Balanced Scorecard Model and Organization Performance in Rwanda
DOI:
https://doi.org/10.53819/81018102t5288Abstract
The purpose of this research was to examine the effect of the balanced scorecard model on organization performance in Rwanda, specifically focusing on a private institution of higher learning. The study assessed the impact of considering the financial perspective on the organization's performance, investigated the influence of the customer perspective on performance, explored the impact of the learning and growth perspective on performance, and determined the influence of internal process analysis on the organization's performance. Both descriptive and correlational research designs were used. The target population consisted of 150 employees, and 109 were selected randomly using basic random sampling methods. Inferential statistics, including correlation and regression analysis, were employed to determine the relationship between independent and dependent variables. Descriptive statistics, such as frequency, percentage, mean, and standard deviation, were used for variables and constructs. The results were presented in tables, and the research followed ethical guidelines throughout the study process. The correlation analysis revealed strong positive correlations between the financial perspective and organization performance (r = 0.770**, p = 0.000) and between the customer perspective and organization performance (r = 0.819**, p = 0.000). Learning and growth showed a moderate positive correlation (r = 0.617**, p = 0.000), and internal process analysis had a moderate positive correlation (r = 0.691**, p = 0.000). Since the p-values for all four variables were <0.01, the correlations were statistically significant, leading to the rejection of the null hypotheses. The findings from the regression analysis indicated that the R Square value was 0.693, with the adjusted R Square at 0.680 when organization performance was regressed against independent variables. In conclusion, the study found that an organization's performance is positively impacted by the implementation of a balanced scorecard model. The study recommends that organizations, particularly those in the private higher education sector in Rwanda, should consider adopting and implementing the balanced scorecard model as a strategic management tool. Organizational management should adopt sustainable customer relationship strategies to improve their perception. The study also recommends continuous internal processes analysis such as customer complain analysis, timely customer feedback consideration and compliance to regulatory bodies to improve the decision-making processes.
Keywords: Financial perspective, Customer perspective, Learning and growth perspective, Internal processes perspective and Performance
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