The effects of the implementation of balanced scorecard on employee performance appraisal practices: the case of Ethio telecomjimma district

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