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.
TABLE OF CONTENTS.
Title page i
Certification ii
Dedication iii
Acknowledgement iv
Table of Content v
CHAPTER
ONE
INTRODUCTION
1.1 Background of the study 1
1.2 Statement of problem 4
1.3 Purpose of study 4
1.4 The
Significance of the study 5
1.5 Scope of the study 6
1.6 Limitation of the Study 6
1.5 Research of hypothesis 6
1.7 Definition of terms 8
References
CHAPTER
TWO
REVIEW
OF RELATED LITERATURE
2.1 The
need for performance measurement 10
2.2 key
performance indicators 11
2.3 How
an organization defines and measures
progress towards its goals. 13
2.4 What
are key performance indicators 13
2.4.1 Key
performance indicators reflect the organizations
goals 14
2.4.2 Key
performance indicators must be quantifiable. 15
2.4.3 Key
performance indicators must be key to
organizations success 16
2.4.4 Good
key performance indicators versus bad 17
2.4.5 What
to do with key performance indicators 19
2.4.6 How
to use key performance indicators 19
2.5 Performance
measurement as a process. 22
2.6
Profile of Zenith Bank Plc 26
2.7
Origin of KPI in Zenith Bank Plc 27
References
CHAPTER
THREE
RESEARCH
METHODOLOGY
3.1 Research design 30
3.2 Area of the study 30
3.3 Population of the study size 31
3.4 Sampling and Sampling procedure 31
3.5 Instrument for data collection 32
3.6 Method of Data Collection 33
3.7 method of the analysis 34
References
CHAPTER
FOUR
PRESENTATION
AND ANALYSIS OF DATA
4.1
Introduction 36
4.2 Test
of Hypotheses
CHAPTER
FIVE
SUMMARY
OF FINDINGS, CONCLUSION
AND
RECOMMENDATION
5.1 Summary 48
5.3 Conclusion 50
5.2 Recommendation 50
Bibliography
Appendix one
Appendix two
References
CHAPTER ONE.
INTRODUCTION
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:
- 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
BALANCE SCORECARD: KEY PERFORMANCE INDICATORS AS A PERFORMANCE MEASUREMENT TOOL. A CASE STUDY OF ZENITH BANK PLC
