The balanced scorecard and performance of public sector organizations in the ministry of energy and petroleum in Kenya.
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Date
2014-06-30
Authors
Karimi, Muiruri Zipporah
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Abstract
The objectives that are stated by the BSC are more than just a collection of financial and
non-financial measures; it is a holistic process of identifying the individual parts, needs
and goals of the organization and recognizing that each arm is intimately connected to the
success and health of the firm as a whole. If organizations are to survive and succeed in
the information age of exceptional competition, it is vital that they derive strategies and
implement measurement capabilities. “The BSC retains financial measurement as a
critical summary of managerial business performance, but it highlights a more general
and integrated set of measurements that link current customer, internal process,
employee, and system performance for long-term financial success”( Kaplan & Norton,
1996, pg. 25). Implementing these four perspectives an organization is able to form a
more complete picture of the needs of its individual business units, and therefore a more
concise view on how to measure them (Kaplan & Norton, 1996). The study aimed at
finding out the application of the balanced score card in the public sector organizations in
Kenya. The objectives of the study included a deeper insight of the four BSC
perspectives that is the financial, customer, internal business process and innovation and
learning on organizational performance. The study took a descriptive research survey by
selecting the ten parastatals in the Ministry of Energy and Petroleum. The respondents
were classified into two categories namely officers in charge of performance contracting
and heads of departments namely; ICT, Human Resource Management, Finance and
Customer service. The researcher used one instrument of research that is the
questionnaire which was designated for the Heads of Departments and for the officers in
charge of performance contract exercise too. Data collected was thoroughly analyzed
using (SPSS). Themes were presented as they emerged in the data analysis. The findings
revealed that holding Financial; Internal Business Process; Innovation and learning; and
Customer Focus perspectives of the BSC to a constant zero, performance of the Business
Organizations in public sector in Kenya would be at 3.938 and a unit increase in business
performance would be due to a change in financial factors by 0.205; Internal Business Process by
0.771, Innovation and learning factors by 0.344 and Customer Focus factors by a 1.024. This
clearly shows that there is a strong positive relationship between Innovation and learning
perspective and performance of the business organizations in public sector in Kenya.
Description
Department of Business Administration, 59p. 2014