Using Balanced Scorecard for Managing Performance in Selected Ghanaian Banks

Abstract

Prior to 1992, Kaplan and Norton posited that organizations solely rely on financial measures to manage their performance. It has become possible for organizations to incorporate in addition to financial measures nonfinancial measures to manage their performance. It is in this light that balanced scorecard is one of the tools used to manage performance. However, managing the overall performance of organizations using balanced scorecard is limited in literature in Ghanaian banks. This study explores the extent of use of the four perspectives of balanced scorecard as a tool to for managing performance in selected Ghanaian banks. Survey research method was employed. In relation to the extent of used of balanced scorecard perspectives by selected Ghanaian banks to manage performance, it was found that financial perspective was used followed by customer perspective, learning and growth perspective, and internal business process. The ANOVA test showed that the mean scores of the four perspectives of the balanced scorecard was statistically and significantly different from each other. The research concludes that, Ghanaian banks relied heavily on financial perspective to measure performance.

Balanced Scorecard: Literature Review and Implementation in Organization

“…From the performance measurement results, the IPB management department has achieved a performance achievement of 80%. (Agyeman et al, 2017)…”

Learning and growth perspective: Banking sectors evidence

“…male and female of both bank branches who are working in different departments (sales and marketing, finance, remittances, clearing) are selected for the study. The questionnaire survey was adopted and modified from Agyeman et al, 2017& Murith, 2015,that is divided into four sections as discussed below: The first section of the questionnaire consist of demographic information i.e. consist of age, academic background and departments.…”

The Effect of Applying Balanced Scorecard on Earnings Quality among Banks Listed in Palestine Exchange

“…Quality Agyeman et al (2017) revealed that the most used BSC perspectives are: The financial perspective, customer perspective, learning and growth perspective, and internal business process respectively. Furthermore, Babar (2016) revealed that there is a positive relationship between bank's performance and using learning and growth perspective.…”

“…Whereas, Bassiouny (2016) confirmed that there is insignificant correlation between firm size and earnings quality. According to Agyeman et al (2017) and Turegun (2016), there is direct and significant correlation between firm size and earnings management as large scale firms tend to exercise earnings management as these firms are under great pressure in order to achieve the financial analysts' expectations.…”