Factors Affecting the Implementation of Balanced Scorecard in EthioTelecom: The Case Jimma Ethio-Telecom South-Western Regional Office

Abstract

The purpose of this study was to examine the factors affecting the implementation of the Balanced Scorecard (BSC) in Ethio-telecom Jimma Regional Office (SWR). The research design used in this study was Descriptive and Exploratory in nature. Using stratified sampling, a sample of 183 employees was selected from different department and professions. Data collected via semi-structured questionnaire was analyzed using SPSS version 20 and results were analyzed using Descriptive statics to analyze mean, standard deviation, percentage, and inferential statics to analyze correlation and regression methods. The research revealed that BSC implementation is good in some aspects such as knowing of individual numerical target, frequent meeting with managers or supervisors, and BSC training on implementation. BSC implementation has some setbacks with regard to believing and signing on target time willingly, vertically to link to company strategy at each level, effective two-way communication, and support from supervisor before finalization of targets, and training and orientation about its benefit to overall employees and companies adequately. The findings show that factors such as employee perception, resource availability, design of BSC, and internal system, collectively have strong association and significant effect on BSC implementation in Ethio-telecom South-Western Region. Meanwhile, the individual effect analysis result revealed that employee perception has highest effect on BSC implementation in Ethio-telecom followed by design of BSC and resource availability and internal system has the least effect on BSC implementation. Therefore, the study recommended Ethio Telecom South Western Regional Managers‟ should use strategies such as employee consultation, training on time management, and regular meeting between employees and their supervisors, and incentives in order to reach attain agreement with employees on target time.