THE EFFECTS OF BALANCED SCORECARD IMPLEMENTATION: THE CASE OF A MALAYSIAN SERVICE ORGANIZATION FROM INTERNAL BUSINESS PROCESSES PERSPECTIVE
DOI:
https://doi.org/10.32890/jtom2016.11.2.10Keywords:
performance management system, Organizational performance, employee attitudeAbstract
The objective of this research was to investigate the impact of the employees’ attitude derived from the usage of Balanced Scorecard (BSC) Internal Business Processes perspective in MGSB Service Organization. Other objectives include recommendations to improve existing performance management system (PMS) practices and to identify issues and challenges in its implementation which merits further research. A total of 1000 respondents were surveyed and the data was analysed using Pearson Correlation Analysis and Regression Analysis. Analysis of results indicated that there was a positive relationship between the Organizational Culture and Employee Attitude in MGSB. The implication of this research would benefit the organization in terms of employees’ effectiveness and the pervasiveness of the performance metric implementation.
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References
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Armstrong, M. (2006). Performance Management: Key Strategies and Practical Guidelines. Kogan Page.
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Ashkenas, R., Ulrich, D., Jick T. & Kerr, S. (2002). The Boundaryless Organisation: Breaking the Chains of Organisational Structure, 2nd Edition, San Francisco CA: Jossey-Bass
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Bailey, J.R., Chen, C.C. & Dou, S.G. (1997). Conceptions of self and performance-rated feedback in the U.S., Japan and China. Journal of International Business Studies, 3rd quarter: 605-25.
Banks, C.G. & Murphy, K.R. (1985). Toward narrowing the research-practice gap in performance appraisal. Personnel Psychology, 38: 335-345.
Beckhard, R. (1969). Organisation development: Strategies and models, Reading, MA: Addison- Wesley, Reading, MA, 1969, p. 9
Bititci, U.S., Carrie, A.S. & Mcdevitt, L. (1997). Integrated performance measurement systems: a development guide. International Journal of Operations & Production Management, Vol. 17 No. 5/6, pp. 522-34.
Bourne, M.C.S. & Bourne, P.A. (2007). Balanced Scorecard – Instant Manager. Hodder, London.
Burns, J., & Baldvinsdottir, G. (2005). An institutional perspective of accountants’ new roles – the interplay of contradictions and praxis. European Accounting Review, 14(4), 725- 757.
Cavana, R.Y., Delahaye, B.L. & Sekaran, U. (2001). Applied Business Research: Qualitative and Quantitative Methods, Singapore: John Wiley & Sons.
Cohen, J. (1988), Statistical Power Analysis for the Behavioral Sciences (2nd ed.), New Jersey: Lawrence Erlbaum Associates, ISBN 0-8058-0283-5, retrieved 10 July 2010
Cole, M.S., Walter, F., Bedeian, A.G. & O’Boyle, E.H. (2011). Job burnout and employee engagement: A meta-analytic examination of construct proliferation. Journal of Managerial Psychology, 19(4): 386-405.
Coutts, L.M. & Schneider, F.W. (2004). Police officer performance appraisal systems: how good are they? Policing: An International Journal of Police Strategies & Management 27 (1): 67-81.
Cummings T. & Worley C. (2001). Organisation Development and Change, 7th Edition. Ohio, USA. South Western College Publishing, p. 159.
Davies, G.F. (2006). Mechanisms and the theory of organisations. Journal of Management Inquiry, vol. 15, no. 2, pp. 114-118.
Emory, C.W. & Cooper, D.R. (1991). Business research methods (4th edition). Boston: Irwin.
Easterby-Smith, M., Thorpe, R. & Lowe, A. (1991). Management Research; An Introduction. Sage, London.
Goh, K.S. (2009). Corporate Governance Practices of XYZ Chinese Family Owned Business. DBA Research, Southern Cross University.
Gomez-Meijia, L.R., Balkan, D.B. & Candy, R. (1995). Managing Human Resources, Englewood Cliff: Prentice Hall International.
Greenberg, J. (1987). Using Diaries to Promote Procedural Justice in Performance Appraisal. Social Justice Research.
Hair, J.F., Black, W.C., Babin, B.J., Anderson, R.E. & Tatham, R.L. (1998). Multivariate Data Analysis. Upper Saddle River, NJ: Prentice Hall.
Harris, D. (1994). Human Resource Development. The Dryden Press, Texas, USA.
Hofstede, G. (1993). Cultural constraints in management theories. Academy of Management Executive 7(1): 81-94.
Johnson, H.T. & Kaplan R.S. (1987). Relevance lost: The rise and fall of management accounting. Boston, MA: Harvard Business School Press.
Joon-Chien, D. (1981). Modernising the budget system: The Malaysian experience. Public Administration and Development, 1, 291-305.
Kaplan, R. & Norton D.P. (1996). The Balance Scorecard: Translating Strategy into Action. Harvard Business School Press, Boston, M.A.
Kaplan, R. & Norton D.P. (2001). The strategy-focused organisation. Ivey Business Journal, May/June.
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Kuzuhara, A. (2002). Organisational Behaviour and Management: An Integrated Skills Approach. South-Western, USA.
Lapin, L.L. (1990). Statistics for modern business decision. Harcourt Brace Jovanovich: San Diego.
Lawler, E.E. (1976). Control System in Organisation in Dunnette, M ed., Handbook of Industrial / Organisational Psychology, Chicago: Rand McNally.
Longenecker, C.O., Gioia D.A., & Sims H.P. (1987). Behind the Mask: The Politics of Employee Appraisal. Academy of Management Executive, 1, 183-193.
Mayfield C.O. & Taber T. (2010). A prosocial self-concept approach to understanding organisational citizenship behaviour. Journal of Managerial Psychology, 52(1), 397- 422.
Meyer, J.P. & Allen, N.J. (1991). A three component conceptualisation of organisational commitment. Human Resource Management Review, 1(1), pp 61-98
Ministry of Finance (MOF). (2009). Retrieved from http://www.treasury.gov.my
Misener, T.R., Haddock, K.S., Gleaton, J.U. & Ajameih, A.R.A. (1996). Toward an international measure of job satisfaction. Nursing Research, 45, 87-91.
Moorhead, G. & Griffin, R.W. (1992). Organisational Behaviour, Third Edition, Boston: Houghton Mifflin Company.
Nanni, A.J., Dixon R. & Vollman T.E. (1992). Integrated performance measurement: management accounting to support the new manufacturing realities. Journal of Management Accounting Research 4(Fall): 1-19.
Neely, A. (1999). The performance measurement revolution: why now and what next? International Journal of Operations & Production Management, vol. 19 No. 2, pp. 205-28.
Neely, A., Gregory, M., & Platts, K. (1995). Performance measurement system design: a literature review and research agenda. International Journal of Operations & Production Management, 15(4), 80 -116.
Neuman, W.L. (2006). Social Research Methods: Qualitative and Quantitative Approaches. Pearson, Allyn and Bacon, Boston, USA.
Niven, P.R. (2002). Balanced Scorecard Step-By-Step, John Wiley & Sons, Inc, New York.
Othman, R., Che Senik, Z., Ahmad Domil, A.K., Abdullah, N. & Hamzah, N. (2006). A case study of Balanced Scorecard implementation in a Malaysian company. Journal of Asia-Pacific Business, 7(2), 55-72
Otley, D. (1999). Performance management: a framework for management control systems research. Management Accounting Research, 10, 363-382.
Parmenter, D. (2007). Chapter 1-Introduction. Performance management: Developing, Implementing and Using Winning KPIs. John Wiley & Sons.
Pollit, C. (2005). Performance management in practice: A comparative study of executive agencies. Journal of Public Administration Research and Theory. Vol 16, pp25-27.
Pulakos, E.D. (2009). Performance Management: A new approach for driving business results. Willey-Blackwell, United Kingdom.
Purcell, J. & Boxal, P. (2003). Strategy and Human Resource Management, Management Work and Organisations. Palgrave Macmillan, U.K.
Roscoe, J.T. (1975). Fundamental Research Statistics for the behavioural sciences, 2nd edition. Holt, Rinehart & Winston, New York.
Sanusi, A.A. (1997). Public administration reforms in Malaysia: A developing country perspective, Proceedings of the government. Promoting Sound Development Management Seminar, Fukuoka, 10 May 1997.
Sekaran, U. (2000). Research Methods for Business: A Skill Building Approach, John Wiley, New York.
Shirley, M. & Walsh P. (2000). Public versus Private Ownership: the Current State of the Debate. Washington D.C, World Bank.
Smith, P.C. & Goddard, M. (2002). Performance management and operational research: a marriage made in heaven?. Journal of the Operational Research Society, 53, 247-255.
Smith, P.C., Kendall, L.M. & Hulin, C.L. (1969). The measurement of satisfaction in work and retirement. Chicago: Rand McNally.
Steers, R.M. & Black, J.S. (1994). Organisational behaviour. 5th edition. New York: Harper Collins.
Taipale, S., Selander K., Anttila T. & Natti, A. (2011). Work engagement in eight European countries: the role of job demands, autonomy and social support. Journal of Sociology and Social Policy, 31(7): 486-504.
Tan, L.L. (2008). The Internationalisation of Malaysian Manufacturing Small and
Medium Enterprises, DBA Research, Southern Cross University.
Tan Sri Mohd Sidek Hassan. (2008). Opening Address to ‘Government of the Future’ Seminar, 10 February. Retrieved from http://www.pmo.gov.my/ksn.
Ticehurst, G.W. & Veal, A.J. (1999). Business Research Methods: A Managerial Approach. Addison Wesley, Longman, South Melbourne, Australia.
Trezzini, B. (2001). Institutional foundations of Malaysian’s state capacity. Asian Journal of Public Administration, 24(2), 185-209.
Ward, S., Pearson C. & Entrekin L. (2002). Chinese Cultural Values and the Asian Meltdown. International Journal of Social Economics, 29(3), 205-217.
Warner, R.M. (2008). Applied Statistics: From Bivariate through Multivariate Techniques. Sage Publication, Thousand Oaks, California.
Williams, R.S. (2002). Managing Employee Performance: Design and Implementation in Organisations. Thomson Learning EMEA, p. 172.
Yusof, A.A. (2003). Performance Appraisal: Issues, Challenges and Prospects. Pearson Prentice Hall, Petaling Jaya, XYZ. pp. 193-200.
Abernethy, M.A., Horne, M.H., Lillis, AM, Malina, M.A. & Selto, F.H., (2005). A multi- method approach to building causal performance maps from expert knowledge. p. 136.
Agyris, C. (1977). Organisational learning and management information systems. Accounting, Organisations, and Society, 2(2), 113-123.
Aldag, R. & Kuzuhara, L. (2002). Organisational Behaviour & Management: An Integrated Skills Approach, South Western, Ohio, p.108.
Allameh, S.M., Shahriari, M. & Mansoori, H. (2012). Investigating Employee’s attitude toward Organisation, Organisational Climate and Employee’s Engagement as Antecedents of Organisational Citizenship Behavior. Australian Journal of Basic and Applied Sciences, 6(8): 384-393.
Armstrong, M. (2006). Performance Management: Key Strategies and Practical Guidelines. Kogan Page.
Ary, D., Jacobs L.C., Razavich, A. (1990). Introduction to research in education, 4th edition, Holt, Rinehart & Winston, Fort Worth.
Ashkenas, R., Ulrich, D., Jick T. & Kerr, S. (2002). The Boundaryless Organisation: Breaking the Chains of Organisational Structure, 2nd Edition, San Francisco CA: Jossey-Bass
Azhar, R. (2009). Adoption of performance measurement among Malaysian Public Sector. Master Research, University of Malaya.
Bailey, J.R., Chen, C.C. & Dou, S.G. (1997). Conceptions of self and performance-rated feedback in the U.S., Japan and China. Journal of International Business Studies, 3rd quarter: 605-25.
Banks, C.G. & Murphy, K.R. (1985). Toward narrowing the research-practice gap in performance appraisal. Personnel Psychology, 38: 335-345.
Beckhard, R. (1969). Organisation development: Strategies and models, Reading, MA: Addison- Wesley, Reading, MA, 1969, p. 9
Bititci, U.S., Carrie, A.S. & Mcdevitt, L. (1997). Integrated performance measurement systems: a development guide. International Journal of Operations & Production Management, Vol. 17 No. 5/6, pp. 522-34.
Bourne, M.C.S. & Bourne, P.A. (2007). Balanced Scorecard – Instant Manager. Hodder, London.
Burns, J., & Baldvinsdottir, G. (2005). An institutional perspective of accountants’ new roles – the interplay of contradictions and praxis. European Accounting Review, 14(4), 725- 757.
Cavana, R.Y., Delahaye, B.L. & Sekaran, U. (2001). Applied Business Research: Qualitative and Quantitative Methods, Singapore: John Wiley & Sons.
Cohen, J. (1988), Statistical Power Analysis for the Behavioral Sciences (2nd ed.), New Jersey: Lawrence Erlbaum Associates, ISBN 0-8058-0283-5, retrieved 10 July 2010
Cole, M.S., Walter, F., Bedeian, A.G. & O’Boyle, E.H. (2011). Job burnout and employee engagement: A meta-analytic examination of construct proliferation. Journal of Managerial Psychology, 19(4): 386-405.
Coutts, L.M. & Schneider, F.W. (2004). Police officer performance appraisal systems: how good are they? Policing: An International Journal of Police Strategies & Management 27 (1): 67-81.
Cummings T. & Worley C. (2001). Organisation Development and Change, 7th Edition. Ohio, USA. South Western College Publishing, p. 159.
Davies, G.F. (2006). Mechanisms and the theory of organisations. Journal of Management Inquiry, vol. 15, no. 2, pp. 114-118.
Emory, C.W. & Cooper, D.R. (1991). Business research methods (4th edition). Boston: Irwin.
Easterby-Smith, M., Thorpe, R. & Lowe, A. (1991). Management Research; An Introduction. Sage, London.
Goh, K.S. (2009). Corporate Governance Practices of XYZ Chinese Family Owned Business. DBA Research, Southern Cross University.
Gomez-Meijia, L.R., Balkan, D.B. & Candy, R. (1995). Managing Human Resources, Englewood Cliff: Prentice Hall International.
Greenberg, J. (1987). Using Diaries to Promote Procedural Justice in Performance Appraisal. Social Justice Research.
Hair, J.F., Black, W.C., Babin, B.J., Anderson, R.E. & Tatham, R.L. (1998). Multivariate Data Analysis. Upper Saddle River, NJ: Prentice Hall.
Harris, D. (1994). Human Resource Development. The Dryden Press, Texas, USA.
Hofstede, G. (1993). Cultural constraints in management theories. Academy of Management Executive 7(1): 81-94.
Johnson, H.T. & Kaplan R.S. (1987). Relevance lost: The rise and fall of management accounting. Boston, MA: Harvard Business School Press.
Joon-Chien, D. (1981). Modernising the budget system: The Malaysian experience. Public Administration and Development, 1, 291-305.
Kaplan, R. & Norton D.P. (1996). The Balance Scorecard: Translating Strategy into Action. Harvard Business School Press, Boston, M.A.
Kaplan, R. & Norton D.P. (2001). The strategy-focused organisation. Ivey Business Journal, May/June.
Khan, A. (2009). How Organisations Can Achieve Breakthrough performance Through KPI, Retrieved from www.//mhtml:file://C:/DocumentsandSettings/Acer/Desktop/PERFORMANCE MANAGEMENT.
Kuzuhara, A. (2002). Organisational Behaviour and Management: An Integrated Skills Approach. South-Western, USA.
Lapin, L.L. (1990). Statistics for modern business decision. Harcourt Brace Jovanovich: San Diego.
Lawler, E.E. (1976). Control System in Organisation in Dunnette, M ed., Handbook of Industrial / Organisational Psychology, Chicago: Rand McNally.
Longenecker, C.O., Gioia D.A., & Sims H.P. (1987). Behind the Mask: The Politics of Employee Appraisal. Academy of Management Executive, 1, 183-193.
Mayfield C.O. & Taber T. (2010). A prosocial self-concept approach to understanding organisational citizenship behaviour. Journal of Managerial Psychology, 52(1), 397- 422.
Meyer, J.P. & Allen, N.J. (1991). A three component conceptualisation of organisational commitment. Human Resource Management Review, 1(1), pp 61-98
Ministry of Finance (MOF). (2009). Retrieved from http://www.treasury.gov.my
Misener, T.R., Haddock, K.S., Gleaton, J.U. & Ajameih, A.R.A. (1996). Toward an international measure of job satisfaction. Nursing Research, 45, 87-91.
Moorhead, G. & Griffin, R.W. (1992). Organisational Behaviour, Third Edition, Boston: Houghton Mifflin Company.
Nanni, A.J., Dixon R. & Vollman T.E. (1992). Integrated performance measurement: management accounting to support the new manufacturing realities. Journal of Management Accounting Research 4(Fall): 1-19.
Neely, A. (1999). The performance measurement revolution: why now and what next? International Journal of Operations & Production Management, vol. 19 No. 2, pp. 205-28.
Neely, A., Gregory, M., & Platts, K. (1995). Performance measurement system design: a literature review and research agenda. International Journal of Operations & Production Management, 15(4), 80 -116.
Neuman, W.L. (2006). Social Research Methods: Qualitative and Quantitative Approaches. Pearson, Allyn and Bacon, Boston, USA.
Niven, P.R. (2002). Balanced Scorecard Step-By-Step, John Wiley & Sons, Inc, New York.
Othman, R., Che Senik, Z., Ahmad Domil, A.K., Abdullah, N. & Hamzah, N. (2006). A case study of Balanced Scorecard implementation in a Malaysian company. Journal of Asia-Pacific Business, 7(2), 55-72
Otley, D. (1999). Performance management: a framework for management control systems research. Management Accounting Research, 10, 363-382.
Parmenter, D. (2007). Chapter 1-Introduction. Performance management: Developing, Implementing and Using Winning KPIs. John Wiley & Sons.
Pollit, C. (2005). Performance management in practice: A comparative study of executive agencies. Journal of Public Administration Research and Theory. Vol 16, pp25-27.
Pulakos, E.D. (2009). Performance Management: A new approach for driving business results. Willey-Blackwell, United Kingdom.
Purcell, J. & Boxal, P. (2003). Strategy and Human Resource Management, Management Work and Organisations. Palgrave Macmillan, U.K.
Roscoe, J.T. (1975). Fundamental Research Statistics for the behavioural sciences, 2nd edition. Holt, Rinehart & Winston, New York.
Sanusi, A.A. (1997). Public administration reforms in Malaysia: A developing country perspective, Proceedings of the government. Promoting Sound Development Management Seminar, Fukuoka, 10 May 1997.
Sekaran, U. (2000). Research Methods for Business: A Skill Building Approach, John Wiley, New York.
Shirley, M. & Walsh P. (2000). Public versus Private Ownership: the Current State of the Debate. Washington D.C, World Bank.
Smith, P.C. & Goddard, M. (2002). Performance management and operational research: a marriage made in heaven?. Journal of the Operational Research Society, 53, 247-255.
Smith, P.C., Kendall, L.M. & Hulin, C.L. (1969). The measurement of satisfaction in work and retirement. Chicago: Rand McNally.
Steers, R.M. & Black, J.S. (1994). Organisational behaviour. 5th edition. New York: Harper Collins.
Taipale, S., Selander K., Anttila T. & Natti, A. (2011). Work engagement in eight European countries: the role of job demands, autonomy and social support. Journal of Sociology and Social Policy, 31(7): 486-504.
Tan, L.L. (2008). The Internationalisation of Malaysian Manufacturing Small and
Medium Enterprises, DBA Research, Southern Cross University.
Tan Sri Mohd Sidek Hassan. (2008). Opening Address to ‘Government of the Future’ Seminar, 10 February. Retrieved from http://www.pmo.gov.my/ksn.
Ticehurst, G.W. & Veal, A.J. (1999). Business Research Methods: A Managerial Approach. Addison Wesley, Longman, South Melbourne, Australia.
Trezzini, B. (2001). Institutional foundations of Malaysian’s state capacity. Asian Journal of Public Administration, 24(2), 185-209.
Ward, S., Pearson C. & Entrekin L. (2002). Chinese Cultural Values and the Asian Meltdown. International Journal of Social Economics, 29(3), 205-217.
Warner, R.M. (2008). Applied Statistics: From Bivariate through Multivariate Techniques. Sage Publication, Thousand Oaks, California.
Williams, R.S. (2002). Managing Employee Performance: Design and Implementation in Organisations. Thomson Learning EMEA, p. 172.
Yusof, A.A. (2003). Performance Appraisal: Issues, Challenges and Prospects. Pearson Prentice Hall, Petaling Jaya, XYZ. pp. 193-200.
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28-12-2016
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Mohd Saudi, M. H. (2016). THE EFFECTS OF BALANCED SCORECARD IMPLEMENTATION: THE CASE OF A MALAYSIAN SERVICE ORGANIZATION FROM INTERNAL BUSINESS PROCESSES PERSPECTIVE. Journal of Technology and Operations Management, 11(2), 108–126. https://doi.org/10.32890/jtom2016.11.2.10
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