Relationship between Balanced Scorecard Implementation and Organizational Management Performance

Abstract

To ensure excellent performance in a time of increasing competition in the higher education sector, a university must apply an appropriate performance measurement system that reflects and gives the opportunity to improve on its research and teaching quality as well as quality of its facilities and staff .The purpose of this study was to analyse the relationship between balanced scorecard (BSC) implementation and organizational performance. This was brought about by lack of "balanced view of the whole organization". In order to achieve this, the study focused on the following: evaluation of the relationship between financial indicators and performance, assessment of customer satisfaction, determination of the effects of internal business processes and determination of the effects of learning and growth. The study involved descriptive research design of senior employees of selected departments in Universities within Meru County. The data was collected through closed ended questionnaires and analysed through chi-square inferential statistics. To assess multicollinearity problems, variables were examined using a correlation matrix. The Keser-Meyer-Olkin (KMO) test and Bartlett's test was used for reliability and validity. The data was presented in the form of percentages, frequencies and tables. Narrative interpretation and descriptive was used to present the findings. Findings indicated that there was a relationship between financial indicators assumed and performance; customer satisfaction indicators assumed and performance: internal business processes and performance as well as learning and growth and performance.