ASTON UNI FINAL DISSERTATION EDIT

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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................................................................8
THE SIGNIFICANCE OF PERFORMANCE MANAGEMENT IN THE NIGERIAN BANKING INDUSTRY.........8
AN OVERVIEW OF THE BSC CONCEPT ...........................................................................................................9
BENEFITS OF ADOPTING THE BSC APPROACH...........................................................................................10
CHALLENGES WITH THE IMPLEMENTATION OF THE BSC ........................................................................11
THEORETICAL FRAMEWORK........................................................................................................................12
Resource Based View (RBV) model..................................................................................................12
Goal Setting Theory................................................................................................................................12
Expectancy Theory.................................................................................................................................14
RESEARCH QUESTIONS....................................................................................................................................15
CHAPTER THREE – RESEARCH METHODS..........................................................16
RESEARCH PHILOSOPHY .................................................................................................................................16
MIXED METHODS.............................................................................................................................................16
POPULATION .....................................................................................................................................................18
SAMPLING & DATA COLLECTION ..................................................................................................................18
HYPOTHESES....................................................................................................................................................19
DATA ANALYSIS................................................................................................................................................20
ETHICAL CONCERNS ........................................................................................................................................21
CHAPTER FOUR – RESULTS & DISCUSSION.........................................................22
WHY IS THE BSC SYSTEM BEING USED IN GBN?....................................................................................22
WHAT HR ACTIVITIES WERE THEY TRYING TO IMPROVE WITH THE ADOPTION OF THE BSC
APPROACH?........................................................................................................................................................22
REGARDING THE BSC SYSTEM, HOW RELIABLE ARE THE PROCESSES INVOLVED IN TARGET SETTING
AND REWARD DISTRIBUTION IN GBN?........................................................................................................23
AND HAS THE ADOPTION OF THE BSC BEEN EFFECTIVE IN PROMOTING EMPLOYEE MOTIVATION
AND JOB SATISFACTION IN GBN?..................................................................................................................24
CHAPTER FIVE – CONCLUSION & RECOMMENDATIONS.................................39
SUMMARY OF KEY FINDINGS........................................................................................................................39
LIMITATIONS OF THE RESEARCH...................................................................................................................40
RECOMMENDATIONS .......................................................................................................................................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).
ResearchAim 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
INTRODUCTION
METHODOLOGY
CONCLUSION
RECOMMENDATIONS
RESULTS &DISCUSSION
LITERATURE REVIEW

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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 BasedView (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.
ResearchQuestions
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.
ResearchPhilosophy
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

21 | 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.

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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 systembeing 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?

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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”

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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.
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.

25 | P a g e
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
Table 4.5 Scale Statistics
Mean Variance Std. Deviation N of Items
9.33 8.461 2.909 5

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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
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

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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.
gender
N Valid 266
Missing 0
Table 4.9 gender descriptive
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

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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.
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)

29 | P a g e
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).
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
Difference
Std. Error
Difference
95%
Confidence
Interval of the
Difference
Lower Upper
FdbackSatisfa Equal
variances
assumed
.000 .989 1.360 260 .175 .139 .102 -.062 .341

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Equal
variances
not
assumed
1.373 259.685 .171 .139 .101 -.060 .339
GoalsSatisfa Equal
variances
assumed
.221 .639 1.290 252 .198 .127 .099 -.067 .322
Equal
variances
not
assumed
1.299 247.278 .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.
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

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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).
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
Difference
Std. Error
Difference
95%
Confidence
Interval of the
Difference
Lower Upper
FairRewards Equal
variances
assumed
5.412 .021 1.393 255 .165 .192 .138 -.080 .464
Equal
variances
not
assumed
1.416 254.985 .158 .192 .136 -.075 .459

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IndvPerFMotivate Equal
variances
assumed
.082 .775 -.407 254 .685 -.045 .111 -.264 .173
Equal
variances
not
assumed
-.408 244.353 .684 -.045 .111 -.263 .173
OrggoalsMotivate Equal
variances
assumed
.554 .457 .843 258 .400 .083 .098 -.110 .276
Equal
variances
not
assumed
.844 250.194 .400 .083 .098 -.110 .276
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.

33 | P a g e
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:
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
N 257 258
**. Correlation is significantatthe 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’

34 | P a g e
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.
GoalsProcessSatisfa ParticipateLevel
GoalsProcessSatisfa Pearson Correlation 1 .251**
N 241 235
ParticipateLevel Pearson Correlation .251**
1
N 235 258
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:

35 | P a g e
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.
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
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.

36 | P a g e
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.
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.
FairRewards
N Valid 257
Missing 9
Table 4.18 FairRewards
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

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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
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

38 | P a g e
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
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.

39 | P a g e
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
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

40 | P a g e
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.
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

41 | P a g e
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
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

42 | P a g e
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.
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.

43 | P a g e
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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
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.

ASTON UNI FINAL DISSERTATION EDIT

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