Case of Some Selected Oromia Regional Government Bureaus

Ethiopian government has shown commitment to improve public service delivery in public organizations by launching different reform tools under the scope of civil service Reform Program. However, public service organizations performance has a number of deficiency in terms of effectiveness and efficient. Therefore, the objective of this study was to examining the achievements of the balanced scorecard (BSC) as public sector reform tool in some selected oromia regional government bureau. A descriptive survey type and both quantitative and qualitative approaches of data analysis were employed. The quantitative data was drawn from sampled 150 employees for questionnaires purpose by using probability sampling technique. Then the analysis of the quantitative data were made using descriptive statistics such as frequency, percentage, cross tabulation , bar chart, Pearson chi-square test and spearman’s rho correlation were used . The qualitative data was obtained through interview, focus group discussion and document analysis. The study revealed that due to implementation of Balanced scorecard the bureaus performance were measured from citizens, financial, internal process and learning and development perspectives and evaluation system were improved and strategic objectives of the organizations were linked to the objectives of department, teams and individuals.. On the contrary, the findings of the study indicated majority of employees viewed as implementing Balanced scorecard as duplication of business process reengineering(BPR) . Moreover, the implementation of balanced scorecard in selected bureaus faced lack of leadership support and commitment, lack of capacity building, poor communication, low information communication technology skills and poor monitoring and evaluation . Hence, the reality of the concepts and goals needs to internalize and play their active role in leading changes through implementation of balanced scorecard as solution to make the public sector effectiveness and efficient. Keywords: - Balanced scorecard, performance measures, reform Tools DOI: 10.7176/PPAR/10-3-02 Publication date: March 31 st 2020

Implementation of Balanced Scorecard in Indonesian Government Institutions: A Systematic Literature Review

In order to meet public pressure in improving government performance, many government institutions practice balanced scorecard as their performance management system. This paper describes how Indonesian government institutions implement balanced scorecard and its contribution toward their performance accountability. Delivering a systematic literature review of publications related to the implementation of balanced scorecard in public sector, it can be inferred that balanced scorecard helps the manager in Indonesian Ministry of Finance to fill the gap between strategic planning and strategic outcomes. Although, it has own disadvantages, balanced scorecard has proven on enhancing institution performance accountability based on evaluation conducted by Ministry of State Apparatus and Bureaucratic Reform. Its contribution is largely in performance planning indicator, since balanced scorecard focuses on strategic planning. Not only improves performance accountability, it is also founded that balanced scorecard supports the improvement of bureaucratic reform index. The essential factors in developing balanced scorecard implementation are explained as well. However, the differences compared to non-balanced scorecard organizations, has not been studied due to the limitation of the data, therefore future research is suggested.

Institutional contradiction and BSC implementation: comparative organizational analysis

Purpose This paper aims to explain institutional contradictions in the balanced scorecard (BSC) implementation process between organizations, which successfully implemented BSC. The purpose of this paper is to identify a comprehensive set of potential determinants influencing the successful implementation of BSC. Design/methodology/approach This study is an exploratory investigation into the BSC implementation based on a dialectical perspective. It uses the triangulation of data collection including interviews, documents and surveys. This also includes a comprehensive scrutiny of the relevant literature; a comprehensive analysis of case studies of BSC implementations in four organizations; and interviews and documents evidences that have already implemented or are in the process of implementing BSC. Findings The BSC was successfully implemented in the organizations, when the accounting systems introduced in these organization had already been institutionalized, that is, accepted and used on day-to-day basis. The dialectical perspective postulates that for change to become institutionalized in the organization, it needs to overcome the problem of embedded agency. This process of change is possible due to the accumulation of institutional contradiction that enables human praxis to introduce change (Seo and Creed, 2002). Research limitations/implications There is a need to empirically test and refine the proposed factors and explore relationships among the various variables by collecting data from organizations that have already implemented BSC. Practical implications The findings of this study are important and relevant to all the different-sized organizations in the different sectors and industries. This study also makes a significant contribution to society in general. Originality/value This paper contributes to the literature on organizational and accounting change that emphasis the crucial role that institutional contradiction plays in the process of BSC implementation. The findings of this study will help management in making crucial decisions and in resource allocations that are required to make the BSC implementation a success.

The assessment of balanced scorecard implementation in the commercial bank of Ethiopia: The case of three branches in East Addis Ababa Districts

The assessment of balanced scorecard implementation in the commercial bank of Ethiopia: The case of three branches in East Addis Ababa Districts

The Diffusion and Implementation of the Balanced Scorecard in the Norwegian Municipality Sector: A Descriptive Analysis

The Balanced Scorecard (BSC) has over the last two and a half decades received much attention as a management model for both private and public sector organizations. However, the BSC concept’s use and application in local governments and municipalities remains relatively understudied. This is particularly the case for the Norwegian context. Therefore, the aim of this article is to conduct a descriptive analysis of the diffusion and implementation of the BSC in the Norwegian municipality sector. The article draws on two sources of data: (1) an electronic survey sent to all 428 municipalities in Norway, yielding a response rate of 26%, and (2) follow-up interviews with representatives from 15 municipalities. In the empirical analysis, the article first provides an overall overview of patterns related to the diffusion and implementation of the BSC in the Norwegian municipality sector. With respect to BSC diffusion and implementation, the data show that the BSC is still widely used among Norwegian municipalities and has not yet entered a clear downturn phase. With respect to adoption and implementation, a more fine-grained analysis of five categories of respondents (non-adopters, planners, implementers, current users, ex-users) is also carried out, focusing on the motives, perceptions and applications of the concept. The analysis reveals considerable variation when it comes to perceptions and experiences associated with BSC adoption and implementation.

Impact of BSC on Corporate performance

This paper seeks to identify and analyze a set of advantages and contributions derived from BSC or Balanced Scorecard implementation towards the corporate performance. The study contributes to the current state of knowledge since the identification of the advantages and contributions in BSC introduction and implementation can facilitate its adoption and development in the corporate designing to implement this tool. Besides, a theoretical basis is provided for future research evidencing the extent of research on the topic studied. The results show that BSC is better than a simple performance evaluation system to become a true strategic management mechanism able to clarify and explain the mission and corporate strategy, making possible the communication process, the strategic alignment and the organizational erudition. Keywords: BSC, Corporate strategy, Non-financial measures, Strategic management, Performance management.

Strategic scenario analysis combining dynamic balanced scorecards and statistics

Purpose The purpose of this paper is to explore the way in which system dynamics (SD) can enhance some key success factors of the balanced scorecard (BSC) model and support decision-makers, specifically in analyzing and evaluating the results of hypothetical scenarios. Moreover, the paper aims to emphasize the role played by statistics not only in validating the SD-based BSC, but also in increasing managers’ confidence in the model reliability. Design/methodology/approach The paper presents a case study, developed according to an action research perspective, in which a three-step approach to the BSC implementation was followed. Specifically, the first step requires the development and implementation of a “traditional” BSC, which is refined and transformed into a simulation SD model in the second step. Last, the SD-based BSC is combined with statistics to develop policy making and scenario analysis. Findings The integration of BSC and SD modeling enables the development of a comprehensive approach to strategy formulation and implementation and, more importantly, provides a more reliable basis upon which to build and test sound cause-and-effect relationships, within a specific BSC. This paper exemplifies how an SD-based BSC can be used – and perceived reliable – to evaluate different scenarios and mutually exclusive policy effects in a multidimensional approach. In particular, this study illustrates how to forecast and depict trends for financial and non-financial indicators over the simulation period, with reference to three different scenarios. Originality/value This paper contributes to the ongoing debate on the BSC by exploring whether a combination of SD and statistics may enhance the BSC system’s advantages and facilitate its implementation process and use for decision-making and scenario analysis.

The Practices and Challenges of Balanced Scorecard Implementation in Municipality Service Delivery in Injibara Town Awi Zone, Ethiopia

The purpose of this study was to assess the practices and challenges of BSC implementation at municipality service delivery at Injibara town in Awi zone, North West Ethiopia. The methodology of this research employed was both questionnaire and key informant interview. Both qualitative and quantitative data analysis method was employed. Out of the non-probability sampling purposive/judgmental sampling and census survey has been used to consider all population which is 32. The collected data was analyzed using descriptive approach by frequencies and tables. The result of analysis revealed that there is inadequate commitment from leaders on the creation of conducive work environment, information sharing and encouragement of employees. Further, there is no close relationship with customers and failures on knowing what the stakeholders value and lack of commitment in human resource side like lack of reward system, and lack of recognition for their work are the major gaps that management should have to work more to bring improvements. Finally the researcher recommends that the organizations should have to works towards the improvements of BSC implementation by changing the mindset and attitude of employees towards BSC, motivating of employees through benefits and reward systems and automating the information handling system. Keywords : Municipality, BSC, Implementation, Injibara town DOI : 10.7176/EJBM/11-4-07

Influence of the balanced scorecard on the science and innovation performance of Latin American universities

ABSTRACTPressure on the education system to meet society’s needs has led some universities to adopt organisational performance measurement systems as strategic control tools. One of the most commonly used systems in business is the balanced scorecard (BSC). For Latin American universities, the urgent task of increasing the quantity and quality of research and innovation has led these universities to update their essential processes. A suitable control system is necessary to ensure the effectiveness of these new policies. Based on strategic management theory, this study focuses on the implementation of a BSC method in Latin American public universities. The aim of this study is to determine the influence of BSC implementation on universities’ research and innovation performance. The results reveal similar patterns of indicators to measure performance in public universities. Furthermore, these indicators develop favourably following implementation of the BSC.

THE FUTURE SUSTAINABILITY OF MALAYSIAN HIGHER EDUCATION INSTITUTIONS: WHAT MATTERS MOST?

The purpose of the study was to examine the relationship between the organisational quality management initiatives (OQMI) and organisational culture (OC) on the sustainability of Malaysian higher education institutions (SMHEI). The study utilised 263 top administrators’ completed questionnaire survey from universities in Peninsular Malaysia. The statistical techniques employed in this study were descriptive statistics, confirmatory factor analysis (CFA), and a full-fledged structural equation modelling to address the research questions and hypotheses testing. The findings revealed that long-term strategic planning initiatives (LSPI) required a thorough revision; communication and decision-making, and organisational climate of Malaysian higher education institutions (MHEI) persisted as challenges in improving the SMHEI. It was also revealed that the implementation of balanced scorecard could enhance the effectiveness and efficiency of MHEI. This study provides a basis for future studies, particularly in the Peninsular Malaysia context. Theoretically, the study also found that not only leadership perspectives required further investigation but also the financial, customer, internal process, and learning and growth perspectives in the administration for SMHEI.

The Determination of Performance Measures by Using a Balanced Scorecard Framework

Abstract The aim of this study was to determine the contributions of the balanced scorecard (BSC) methods to identify the relationship between the objectives and activities and examine how the BSC should be formed in a manufacturing company. The BSC framework was examined via a case study in a yarn manufacturing company. The activities to be carried out by the company to achieve its objectives and how the appropriate measures are determined in evaluating the contribution of the activities to the achievement of objectives are explained under the BSC approach. The BSC implementation and adaptation have facilitated in a family owned company because of its fast decision-making process. Objectives are made clear in accordance with the company’s strategy and causal relationship between objectives and activities are linked by the strategy map. The BSC implementation shows that financial measures are not enough to evaluate the effects of all the activities on the objectives in a company. The cooperation between departments in the company and the efficiency of corporation meetings increases. The meetings have become more result-oriented due to clarifying objectives and responsibility of individual levels.

Factors Influencing the Use of the Balanced Scorecard: Evidence from a Regional Context

The balanced scorecard (BSC) has received considerable attention, by companies and researchers, for its potentiality in mitigating the limitations of traditional management accounting tools and supporting the strategic management. Despite this interest, there is still little empirical evidence on the levels of BSC implementation and on the contextual factors influencing it. This study explores whether company size and type of industry affect the BSC use. A survey was conducted in a highly productive region, the Northeast Italy, and a quantitative analysis was carried out to assess the statistically significance of the association between size or industry and the BSC use. The results confirm prior studies showing that the BSC use is biased towards larger companies. However, this holds in every industry except in the manufacturing, where also small firms are prone to adopt it. A qualitative analysis integrates these results, highlighting possible motivations of the BSC use (or non-use).

A Proposed Empirical Model for Adopting Balanced Scorecard as a Tool for Performance Measurement in Hotels

Balanced Scorecard (BSC) has become an acceptable performance measurement tool in the service sector as it integrates financial and non-financial aspects of performance. The purpose of this paper is to present an empirical model for adopting BSC as a tool for measuringperformance in hotels. 120 questionnaire forms were distributed to hotels managers in randomly sampled four-star and five-star hotels. Collected data was analyzed using the Statistical Package for Social Sciences (SPSS) version 20. Additionally, an in-depth interview was conducted with the assistant general manager of a hotel that adopts the BSC to provide a deep understanding of BSC implementation. The empirical findings showed that it is applicable to apply the four main perspectives of the BSC in hotels, as their main requirements were available in the investigated hotels. The results of interview suggest integrating an additional perspective, i.e. environmental perspective. Based on these findings, the researchers proposed an empirical model for implementing BSC in hotels. This model incorporates five major perspectives: financial perspective, customer perspective, internal process perspective, environmental perspective, and learning and growth perspective.