Influence of Perceived Effectiveness of Balanced Score Card System on Employee Performance at Lapfund

Abstract

This academic study seeks to establish how employees at LAPFUND perceive the development, implementation and evaluation of the Balanced Score Card (BSC) system, and how it affects staff performance at LAPFUND. To establish the perceived effectiveness of BSC on employee performance at LAPFUND, the study sought views of all 42 permanent staff in the organization. Both primary and secondary approaches were used to show evidence of staff appraisals and the trend of performance over a period of three years. This is the period under the automated BSC system as opposed to the previous system that was manual and highly subjective. The study was guided by the objective of establishing the influence of perceived effectiveness of BSC on employee performance at LAPFUND. Primary data was collected using questionnaires while secondary data was obtained from existing appraisal reports. Column tables, trend analysis graphs and mean scores were used to analyze all the data obtained. Findings and recommendations conclude that top management support and BSC system objectivity was a major contribution to the continued success of the system. The study also established few challenges that need to be addressed and can form basis for future studies in these sections. The balanced scorecard is tailored for each employee of the organization to contribute in a holistic towards the corporate objectives. Downward alignment of vision and direction allows each business unit to tailor its own objectives to contribute effectively to the company’s objectives. The study recommends that LAPFUND addresses the challenges observed in automation, feedback and performance management cycle in order to maximize on the application of the BSC system. LAPFUND should also ensure continuous improvement and setting up clear guidelines towards ensuring a successful appraisal process