Balance Scorecard Approach to employee performance management in Tyre Company

https://doi.org/10.35912/ahrmr.v5i1.2791
Published: May 23, 2025

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:
1. Balance scorecard
2. Human Resources
3. Labor performance
4. Strategy
Authors:
1 . Muhamad Azis Firdaus
Universitas Ibn Khaldun Bogor, Indonesia
2 . Apik Ginanjar
Universitas Ibn Khaldun Bogor, Indonesia
3 . Hannisa Rahmaniar Hasnin
Universitas Ibn Khaldun Bogor, Indonesia
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Firdaus, M. A., Ginanjar, A., & Hasnin, H. R. (2025). Balance Scorecard Approach to employee performance management in Tyre Company. Annals of Human Resource Management Research, 5(1), 31–42. https://doi.org/10.35912/ahrmr.v5i1.2791
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Vol. 5 No. 1 (2025): March
Articles
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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

  1. 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
  2. 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
  3. 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
  4. 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
  5. 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
  6. 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
  7. Chavan, M. (2009). The balanced scorecard: a new challenge. Journal of Management Development, 28(5), 393-406. doi:https://doi.org/10.1108/02621710910955930
  8. 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
  9. 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
  10. 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
  11. 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).
  12. 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
  13. 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
  14. 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
  15. 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
  16. 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
  17. 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
  18. 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
  19. 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
  20. 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.
  21. 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
  22. Lim, W. M. (2024). What Is Qualitative Research? An Overview and Guidelines. Australasian Marketing Journal. doi:https://doi.org/10.1177/14413582241264619
  23. 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
  24. 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
  25. 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
  26. 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
  27. 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
  28. 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
  29. 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