Abstract:
This study was concerned with the assessment of the implementation of balanced scorecard
(BSC) in ERCA, specifically Western Addis Ababa branch. It analyzed the correlation of
relevance of the tool, communication, execution and consequence of performance appraisal
results on effective performance management implementation. Data was gathered from a sample
of 142 employees (using questionnaire)who were selected using stratified sampling method. The
return rate of the questionnaire is 126 (88.7%) The collected data was analyzed using univairiate
description, cross-tabulation, and Pearson Correlation analysis. Major findings of the research
show that the company has very poor BSC implementation. Also the study reveal out that BSC is
a relevant tool to the organization; but its implementation is poor due to inefficient execution,
ineffective communication and insufficient measures based on the appraisal results. Hence, it is
recommended that the managers of the organization are expected to give due considerations in
implementing BSC being focusing on execution and communication, raising the level of
competency for team leaders and creating uniformity across the organization and finally taking
BSC results seriously in human resource decisions.
