THE RELEVANCE OF BALANCED SCORE CARD ON THE PERFORMANCE MANAGEMENT OF OFFICERS AT REPUTED BANK IN SRI LANKA

Abstract

“You Cannot Manage What You Don’t Measure”. Making an employee accountable to perform and measuring accordingly will allow the managers to achieve their expected goals. However, managing the performance of employees has never been an easy task for management. The researcher found a critical problem in performance management in one of the leading banks in Sri Lanka, i.e. ABC Bank PLC. The management of the Bank has noticed that junior-level employees, Banking Officers, are dissatisfied with the existing performance management structure since a considerable number of grievances have been reported to Human Resources Department during the performance appraisal and evaluation period each year. Hence the main objective of this study was to determine the relevance of the Balanced Score Card (BSC) model in the Performance Management of Banking Officers, which is currently not being used as a performance management tool in the Bank. Further, the study also sought to identify the most vital factor in evaluating performance and to ascertain the impact of financial / non-financial measures on the performance management of Bank officers. A survey questionnaire was used for the research, and 60 Banking Officers responded, which was then analyzed using IBM SPSS version 2 software. After analyzing, the researcher identified that the most critical factor in the performance management of Banking Officers is Internal Business Process measures. In addition, the researcher also identified that the financial perspective, customer perspective and learning and growth perspective are crucial in managing banking officers' performance. Accordingly, the researcher has given specific recommendations to boost employee satisfaction with the Bank's performance management, which will ultimately result in achieving the Bank’s organizational strategic goals.