INFLUENCE OF BALANCED SCORECARD PERSPECTIVES ON EMPLOYEE PERFORMANCE AT KENYA MEDICAL TRAINING COLLEGE, NAKURU CAMPUS, KENYA MERCY JEPCHIRCHIR

Abstract

Employees are regarded as the most valuable asset in any organization and therefore the need to appraise their performance. While there are a number of performance appraisal techniques that are in use, the balance scorecard stands out because of its numerous advantages. The balance scorecard is thus one of the key systems that are being used to do appraisals. It is anchored on four major pillars: financial, internal process, customer and learning and growth perspectives. The purpose of this study therefore was to establish the influence of the four perspectives on employee performance at the Kenya Medical Training College, Nakuru Campus Kenya. The study was guided by three theories: Agency theory, Stakeholder Theory, Affective Event Theory, Stewardship Theory and Balanced Scorecard Model. The study targeted all 92 employees of the campus and employed a survey design using quantitative approaches. The study used primary data which was collected using self-administered questionnaires. The data collected was analyzed using Statistical Package for Social Sciences and the findings presented in tables. Correlation and regression analysis was undertaken to determine the relationship between marketing orientation and business performance. From the correlation analysis, internal process perspective (r = 0.753**) and customer perspective (r = 0.698**) were found to have a strong and positive correlation with employee performance. The R2 value of 0.631 implies that 63.1% of the variations in employee performance can be explained by the variations in independent variables. The study concluded that the organization should strive to enhance the internal process perspective since it had the greatest influence of employee performance. The organization should therefore ensure the structures in place enhance the internal processes. The study recommends that since the financial perspective has some significant influence on employee performance, human resource managers should ensure that the number of teaching and non-teaching staff grows in tandem with the increasing financial position of the college so as to ensure employee workloads are manageable. It is hoped that the findings of this study will be beneficial in outlining the influence of the four perspectives of balance scorecard on employee performance.