ASTON UNIVERSITY

BDM106 MSc DISSERTATION

PERFORMANCE MANAGEMENT IN THE NIGERIAN BANKING INDUSTRY: THE

EFFECTIVENESS OF THE BALANCED SCORECARD ON EMPLOYEE

MOTIVATION AND JOB SATISFACTION

BY CHINENYE NWAGBOSO

Submitted in fulfilment of the Requirement of the MSc Human Resource Management and Business (CIPD) programme

SUPERVISOR: VIDU BADIGANNAVAR

SEPTEMBER 2015

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ABSTRACT

This research sought to evaluate the effectiveness of the Balanced Scorecard (BSC) in

the Nigerian Banking Industry with regards to employee motivation and job

satisfaction. During data collection, the role of the BSC system in the chosen

organisation was comprehended and the processes involved in implementing the BSC

system was discovered. With the use of mixed methodology, interviews were set with

senior management in GBN and a survey was sent out to GBN employees. Theories

proposed in this research were the Goal Setting theory, the RBV model and the

Expectancy theory. Data results showed that the level of employees’ satisfaction with

the set goals, processes and reward distribution through the BSC system was

considerably average, although some major concerns were raised. The major concern

raised was the issue of promotion and it was proposed that promotion should be given

based on the outcome on the BSC. Other suggestions included integrating the input of

stakeholders in setting individual and organisational objectives. Additionally,

regarding future research, better data collection and analysis processes were

recommended.

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DEDICATION

Firstly, I thank God for his infinite mercy and grace during the duration of this thesis.

I dedicate this research to my mother Mrs. Nwakaego Jones, my inspiration for

tackling this subject. I also dedicate it to my family (nuclear and extended) and close

friends for helping in the best way they can. Ifeanyi Chukwujekwu, thank you for

your support. Also, thank you to my supervisor Vidu for your input and feedback.

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LIST OF CONTENTS

ABSTRACT..............................................................................................................................2

DEDICATION..........................................................................................................................3

CHAPTER ONE – INTRODUCTION...................................................................................5

BACKGROUND OF THE STUDY...........................................................................................................................5

RESEARCH AIM AND OBJECTIVES.....................................................................................................................6

DIAGRAM 1: STRUCTURE OF THE RESEARCH.................................................................................................7

CHAPTER TWO – LITERATURE REVIEW......................................................................8THE SIGNIFICANCE OF PERFORMANCE MANAGEMENT IN THE NIGERIAN BANKING INDUSTRY..........8AN OVERVIEW OF THE BSC CONCEPT............................................................................................................9BENEFITS OF ADOPTING THE BSC APPROACH...........................................................................................10CHALLENGES WITH THE IMPLEMENTATION OF THE BSC.........................................................................11THEORETICAL FRAMEWORK........................................................................................................................12

Resource Based View (RBV) model.....................................................................................................12Goal Setting Theory................................................................................................................................... 12Expectancy Theory.................................................................................................................................... 14

RESEARCH QUESTIONS....................................................................................................................................15

CHAPTER THREE – RESEARCH METHODS................................................................16RESEARCH PHILOSOPHY..................................................................................................................................16MIXED METHODS.............................................................................................................................................16POPULATION......................................................................................................................................................18SAMPLING & DATA COLLECTION...................................................................................................................18HYPOTHESES....................................................................................................................................................19DATA ANALYSIS................................................................................................................................................20ETHICAL CONCERNS.........................................................................................................................................21

CHAPTER FOUR – RESULTS & DISCUSSION..............................................................22WHY IS THE BSC SYSTEM BEING USED IN GBN?....................................................................................22WHAT HR ACTIVITIES WERE THEY TRYING TO IMPROVE WITH THE ADOPTION OF THE BSC APPROACH?........................................................................................................................................................22REGARDING THE BSC SYSTEM, HOW RELIABLE ARE THE PROCESSES INVOLVED IN TARGET SETTING AND REWARD DISTRIBUTION IN GBN?........................................................................................................23AND HAS THE ADOPTION OF THE BSC BEEN EFFECTIVE IN PROMOTING EMPLOYEE MOTIVATION AND JOB SATISFACTION IN GBN?...........................................................................................................................24

CHAPTER FIVE – CONCLUSION & RECOMMENDATIONS.....................................39SUMMARY OF KEY FINDINGS........................................................................................................................39LIMITATIONS OF THE RESEARCH...................................................................................................................40RECOMMENDATIONS........................................................................................................................................41

REFERENCES.......................................................................................................................43

REFLECTION........................................................................................................................48

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CHAPTER ONE – INTRODUCTION

Akinola (2012) reports that the high economic demands and intense competition

present in the Nigerian economy have led to an increased need for effective

performance management. Additionally, performance management is perceived to be

a highly crucial concept within the Nigerian Banking Industry as a result of the role it

plays in attaining sustained competitive advantage (Akinola, 2012). Studies show that,

because the Nigerian Banking industry is accountable for 90 percent of the nation’s

financial systems’ assets and 60 percent of her total equity market capital, improving

and sustaining performance is highly significant (Fadare, 2011; Toluwase and Oyewo,

2014).

Research shows that, since 1987, globalisation has liberated the financial aspect of the

Nigerian economy by promoting free market entry and deregulating interest rates

(Asogwa, 2004). Globalisation has had a major effect on the Nigerian banking

industry, by incorporating new local and global market entries, thus making it

intensely competitive (Akinola, 2012). As a result, major Nigerian banks are

generating effective ways to measure and improve employee performance (Akinola,

2012). One of these ways include integrating the Balanced Scorecard (BSC) approach

in order to “enhance corporate quality, efficiency and accountability” (Taylor and

Baines, 2012, p.116).

Background of the Study

The BSC approach was firstly introduced by Robert Kaplan and David Norton in

1992 in a bid to bridge the gap between integrating the measurement of intangible

assets with that of tangible assets, in management systems, as a result of their “interest

in measurement for driving performance improvements” (Kaplan, 2010, pp. 3).

Research shows that, Kaplan and Norton’s original view revolved around the BSC

approach being used “as a performance measurement framework that added strategic

non-financial performance measures to the traditional financial metrics to give

managers and executives a clearer and holistic view of organisational performance”

(Malgwi and Dahiru, 2014, pp. 1).

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Kaplan (2010) asserts that following the introduction of the BSC approach in 1992, its

power and potential were realised after several organisations rapidly implemented the

approach in their management systems. The author added that over the last 15 years,

the BSC approach has been adopted by huge numbers of public, private and non-

profit organisations across the globe (Kaplan, 2010). As a result of this rising

popularity, Kaplan and Norton further developed the BSC approach by enhancing it

into a performance management tool focused on communicating, designating and

implementing strategy (Kaplan, 2010; Kaplan and Norton, 1992; Zhang and Li,

2009).

Research Aim and Objectives

The overall aim of this thesis is to evaluate the effectiveness of the balanced scorecard

(BSC) as a performance management tool in a single banking organisation (GBN).

More specifically, this would be with regards to employee motivation and job

satisfaction. The research objectives of this thesis are stated below.

a.) To critically discuss the context of performance management and its

significance, with focus on the use of the BSC approach in the Nigerian

Banking industry.

b.) To examine the activities/practices that the senior management are trying to

improve with the adoption of the BSC approach, within GBN.

c.) To evaluate the reliability of the processes involved in setting performance

targets and distributing rewards in GBN.

d.) To ascertain if the adoption of the BSC in GBN has successfully promoted

employee motivation and job satisfaction over the years.

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Diagram 1: Structure of the research

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INTRODUCTION

METHODOLOGY

CONCLUSION

RECOMMENDATIONS

RESULTS &DISCUSSION

LITERATURE REVIEW

CHAPTER TWO – LITERATURE REVIEW

The Significance of Performance Management in the Nigerian Banking industry

Bratton and Gold (2007, p. 274) defined performance management in its broadest

context as “the set of interconnected practices which are designed to ensure that a

person’s overall capabilities and potential are appraised”, to guarantee that each

person’s training and development needs would be met. Hollinshead (2010) adds that

performance management is the process of integrating practices and policies that

certify that all employees add value to the operations of a business.

Research shows that, the origin of the concept of performance management can be

traced back to the western era, as it was originally developed in the United States

(Lucas, Lupton and Mathieson, 2006). Dessler (2005) reports that performance

management has rapidly developed over the past two decades and has become a

strategic practice that integrates employee development with goal setting and

performance appraisal as a singular framework, in a bid to align employee

performance targets with the overall business strategy. Although performance

management systems vary across cultures (Lucas, Lupton and Mathieson, 2006), IDS

(2003) argues that there are three elements universally consistent in performance

management systems and these are identified as set objectives, performance &

development and performance appraisal.

Kenny (2010) in Etim and Agara (2011) asserts that performance management in the

Nigerian Banking industry is imperative, as it provides checks and balances that

encourage performance efficiency, measures productivity and enhances

communication between management and employees. Overall, studies show that

every bank in Nigeria is constantly re-evaluating its HR practices, so as to offer high

quality services and surpass customers’ expectancies, due to the largely competitive

environment they operate in (Umar and Olatunde, 2011).

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An Overview of the BSC Concept

Kaplan (2010) reports that there are four dimensions of the BSC approach. The first

dimension is listed as the financial metrics, and the other three, which are listed as

Customer metrics, Internal Business Process metrics and Learning and Growth

(Organisational Development), are viewed as supplements and drivers of long-term

shareholder value (Kaplan, 2010; Taylor and Baines, 2012). The focus of this study is

on the fourth dimension, which is the Learning and Growth metrics.

The learning and growth metrics encourages effective utilization of an organisation’s

resources by assessing the continuous learning and development of the employees

(Kaplan and Norton, 1992). However, Atarere and Oroka (2011) argue that in order to

realise this dimension, certain factors need to be in place. These factors are identified

as: increasing employees’ abilities and increasing empowerment, motivation and

alignment (Atarere and Oroka, 2011).

With increasing employees’ abilities, the main emphasis is to guarantee that the

employees are in the best position to generate competitive advantage for the

organisation (Kaplan and Norton, 2010; Malgwi and Dahiru, 2014). The key

fundamental argument here is that the employees can only be productive and

beneficial to the organisation if they are highly satisfied with their jobs and given the

right opportunities for growth, in a favourable work environment. This can be attained

with constant employee training and development with internal and external training

workshops (Atarere and Oroka, 2011).

Regarding increasing motivation, empowerment and alignment, the main focus is to

align individual (employees) goals with organisational goals during the formulation

process (Kaplan and Norton, 2010, Malgwi and Dahiru, 2014). This can be realised

by generating a platform that encourages employee feedbacks and suggestions on

ways to improve current policies and practices (Atarere and Oroka, 2011; Malgwi and

Dahiru, 2014).

Kaplan and Norton (1996) argued that organisations could only assess if the BSC

properly communicates the performance drivers and outcomes in their performance

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management strategies if there is transparency present. Key point here is that the

employees and employers should have a shared understanding of the BSC concept, its

significance in the firm and their respective roles in the successful execution of the

BSC system. Taylor and Baines (2012) are two researchers who supported this

argument. Both jointly carried out qualitative research on four universities to study

their adoption of the BSC system through their real life experiences. The researchers

inferred that a champion of the BSC system is required, as it is imperative to

communicating and promoting the organisational value of the initiative to the

employees (Taylor and Baines, 2012). After interviewing the academic staff and

senior management, they also deduced that there should be a strong link between

individual performances to employees’ scorecards and pay & rewards (Taylor and

Baines, 2012).

Benefits of Adopting the BSC Approach

Atarere and Oroka (2011) claim that, integrating the Balanced Scorecard approach

generates a consistency of performance enhancement in many banks in the Nigerian

economy. The key point these authors noted is consistency, as a performance

management system needs to be consistent and reliable to ensure no irregularities

occur with the outcomes (Taylor and Baines, 2012). Also, studies show that the BSC

approach provides a set of measures, which when combined, creates a broad, detailed

and quick view of the firms (Malgwi and Dahiru, 2014; Deem et al, 2010).

Furthermore, it is stated that the adoption of the BSC would generate profit growth,

improved communication amongst employees and better human capital management

(Malgwi and Dahiru, 2014). Huang (2009) claims that the BSC approach helps

management comprehend the internal and external factors that affect the firm’s

performance while helping them achieve optimal management in the process.

Additionally, Malgwi and Dahiru (2014) note that the BSC approach would enable

efficient allocation of the firm’s resources and rewards, as well as encourage

innovation to help them thrive in a competitive environment.

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Challenges with the Implementation of the BSC

With the benefits previously discussed, certain researchers have criticised the

adoption of the BSC in different areas. Wongkaew (2007) claims that empirical

studies have shown the Balanced Scorecard to be adaptable in different types of firms

globally. However, Etim and Agara (2011) contradicted this by arguing that the

incorporation of the Balanced Scorecard could lead to system displacement and the

rearrangement of certain corporate structures and cultures. Key point here is that

effective change management is crucial to the successful implementation of the BSC

system.

Following the responses from a series of surveys, CIMA (2005) reported that the BSC

system was criticised for the uncertainty regarding the validity of the

targets/objectives selected to track performances and outcomes. They went further

and noted that the system was also criticised for its complete disregard for external

factors such as technological advances, which could threaten the firm’s current

strategy (CIMA, 2005). Other critics such as Ittner and Larcker (2003), professors at

Wharton Business School who carried out research on selected companies, argued

that most companies mistakenly viewed the BSC approach as a form of checklist thus,

permitting self-advancing managers to manipulate the measures. They claimed that

the sensible thing to do is critically understand the employees’ key performance areas

which can advance the firm’s strategy (Ittner and Larcker, 2003).

Salem (2012) also argues that the BSC approach fails to consider the extended value

chain that includes the relationship between stakeholders, in its implementation. The

lack of alignment between all entities of the organisation could prove challenging to

generating the desired outcome of the BSC system. Malgwi and Dahiru (2014) claim

that stakeholders such as public authorities and suppliers are not integrated in the

BSC, which could be significant to relevant organisations. Others argue that the high

cost of implementing the BSC is discouraging, as it would require high investment in

developing Information Technology (IT) and Human Resources (HR) to suit the

system (Burney and Swanson, 2010; Wongkaew, 2007).

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Theoretical Framework

Resource Based View (RBV) model

As the origin of performance management is linked to the perception of human

resource as the key to sustained business success (Lucas, Lupton and Mathieson,

2006), it can be argued that the RBV model is highly significant to this research. With

its roots traced back to Selznick (1957), Penrose (1959) and most recently Barney

(1991), the RBV model proposes that “value, rarity, inimitability and non-

substitutability” of human resource are significant to sustaining competitive

advantage (Bratton and Gold, 2007, p. 56). This can be linked to the adoption of the

BSC approach, with regards to the learning and growth metrics. As previously

discussed, this form of metrics revolves around constantly developing employees’

capabilities, helping them thrive and excel in a competitive environment.

The role of the RBV model is to effectively align the organisation’s strategy, its

internal resources and the performance of its employees (Wright et al, 1994).

Research shows that the BSC system is all about value-based management i.e. “to

manage and deploy organisational resources in such a way as to deliver and fulfill

organisational objectives” (CIMA, 2005, pp. 2). Paauwe and Boselie (2003) assert

that the RBV model is linked with strategic management and widely adopted in

numerous organisations. However, Pilbeam and Corbridge (2010) criticised that the

implementation of the RBV model is highly ambiguous, as there is uncertainty

regarding the notion of the entire human capital having a great effect on the

organisational performance, as opposed to the possibility of a specific set of staff i.e.

top management.

Goal Setting Theory

The goal-setting theory, which is widely known as a motivational theory, is also

another theoretical foundation for performance management (Lucas, Lupton and

Mathieson, 2006). Proposed by Locke and Latham in 1984, the goal-setting theory

argues that the assignment of specific goals enhances performance and an increase in

the goals’ difficulty ultimately increases motivation (Locke and Latham, 1984).

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Research shows that, employees working towards attaining a specific goal is

positively linked with greater motivation and improved performance (Robbins and

Judge, 2013). The key point here is setting SMART goals, which is an acronym for

specific, measurable, attainable, relevant and time-bound (Armstrong, 2015). The

targets need to be specified, there should be measurable yardsticks, the employees

need to possess the capability to attain the targets, the targets need to be relevant to

their roles and responsibilities and the deadline given should be adequate for

completion (Armstrong, 2015). Mullins (2010) argues that individuals with specific,

quantifiable goals/targets and set completion deadlines will generate higher

productivity. Crawshaw et al (2014) supports this argument by adding that setting the

right targets is expected to bridge the gap between the employees’ current

performance and desired performance.

Albright et al (2015) carried out a survey on thousands of employees in banking

organisations that have successfully implemented the BSC system and the responses

showed five consistent key points. These key points were identified as fair processes,

employee participation, understood goals, constricted but attainable goals and a

meaningful reward system. These researchers noted that “goals perceived as

unattainable can have a demotivating effect” (Albright et al, 2015, p. 46).

Linking this theory to the BSC approach, it has been affirmed that its focus is on

aligning employees’ goals with that of the organisation during the formulation process

of the learning and growth metrics. With certain processes and targets set in place, it

is argued that the BSC approach encourages improved performance amongst the

employees (Atarere and Oroka, 2011). Also, as the goal-setting theory encourages

feedback mechanisms, so does the BSC approach, with its role in promoting

employer-employee feedbacks (Atarere and Oroka, 2011). The Management by

Objective (MBO) model is also significant to understanding the role the goal setting

theory plays in this research. The MBO model proposes that senior management

should set targets which links employee performance to organisational goals, and also

encourage the input of the employees by enabling them to participate in setting unit

objectives, performance yardsticks and outcome appraisal (Mullins, 2010). Thus, it is

inferred that in such performance management systems like the BSC, employee input

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and participation in setting standards and targets is highly significant to attaining

desired results.

Nonetheless, the goal-setting theory has been criticised for its ability to encourage

unethical behaviours from employees that are intensely motivated towards attaining a

challenging goal (Ordóñez et al, 2009). The key argument here is most employers are

largely focused on the employees attaining the desired outcomes of the set targets, as

opposed to also taking the performance enhancement process into consideration.

Performance management plays a major role in the learning and development of the

employees, thus goal setting should encourage employee development in the process.

Expectancy Theory

Another motivational theory, the expectancy theory by Vroom (1964) proposes that

individuals are motivated to select certain behaviours over others depending on the

suitability of the result (Vroom, 1964). In addition, studies show that, employees

would enhance or decrease their performance in accordance with their perception of

desired results (Bratton and Gold, 2007). Likewise, Lucas, Lupton and Mathieson

(2006) note that employees who anticipate their satisfaction in attaining specific

goals, would change their behaviours in accordance with the level of anticipation. The

key argument here is there is some form of social exchange between the employer and

the employee, wherein the employer expects high employee productivity and

reciprocates with rewards while the employee expects rewards/recognition and

reciprocates with high productivity.

The expectancy theory encourages a direct link of performance to rewards, so that

deserving employees are constructively rewarded (Vroom, 1964). Linking this claim

to the BSC approach, it has been previously discussed that integrating the BSC

approach would aid allocation of the organisation’s rewards efficiently, as the

measures put in place would indicate performance status (Malgwi and Dahiru, 2014).

This can also be linked to the concept of psychological contract, which is defined as

“the perceptions of two parties, employee and employer, of what their mutual

obligations are towards each other” (CIPD, 2014). Studies show that, these

obligations could be perceived as expectations from both parties, as the psychological

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contract ultimately informs both parties what they are expected to do to meet their

bargain margin (CIPD, 2014).

Vroom’s main argument is that employees normally question themselves on three

things in order to get motivated. First, can they achieve what they are asked to do?

Secondly, would they receive rewards for it? Lastly, do they want the rewards being

offered to them? (Kermally, 2005). Essentially, employers need to set SMART goals

for their employees and distribute fair rewards accordingly to increase/sustain

motivation. These rewards need to be of some value to the employees, as Vroom

(1964) claims that motivation would be absent if the rewards are not of value to the

receiving parties (Kermally, 2005). Additionally, with regards to employees in

banking organisations, Albright et al (2015) survey responses showed that meaningful

bonuses, promotions and pay raises were found to be the key motivating factors.

However, vroom’s expectancy theory has met with some criticisms. Although the

theory considers cognitive behaviours, it is widely criticised for maintaining a rather

simplistic outlook on variables such as actions, results and expectancies (Robbins and

Judge, 2013). Steel and Konig (2006) supported this argument and also added that

Vroom (1964) failed to include time as a variable in his research. Additionally,

Kermally (2005) noted that this theory failed to clarify the concept of valence, as

there is difficulty in figuring out the amount of value attributed to different

outcomes/results.

Research Questions

Having reviewed the literature on the research topic, there are certain questions that

need to be answered. Such as, why is the BSC system being used in GBN? What HR

activities were they trying to improve with the adoption of the BSC approach?

Regarding the BSC system, how reliable are the processes involved in target setting

and reward distribution in GBN? And has the adoption of the BSC been effective in

promoting employee motivation and job satisfaction in GBN? These research

questions would be answered after relevant data has been collected and

comprehensive data analysis has been carried out.

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CHAPTER THREE – RESEARCH METHODS

With different banks currently adopting the BSC approach, whilst letting go of the

traditional methods, it is vital to evaluate if the implementation has been effective in

successfully motivating the employees and enhancing their job satisfaction. In

reference to the theoretical framework previously reviewed, it can be argued that if

the employees attain high motivation and satisfaction, there would be an increase in

performance. In order to collect and analyse the right information, relevant data would

be retrieved from reliable sources that can verify how effective the BSC system has

been in their organisation.

Research Philosophy

It is imperative to understand the philosophical approach to research, as any chosen

approach would help define the research and ascertain its limitations. Bryman and

Bell (2015) claim that there are multiple philosophical approaches to research and

they are identified as the positivist approach, interpretivist approach, constructionist

approach, objectivist approach and realism approach. These different approaches all

relate to the philosophical comprehension of knowledge gained and the scope in

which the knowledge has been acquired (Keat and Urry, 1975). The methodology for

this research would be based on both the positivist approach and interpretivist

approach.

Mixed Methods

The chosen methodological approach of this research is mixed, as it would integrate

both qualitative and quantitative methods. In addition, primary and secondary data

would be utilised for this research. Firstly, employing the use of the qualitative

method is appropriate to this research, as it would generate a thorough understanding

of real and tangible experiences, with participants encouraged to share insights and

understanding of the subject matter (Taylor and Baines, 2012; Bezzina and Saunders,

2014). To supplement this, the quantitative method would be incorporated, as it would

create a more objective view of the data generated. Research shows that the mixed

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methodology is widely known and praised for its role in eliminating the limitations of

both methods (Pelto, 2015; Garner, 2015; Hesse-Biber, 2015; Baker-Doyle, 2015).

Worrall (2000) notes that the quantitative research is a more scientific approach with

a better ability to make accurate predictions by focusing on statistics. This is more in

line with the positivist approach to research, which involves a more logical and

numerical approach to collecting and analysing data (Bryman and Bell, 2015; Norris

et al, 2015). A key argument prevalent with the quantitative research is that its

method is largely deductive in the sense that arguments are made from the theoretical

framework and then tested with the use of numerical data and statistics (Pelto, 2015;

Randle et al, 2014). This form of methodology is widely criticised for its artificial

sense of precision and accuracy in the measurement process, as different participants

respond to questionnaires differently, based on their interpretation (Cicourel, 1964).

Bryman and Bell (2015) also believe this methodology impedes the link between

research and everyday life through its heavy dependence on instruments.

On the other hand, the qualitative research is a non-scientific, largely inductive

approach, which involves more of collecting data through social observations and

interactions, with direct experience of communal settings (Burton-Jones, 2009). It is

argued that this form of research is more in line with the interpretivist philosophical

approach to research, as it focuses on the matter of social sciences and behaviours

with emphasis placed on generating theories (Bryman and Bell, 2015).

Nonetheless, Bagdonienė and Zemblytė (2005) argue that, due to the small number of

participants involved with this type of research, results tend to be too exploratory and

not functional to population. Studies also showed that the qualitative approach is

criticised for its high level of subjectivity, absence of transparency and issues of

oversimplification (Bryman and Bell, 2011). However, Lund (2012) resolves that its

in-depth nature of study makes it beneficial for the purpose of critical analysis.

Overall, Tewksbury (2009) found the right balance between both methods by arguing

that the accurate predictions that are linked with quantitative methods have been made

on the grounds of theoretical knowledge, which is the basis of qualitative methods. A

single measure cannot give an accurate picture of the effectiveness of the Balanced

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Scorecard, which is why the integration of both methodologies is significant. In

general, the chosen methods will be vital in measuring if employee motivation and

satisfaction improves or declines from the implementation of the balanced scorecard.

Population

The targeted population for this research was banking organisations in Nigeria.

Precisely, examination was carried out on employees and senior management in a

chosen bank organisation that has implemented the BSC system over the years. This

population was chosen because the Nigerian banking industry has a significant

monetary presence in the Nigerian economy and the adoption of the BSC system is

widely popular within the Nigerian Banking industry.

A single banking organisation has been chosen as a case study for data collection and

analysis. This bank has opted to remain anonymous so it would be referred to with a

pseudo name, which is GBN. GBN was selected because it is currently the second

largest bank in Nigeria, in terms of assets. Secondly, getting access and retrieving data

from this organisation was pre-arranged with the senior management team. GBN

currently employs over 12,000 employees, in over 1000 branches and over 10

subsidiaries globally. In Nigeria, it currently employs approximately 9,563 employees

and has business locations in approximately 867 branches in different regions.

Sampling & Data Collection

The participants in GBN were randomly selected from different departments in the

branches across Nigeria. The method chosen for the quantitative methodology was a

survey sent out via email with a link to 500 GBN employees. Leeuw, Hox and

Dillman (2008) note that surveys are used to gather information from a specific group

of people, so as to gain insight into their thoughts on a particular subject. The

Regional Manager of GBN provided the list of employee emails used for this

research. The email, which was sent out, stated the research topic, the aim and

objectives and informed the employees that the research was taking place and their

participation was significant.

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The survey that was distributed was hosted by an online survey development firm

called SurveyMonkey. After two weeks, a second email was sent out to remind the

participants to respond to the survey. The survey consisted of 12 questions ranging

from multiple-choice questions to Likert rating scale questions and comment boxes

for additional information (which would be relevant to the qualitative analysis).

Respondents were asked to specify their gender so as to have their demographic

information. Questions included their level of awareness regarding the use of the BSC

system, their rate of satisfaction and motivation regarding the processes involved in

the implementation of the BSC system and the effect that this had on their

performance. Although there is the issue of potential break-off with the survey

approach, it is more motivating to participants as it is positively linked with a high

level of anonymity (Leeuw, Hox and Dillman, 2008).

For the qualitative methodology, interviews were set with 10 senior managers in the

different (southern, western, eastern and northern) regions in Nigeria, and these

managers were directly involved with the administration of targets, distribution of

rewards and the overall implementation of the BSC system. As opposed to face-to-

face interviews, structured phone interviews were administered and the duration

ranged from 15 to 30 minutes. Structured interviews were chosen because the

participants requested that the interviews should be kept as brief as possible, as they

were extremely busy. Initial questions were pre-set and the phone conversations with

the participants were recorded with the Free International Conference Call App (link

provided in the list of references), which allows both parties to call in through the

application. Although Bryman and Bell (2011) noted that qualitative researchers

commonly used semi-structured interviews or unstructured interviews, the request of

the participants supported the decision of employing structured interviews as the best

option for this research.

Hypotheses

H1: The Adoption of the BSC is positively linked to Job Satisfaction in GBN.

H2: The Adoption of the BSC is positively linked to Motivation in GBN.

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H3: There is a significant difference in the level of Job Satisfaction between male and

female employees, with the adoption of the BSC in GBN.

H4: There is a significant difference in the level of Motivation between male and

female employees, with the adoption of the BSC in GBN.

H5: There is a significant difference in the perception of fair reward distribution

between male and female employees, with the adoption of the BSC in GBN.

H6: The five items measuring the BSC as an effective performance management tool

is reliable for analysis.

Data Analysis

Charmaz (2006) states that data research becomes significant when it is arranged and

organised, with meanings given to facts and figures. The appropriate analytical

technique for the qualitative research would be the inductive method, employing the

use of the modified Grounded Theory, with the inclusion of coding and themes.

Grounded theory can be defined as “one that is inductively derived from the study of

the phenomenon it represents” and “personally verified through systematic data

collection and analysis of data pertaining to that phenomenon” (Strauss and Corbin,

2000).

Glaser and Strauss (1967) report that the concept of grounded theory revolves around

combining different concepts together to explain the activities occurring in the data.

With regards to the modified grounded theory, repeated procedures in the data would

be classified, thus making it easier to understand and distinguish the data accordingly

(Gioia et al, 2012). With the interview transcripts, the process of coding would be

employed, such that significant lines of text would be labeled to enable better

comprehension of the data. In addition, common themes in all transcripts would be

identified and categorized.

For the quantitative research, data collected would be transcribed and interpreted with

the SPSS software widely known for analysing statistics. The first test that would be

carried out would be the descriptive statistics test on the awareness of the BSC and

20 | P a g e

the gender of the respondents. An Independent t-test would be carried out to examine

the difference in levels of job satisfaction, motivation and perception of fair reward

distribution, between the male and female bankers in GBN.

Additionally, a reliability analysis test (Cronbach’s Alpha statistics) would be carried

out to ascertain that the five items measuring the BSC as an effective performance

management tool form a reliable scale. Lastly, a Pearson Correlation test would be

carried out to determine if there is a strong/weak positive/negative relationship

between the relevant variables. That is, to examine whether the adoption of the BSC is

associated with job satisfaction and motivation. It can be inferred that these tests

would provide answers to the hypotheses.

Ethical Concerns

During the data collection stage, there were certain ethical standards that were

strongly implemented. With regards to confidentiality and anonymity with the

interviews and surveys, the names and identities of the participants were not

uncovered. Bryman and Bell (2011) claim that ethical issues commonly generate from

the sensitivity of the topic involved. In order to tackle this, the interview and survey

questions were vetted by the Regional Manager of GBN before they were sent out to

all the participants. If the Regional Manager was uncomfortable with the questions

provided due to topic sensitivity, certain changes were made while simultaneously

keeping the research objectives intact. With regards to data storage, collected data

were stored in a password protected computer system and a memory hard drive.

21 | P a g e

CHAPTER FOUR – RESULTS & DISCUSSION

Each research question would be answered one at a time to generate a more structured

approach to this chapter. Out of 500 targeted participants, 266 responded to the

survey. As for the interviews, 10 respondents were involved.

Why is the BSC system being used in GBN?

From the interview responses, two themes were present. The first theme was

performance appraisal and the second theme was promoting organisational strategy

and vision. Code names for the Senior Managers are SM1 to SM10. Some quotes

from the interviews include:

SM2 “To track performance along set goals and targets”

SM5 “It aims at measuring all aspects of key performance indicators of the bank with a weighted average score. Both financial and operational deliverables are measured to ensure a balanced assessment of staff

contribution to the overall goal of the organisation”

SM7 “It was introduced as a performance measurement and management tool to track and reward performance appropriately. To measure delivery of

the bank’s corporate strategies”

SM6 “To provide a measurable framework to reflect the achievement of the Bank’s vision on service and also provide a guiding framework towards

attainment of same”

SM4 “To communicate the strategy of the organisation and track the successful execution of that strategy”

The literature review notes that the aim of the BSC is to encourage effective

utilisation of an organisation’s human capital through continuous performance

appraisals. This is in line with the RBV theory which proposes that developing

employees’ capabilities constantly can help them thrive and excel in a competitive

environment. As high performing employees are key to sustaining business success, it

can be inferred that the use of the BSC is significant in GBN.

What HR activities were they trying to improve with the adoption of the BSC

approach?

22 | P a g e

The HR activities mentioned during the interviews included: staff performance

appraisal, Employee feedback, staff productivity, customer service improvement,

reward management, organisational performance and accountability issues. Some key

quotes include:

SM4 “To track individual and organisational performance. To review talent and individual performance and ensure reward for good performance and

consequence for bad”

SM7 “Staff appraisal and reward system. To address bias and subjectivity perceived in the former appraisal system”

SM8 “We aim to achieve improved service delivery and ultimately customer’s satisfaction”

SM6 “The issue of accountability and ownership”

As seen in the literature review, one of the benefits of adopting the BSC approach is

that it helps management comprehend the internal and external factors that affect the

employees and firm performance and in the process, helps them achieve optimal

management. Thus with the adoption of the BSC system in GBN, it can be concluded

that these HR activities would be addressed and improved.

Regarding the BSC system, how reliable are the processes involved in target

setting and reward distribution in GBN?

From the interview responses, it can be gathered that there are objective processes in

place. The first major theme was the use of weighted Key Performance Indicators

(KPIs) with targets set to track those KPIs and rewards distributed based on targets

met. Another major theme was the factors taken into consideration during these

processes. Recurring factors include: Branch location, Grade of Unit heads, Size of

branch and Job role. Some of the managers’ key quotes are:

SM7 “We have Performance Management Unit that sets these targets via KP1s. These are key performance indicators which are assigned weights”

23 | P a g e

SM9 “Major considerations include job role, processing time, location, size of branch, standard best practice. Like I said, so many factors to consider

when setting performance targets”

As seen in the literature review, there are other processes involved in effectively

setting targets and distributing rewards. The MBO model, which is linked to the Goal

Setting theory, proposes that senior management should set targets which links

employee performance to organisational goals, and also encourage the input of the

employees by enabling them to participate in setting unit objectives and outcome

appraisal. Nonetheless, the expectancy theory is in line with GBN’s processes, as it

argues that there should be a direct link of performance to rewards, so that deserving

employees are constructively rewarded.

And has the adoption of the BSC been effective in promoting employee

motivation and job satisfaction in GBN?

Firstly, it was imperative to ascertain that the five items measuring the BSC as an

effective performance management tool do form a reliable scale. The SPSS handbook notes that the Reliability analysis (Cronbach’s Alpha statistics) is carried out to check that items in a scale are measuring the same concept. This is considered a highly important aspect of a scale if it is to be useful. In this case, a reliability analysis was done on these variables because they are used to measure the BSC as an effective performance management tool, with regards to goal setting. Variables selected are: SpecificGoals, MeasureGoals, AttainGoals, RelevantGoals and TimeGoals.

Table 4.1 Case Processing Summary

N %

Cases Valid 254 95.5

Excludeda 12 4.5

Total 266 100.0

a. Listwise deletion based on all variables in the

procedure.

24 | P a g e

The first point of interest to this data analysis is the reliability statistics which shows the Cronbach’s Alpha statistics. This is acceptable if the figure shown is above 0.70. The second point of interest is the item-total statistics, which shows in the last column what the Cronbach’s Alpha would be if each item were deleted from the scale. This helps determine if one specific item is pulling the reliability down.

Table 4.2 Reliability Statistics

Cronbach's

Alpha N of Items

.808 5

Table 4.3 Item Statistics

Mean Std. Deviation N

SpecificGoals 1.63 .621 254

MeasureGoals 1.79 .661 254

AttainGoals 1.78 .755 254

RelevantGoals 1.89 .820 254

TimeGoals 2.25 .961 254

In table 4.2, the five items measuring the BSC as an effective performance

management tool do form a reliable scale with a Cronbach’s Alpha of 0.808, which is

above the acceptable score of 0.70.

Table 4.4 Item-Total Statistics

Scale Mean if Item

Deleted

Scale Variance if

Item Deleted

Corrected Item-

Total Correlation

Cronbach's Alpha

if Item Deleted

SpecificGoals 7.71 6.065 .658 .761

MeasureGoals 7.55 6.027 .615 .769

AttainGoals 7.56 5.623 .633 .760

RelevantGoals 7.44 5.496 .596 .771

TimeGoals 7.08 5.159 .544 .800

25 | P a g e

Table 4.5 Scale Statistics

Mean Variance Std. Deviation N of Items

9.33 8.461 2.909 5

In table 4.4, we can see that the five items form a reliable scale and the reliability of

the scale would not be improved by removing any of the items. This result provides

an answer to the 6th Hypothesis. As seen in the literature review, setting SMART

goals/targets is key to generating an effective performance management tool.

Furthermore, it was also imperative to get descriptive statistics on relevant variables.

Summary statistics was carried out with the use of the descriptive statistics test. Under

the descriptive statistics, frequencies were chosen in order to analyse the nominal data

in this case. Frequencies can be used to analyse ordinal, nominal or scale data.

According to the SPSS handbook, the descriptive statistics generate a very important

outlook at the data, as they determine typical values of the variables and check the

quality of the data. In this case, descriptive statistics on the awareness of the BSC

system as a performance appraisal tool would be significant as it would show that the

employees are aware of the BSC system and its functions.

In the survey, the respondents were asked to specify if they were aware of the

adoption of the BSC system in their organisation and they were asked to select a

yes/no answer.

Table 4.6 Statistics

BSCAware

N Valid 265

Missing 1

Table 4.7 BSCAware

Frequency Percent Valid Percent

Cumulative

Percent

26 | P a g e

Valid Yes 257 96.6 97.0 97.0

No 8 3.0 3.0 100.0

Total 265 99.6 100.0

Missing System 1 .4

Total 266 100.0

Table 4.7 shows that 257 respondents answered that they were aware of the use of the BSC system in GBN, while 8 respondents claimed that they were not aware. This data result is promising as it could be inferred that the management successfully communicated the use and transition of the BSC system to the employees, so as to prevent subsequent change management issues. Additionally, during the interviews with the Senior Managers, SM1 TO SM10 (excluding SM3 and SM6) all claimed that there was initial resistance to the BSC adoption, with themes including resistance to change, lack of knowledge on the system and wage-effort bargain. However, these got resolved subsequently. Some key quotes include:

SM1 “It was not necessarily resistance per se, rather people were anxious about it. The reason is that it was a change from the then practice”

SM5 “Naturally, almost every new policy is met with some resistance and the BSC was not an exception. An average person does not like to work but wants to be paid. Therefore, any policy that will expose his or her non-contribution

to the bottom line will be kicked”

Another descriptive test was also carried out to determine the gender statistics of the respondents.

Table 4.8 Statistics

gender

N Valid 266

Missing 0

27 | P a g e

Table 4.9 gender descriptive

Frequency Percent Valid Percent

Cumulative

Percent

Valid Female 122 45.9 45.9 45.9

Male 144 54.1 54.1 100.0

Total 266 100.0 100.0

Diagram 4.1

The tables 4.8 and 4.9 show that out of the 266 respondents that participated in the survey, 122 respondents were females while 144 respondents were males. This could potentially raise an issue of bias if there is data imbalance. Nonetheless, this is not a significant gap so it can be concluded that data analysis would not be affected negatively.

With regards to Hypotheses 3 to 5, independent t tests were carried out to ascertain if there were significant gender differences with regards to employees’ level of job satisfaction, level of motivation and perception of fair distribution of rewards.

28 | P a g e

The SPSS handbook notes that the independent sample t-test is used to compare differences between two categories (in this case, males and females). It is referred to as an independent sample because the respondents can only be in one of the two groups. This test was done to determine whether there are significant gender differences in employee satisfaction with regards to set goals/targets and supervisor feedback in GBN.

Test variables = FdbackSatisfa (Satisfaction with supervisor feedback) and GoalsSatisfa (Satisfaction with set goals/targets). Grouping variable = Gender (Males and Females)

Table 4.10 Group Statistics

gender N Mean Std. Deviation Std. Error Mean

FdbackSatisfa Female 121 2.23 .772 .070

Male 141 2.09 .869 .073

GoalsSatisfa Female 114 2.26 .753 .071

Male 140 2.14 .807 .068

N = Number of respondents, Mean = Arithmetic average

Table 4.10 shows that regarding employee satisfaction on supervisor feedback with

the BSC system, the level of satisfaction appears to be higher for the female

employees in comparison to the male employees. The female employees averaged a

mean score of 2.23 while the male employees averaged a score of 2.09. This is a very

interesting result considering that the number of male respondents (141) is higher than

the number of female respondents (121).

With regards to employee satisfaction on set goals/targets, the level of satisfaction

appears to be higher for the female employees in comparison to the male employees.

The female employees averaged a mean score of 2.26 while the male employees

averaged a score of 2.14. Another interesting result considering that the number of

male respondents (140) is higher than the number of female respondents (114).

29 | P a g e

Table 4.11 Independent Samples Test

Levene's

Test for

Equality

of

Variances t-test for Equality of Means

F Sig. t df

Sig.

(2-

tailed

)

Mean

Differenc

e

Std. Error

Differenc

e

95%

Confidence

Interval of the

Difference

Lowe

r Upper

FdbackSatisfa Equal

variance

s

assumed

.000 .9891.36

0260 .175 .139 .102 -.062 .341

Equal

variance

s not

assumed

1.37

3

259.68

5.171 .139 .101 -.060 .339

GoalsSatisfa Equal

variance

s

assumed

.221 .6391.29

0252 .198 .127 .099 -.067 .322

Equal

variance

s not

assumed

1.29

9

247.27

8.195 .127 .098 -.066 .321

When looking at the independent samples test in table 4.11, it appears that the

difference between the two means, with regards to employee satisfaction on

supervisor feedback, is not statistically significant. This is because the sig value is

above .05. The 2-tailed sig value highlighted for equal variances not assumed is .171.

For the employee satisfaction on set goals/targets, the difference between the two

means is also not statistically significant. The 2-tailed sig value highlighted is .195.

This answers Hypothesis 3.

30 | P a g e

Another test was done to determine whether there are significant gender differences in the employees’ level of agreement with fair reward distribution, their level of motivation to improve individual performance and level of motivation to achieve organisational goals. Test variables = FairRewards (Fair distribution of Rewards), IndvPerFMotivate (Motivation to improve individual performance) and OrggoalsMotivate (Motivation to achieve organisational goals). Grouping variable = Gender (Males and Females)

Table 4.12 Group Statistics

gender N Mean Std. Deviation Std. Error Mean

FairRewards Female 117 2.74 .986 .091

Male 140 2.54 1.190 .101

IndvPerFMotivate Female 114 1.81 .871 .082

Male 142 1.85 .891 .075

OrggoalsMotivate Female 118 1.86 .784 .072

Male 142 1.78 .791 .066

With regards to employee perception of fair rewards allocation with the BSC system,

table 4.12 shows that the level of agreement appears to be higher for the female

employees in comparison to the male employees. The female employees averaged a

mean score of 2.74 while the male employees averaged a score of 2.54. This result is

intriguing considering that the number of male respondents (140) is higher than the

number of female respondents (117).

With regards to employee motivation to improve individual performance, the level of

motivation appears to be slightly higher for the male employees in comparison to the

female employees. The male employees averaged a mean score of 1.85 while the

female employees averaged a score of 1.81.

When looking at employee motivation to achieve organisational goals, the level of

motivation appears to be higher for the female employees in comparison to the male

employees. The female employees averaged a mean score of 1.86 while the male

employees averaged a score of 1.78. Another interesting result, seeing that the number

of male respondents (142) is higher than the number of female respondents (118).

31 | P a g e

Table 4.13 Independent Samples Test

Levene's

Test for

Equality of

Variances t-test for Equality of Means

F Sig. t df

Sig.

(2-

tailed

)

Mean

Differenc

e

Std. Error

Differenc

e

95%

Confidence

Interval of

the

Difference

Lowe

r

Uppe

r

FairRewards Equal

variance

s

assumed

5.41

2

.02

1

1.39

3255 .165 .192 .138 -.080 .464

Equal

variance

s not

assumed

1.41

6

254.98

5.158 .192 .136 -.075 .459

IndvPerFMotivat

e

Equal

variance

s

assumed

.082.77

5-.407 254 .685 -.045 .111 -.264 .173

Equal

variance

s not

assumed

-.408244.35

3.684 -.045 .111 -.263 .173

OrggoalsMotivat

e

Equal

variance

s

assumed

.554.45

7.843 258 .400 .083 .098 -.110 .276

Equal

variance

s not

assumed

.844250.19

4.400 .083 .098 -.110 .276

32 | P a g e

Looking at the independent samples test in table 4.13, it appears that the difference between the two means, with regards to employee perception of fair rewards allocation, is not statistically significant. This is because the sig value is above .05. The 2-tailed sig value highlighted for equal variances not assumed is .158.

For the employee motivation to improve individual performance, it appears that the difference between the two means is also not statistically significant. This is because the sig value is above .05. The 2-tailed sig value highlighted for equal variances not assumed is .684.

With regards to employee motivation to achieve organisational goals, it appears that the difference between the two means is not statistically significant. This is also because the sig value is above .05. The 2-tailed sig value highlighted for equal variances not assumed is .400.

Overall, it can be concluded that there are gender differences between the GBN employees’ level of job satisfaction, motivation and perception of fair distribution of rewards. Nonetheless, these differences are not very significant. This provides answers to Hypotheses 4 and 5 respectively.

The next step was to look at the correlation between relevant variables. The correlations test is used to quantify the strength of a relationship

between two continuous or ordinal variables. In this case, the correlation is between

two variables: FdbackSatisfa (employees’ level of satisfaction/dissatisfaction with

supervisor’s feedbacks) and FdbackPerFImprove (employees’ level of motivation to

improve performance as a result of supervisor’s feedbacks). Also, the Pearson

correlation test was chosen because the data is normally distributed.

The Pearson correlation coefficient (r) are as follows:

33 | P a g e

r = 0 no correlation, r = 0.01 – 0.20 slight correlation, r = 0.21 – 0.40 low/small

correlation, r = 0.41 – 0.70 moderate to substantial correlation, r = 0.71 – 0.90

strong/high correlation, r = 0.91 – 0.99 near perfect correlation, r = 1 perfect

correlation

Also the same for negative correlation.

Table 4.14 Correlations

FdbackSatisfa FdbackPerFImprove

FdbackSatisfa Pearson Correlation 1 .714**

Sig. (2-tailed) .000

N 262 257

FdbackPerFImprove Pearson Correlation .714** 1

Sig. (2-tailed) .000

N 257 258

**. Correlation is significant at the 0.01 level (2-tailed).

Table 4.14 indicates that there is a strong positive significant correlation between

employees’ level of satisfaction with supervisors’ feedbacks and employees’ level of

motivation to improve performance, as a result of supervisor’s feedbacks. It is a

significant correlation because it shows a sig value of .000 which is <0.01. Likewise, r

= .714 shows that it is a strong/high correlation as evidenced in the Pearson

correlation coefficient above.

These results indicate that in GBN, an increase in the level of employee satisfaction

with supervisors’ feedbacks is strongly correlated with an increase in the level of

employee motivation to improve performance, as a result of these supervisors’

feedbacks. Thus, if the employees in GBN are not satisfied with the feedback they

receive from their supervisors through the BSC system, then they would not be

motivated to improve their individual performance. Linking this result to the goal

setting theory, it proposes that supervisor-employee feedback mechanisms should be

encouraged in order to communicate performance enhancement measures.

Table 4.15 Correlations

34 | P a g e

GoalsProcessSatisfa ParticipateLevel

GoalsProcessSatisfa Pearson Correlation 1 .251**

Sig. (2-tailed) .000

N 241 235

ParticipateLevel Pearson Correlation .251** 1

Sig. (2-tailed) .000

N 235 258

**. Correlation is significant at the 0.01 level (2-tailed).

Table 4.15 above indicates that there is a small positive significant correlation

between employees’ level of satisfaction with the goal setting process and employees’

level of participation in the goal setting process. It is a significant correlation because

it shows a sig value of .000 which is <0.01. Nonetheless, r = .251 shows that it is a

weak/low correlation as evidenced in the Pearson correlation coefficient above.

This result indicates that in GBN, an increase in the employees’ level of satisfaction

with the process involved in setting their goals/targets in the BSC system is weakly

correlated with their level of participation in setting these goals/targets. Thus, their

level of participation does not generate substantial variations to their level of

satisfaction with their goal setting process, even though it is a significant correlation.

However, this contradicts with the literature review. According to Albright et al

(2015), their survey responses from numerous banking organisations show that

employee participation in the goal setting process is one of the consistent key points

in banking organisations that have successfully implemented the BSC system. Also,

with the interview responses, a key quote supports this argument:

SM6 “I truly believe my team would have loved to be involved in adding opinions and suggestions to plausible settings of some of the metrics and

parameters”

Nonetheless, with the employees’ survey responses, it shows that their level of

participation does not have a significant effect on how satisfied they are with the goal

setting process.

35 | P a g e

Table 4.16 Correlations

BSCAware OrggoalsMotivate IndvPerFMotivate

BSCAware Pearson Correlation 1 .100 .088

Sig. (2-tailed) .108 .159

N 265 259 256

OrggoalsMotivate Pearson Correlation .100 1 .718**

Sig. (2-tailed) .108 .000

N 259 260 255

IndvPerFMotivate Pearson Correlation .088 .718** 1

Sig. (2-tailed) .159 .000

N 256 255 256

**. Correlation is significant at the 0.01 level (2-tailed).

Table 4.16 shows that there is a weak/slight positive correlation between the adoption

of the BSC system in GBN and the employees’ level of motivation to achieve

organisational goals. However, it is not a significant correlation because it shows a sig

value of .108 which is >0.01. Likewise, r = 0.10 confirms that it is a weak correlation

as evidenced in the Pearson correlation coefficient above. This result indicates that the

adoption of the BSC does not have a significant effect on motivating GBN employees

to achieve organisational goals.

Similarly, there is evidence here showing that there is a weak/slight positive

correlation between the adoption of the BSC system in GBN and the employees’ level

of motivation to improve their individual performance. It is also not a significant

correlation because it shows a sig value of .159 which is >0.01. r = 0.08 also confirms

that it is a weak correlation as seen in the Pearson correlation coefficient above. The

result shows that the adoption of the BSC in GBN does not have a significant effect

on motivating the employees to improve their individual performance.

With both results above, the interview responses contradict them as SM1 to SM10

(excluding SM9) all claimed that there has been an increase in employee productivity

following the adoption of the BSC system in GBN. So the Senior Managers believe

the adoption of the BSC is motivating their employees to improve their performance,

whilst the employees perceive differently.

36 | P a g e

However, in reference to the employees’ level of motivation to achieve organisational

goals and their level of motivation to improve their individual performance, there

seems to be a strong/high positive significant correlation. It is significant because it

shows a sig value of 0.00 which is <0.01. Also, r = 0.718 confirms that it is a strong

correlation as seen in the Pearson correlation coefficient previously mentioned. This

result indicates that, in GBN, an increase in the level of the employees’ motivation to

achieve organisational goals would significantly lead to an increase in the employees’

motivation to improve their individual performance. Additionally, the literature

review supports this outcome as it argues that the focus of the BSC approach is to

align employees’ goals with the organisational goals during the formulation process.

So if the GBN employees feel that the organisational goals is similar to theirs, they

would be motivated to improve their performance.

Another descriptive test was done to find out the statistics on if the GBN employees

perceive that there is fair allocation of rewards through the BSC system.

Table 4.17 Statistics

FairRewards

N Valid 257

Missing 9

Table 4.18 FairRewards

Frequency Percent Valid Percent

Cumulative

Percent

Valid Strongly Agree 31 11.7 12.1 12.1

Agree 109 41.0 42.4 54.5

Neutral 60 22.6 23.3 77.8

Disagree 38 14.3 14.8 92.6

Strongly Disagree 19 7.1 7.4 100.0

Total 257 96.6 100.0

Missing System 9 3.4

Total 266 100.0

37 | P a g e

The frequency column shows that 31 respondents strongly agreed that there is fair

distribution of rewards through the BSC system and 109 respondents agreed the same.

However, 60 respondents remained neutral (did not agree or disagree) that there is fair

distribution of rewards. Additionally, 38 respondents disagreed that there is fair

distribution of rewards through the BSC system and 19 respondents strongly

disagreed on the same notion.

Diagram 4.2

The pie chart above shows that the GBN employees that agreed that there is fair

distribution of rewards through the BSC system represent the largest proportion of

staff in the sample. It could be inferred that majority of the GBN employees are

satisfied with the allocation of rewards through the BSC system, although there is

some sort of expectation of better reward practices. This is line with the expectancy

theory where employees would enhance or decrease their performance based on their

perception of desired results. Likewise, as seen in the literature review, the key note

here is that some form of social exchange takes place, where the employer expects

high employee productivity and reciprocates with rewards, while the employee

expects rewards/recognition and reciprocates with high productivity. These results

provide answers to Hypotheses 1 and 2 respectively.

Additionally, the interview responses show that SM1 to SM10 (excluding SM9) all

claim that the BSC system has been effective in making evaluative decisions on

38 | P a g e

salaries. However, SM1 to SM10 (excluding SM4 and SM5) claim that the BSC

system has not been effective in making evaluative decisions on promotion. This is

supported by the employee survey comments, which include quotes such as these:

“It should be used to encourage you when you are doing well by promoting staff”

“Balanced Scorecard outcome should commensurate with promotion decisions positively”

“The rewards are not fairly distributed in accordance with my performance appraisal. No promotion, No salary increment, No incentive. Generally these

should be in an organisation that wants to move forward over time”

“It’s very appalling that even after I attained and maintained a score of over 90% for 3 consecutive years, I still have not been rewarded adequately with a

promotion, just notches. It’s demotivating”

“Promotion to everyone when due”

“I scored 93 in my December 2014 scorecard. I was scored 90 in my appraisal and I was not promoted. So there is no reward for performance”

This shows that the lack of promotion is a major issue in GBN and was a consistent

theme with both the employee survey and the senior management interviews. Overall,

it can be inferred that the data responses provide a clear insight into how GBN

employees are satisfied and motivated with the adoption of the BSC approach, as well

as their perception on the set targets and rewards. Through this, recommendations on

their current policies and practices can be drawn.

CHAPTER FIVE – CONCLUSION & RECOMMENDATIONS

The overall aim of this thesis was to evaluate the effectiveness of the BSC, as a

performance management tool in GBN. More specifically, this was with regards to

employee motivation and satisfaction. The research questions revolved around finding

out the role of the BSC system in GBN, the HR activities they were trying to improve

39 | P a g e

with the BSC adoption, the reliability of the processes involved in setting targets and

distributing rewards in GBN, through the BSC system and the effectiveness of the

BSC in promoting employee motivation and satisfaction.

To answer these research questions, a mixed methodology was employed i.e. both

quantitative (deductive) and qualitative (inductive) methods. Both methods

complemented each other while eliminating the limitations of both. GBN was the

chosen Nigerian banking organisation and a survey was sent out to 500 randomly

selected employees and interviews were set with 10 senior managers.

Summary of Key Findings

Studies showed that performance management is very crucial to the Nigerian Banking

industry, which is why the adoption of the BSC was widely accepted. The BSC

approach was first introduced in 1992 by Robert Kaplan and David Norton in 1992.

The BSC system helps these banking organisations to enhance corporate quality,

efficiency and accountability, which were themes present during the interviews held

with the GBN senior management.

The theoretical framework of this research consisted of the RBV model (Barney,

1991), the goal setting theory (Locke and Latham, 1984) and the expectancy theory

(Vroom, 1964). These theories were significant to the research because they proposed

notions that could help improve employee performance, motivation and job

satisfaction.

Interview results showed that the BSC was being used for appraising performance and

promoting corporate strategy and vision in GBN. The HR activities they were trying

to improve were identified as employee feedback, staff productivity, customer service

improvement, reward management and accountability issues. Research also showed

that the processes used for setting targets and distributing rewards in GBN were

reliable. They employed the use of weighted Key Performance Indicators (KP1s),

then targets were set to track those KPIs and rewards were distributed based on the

targets met. Other factors also taken into consideration were: size of branch, branch

location, job role, etc.

40 | P a g e

Using SPSS, descriptive tests showed the level of awareness of the BSC adoption

within GBN and the gender statistics of the respondents. To test the effectiveness of

the BSC, with regards to setting goals, a reliability analysis test showed that the five

variables (specific, measurable, attainable, relevant and timed) formed a reliable scale

for measurement. For group differences, independent t tests showed that there were

statistically insignificant gender differences in the employees’ level of satisfaction,

motivation and perception of fairly distributed rewards.

Pearson Correlation tests showed that in GBN, satisfaction with supervisor feedbacks

strongly correlated with motivation to improve performance. However, it also showed

that there is a significant weak correlation between employee participation in goal

setting process and employee satisfaction with the goal setting process. Another test

showed that the BSC adoption in GBN has no significant effect on employee

motivation to improve individual performance. Nonetheless, there was a significant

correlation between motivation to achieve organisational goals and motivation to

improve individual performance.

Lastly, a descriptive test showed that majority of the GBN employees were in

agreement that there was fair distribution of rewards through the BSC system,

although they perceive there is need for improvement, with regards to promotions.

Survey and interview responses showed that this was the major issue demotivating the

staff and reducing their level of satisfaction.

Limitations of the Research

With the limited targeted population, it was quite challenging to draw conclusions of

the BSC effectiveness in the Nigerian Banking industry. Although the survey and

interview participants were drawn from different regions in Nigeria, the population

was still limited. Regarding the data sample, with only 266 responding to the survey,

out of 500 targeted employees, this may have had a negative impact on my data

analysis as additional respondents would have enhanced the study further.

Additionally, the structure of the questionnaire did not properly differentiate between

independent and dependent variables, thus leading to some challenges concerning

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doing the right tests with SPSS. More time with the interviewees (senior

management) would have enhanced this study further, as the study would have

employed a more semi-structured approach whilst getting more information in the

process.

Recommendations

These proposals would encompass actions to improve future research and current

practices in GBN. For future research purposes, it would be advisable to target

multiple banking organisations that have adopted the BSC approach in the Nigerian

Banking industry. This would help generate a more analytical and impartial

conclusion to the BSC effectiveness in the Nigerian Banking industry.

With regards to the survey data sample, it is proposed that a wider pool of participants

should be targeted i.e. as opposed to limiting my sample to 500 participants, which is

more likely going to generate more responses. It can be said that not all targeted

employees would respond but nonetheless, the higher the number of proposed

participants, the higher the probability of getting additional responses. With regards to

the interviews, face to face interviews would have enriched the data further as they

would have been beneficial in observing the reactions and physical movements of the

participants during the Q&A session. With the phone interviews, all that were

observed were the voice tones with which the questions were being answered.

Concerning the structure of the survey, it would be advisable to read up more

academic materials on setting up questionnaires. Especially when it involves using a

software such as SPSS. It is imperative to understand the different types of variables

and what role they play in data analysis. The questions set in subsequent surveys

should reflect the different variables more applicably. This would prevent confusion

in knowing what type of tests to conduct during the use of the SPSS application.

With regards to GBN’s current HR policies, recommendations would be derived from

the open comments submitted by the employees who responded to the survey.

Common themes would also be generated as part of the recommendations.

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As the data analysis shows, there is a strong positive correlation between the

employees’ motivation to achieve organisational goals and their motivation to

improve individual performance. Likewise, the survey comments indicate that the

staff members are never carried along in setting personal and organisational goals.

Thus it is proposed that the appraiser should seek the employees’ input in setting the

targets, discuss their KPIs and align the corporate goals with the employees’

feedback. Official meetings should be held with the stakeholders of the organisation

and feedback should be sought from all parties regarding the objectives that needs to

be met.

Concerning the main issue of promotion, majority of the survey comments states that

the attainment of the set targets in the BSC does not influence promotion on the job,

but rather their pay for performance allowances. They also added that the BSC system

is never used for promotion and has placed the appraisee entirely at the mercy of the

supervisor. Thus it is proposed that the calibration of the BSC system should not be

based on the subjectivity of the supervisor, but rather on the score/outcome

highlighted on the BSC. The appraisers need to liaise with the HR department and

review the promotion policies. Thus, for example, if a consistent BSC score of 90 and

above for a consecutive period leads to promotion, then an employee who attains this

score should be promoted. Conclusively, rewards should be distributed based on the

set standards in the BSC system, as this reduces employee complaints and enhances

motivation and job satisfaction.

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REFLECTION

During the duration of my research, I have acquired certain knowledge, skills and

competencies relevant to my future as a HR manager and consultant. It was good to

study a single organisation and discover how the employees are motivated and

satisfied with their jobs and their view point on the current policies in their

organisation. Firstly, my research method skills came in handy in this instance.

Creating a survey to assess the employees’ level of satisfaction with a particular

system and their level of motivation to improve performance was very interesting.

The results showed real life experiences which I compared with the current theoretical

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framework surrounding the concept I was researching on. As a future HR manager,

this would be imperative because I could use these research skills to assess if my

employees are demotivated or dissatisfied. I could also use these skills to generate

ways to improve their morale.

As I was also doing my internship as a HR consultant during my research, I could

connect the dots between my workplace and what I was researching on. Certain HR

policies had to be amended to suit the employees in my workplace and this was

because I became more commercially aware of the best HR practices that would work

in an organisation thriving to be the best. I also gained better listening and

communication skills, especially during my data collection stage. During my phone

interviews, I learned not to interrupt as this could put my respondents off balance. I

also paid attention to key details and jotted them down. My organisational skills also

improved as I had sole responsibility of setting up my interviews, the survey and

preserving the data results. I also made sure my ethics were not compromised. I

adhered to the anonymity that was guaranteed to the respondents and the questions set

did not defame or offend the respondents. This would be very relevant in my future

HR role as employees would need to discuss confidential matters with me and I would

ensure that trust is not compromised.

Overall, the main skills I have gained during my research is result-orientation and

problem-solving. I had the set out research questions which were the problems that

needed solving and I was aware of what data results were significant and I focused the

right resources towards achieving them.

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