Evaluating the Implementation of Balanced Scorecard in Employee Performance Appraisal
DOI:
https://doi.org/10.21512/tw.v25i2.12033Keywords:
employee performance assessment, balanced scorecard, NVivo 12Abstract
One well-known performance assessment approach is the balanced scorecard (BSC), which evaluates financial and non-financial performance aspects. Although BSC has been widely used in the private sector, its implementation in the public sector presents unique challenges. This research examined the implementation of BSC at Perum Perhutani, an Indonesian state-owned company that manages forest resources. This research focused on the implementation of BSC in the Human Resources (HR) division. Even though BSC has succeeded in improving overall performance assessment, there are still obstacles to employees' understanding of the BSC concept, which causes employees to be confused when interpreting performance indicators. Apart from that, performance assessments are still affected by subjective assessments and a lack of specific and clear indicators. This research proposes the integration of Objectives and Key Results (OKR) to increase the clarity and alignment of performance indicators. By employing NVivo 12 for analysis, this research contributes to the literature regarding BSC implementation in developing countries, especially in the public sector, offering new insights to improve performance management practices in Indonesia.
Plum Analytics
References
Amer, F., Hammoud, S., Khatatbeh, H., Lohner, S., Boncz, I., & Endrei, D. (2022). The deployment of balanced scorecard in health care organizations: Is it beneficial? A systematic review. BMC Health Services Research, 22. https://doi.org/10.1186/s12913-021-07452-7
Arslan, G. (2023). Psychological well-being and mental health in youth: Technical adequacy of the comprehensive inventory of thriving. Children, 10(7) https://doi.org/10.3390/children1007126
Board of Directors of Perum Perhutani. (2011). Decision of the board of directors No. 78/KPTS/DIR/2011 [Internal Document].
Chalupova, M., & Voracek, J. (2021). A Conceptual Framework for a Dynamic Model of the Regional Labelling Systems [Conference presentation abstract]. IFKAD 2020, Rome, Italy.
Creswell, J. W., & Creswell, J. D. (2018). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches. SAGE.
Dangol, P. (2021). Role of performance appraisal systems and its impact on employee motivation. Quantitative Economics and Management Studies, 2(1), 13-26. https://doi.org/10.35877/454ri.qems119.
Dhanabhakyam, M., & Sarath, M. (2023). Psychological wellbeing: Asystematic literature review. International Journal of Advanced Research in Science, Communication and Technology, 3(1), 603-607.
Duwe, A. B. (2024). An overview of effectiveness of balanced scorecard performance management systems in Tanzania. International Journal of Innovative Science and Research Technology, 9(7), 2853-2869. https://doi.org/10.38124/ijisrt/IJISRT24JUL1565.
Fausiah, R., Wijaya, H., & Ramli, M. (2023). Balanced Scorecard Analysis as a Performance Measuring Tool for PT Japfa Makassar. 19(02).
Gomes, J., & Romão, M. (2018). Balanced scorecard: Today’s challenges. Recent Advances in Information Systems and Technologies, 1, 648-657. https://doi.org/10.1007/978-3-319-56535-4_64.
Helal, I. (2022). The impact of performance appraisals on employee productivity: The case of the Lebanese retail sector. European Journal of Business and Management Research, 7(5), 109-117. https://doi.org/10.24018/ejbmr.2022.7.5.1616.
Huang, Y.S., Ito, K., & Nemoto, M. (2023). Sustainable communication management using a balanced scorecard: Evidence from Japanese hospitals based on corporate communication theory. Sustainability (Switzerland), 15(13). https://doi.org/10.3390/su151310111.
Indonesian Minister of State-Owned Enterprises. (2023). Regulation of the Minister of State-Owned Enterprises Number SK-306/MBU/11/2023 on Technical Guideline on the Preparation of Key Performance Indicator in State-Owned Enterprises.
Kumar, J., Prince, N., & Baker, H. K. (2022). Balanced scorecard: A systematic literature review and future research Issues. FIIB Business Overview, 11(2), 147-161. https://doi.org/10.1177/23197145211049625.
Kundi, Y. M., Aboramadan, M., Elhamalawi, E. M. I., & Shahid, S. (2020). Employee psychological well-being and job performance: exploring mediation and moderation mechanisms. International Journal of Organizational Analysis, 29(3), 736-754. https://doi.org/10.1108/IJOA-05-2020-2204
Madsen, D. Ø. (2020). The evolutionary trajectory of the agile concept viewed from management fashion perspective. Social Sciences, 9(5), 69. https://doi.org/10.3390/SOCSCI9050069.
Mahmić-Kaknjo, M., Tomić, V., Ellen, M.E., Nussbaumer-Streit, B., Sfetcu, R., Baladia, E., Riva, N., Kassianos, A.P. and Marušić, A. (2023). Delphi survey on the most promising areas and methods to improve systematic reviews’ production and updating. Systematic Reviews, 12(1). https://doi.org/10.1186/s13643-023-02223-3.
Milkovich, G. T., Newman, J. M., & Gerhart, B. (2014). Compensation. McGraw-Hill.
Murrell, A. J., Blake-Beard, S., & Porter, D. M. (2021). The importance of peer mentoring, identity work and holding environments: A study of African American leadership development. International Journal of Environmental Research and Public Health, 18(9). https://doi.org/10.3390/ijerph18094920.
Nafari, E., & Rezaei, B. (2022). Relationship between human resource strategy and organizational performance based on balanced scorecard in a public hospital in Iran: A cross-sectional study. BMC Health Services Research, 22. https://doi.org/10.1186/s12913-022-07767-z
Olariu, A.A., Popa, Stefan C., Breazu, A., & Popa, C.F. (2023). Organizational performance in the public and private sectors in Romania: The balanced scorecard perspective. Management Research and Practice, 15(2), 17-28.
Saragih, R., Depari, A. P. S., & Muda, I. (2022). Company performance monitoring by objective key result (OKR), profit and loss account approach pandemic of COVID-19 era. International Journal of Health Sciences, 6(1), 2759-2765. https://doi.org/10.53730/ijhs.v6ns1.5198.
Schaufeli, W. (2021). Engaging leadership: How to promote work engagement? Frontiers in Psychology, 12. https://doi.org/10.3389/fpsyg.2021.754556
Usman, A., Mediaty, Ansar, A. D. A., Utami, A. P., Nurafifah, I. P., & Nasution. (2022). Manfaat pengimplementasian balanced bcorecard: Sebuah literatur. Digital Economy and Business Review, 3(2), 432-452.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Trystania Ganang, Netty Laura Simbolon, Ktut Silvanita Mangani
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
a. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License - Share Alike that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
b. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
c. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
USER RIGHTS
All articles published Open Access will be immediately and permanently free for everyone to read and download. We are continuously working with our author communities to select the best choice of license options, currently being defined for this journal as follows: Creative Commons Attribution-Share Alike (CC BY-SA)
