Employee performance measurements are crucial for management in evaluating company performance and designing future strategies

Oct 13, 2025 by thesweetdesigns.com 59 views

The Effect of the Application of Balanced Scorecard on Employee Performance at PT Bank BNI (Persero) Tbk Jalan Sutomo Medan Branch Office with a Working Climate as an Intervening Variable

Introduction

Employee performance measurements are crucial for management in evaluating company performance and designing future strategies. In today's competitive business environment, organizations are constantly seeking ways to improve their performance and stay ahead of the competition. One of the key tools used by organizations to measure and improve performance is the Balanced Scorecard (BSC). The BSC is a strategic management tool that helps organizations to define and measure their performance from different perspectives, including financial, customer, internal business process, learning, and growth.

The Balanced Scorecard and Employee Performance

The application of Balanced Scorecard is a crucial aspect of organizational performance. However, the relationship between the BSC and employee performance is not always straightforward. While the BSC is designed to improve organizational performance, it may not always have a direct and positive impact on employee performance. In fact, research has shown that the application of BSC may have a negative impact on employee performance if not implemented correctly.

The Role of Working Climate in Employee Performance

A conducive work climate is essential for improving employee performance. A work climate that is conducive to employee performance is characterized by a positive and supportive work environment, where employees feel valued, motivated, and empowered to perform their best. Research has shown that a positive work climate can improve employee performance, job satisfaction, and organizational effectiveness.

Methodology

This study used an associative survey research method to examine the relationship between the application of BSC and employee performance at PT Bank BNI (Persero) Tbk Jalan Sutomo Medan Branch Office. The study involved 60 employees of the bank as research subjects. The data analysis technique used was path analysis, which produced two main findings in accordance with the proposed hypothesis.

Findings

First, there is a significant direct relationship between Balanced Scorecard and employee performance (r = -0.3495; p = 0.0000 <0.05). This finding shows that there is a significant but negative influence between Balanced Scorecard on employee performance. That is, the application of Balanced Scorecard may not always be directly proportional with improving employee performance.

Second, there is a significant and positive indirect effect of Balanced Scorecard on employee performance through the work climate (0.4295). These findings indicate that working climate acts as a mediator in the relationship between Balanced Scorecard and employee performance. This means that the application of an effective Balanced Scorecard will create a conducive work climate, thereby improving employee performance.

Implications

The results of this study provide important implications for PT Bank BNI (Persero) Tbk Jalan Sutomo Medan Branch Office. The application of Balanced Scorecard needs to be carried out comprehensively and integrated with organizational culture, including building a conducive work climate. This can be done by improving employee communication and involvement in the process of applying Balanced Scorecard, providing adequate training on the concept of Balanced Scorecard, as well as rewarding and recognizing employee performance.

Conclusion

This study contributes to the existing body of knowledge on the relationship between Balanced Scorecard, work climate, and employee performance. The findings of this study highlight the importance of a conducive work climate in improving employee performance. The study also provides practical implications for organizations seeking to improve their performance through the application of Balanced Scorecard.

Recommendations for Future Research

Further research is needed to confirm the findings of this study and to explore the relationship between Balanced Scorecard, work climate, and employee performance in other organizations and contexts. This can be done by conducting similar studies in various other BNI bank branch offices, or even in other companies with different sectors and organizational culture.

Limitations of the Study

This study has several limitations. The study was conducted in a single organization, and the sample size was relatively small. Additionally, the study only examined the relationship between Balanced Scorecard, work climate, and employee performance, and did not explore other factors that may influence employee performance.

Conclusion

In conclusion, this study provides valuable insights into the relationship between Balanced Scorecard, work climate, and employee performance. The findings of this study highlight the importance of a conducive work climate in improving employee performance, and provide practical implications for organizations seeking to improve their performance through the application of Balanced Scorecard.
Frequently Asked Questions (FAQs) about the Effect of Balanced Scorecard on Employee Performance

Q: What is the Balanced Scorecard (BSC)?

A: The Balanced Scorecard (BSC) is a strategic management tool that helps organizations to define and measure their performance from different perspectives, including financial, customer, internal business process, learning, and growth.

Q: What is the purpose of the BSC?

A: The purpose of the BSC is to provide a comprehensive and integrated view of an organization's performance, enabling it to make informed decisions and drive improvement.

Q: How does the BSC relate to employee performance?

A: The BSC can have a significant impact on employee performance, as it provides a framework for measuring and improving performance from different perspectives. However, the relationship between the BSC and employee performance is not always straightforward, and may depend on various factors, including the effectiveness of the BSC implementation and the work climate.

Q: What is the role of working climate in employee performance?

A: A conducive work climate is essential for improving employee performance. A work climate that is conducive to employee performance is characterized by a positive and supportive work environment, where employees feel valued, motivated, and empowered to perform their best.

Q: What are the implications of this study for organizations?

A: The results of this study provide important implications for organizations seeking to improve their performance through the application of Balanced Scorecard. The study highlights the importance of a conducive work climate in improving employee performance, and provides practical implications for organizations seeking to improve their performance through the application of Balanced Scorecard.

Q: What are the limitations of this study?

A: This study has several limitations, including the small sample size and the fact that it was conducted in a single organization. Additionally, the study only examined the relationship between Balanced Scorecard, work climate, and employee performance, and did not explore other factors that may influence employee performance.

Q: What are the recommendations for future research?

A: Further research is needed to confirm the findings of this study and to explore the relationship between Balanced Scorecard, work climate, and employee performance in other organizations and contexts. This can be done by conducting similar studies in various other BNI bank branch offices, or even in other companies with different sectors and organizational culture.

Q: What are the practical implications of this study for organizations?

A: The practical implications of this study for organizations are:

Improve employee communication and involvement in the process of applying Balanced Scorecard
Provide adequate training on the concept of Balanced Scorecard
Reward and recognize employee performance
Build a conducive work climate that is supportive of employee performance

Q: What are the benefits of implementing a Balanced Scorecard?

A: The benefits of implementing a Balanced Scorecard include:

Improved organizational performance
Enhanced employee engagement and motivation
Increased productivity and efficiency
Better decision-making and strategic planning

Q: What are the challenges of implementing a Balanced Scorecard?

A: The challenges of implementing a Balanced Scorecard include:

Resistance to change from employees and managers
Difficulty in measuring and tracking performance metrics
Limited resources and budget constraints
Complexity of the BSC framework and its implementation

Q: How can organizations overcome the challenges of implementing a Balanced Scorecard?

A: Organizations can overcome the challenges of implementing a Balanced Scorecard by:

Providing adequate training and support for employees and managers
Communicating the benefits and importance of the BSC to all stakeholders
Setting realistic goals and expectations for BSC implementation
Monitoring and evaluating progress regularly to identify areas for improvement.