Abstract:
The aim of this study is to examine and evaluate the effects of the Balanced Scorecard
implementation on employee performance appraisal practices inthe Case of Ethio Telecom
Jimma District. The study was both descriptive and explanatory research design. Accordingly, in
descriptive method the study was focused on the determination of the frequency with which an
event occurs and how variables are related in a particular context. Accordingly, in explanatory
approach the study was concerned with determining the impact and cause and effect
relationships among variables. The target population of the study was total employees existing in
Ethio Telecom Jimma District, those are 528.The sample size of the respondent’s was
228employees. Sampling techniques of the study was probability sampling specifically simple
random sampling. The method of data collection was through survey method and the tools are
questioners, interview and document analysis. The study used SPSS software package in the
entire analysis part. Secondary sources of data was collected from employee performance
appraisal documents, plans, reports, and other related literatures. The study confirms that BSC
implementation has a positive effect on the practices of performance appraisal. Specifically, the
link between organizational objectives and individual goals was considered to have stronger
relationship on performance appraisal. In the qualitative analyses, majority of the respondents
(Managers) said that the link between organizational objectives and individual goals is the main
contribution that the BSC implementation has brought on the overall practices of performance
appraisal. The researcher recommended that the organization should give adequate training on
how to cascade and implement corporate BSC, to make the template easy the organization should
assign at least one focal person for each division, the organization should try to identify the
metrics that measured qualitatively and to get the greatest contribution of BSC the organization
should systemize its deployment
