Article Details
Vol. 5 No. 1 (2025): March
Balance Scorecard Approach to employee performance management in Tyre Company
Abstract
Purpose: This research aims to analyze employee performance management strategies using the Balance Scorecard approach in a tire company. In this study, a qualitative descriptive method was used with primary and secondary data collection techniques.
Research Methodology: Data collection was carried out by means of interviews, observation, and documentation. There were five informants in this study: Human Resource Plant Manager, People and Development Manager, Human Resource Business Partner, Labor Trainer, and Labor Trainer. Data processing was performed using the NVivo software application and source triangulation.
Results: This research shows that tyre corporations that implement Balance Scorecard have succeeded in making cost improvements in their operational activities. Apart from that, innovates from a learning and growth perspective by conducting an e-learning program utilizing digital-based technology to increase the competence of its employees. The interview results show that the application of the Balance Scorecard in managing employee performance at tyre corporations using a financial perspective, customer perspective, internal business perspective, and learning and growth perspective is going very well, and by using the Balance Scorecard, success can be achieved. Cascading strategies in the area of ??human resource management have been proven to contribute to reducing human resource costs.
Conclusions: The achievement indicators of the company's performance in the short term are connected to each other to achieve the predetermined vision, mission, and strategy.
Limitations: The use of in-depth interviews in data collection resulted in a very limited number of informants in this study.
Contribution: The use of a balance score card in employee performance analysis can help management map out strategic targets for achieving employee performance.
Novelty: By cascading the company's strategy and specializing in the human resources department, it shows something new to the implementation of a balanced scorecard.
Keywords
How to Cite
Download Citation
References
- Abedian, M., Amindoust, A., Madahi, R., & Jouzdani, J. (2021). Determining the best combination of perspective indicators of balanced scorecard by using game theory. Journal of Optimization in Industrial Engineering, 14(1), 185-194. doi:https://doi.org/10.22094/JOIE.2021.1890281.1713
- Aly, A. H., & Mansour, M. E. (2017). Evaluating the sustainable performance of corporate boards: the balanced scorecard approach. Managerial auditing journal, 32(2), 167-195. doi:https://doi.org/10.1108/MAJ-04-2016-1358
- Awan, S. H., Habib, N., Shoaib Akhtar, C., & Naveed, S. (2020). Effectiveness of performance management system for employee performance through engagement. Sage Open, 10(4), 2158244020969383. doi:https://doi.org/10.1177/2158244020969383
- Betto, F., Sardi, A., Garengo, P., & Sorano, E. (2022). The evolution of balanced scorecard in healthcare: A systematic review of its design, implementation, use, and review. International journal of environmental research and public health, 19(16), 10291. doi:https://doi.org/10.3390/ijerph191610291
- Bisena, I. K. A., & Susana, K. Y. (2023). Analysing Implementation of Balance Score Card to Front Office Department at Adiwana Unagi Suites 2022. Journal of Comprehensive Science (JCS), 2(4). doi:https://doi.org/10.59188/jcs.v2i4.302
- Camilleri, M. A. (2021). Using the balanced scorecard as a performance management tool in higher education. Management in Education, 35(1), 10-21. doi:https://doi.org/10.1177/0892020620921412
- Chavan, M. (2009). The balanced scorecard: a new challenge. Journal of Management Development, 28(5), 393-406. doi:https://doi.org/10.1108/02621710910955930
- Chehimi, M., & Naro, G. (2024). Balanced Scorecards and sustainability Balanced Scorecards for corporate social responsibility strategic alignment: A systematic literature review. Journal of Environmental Management, 367, 122000. doi:https://doi.org/10.1016/j.jenvman.2024.122000
- Chude, I. D., Chude, N. P., & Egbunike, C. F. (2022). Intellectual Capital and Financial Performance of Quoted Manufacturing Firms. Annals of Human Resource Management Research, 2(2), 147-160. doi:https://doi.org/10.35912/ahrmr.v2i2.1251
- De Felice, F., & Petrillo, A. (2013). Key success factors for organizational innovation in the fashion industry. International Journal of Engineering Business Management, 5, 27. doi:https://doi.org/10.5772/56882
- Dekrita, Y. A., Yunus, R., Citta, A. B., & Yamin, M. (2019). Integration of balanced scorecard and analytical hierarchy process as a tool for determining the priority of the program strategy: case study in Dr. Tc. Hillers Maumere hospital. Paper presented at the 3rd International Conference on Accounting, Management and Economics 2018 (ICAME 2018).
- Dwivedi, R., Prasad, K., Mandal, N., Singh, S., Vardhan, M., & Pamucar, D. (2021). Performance evaluation of an insurance company using an integrated Balanced Scorecard (BSC) and Best-Worst Method (BWM). Decision Making: Applications in Management and Engineering, 4(1), 33-50. doi:https://doi.org/10.31181/dmame2104033d
- Ezekiel, J. S., & Nanfa, K. D. (2023). Customers emotional intelligence and satisfaction: The mediation of bankers emotional labour. Annals of Human Resource Management Research, 3(2), 115-127. doi:https://doi.org/10.35912/ahrmr.v3i2.1839
- Farida, I., & Setiawan, D. (2022). Business strategies and competitive advantage: the role of performance and innovation. Journal of Open Innovation: Technology, Market, and Complexity, 8(3), 163. doi:https://doi.org/10.3390/joitmc8030163
- Frederico, G. F., Garza-Reyes, J. A., Kumar, A., & Kumar, V. (2021). Performance measurement for supply chains in the Industry 4.0 era: a balanced scorecard approach. International Journal of Productivity and Performance Management, 70(4), 789-807. doi:https://doi.org/10.1108/IJPPM-08-2019-0400
- Gazi, F., Atan, T., & K?l?ç, M. (2022). The assessment of internal indicators on the balanced scorecard measures of sustainability. Sustainability, 14(14), 8595. doi:https://doi.org/10.3390/su14148595
- Ha, D. T., Le, T., Fisher, G., & Nguyen, T. T. (2022). Factors affecting the adoption extent of the balanced scorecard by Vietnamese small-and medium-sized enterprises. Accounting research journal, 35(4), 543-560. doi:https://doi.org/10.1108/ARJ-08-2020-0221
- Hossain, A., Khatun, M., & Shanjabin, S. (2023). Impact of person-job fit and person-organization fit on employee engagement: Moderating role of supervisor support. Annals of Human Resource Management Research, 3(2), 97-114. doi:https://doi.org/10.35912/ahrmr.v3i2.1885
- Kaplan, R. S. (2009). Conceptual foundations of the balanced scorecard. Handbooks of management accounting research, 3, 1253-1269. doi:https://doi.org/10.1016/S1751-3243(07)03003-9
- Kaplan, R. S., & Norton, D. P. (2001). Transforming the balanced scorecard from performance measurement to strategic management: Part 1. Accounting horizons, 15(1), 87-104.
- Kumar, S., Lim, W. M., Sureka, R., Jabbour, C. J. C., & Bamel, U. (2024). Balanced scorecard: trends, developments, and future directions. Review of Managerial Science, 18(8), 2397-2439. doi:https://doi.org/10.1007/s11846-023-00700-6
- Lim, W. M. (2024). What Is Qualitative Research? An Overview and Guidelines. Australasian Marketing Journal. doi:https://doi.org/10.1177/14413582241264619
- Mio, C., Costantini, A., & Panfilo, S. (2022). Performance measurement tools for sustainable business: A systematic literature review on the sustainability balanced scorecard use. Corporate social responsibility and environmental management, 29(2), 367-384. doi:https://doi.org/10.1002/csr.2206
- Peterson, J. S. (2019). Presenting a qualitative study: A reviewer’s perspective. Gifted Child Quarterly, 63(3), 147-158. doi:https://doi.org/10.1177/0016986219844789
- Phina, O. N., Patrick, O. A., & Nwabuike, C. (2022). Emotional resilience and employee performance of commercial banks in South-East Nigeria. Annals of Human Resource Management Research, 2(2), 105-115. doi:https://doi.org/10.35912/ahrmr.v2i2.1352
- Ta, T. T., Doan, T. N., Tran, H. N., Dam, T. A., & Pham, T. M. Q. (2022). Factors affecting the application of balanced scorecard to enhance operational efficiency of listed companies: The case of Vietnam. Cogent Business & Management, 9(1), 2149146. doi:https://doi.org/10.1080/23311975.2022.2149146
- Tawse, A., & Tabesh, P. (2021). Strategy implementation: A review and an introductory framework. European Management Journal, 39(1), 22-33. doi:https://doi.org/10.1016/j.emj.2020.09.005
- Tawse, A., & Tabesh, P. (2023). Thirty years with the balanced scorecard: What we have learned. Business Horizons, 66(1), 123-132. doi:https://doi.org/10.1016/j.bushor.2022.03.005
- Ubed, R. S., & Raharjo, T. (2024). An Integration of BSC and AHP for creating VOE’s Barriers of Entry Strategy. Annals of Human Resource Management Research, 4(2), 97-109. doi:https://doi.org/10.35912/ahrmr.v4i2.1757
License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
