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