Factors influencing implementation of balanced scorecard for measuring employee performance in Kenya Commercial Bank Nyanza Province, Kenya
This study sought to explore factors infuencing implementation of balanced scorecard for measuring employee performance in Kenya Commercial Bank, Nyanza province, Kenya. The objectives of the study were: to establish the extent to which balanced scorecard target measurement methods influence measuring of employee performance, to examine the extent to which balanced scorecard skills possessed by employees influence measuring of employee performance, to assess the extent to which management involvement influence measuring of employee performance and to deterinine the extent to which performance appraisal influence measuring of employee performance. The study findings were hoped to be used by the employer to improve the effectiveness of Balanced Scorecard, to equip employees with skills required for effective BSC and give the overall current BSC practice in KCB branches. The study was conducted in Nyanza province. This included 18 KCB branches and a regional office in Kisumu. The target population was employees of KCB in Nyanza province. There were 269 employees: 54 managers, 46 supervisors, 159 clerks and 10 support staff. Descriptive survey design was used because it enabled the researcher get facts on the factors infuencing implementation of balanced scorecard in Kenya Commercial Bank for measuring of employee performance from the employees as they existed during the study. The population was stratified into four strata comprising of managers, supervisors, clerks and support staff. Stratified sampling method was used to get a proportionate representative size from each stratum. The sample size selected was 159 respondents which comprised of the following: 32 managers, 27 supervisors, 94 clerks and 6 support staff. These sample size was selected from regional office and nine other branches using purposeful sampling. Structured questionnaires with open, closed and matrix questions were used to solicit information from the respondents. Collected data was analyzed using SPSS version 17.0 and descriptive statistics was used to convert data into frequencies, percentages and means which were presented in tables. The findings revealed that: most unionisable employees had worked for 'less than four years, not all targets were able to be measured, most measurement methods were not computerized and that employees used more than one target measurement methods to measure their BSC targets, all managers had attended training more than once while a few unionisable employees had attended BSC training once with the majority not attending at all, review of the subordinate BSC was not regular, final BSC ratings were not justified and the performance time frame was not followed. The study concluded that ability to measure all targets and the accuracy of the measurement methods influenced the BSC implementation. It also concluded that BSC skills influenced directly BSC implementation as the skills were useful in selecting SMART measures that were linked to the organization's strategy and vision. The study also concluded that management involvement influenced successful implementation of BSC as areas of weaknesses and strengths would be regularly identified. The study also concluded that failure to follow the appraisal time frame led to unjustified final rating thus influencing BSC implementation. The study recommended use of an IT system for easier measuring of targets, training of BSC skills to all employees and follow up on the use of skills acquired, review of BSC progress to be at least quarterly and performance appraisal objectives to be adhered to. However more research should be carried out to determine if BSC influenced the overall performance of organizations.