AN EVALUATION OF THE BALANCED SCORECARD AS A PERFORMANCE MANAGEMENT SYSTEM IN PARASTATALS

Abstract

The systematic evaluation and observation of employees’ performance is referred to as performance appraisal. There are various performance appraisal approaches namely: the absolute standards approach, the judgemental approach, and lastly the results-oriented approach. Performance appraisals are supposed to be objective and accurate but this is usually far from the case and this results in rating errors. Examples of these errors include leniency or strictness, halo effect, currency of events, and central tendency. This study is aimed at evaluating the Balanced Scorecard as a performance management system in parastatals using the National Pension Scheme as a case study. It focuses on how strategic objectives are aligned to individual performance. The Balanced Scorecard concept is mainly premised on the lagging and leading indicators which enable a much more holistic performance measurement for the Authority. The qualitative research methodology was used and the population size was 50. Questionnaires administered to various employees within the National Pension Scheme Authority were used to collect primary data. The data collected was analysed using SPSS and presented in charts and tables. The study found that the Balanced Scorecard is effective and comprehensive when it comes to the measuring of performance