Assessment of Balanced Scorecard Implementation Practice and its Challenges on Procurement Department

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Date

2016-06

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Addis Ababa University

Abstract

The purpose of this study is to assess Balanced Scorecard implementation Practice and its chal- lenges on Procurement department in Ethio telecom. Both qualitative and quantitative approach- es are employed. The data are gathered from employees of sourcing/procurement department in ethio telecom through survey questionnaires and 73 questionnaires were circulated all of them were received and analyzed using descriptive statistical tools like Mean, standard deviations and frequencies. Software called Statistical Package for Social Sciences (SPSS) was used for the data analysis. The study identified major bottleneck for implementation of BSC on procurement de- partment in ethio telecom are Balance Scorecard measurement implementation data sources are not clearly stated, BSC evaluation system was not user friendly, Performance progress was not monitored periodically before formal evaluation, boss influence on evaluation was reduced, evaluation was not performed always based on plan, and lack of technical skill on balanced scorecard. Finally, the thesis concludes by proposing recommendations to management in order to use different methods in solving challenges faced in balanced score card(BSC) implementa- tion on procurement department such as facilitating the accomplishment of BSC goals ,elaborating and expounding key areas of BSC to the staff, supervising the implementation pro- cess, providing clarification, assessing achievement of lower level employees, clearly state measurement data source and validated by authorized body, execute evaluation always based on plan without boss influence on the result obtained, open and transparent communication, enlight- ening staff on the importance of procurement planning and BSC to fulfil company’s strategies, coordination between top management and low level management and acting as source of infor- mation

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Keywords

Scorecard implementation Practice and its Challenges

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