The use of the balanced scorecard (BSC) as a performance management and personal development tool in Abagold, Hermanus, Western Cape.

Abstract

The strategic management framework and plan implemented through the balanced scorecard (BSC) encompasses a detailed analysis of the enterprise situation/position. The translation of the strategic framework analysis or plan through the company balanced scorecard clearly shows how a company plans to satisfy customers, how to grow the business, how to respond to both the changing industry and market conditions and how best to capitalise on new opportunities. The main purpose of this study was to evaluate the use of the balanced scorecard at Abagold, Hermanus, Western Cape (Abagold), through testing and exploring the actual impact of the BSC on performance management and encouraging self-development. The study thus aimed to reveal an understanding as to why employees have mixed feelings of and opinions on the value of the BSC within the organisation. A quantitative research method was employed. From the target population of 505 that comprised the total workforce of Abagold, a sample of 148 were selected and 102 completed the survey. The instrument used was a questionnaire that was hand distributed to the respondents. The finding of the study has revealed that on performance management, Abagold does define the mission and vision before strategy formulation – thus setting a correct platform for the BSC. It has also been revealed that the BSC translates strategy into deliverables and defines goals/objectives that are geared towards the mission and vision. In addition to that, it has been revealed that the critical success factors of the BSC are evident in performance management, despite evidence of lack of effective strategy to communicate deliverables to the workforce. The communication shortcoming to the workforce is a translation of the marginal view that the BSC system is not the best method of performance management employed by Abagold. On personal development, the study revealed that the BSC is not effective as a personal development tool at Abagold. In addition to that, very few of the respondents indicated that they see the outcome of their BSC interviews resulting in a development plan to address shortcomings or areas that need improvement. The main recommendations of the study are the need for Abagold to test the applicability of all key performance indicators (KPIs), to ensure that all KPIs on the BSC are clear and that they reflect the effort the company requires from the individual.