FACTORS AFFECTING APPLICATION OF BALANCED SCORE CARD: A CASE STUDY OF NON GOVERNMENTAL ORGANIZATIONS IN ELDORET, KENYA

CAROL CHEPNG’ENO KOSKE

Abstract


The balanced scorecard is a planning and management system that is slowly being adopted for use in non-governmental organization and industry, government, and nonprofit organizations worldwide to align organization activities to the vision and strategy of the organization. This study aimed at analyzing the factors affecting application of balanced score card by the non-governmental organizations. The objectives of the study were to determine how size of the organization, costs of adoption, and perceived benefits of the system and ease of use of the system affect the application of BSC. The researcher used a case study research design to carry out the study because it gave in-depth information about the study which involved several organizations in which data was collected. The information used in the study was collected from the management and other employees of various NGOs within Eldoret town. The target population included the 5 management employees of the 11 target NGOs operating in Eldoret Town. The research used questionnaires to collect data. The researcher consulted with the supervisor to ensure that the questionnaires were valid for use in the study. The researcher also carried out a pilot study to ensure that the questionnaires were reliable. After collecting data was analyzed using descriptive statistics and presented using tables, charts and graphs. From the findings, the study found out that the size of the organization largely affects the application of the tools of the balanced scorecard in non-governmental organizations. Most large organizations adopt BSC in order to improve their efficiency in coordinating the activities of the organizations this is according to 82 % of the respondents. 62 % of the respondents indicated that the more the perceived benefits of BSC in an organization according to the managers, the more they can adopt it much easier and faster. Managers also posses different characteristics and this affects their adoption of the tools of the model. Managers are also influenced by the costs of adoption of BSC according to 80% of the respondents. The study concludes that leadership support and employees involvement are also found to be important success factors in BSC use and performance improvements. It further concludes and recommends that a properly implemented and successful BSC, having the commitment and involvement of both employees and managers and being used as a strategic management system that aligns the entire organization to achieve its strategic goals, will eventually lead to a wide variety of performance improvements, both financial and non-financial.

Key Words:  Balanced Score card, Non-Governmental Organizations


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