ABSTRACT
In every business enterprise, the need for effective management of organizational policies and procedures is very important and can never be over-emphasized. To achieve this goal, there is need to adequately measure the input / performance of employees and to what extent it aligns to the overall aim of the organization. This work is designed to expose and equip managers with the necessary tools needed to effectively measure their employee performance on the job. In generating the data needed to achieve the objectives of this study, cross sectional survey was used. Questionnaires were also used as a major instrument for primary data collection. To broaden the researcher’s depth of knowledge in the study area, the researcher  embarked  on  review  of  the  very  minimal  related literature with data drawn from secondary sources. Data generated in the study was presented on frequency tables and analyzed using simple percentage while the hypothesis was tested with chi-square. It was discovered from the research that most organizations could not measure the performance of their employee because of poor performance measurement tools, and in some cases, none at all. From the findings, it is clear that the existence of policies and procedures is one thing, while the measurement of compliance to these policies is another. There is therefore the need for effective management  of  the  performance  measurement  tools  of  the organization in order for the organization to execute its aims and objectives.
CHAPTER ONE. INTRODUCTION.
1.1 BACKGROUND OF THE STUDY.
From the beginning, it is important to understand why measuring an organization’s performance is both necessary and vital. An organization operating without a performance measurement system is like an airplane flying without a compass or a CEO operating without a strategic plan. The purpose of measuring performance is not only to know how a business is performing but also to enable it to perform better. The ultimate aim of implementing a performance measurement system is to improve the performance of an organization so that it may better serve its customers, employees, owners, and stakeholders. A performance measurement system enables an enterprise to plan, measure, and control its performance according to a pre-defined strategy.
Managers at all levels in an organization can track key performance indicators to assess how well their groups are meeting their business objectives, whether performance is improving or declining, and how their group’s performance compares with that of
other units or groups within the company and in rival organizations.
Consider these examples:
A CEO examines return on investment (ROI) by division, or her company’s cash flow, by month and quarter, and compares
the results to those of competitors.
A customer service manager tracks customer service quality using surveys. If the surveys suggest that service quality is dropping, he might need to add more account representatives to improve service levels.
The Balanced Scorecard (BSC) is a strategic performance management tool for measuring whether the smaller-scale operational activities of a company are aligned with its larger- scale objectives in terms of vision and strategy. By focusing not only on financial outcomes but also on the operational, marketing and developmental inputs to these, the Balanced Scorecard helps provide a more comprehensive view of a business, which in turn helps organizations act in their best long-term interests. Organizations are encouraged to measure,
in addition to financial outputs, those factors which influenced the financial outputs. For example, process performance, market share / penetration, long term learning and skills development, and so on. The underlying rationale is that organizations cannot directly influence financial outcomes, as these are “lag” measures, and that the use of financial measures alone to inform the strategic control of the firm is unwise. Organizations should instead also measure those
areas where direct management intervention is possible. Implementing Balanced Scorecards typically includes four
processes:
1. Translating the vision into operational goals;
2. Communicating the vision and link it to individual performance;
3. Business planning; index setting
4. Feedback and learning, and adjusting the strategy accordingly.
The Balanced Scorecard provides managers with the instrumentation they need to navigate to future competitive success.
1.2 STATEMENT OF THE PROBLEM.
This boils down to what constitutes the problems on the study. Present day organizations are complex. As one of the key activities of organizations, performance measurement is difficult. Organizations are faced with the problem of measuring performance, and it is not easy dealing with these problems. Hence, this research is aimed at understanding how key performance indicators are used in measuring performance among employees. Key performance indicators would be examined and to select one. Since human beings are the media through which organizations get their objectives accomplished, it follows that their input into the actualization of these objectives should be properly measured.
1.3 PURPOSE OF THE STUDY.
Following the statement of the problem, we formulate our objectives as follows.
a. To examine the challenges of performance management to organizations.
b. To identify these challenges.
c. To analyze how the organization respond to these challenges. d. To make recommendations that would help organizations to
achieve results.
1.4 THE SIGNIFICANCE OF THE STUDY.
This research work would be of great importance to organizations. For the fact that mission statements of an organization tells the direction of that organization, the whole efforts of the management and its entire workforce are geared towards achieving these objectives. This research therefore, seeks to help identify how organizations measure the performance of their employees.
The management of any organization would benefit from this research as it will help them in formulating a veritable performance management tool. The society in general will benefit from the project by applying the principles therein in choosing their performance measurement tools. The researcher will benefit from the research work, as the research has enlightened the researcher
in the various tools of performance management. The researcher could be consulted on related matters for advice.
This research work could be important to future researchers, as it might serve as a guideline in furtherance of related problems. Future researchers would include this research among the literature to review during report writing.
1.5 SCOPE OF THE STUDY.
The research work covers the areas that are related to the measurement of performance in an organization. And this research was carried out in Awka, where the organization under research was. Zenith Bank Plc is a very big bank with a staff strength of over
5000, ranging from the top management, through the middle management, to the junior staff.
1.6 LIMITATION OF THE STUDY.
There were so many limitations encountered in the course of this research, such as time wasted, in this case, the field work covered a period of two months. The first day was used to submit the introductory letter at the regional office through the zonal
human resource representative. The approval came up two weeks later, largely due to the researcher’s consistency of visit to the company. Lack of finance was another limitation, considering the expense incurred during the field work and this tended to mar the purpose of the research.
Transportation was a limitation as the cost to and fro was much due to the high cost of fuel within the metropolis. At some times, there were no vehicles available which led to the researcher visiting the company most times behind schedule.
Within the company itself, the researcher encountered some of the respondent’s nonchalant attitude. Reasons given by the workers range from being busy with work, to having no time to read the questionnaire. However, after much persuasion and explanations on the relevance of the research to them, some of them cooperated with the researcher which helped in achieving the objectives of the research.
1.7 DEFINITION OF TERMS.
KPI: Is an acronym for Key Performance Indicators. These are quantifiable measurements, agreed to beforehand, that reflect the critical success factors of an organization. It helps an organization define and measure progress toward organizational goals. PERFORMANCE: This is a final outcome of a task. It is also the result derived from the expected outcome over the actual outcome. QUALITY: Delivering the products and services in a high standard and of general excellence.
ORGANISATION: This is a system of consciously coordinated activities of two or more persons. It is also described as planned units deliberately structured for the purpose of attaining specific goals.
MANAGEMENT: A body or group of people who controls a business or enterprise. It is also a group of people who are engaged in the decision making and organisation of people, processes and materials in a business.QUALITY: Delivering products and services in a high standard and of general excellence
This material content is developed to serve as a GUIDE for students to conduct academic research
BALANCE SCORECARD KEY PERFOMANCE INDICATORS AS A PERFOMANCE MEASUREMENT TOOL A CASE STUDY OF ZENITH BANK PLC
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