PRACTICE AND IMPACT OF BALANCED SCORECARD ON THE PERFORMANCE OF ETHIOPIAN AGRICUTURAL BUSINESSES CORPORATION (EABC)

Abstract

This study seeks to identify and analyze a set of advantages and contributions derived from Balanced Scorecard implementation (BSC) towards the corporate performance. The focus is on BSC Practice, Impact, Existing performance evaluation system using Balanced Scorecard. The data for this study was obtained through a questionnaire that was distributed to 309 employees of Ethiopian Agricultural Businesses Corporation working at the head office and Branches. 260 questionnaires were fully completed and returned. The sources of data were primary and secondary. The study has been conducted by designing open-ended, five-point likert scale questionnaires and structured and unstructured interview questions. The employees were selected based on stratified random sampling. The data collected was analyzed using SPSS version 20 software. The findings of the study indicated that BSC practice brings improvements on Financial, Internal Business and customer perspectives. On the other hand the impact related to BSC implementation (are the performance evaluation system in Ethiopian Agricultural Businesses Corporation) does not satisfy the evaluation of employees and fails to differentiate effective performer from non-performer. The rewarding system is not linked to individual performance and the benefit package of the Organization is not attractive, so the employees’ commitment and motivation is low. Besides, due to inadequate training program given to employees, their level of understanding about BSC is limited. In addition to this working environment is not suitable for career development and improvements. Based on the findings of the study the researcher tried to forward some recommendations so that this will give the organization an insight to the practice and its associated problems of Balanced Scorecard Implementation in Ethiopian Agricultural Businesses Corporation.