Open University of Mauritius Using Balance Scorecard Technique To Support Performance Based Budgeting: The Case of Rodrigues Regional AssemblybyPERRINE, Marie Yolanda

DissertationPresented to the Open University of Mauritius in Partial Fulfillment of the Requirements for the Degree of

MBA with Specialisation in Financial Services

Supervisor's full official name: Dr. JUGURNATH. B15 February 2016M Y PERRINE

Abstract

Purpose The aim of this study is to investigate as to how the principle and the concept of Balance scorecard (BSC) can be integrated with the implementation of Performance Based Budgeting in the public sector. The study has divided into three objectives. Firstly, it is to review and assess those factors that are still hindering the full implementation of BSC framework in the public sector in Mauritius; secondly, to assess policy makers and staffs knowledge of the BSC framework and to make appropriate recommendations for the adoption of the framework in the ministry.Methodology A questionnaire survey was used to gather necessary information on the employees perception on implementation of BSC in the RRA. The survey was conducted in six different departments/commissions namely The Commission of Health And Sport, Commission for Youth, Commission for Environment, Commission for Public Infrastructure, Commission for Education and Central Administration which is the headquarter of Rodrigues Regional Assembly. Afterwards, the results of the survey were analysed.Finding of the survey This research study demonstrated how the BSC approach is fundamental in improving performance of different organisation under the RRA. The findings show that there are several factors that influence the implementation of BSC both positively and negatively at this public organisation.Limitation of the Research The result of the research study cannot be generalized due to the fact that the sample size was small. There has been no previous empirical research and tested scale in Rodrigues.

Implication This study shows how BSC framework could be implemented in the public sector. It also provides a broad picture of the concept of BSC, its influencing factors and the perceptions of employees on the implementation of same. The result can be used for future implementation of BSC in the RRA.Keywords: Balance scorecard, Performance Measurement, Performance Based Budgeting, Public Sector,

Declaration of OriginalityI hereby declare that this thesis has been composed by myself and has not been presented or accepted in any previous application for a degree. The work, of which this is a record, has been carried out by myself unless otherwise stated and where the work is mine, it reflects personal views and values. All quotations have been distinguished by quotation marks and all sources of information have been acknowledged by means of references including those of the Internet.

I agree that the University has the right to submit my work to the plagiarism detection service TurnitinUK for originality checks.

PERRINE Marie Yolanda15 February 2016

Copyright Statement

I hereby grant to the Open University of Mauritius and its affiliates the non-exclusive license to archive and make accessible, under the conditions specified below, my thesis, in whole or in part in all forms of media, now or hereafter known. I consent to the disclosure of the thesis to anyone who consults it or requests a copy on the understanding that its copyright rests with me and that no quotation from the thesis and no information derived from it may be published without proper referencing and acknowledgment. I also retain the right to use in future works (such as articles or books) all or part of this thesis, dissertation, or record of study.

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Restrict full-text access for two years and then release the work for worldwide access on the Internet. (Citation and abstract will be available during embargo period).

PERRINE Marie Yolanda15 February 2016

Acknowledgements

I would like to thank all those who have helped me in my efforts to produce this thesis.

First of all, I would like to thank all the employees of the RRA who have given me their support and have also spare some of their precious time to fill in the survey form in this research.

I would like to thank some of my colleagues, more especially, Mr. Collet, for his understanding and motivation during my research.

A big thank you goes to my supervisor, Dr. JUGURNATH Bhavish, for all his precious advice, recommendations and evaluation of this work.

I am very grateful to all the kind people and friends who have believed in me and my work and have supported me from the very beginning.

I would particularly like to thank my family, especially my children, for their patience and giving me strength to continue till the end.

Finally, my endless thanks to my husband, Frederic, for supporting me, for his patience and understanding.

Table of Contents

iAbstract

iiiDeclaration of Originality

ivCopyright Statement

vAcknowledgements

viTable of Contents

xList of Tables

xiList of Figures

xiiAbbreviations

CHAPTER 1- 1INTRODUCTION

11.1 Introduction

11.2 Background to the Problem

21.3 Problem Statement

61.4Aim, Objectives, Research Questions and Hypothesis

61.4.1 Aim of the study

61.4.2 Objectives of the Study

61.4.3Research Questions

71.4.4Hypothesis

71.5 Significance of the Study

81.6 Definition of Terms

91.7Chapter Outline

91.8 Conclusion

CHAPTER 2 - 10LITERATURE REVIEW

102.1Introduction

102.2 Origin of Balanced Scorecard

102.3Evolution of the Balance Score Card

122.4 Role of Balance Scorecard

122.5 The Balanced Scorecard Perspectives

132.5.1 Customer Perspective

142.5.2 Internal Process Perspective

142.5.3 Learning and Growth Perspective

142.5.4 Financial Perspective

152.6 BSC practice in public sector organisations

162.7 How the Public Sector Scorecard works?

182.8 How to balance?

212.9 Barriers to implementing Balanced Score Card

222.10 The Case Rodrigues Regional Assembly

232.10.1 Performance Based Budgeting

252.10.1.1 Activity- Based Costing (ABC)

252.11 Integration of Balance scorecard with Activity-Based Costing.

272.12Conclusion

chapter 3 - 29RESEARCH METHODOLOGY

293.1 Introduction

293.2Research Method

293.3Research Design

303.4Research Approach

313.6Sampling Strategy

313.7Research Instruments

323.7.1 Questionnaire Layout

323.8Pilot Study

333.9Administration of Questionnaire

333.10 Data Analysis

333.11Validity

343.12Reliability

343.13 Ethical Considerations

353.14 Limitations of the Study

353.15Conclusion

chapter 4 - 37RESULTS AND FINDINGS

604.4 Conclusion

CHAPTER 5 - 61DISCUSSION

615.1Introduction

615.2 Findings from Literature Review

635.3Findings of the Study

655.4Limitations

655.5 Recommendations

685.6Future Studies

685.7Conclusion

70Reference

74APPENDICES

List of Tables37Table 4.1: Reliability Statistics

38Table 4.2: The descriptive statistics of the demographic profiles

43Table 4.3: - showing RRA employees knowledge of Balance Scorecard framework (N=90)

46Table 4.4: - RRA employees assessment to review and critical factors hindering the implementation of Balance Scorecard (N=90)

49Table 4.5: Employees perceptions and recommendations on how best to adopt Balance Scorecard

52Table 4.6 :- Cross tabulation of B2 and A2

53Table 4.7: - Cross tabulation of B2 and A2.

54Table 4.8: - Symmetric Measures of B2 and A2.

55Table 4.9: - Cross tabulation of C10 and A3

56Table 4.10: - Chi-Square Tests of C10 and A3

57Table 4.11: - Symmetric Measures of C10 and A3

58Table 4.12: - Cross tabulation of D12 and A1

59Table 4.13: - Chi-Square tests of D12 and A1

60Table 4.14: - Symmetric measures of D12 and A1

List of Figures13Figure 2.1: Four perspectives of BSC

16Figure 2.2: Public Sector Scorecard

20Figure 2.3: Strategy Map

24Figure 2.4: Concept of Performance Based Budgeting

27Figure 2.5: BSC integration with ABC

39Figure 4.1 Sector of Responsibility (N = 90)

40Figure 4.2: Total years of service of respondents in the public sector (N = 90)

41Figure 4.3: Spread of RRA respondents level of training/education (N=90)

42Figure 4.4: knowledge of employees of Balance Scorecard framework employees (N = 90)

45Figure 4.5: - RRA employees assessment to review and critical factors hindering the implementation of Balance Scorecard (N=90)

48Figure 4.6: RRA employees perceptions and recommendations on how best to adopt Balance Scorecard (N=90)

66Figure 5.1: Practical implementation of BSC to support PBB

AbbreviationsABC

Activity-Based Costing

BSC

Balanced Scorecard

PBB

Performance Based Budgeting

RRA

Rodrigues Regional Assembly

CHAPTER 1

INTRODUCTION

1.1

Introduction

The study investigates the using balance scorecard technique to support Performance Based Budgeting with particular attention to the case of the Rodrigues Regional Assembly. Public sector budgeting is the planned acquisition and use of resources by public entities and a process of making decisions about public revenues and expenditures. A budget is a document which shows the allocation of funds to different ministries based on the priorities of the government to satisfy the social needs and preferences of the community. In fact, a national budget once approved by the parliaments, gives the authority to the Government to generate revenue and incur expenditure in order to attain the pre-set goals. Without a budget, the government cannot fulfil its core functions which economic, political, societal, administrative and legal. The national budget shows how public funds are allocated to different programmes.Chapter one includes the background to the problem, the problem statements, aims, objectives, hypothesis, research questions, the significance and format of the study.1.2

Background to the Problem

Nowadays, public sector reform has become a great phenomenon around the world. The increase focus on improving the quality of public sector service is popular all around the world within many countries in both the developed and developing countries making significant and notable achievement in the consolidation of financial management and governance. Mauritius, which includes, Rodrigues, is also trying to keep up the paste. In order to improve its service delivery, this has forced the public sector to have closer attention to the performance of each unit. Performance measurement is not impossible in public sector; it is just more difficult than in the private sector. According to (Talbot, 1999) this is due to the fact private enterprises performance is measured based on the companies financial performance in comparison public sector is result oriented.

In the past decades, the Government of Mauritius has encountered various reforms in its budgeting system with the aims of improving the service rendered, to improve performance. In 2007, the Government has changed its input-based budgeting system to a Programme Based budgeting system, and recently in 2015, has moved to the Performance Based Budgeting system.

The Balance Scorecard (BSC) which has become very common in public sector can be used for performance measure. Kaplan and Norton introduced the BSC as a management too in mid-1990s. According to (Dolnicor et al., 2008) the BSC is a customer-based tool for planning and process improvement; designed to focus on organisational strategy, process execution and non-financial dimensions. Many countries such as New Zealand, has introduced BSC in public sector. (Caudle, 2008) says that Robert S. Kaplan and David P. Norton advocated a balance scorecard as a top-down management system. The author further adds that the system would translate an organisations mission and existing business strategy into limited number of specific strategic objectives that can be linked and measured operationally.

The aim of this study is to make an evaluation of using balance scorecard (BSC) technique to support Performance Based Budgeting (PBB). The evaluation is focused first of all at reviewing and assessing those critical factors that are still hindering the full implementation of a BSC framework in public sector organizations in Mauritius. Secondly, it aims at assessing policy makers and staffs knowledge of the BSC framework. And finally, the study will make appropriate recommendations for the adoption of the BSC framework in the Ministry.

1.3

Problem Statement

Mwita (2000:20) reported that

If you cant define performance, you cant measure or manage it.

In addition, Poster (2003) stated:

What gets measured gets done. If you dont measure results, you cant tell success from failure. If you cant see success, you cant reward it. It you cant reward process, youre probably rewarding failures. If you cant recognize failure, you can/t correct itYears after years, the National Audit Bureau reports the continuous wastage and needless expenditures that the government is funding out of the public monies. At the end of each financial year, we come to the obvious fact that nothing has changed in the way of managing public funds. The first outcome based budgeting system which was the Programme-Based Budgeting, was introduced and implemented in year 2007. It is a budget management process for enhancing fiscal discipline, bringing efficiency gains, greater accountability and promoting good governance in a more outcome-oriented public sector. However, the result has turned out to be different to what was expected. The Big-Bang approach, not anchored in local realities, has reduced the Programme Based Budgeting to a mere arithmetical instrument without any usefulness to solve practical issues (Rchand, 2014).

Ministries did not have strategies and the programmes of each ministries were not lined up with same. The Programme based Budgeting therefore could not be used for its intended purposes, that is, a strategic policy-based tool. There are no proper standard budgeting methodology for the costing of programmes and sub-programmes. The implementation of Programme Based Budgeting was done at a too rapid pace. There was no proper learning and education initiatives to fine tune this budgeting system in order to ensure that a real result based budgeting is carried out. There was no solid baseline for the adoption of the programme based budgeting. This Programme Based Budgeting remained only a budgeted document where there was only performance information and targets. The expenditure was not linked to the targets with no performance measurement and no previous report on performance to support resource allocation and strategic planning decision making. The Programme Based Budgeting was merely a book. The principle of input based budgeting was still there, that is, focusing on keeping within the budget. The Government should have used the Programme Based Budgeting for its right intended purpose that is relating cost to output.

The Programme Based Budgeting has had a wrong approach from the starting point, that is, from the strategic point which inevitably has caused the implementation to fail. The Programme Based Budgeting has only been used to generate performance indicators. The preparation of the Programme Based Budgeting document has wrongly been presented as a stand-alone document, unrelated to the priorities of the country and the operations of the organization (Rchand, 2014).As stated earlier, the Government has introduced a new budgeting system since 2015, which is the Performance Based Budgeting. In order to have a concrete result of this new budgeting system, the Government will have to initiate a new team that fully understand the concept of Performance Based Budgeting and ensures that its implementation reap its objectives. This change means that departments will need knowledgeable financial people to manage outputs rather than inputs Du Randt (1999:10). Managers will need to change the way of doing business within the different unit of the organisation through learning education so as to develop awareness and acceptance of the principle of focusing on results, and introducing how performance reporting can be beneficial to the organisation. The change need the sponsorship of managers. This in turn requires an investment within individual departments in re-skilling both through recruitment or training, and by the central management agency in disseminating best practice.

No noteworthy budgetary reforms are likely to get ahead unless there is a strong and active system is in place, where there is an effective performance measurement system. And the second step is to promote the evaluation system of projects and plans in ministries which for now is quite feeble.

As such, the newly implemented budgetary system, the Performance Based Budgeting (PBB) should be thoroughly studied so that the problems encountered with the previous budgetary system do recur. The PBB, as such, does deliberate superior accountability and transparency to financial management when properly implemented with an effective monitoring and evaluation process.

Performance Based budgeting aims to improve the efficiency and effectiveness of public expenditure by linking the funding of public sector organisations to the results they deliver, making systematic use of performance information (Mercer 2012). The main scope of this study is to investigate on how the Performance Based Budgeting (PBB) requires Ministries to monitor and report their performance in term of both financial and non-financial measures. Presently this is not being done. As pointed out by the CABRI report (2010), a well-informed and logically structured reform strategy can minimize risks in the transition from an input-based to a PBB system. Practice suggests that reforms should be introduced at a steady pace. It is better to begin with a simplified model, adding further sophistication once the implementation is more entrenched. There may be a tendency to want to introduce a perfect system immediately, but this usually results in unrealistic and unachievable expectations.

Originally, the Balance scorecard (BSC) was simply a dashboard system to measure both the financial and non-financial performance. It has changed into a complete, strategic management system that enable organisations to make strategic plan, to manage it and to follow its implementation. The BSC lined up individual schedule of task to the mission, vision and goal of the organisation and also transfers the strategic commitment both insiders and outsiders, that is the employees and stakeholders. In scorecards based on strategy, performance measurement is one of the most important elements of the management system and the performance measures are used during the process of making decision in all firm.The Balanced Scorecard is an integrated approach that complements and supplements the implementation of PBB. Common features between PBB and BSC include vision, core values, strategic perspectives (i.e., performance dimensions), strategic themes and results, strategic objectives, an organization-wide strategy map, performance measures and targets, and strategic initiatives. Programmes and services are then interconnected to strategy which result in a strategy-based budget. Then comes the annual activity and programme plans. Linking the components in the most appropriate and relevant manner will help in aligning the organisation towards same direction and at the end providing feedback about the performance of the public sector to the community.1.4Aim, Objectives, Research Questions and Hypothesis1.4.1 Aim of the study

The aim of the study is to investigate as to how the principles and concept of BSC could be integrated with the implementation of Performance Based Budgeting in the public sector.

1.4.2 Objectives of the Study

The objectives of the research are to assess the degree that the concept of the balanced scored card could be used in the RRA for the effective implementation of PBB. As such the dissertation will seek:(a)To review and assess those critical factors that is still hindering the full implementation of a BSC framework in public sector organizations in Mauritius.

(b)To assess policy makers and staffs knowledge of the BSC framework.

(c) To make appropriate recommendations for the adoption of the BSC framework in the Ministry.1.4.3Research Questions

In the light of the above, the study will try to answer the following questions:

What are the critical factors that are still hindering the full implementation of the PBB framework?

In what ways the BSC framework could be adopted by Ministries for the effective implementation of PBB?

What is the general level of awareness of the BSC framework among officers in the financial operation cadre?

1.4.4Hypothesis

1.H0: There is no relationship between critical factors of implementation and Balance Scorecard framework.

H1: There is relationship between critical factors of implementation and Balance Scorecard framework.

2.H0: There is no relationship between policy makers and staffs knowledge and Balance Scorecard framework.

H1: There is a relationship between policy makers and staffs knowledge and Balance Scorecard framework.

3.H0: - There is no relationship between the RRA can best manage its strategy over the long run by using Balance Scorecard and in what section of RRA do you work.

H1: - There is a relationship between the RRA can best manage its strategy over the long run by using Balance Scorecard and in what section of RRA do you work.

1.5Significance of the Study

This study is going to benefit first of all individual officers the Rodrigues Regional Assembly (RRA) as a whole starting from the management to the lower grades and also to the stakeholders. They will be exposed to the whole theory of the BSC which is a strategic management tool which links both the long-term and short-term strategies of an organisation. The Rodrigues Regional Assembly should adopt the BSC because it is a system which links all activities, together with the fact that both financial and non-financial factors are considered as being very important. This has never been brought out in the other adopted process. The employees of Rodrigues Regional Assembly will focus more their attention on predetermined output and on what is expected from them. By linking both measures, that is, financial and non-financial performance, in a single document, the BSC gives the manager a larger range of information about their overall performance that measuring financial performance on its own can do. The human resources and operational structure contributes also to the growth and financial return of the company. This is why, it is significant to have a more regular report on and to manage these intangible resources.

1.6 Definition of Terms

Balanced scorecard

The term balance scorecard is an integrated set of performance measures (quantifiable targets and outputs) that are derived from the strategy of an organisation (Garrison and Noreen, 2000, p.464)

Performance Management

Performance management is a purposeful, continuous process aimed at positively influencing employee behaviour for the achievement of the organizations strategic goals; the determination of the correct activities as well as the evaluation and recognition of the execution of tasks/duties with the aim of enhancing their efficiency and effectiveness; and a means of improving results from the organisation, teams and individuals by understanding and managing performance within an agreed framework of planned goals, objectives, standards and support incentives. (MCSAAR 2007, p. 3)

Performance Measurement

Performance measurement is "the process of evaluating how well organisations are managed and the value they deliver for customers and other stakeholders (Wikipedia, 2004). Performance measurement can show that the needs of society are addressed by offering opportunities for improvement.

1.7Chapter Outline

This report will be organized under five chapters as detailed below:

Chapter 1 Introduction covers the study title, defining the aims and research objectives. The research questions have also been set out. It also provides a background to the study

Chapter 2 Literature Review will provide findings from research on the topics of the Balance Scored Card

Chapter 3 Research Methodology will provide the research approach selected and the means of data collection to conduct the research.

Chapter 4 will provide the analysis of the information obtained from the survey

Chapter 5 will deal with the results, discussion and interpretation of findings. As such, it will discuss the outcomes of the analyses and the inferences drawn for formulating viable and feasible recommendations.

1.8 Conclusion

Nowadays, managers should be able to review all intangible factors that influence the efficiency the organisations operation which satisfaction of employees among others intangible factors which evenly contribute to the grow of the organisation. There are various factors that hamper the success of organisations. And as such no single document will succeed if the operations are not linked to the strategy and employees do not know what is expected from them. When outcome-based budget are not implement in the way it should be that is with an adequate measuring and reporting system the initiative would be worthless.Chapter two will deal with the literature review and relate the concept of BSC which is under study. It has assembles the views of different scholars regarding barriers to implement, knowledge of policy makers in Balance Scorecard as well as existing empirical findings on the subject matter.CHAPTER 2LITERATURE REVIEW

2.1Introduction

This chapter introduces and critically comments on diverse theories, studies, research and perspectives of balanced scorecard which guide, control and challenges an entire organisation towards realising a common conception of the future. Generally organisations focus only on short-term financial measure when measuring their performance. In todays business world, financial statements cannot provide the appropriate kind of measurements that organisations need. Practitioners together with scholars have come to the point, that there is no particular performance measure can sufficiently satisfy the needs of management in a competitive environment. As such, many organisation have been heavily criticized in their traditional way of measuring performance which is considered as being incompleteness, inaccuracy, non-objectivity, and also their focus on short-term measure and on only one side of the boat.2.2 Origin of Balanced Scorecard

Kaplan and Norton developed Balance Scorecard in the 1990s with the aim to explore new methods of measuring performance in companies. By tradition, companies were focusing only on financial performance. Niven (2006) said that many criticisms had arisen about using only financial measures to track organisation performance. According the same author in their study, Kaplan and Norton argue that financial measures were too one sided and not relevant to many levels in the organisation and that reliance only on financial measures may affect the ability of organization to create value.2.3Evolution of the Balance Score Card

The measure called the tableau de board was first used by the French and Canadians. The board involved the financial both measures, that is, the financial and non-financial. Kaplan and Norton (1992b) conceived the BSC in its present form. They had identified the BSC as an agreed set of measure that includes and integrate all assessment of business process so as to measure organisational performance. The scorecard was originally created to supplement traditional financial measures with criteria that measured performance from three additional perspectives those of customers, internal business processes, and learning and growth (Niven, 2006).

Over years, the concept of BSC has become a strategic management system which bridge the organisational long term strategies with the short-term ones. Various companies have implemented the BSC because they have seen the benefits of linking performance to customers, processes, growth and innovation together in a single document.

The BSC, as it is today, is a performance management system that can be used by organisations of any size to align the vision and mission with all the functional requirements and day-to-day work. The BSC has become a performance management system which lines up the strategy with all the operational activities of the organisation. It also facilitates the management and evaluation of business strategy; monitor the effectiveness of operations; taking immediate remedial action to improve business efficiency and enhancing the capacity of the organisation and finally the communication of progress to the whole manpower.

The BSC is a system that enables the organization to clarify their strategy and translate them into action. It is a system that enables organisation to decide on the strategy and actions to be taken to make plan become reality. It integrates all the organisational activities with the vision of the organisation which acts as a support to the planning and implementation of the strategy. The BSC converts the strategy of the organisation into different performance measures that can be used for strategy implementation. In addition, the BSC must do in each of four perspectives in order to execute the company strategy (Kaplan and Norton, 2000).

2.4

Role of Balance Scorecard

According to Brewer and Speh (2000) the balanced scorecard provides both financial and nonfinancial measures of a system that gives information to every part of the organization i.e from top management to divisional managers. When focusing also on intangible factors, organisation can develop all essential abilities which will be required for the survival of its strategy and growth. This is particularly relevant to companies seeking longer-term superior returns, embarking on new strategies or under competitive threat, where the lack of these organisational capabilities will threaten the organisation's longer-term sustainability (Hagood and Friedman, 2002).2.5

The Balanced Scorecard Perspectives

According to (Kaplan and Norton, 2000) there are four perspectives in the BSC. The balance Scorecards has additional elements that support the general way of measuring performance. Apart from the financial measure, they further stated that other perspectives are customers, internal processes, and learning and growth. Kaplan and Norton (1996b) stated that in this way, it enables organizations to monitor the intangible assets needed for future growth. The four perspectives are illustrated in Figure 1 according to (Drury, 2001:94)

Figure 2.1: Four perspectives of BSC

2.5.1

Customer PerspectiveKaplan and Norton, 1996a) said that the customer perspectives aim to identify the customer and market segments in which the organisation will compete, and, according the measures to track related performance. How do the customers see the business? By answering this question, the business would be able to see what are important to customers. (Kaplan and Norton, 1992) said that this reflects the factors that are really important to customers. The latter chooses a product and services based on its different attributes which according to (Kaplan and Norton, 1992) are time, quality, performance, service and cost. To achieve its goal, an organisation needs to provide goods and services that are based on customers perception. Customers are at core of the every business success and when there is customer satisfaction, there is customer loyalty and therefore a position in the market.

(Niven, 2006) recognizes that customer satisfaction, customer loyalty and market share are generally the measures that are considered for customer perspective.

2.5.2

Internal Process Perspective

The business performance depends most of all on inner managerial decisions and actions which need to lead customers satisfaction. In the internal Process, the organisation determines how it will achieve the value proposition for its customers and the productivity improvements to reach its financial objectives in order to satisfy its shareholders (Kaplan and Norton, 2000). This perspective focus on the business processes which have most influence on customers.it measures the quality of the product and the employee abilities and capabilities of employees. The emphasis of the company according to (Kaplan and Norton, 1992) must be to identify and measure its core competencies and technological essential to ensure a great position on the market.

2.5.3

Learning and Growth Perspective

The measure of the Learning and Growth of the perspective are the enablers of the other perspectives and represent the foundation of the Balance Scorecard Niven 2006. This perspective measures the potential of the organisation to modernise, progress and learn. It finds the crucial structure to support the other three perspectives. To continue to survive and to face the severe competition that exist on the market, the company need to continue to improve, to learn and to bring in new products so as to. In addition, Niven 2006 believed that the Knowledge, employee skills and satisfaction, the availability of information and adequate tool are those factors that contribute to the growth of the company and therefore should form part of the main measure in this perspective.

2.5.4

Financial Perspective

Same as the other perspectives, the financial perspective is very important in the BSC. As such, the financial perspective measures indicate whether the implementation of strategy of the company and its execution are contributing to the improvement of the result of the bottom-line (Niven, 2006). All the measures incorporated in the other perspectives have the aim to generate higher return on investment so as to enhance the value of shareholder. The measures of this perspective may include revenue, gross margin and others.

(Kaplan and Norton, 2000) states that the four perspectives of BSC are subdivided into four elements called the strategy map which is a tool used to define theses cause-and-effect relationship and make them explicit and testable. These are as follows:

Strategic objectives

Measures for performance to track each objectives

Targets for achievement against objectives and

Initiatives to be undertaken(Kaplan and Norton, 2000)

2.6 BSC practice in public sector organisations

Caudle, 2008) reported that Kaplan and Norton recognized that balanced scorecards for public sector organisations would not necessarily mirror those private companies. Being given that Government acts for the benefits of the society, it is rare that the government would consider the financial perspective as being its first priority. The government would mostly concentrate on value creation in their process, targeting taxpayers. According to (Caudle, 2008) Kaplan and Norton recommended placing financial and customer perspective at the top in a co-equal status, both on the mission of the organisation. The figure is Public Sector Scorecard according to same authors

Figure 2.2: Public Sector Scorecard

Source: (Caudle, 2008)

Other authors, such as Niven, positioned mission at the highest level of the BSC, then comes the customer which is supported both by the financial and internal process perspective at the same level. The last of the scorecard but not least, is the Employee Learning and Growth which is essential to achieve the organisational goal.

2.7 How the Public Sector Scorecard works?

The Public Sector Scorecard (PSS) has same principle of the Balance Scorecard. It is flexible and can be adjusted to the organisations requirements. It has a high degree of involvement from service users and other stakeholders and typically it will involve the ten stages (Moullin, 2006).

1. Assess the need and expectations of end-users.2. Collect criticism from shareholders, investors and others and also their needs

3. Putting in place a committee that includes all key officials and partners so as to find out how to reap success.4. Review the strategy of the company, its vision, principles and mission etc. and making sure that they reflect the needs of end-users together with key partners.

5. Assess the risk that exists under the individual perspective in the public sector scorecard and also how they can be accomplished.

6. The five perspectives in the strategy map at figure 2, requires the organisation to choose suitable performance measures for each of the objective in the map. Same can be amended later on.7. Consider the core methods of providing services and then assess them.

8. Consider the organisational culture, processes, and individuals within and outside the organisation and how same can be enhanced.

9. Re-consider the strategy and practice: The preceding three steps will lead to further discussion about how to attain the objectives of organisation and this will lead to more modification in the strategy map and methods to attain the goal.10. Reconsider the measure of performance11. Alteration in the objectives provided in the strategy map will result in a change in the measures selected.It will be highly beneficial to cascade the scorecard to individual departments (Moullin, 2006). This means decentralising the development of Public Sector Scorecard to each business units so as to have their involvement in the overall goal of the organisation. It will also consist of discussion between individual sections and the team developing the overall scorecard to make sure that the strategies of the organisation reflect the realities of individual departments and of service users (Moullin, 2006).

2.8 How to balance?

In order for an enterprise to grow in today environment, it requires high services standard, resourceful human resources, rapid, effective and services These are all intangible assets which are important issues that does not show up on a balance sheet and does not alert employees, customers, shareholders and the community on the real worth of a company or enterprise (Poll, 2001).

The purpose of BSC is to prove a full picture of everything that is to be known in order to ensure the execution of the organizational strategy classified into the different perspectives. The measures that are included in a balance score card are a balance between external measures for customers and shareholders and internal measures of business processes, innovation and learning and growth (Poll, 2001). The BSC does not only present the non-financial measures to stimulate optimum management decisions but also its balance Poll (2001) states that a balance must also be struck between measures of past performance and measures that drive future performance and that it is possible to use the balanced scorecard as a strategic management system to manage strategy over the long run.

According to (Chenhall, 2002) cited by (Murby and Gould, 2005) the following should be integrated in the BSC to create the balance:

Operations/strategy: to include operational process in organisational strategies.

Different internal units: to integrate the diverse objectives of the each unit within the organisation;

Internal/external: to show the relationships that exist between each unit of the organisation and external suppliers and customers;

Financial/non-financial which offers information on financial, customer-related, business-process related, and long-term improvement related performance; and

Time: to show how the current actions are the consequences of the past and what will be future ones by using leading and lag indicators

It is essential that the BSC shows a sequence of expected cause and effect that relates the different BSC perspective inside and outside each scorecard perspective. The key performance indicator must be clearly identified and how each is to be attained. Therefore it is critical to that the following steps are considered when constructing the strategy map and these are:

1. Describing the mission and strategy.

2. Identifying the objectives of the each scorecard so as to reach the pre-set goal.

The following figure is an example of a strategy map according to (Kaplan and Norton, 2000):

Figure 2.3: Strategy MapNevertheless, despite the fact that the BSC has become popular worldwide and also its recognition as being a major management tool, there has been very few success of the Balance scorecard application. A large number of companies have come across various problems when introducing this concept in their organisation.

2.9

Barriers to implementing Balanced Score Card

The Balanced Scorecard has four barriers to strategic implementation:

1. Vision barrier. Individuals in the organisation do not understand the organisations strategies.

2. People barrier. Most peoples objectives are not related to the organisations strategy.

3. Resource barrier. Resources such as time, energy, and money are not apportioned to those things that are vital to the organization. For example, budgets are not linked to strategy, resulting in wasted resources.

4. Management barrier. Management focus more on short-term strategies than on long-term ones.(Yeung and Connell, 2006) said that there have been few studies which identified factors that practitioners perceive as critical to the successful implementation of public sector BSC. They have identified various factors as such top management commitment; employee buy-in; an emphasis on performance excellence; adequate training; a simple BSC; clear organisational strategy and goals; links to incentive schemes; and adequate resourcing as having contributed to the success of Balance Scorecard. There are some which have not yet implement the strategic management tool and according to the authors this is due to inadequate information systems, inadequate sponsorship of the BSC by senior managers and a lack of time. On the other hand, there are public organisations which have experienced failure and the reasons such as poor linkage to employee rewards, uncertainty about the choice of suitable KPIs, and organisational resistance to change (Yeung and Connell, 2006). These illustrated reasons for success or failure of Balance Scorecard in public organisations can also be applied to the private sector. However, the factor that seems to be attributed mainly to public sector is lack of familiarity with the concept of BSC. Lack of awareness seem to be also the factor that hinder the implementation of BSC specifically in the public sector, therefore. However, some areas of the public sector have been examined more than others. In the healthcare area, for example, studies of BSC implementation have been conducted in a variety of countries, including the UK, Canada, the USA, Australia, Sweden, the Netherlands, Singapore, Afghanistan, and New Zealand (Chang et al., 2002). However there are some other areas in the public sector such as local government which has quite been ignored.2.10 The Case Rodrigues Regional Assembly

The Rodrigues Regional Assembly is the public body for Rodrigues Island. The latter forms part of the Republic of Mauritius, and the public body has been established under Regional Assembly Act 2001 since 2001. The RRA is a corporate body which is regarded exercising on behalf of the Government of the republic of Mauritius the RRA is regulated by the Constitution and use same accounting concept as in Mauritius the main island.

For decades, cash based accounting and one line budgeting have been the traditional way of presenting the national budget in Mauritius. Although this budgeting system has served its purpose, yet at a time of globalisation, harsh market competition and changes in economic conditions, this system can no longer respond to the needs of the various stakeholders of the economy since it does not provide adequate information.

The Mauritian government reviewed its expenditure policy and in May 2008, the Finance and Audit Act was amended to provide for the introduction of the appropriation Bill into the National Assembly on a Programme Based Budgeting basis as from fiscal year 2008/2009. The Programme Based Budgeting was embedded in a MTEF which is a 3 years rolling expenditure plan. These two concepts have therefore broken the tradition of a perpetual routine automatic incremental increases based on inputs and changed the focus of the budgetary process from an input-based annual activity to a results based multi-annual exercise (MOFED, 2009).

Last year the actual government reviewed the budgetary approach from Program Based Budgeting to Performance Based Budgeting. This is a budgeting system that links the funding of public sector organizations to the expected goals Carmen (2013). In other words, performance based budgeting allocate funds to reap projects goals. Therefore, the key of this new budgeting system is "result".

2.10.1 Performance Based Budgeting Performance Budgeting is consistent with the doctrines of NPM and is seem as good practice (Bandy, 2005:76). Performance Based Budgeting is a budget which reveals input and output for individual business unit. According to (Qi and Mensah, 2012) the performance based budgeting is intended to improve the performance of the government in providing services and products to its citizens more efficiently and effectively. By measuring the difference between projected and actual outcome relative cost incurred, the performance approach offers valuable materials to legislators for decision-making and for assessment by public administrators. It provides a description of all individual programme, its costs estimation, undertakings and focus on measuring and assessing results. And at last, the performance approach eases legislative budget revisions because program activities and levels of service may be budgeted on the basis of standard cost inputs (Institutes of Education Sciences, 2003).

According to VanLandingham, et.al. (2005) the purposes of the performance based budgeting are to:

1. Improve accountability by defining organisational mission and goals;

2. Evaluate performance which can be used for decision making and budgeting;

3. Increase the budget flexibility;

4. Improve coordination by preventing programmes duplication, and more reliable information to top managers for decision making;

5. Provide feedback on performance to citizens; and

6. Develop incentives as reward for outstanding performance.

The figure 3 that succeed shows the concept of performance based- budgeting.

Figure 2.4: Concept of Performance Based BudgetingSource: (Du Plessis 2001:5)

It is apparent from the above diagram that great accent is placed on output and outcome. Du Randt (1999:pp10) believed that the requirement for budgets to reflect more measurable target and performance criteria have increased and therefore also the need for effective management control system. Government must therefore concentrates on output rendered and outcome attained in its various units.

In Performance Based Budgeting, the Key Performance Indicators are essential and it is the crucial to relate these KPI to resources. According to (Wikipedia, 2015) This is a sort of balanced scorecard in which KPI are defined and linkages are built between causes and effects in tree-model as top of budgeting systems which should be integrated with the transactional system. It is to link resources to results so as to provide evidence about costing and actual outcome. However, many public bodies fail to figure out how much it costs to deliver an output, primarily due to problems with indirect cost allocation (Wikipedia, 2015). This is where the Activity-Based Costing (ABC) is involved.

2.10.1.1 Activity- Based Costing (ABC)

Activity-Based Costing (ABC) is a concept that is well-known on private sector, same as the BSC, but is less popular in public sector. It is a method of measuring the cost and performance of activities and cost objects. Assigns cost to activities based on their use of resources, and assigns cost to cost objects based on their use of activities. ABC recognizes the causal relationship of cost drivers to activities (Turner 1997: pp72). This method is the most important progression in cost accounting and the most perfect method of allocating cost to goods or services. It emphases on what cause the cost when estimating cost. It identifies the cause-relationship between the costs and activities when doing forecast. According (Jablan, 2010, pp. 29) an adequately organized ABC system provides information on permanent activity monitoring and evaluation, which is a precondition for management in modern companies.2.11 Integration of Balance scorecard with Activity-Based Costing.

(Cheng Lin and Yahalom, 2009) stated that BSC and ABC are decision tools. In combining the ABC and the BSC, the organization has a tool that can be used for decision tools.

The integration of BSC with ABC starts with the ABC at the strategies level. The authors, (Cheng Lin and Yahalom, 2009) said that ABC offers a better cost benefit analysis than the traditional accounting method. Government can try to enhance the effectiveness of strategy development. After the development of the strategy, the organization defines the performance objective based on BSC, Manage each activity of the organisation and measure its efficiency. In the meantime, since ABC provides better information on cost and resource that were spent and used, it helps the organization to better measure performance.

Previous research has revealed that BSC and ABC can independently improve the performance of firms that implement the processes well (Chen Lin and Yahalom, 2009). ABC and the BSC are often being regarded as two separate approaches which have each its particular purpose. As such, the BSC provides a top down model of business strategy; ABC provides a bottom-up view of business processes (Norton, 1992). Combining the two together generates new opportunity for strategic development and plan. ABC and BSC are two modern and complementary concepts. A direct relationship exists when all relevant information relating to competitive advantage achievement are included in the BSC Kalianin and Kneevi (2013: pp 114).They generate more value when associated together. The advantages of the combination are mainly further performance measures and complete decision support. The insertion of ABCs performance measure also generates benefits to BSC. As such, organization can improve the operating performance while managing the business and at the same time giving great attention to four perspectives.

The following figure shows how the above concept works.

Figure 2.5: BSC integration with ABC

When integrating ABC and BSC, management wants to enhance the efficiency of operation and improve strategic performance.

2.12Conclusion

The chapter has addressed the key concepts of the degree that the concept of the balanced scored card could be used in the RRA for the effective implementation of Performance Based Budgeting. There are critical factors that are still hindering the full implementation of a BSC framework in public sector organizations in Rodrigues. It is essential that policy makers and staffs have sound knowledge of the BSC framework. The adoption of the BSC framework in the RRA is in line with the introduction of Performance Based Budgeting in 2015. In addition, the chapter has shown Performance Based Budgeting can be supported by Balanced Scorecard by using Activity Based Costing.The next chapter deals with the research methodology and justify the collection and analysis of data.

CHAPTER 3RESEARCH METHODOLOGY

3.1

IntroductionThis chapter describes how this research was carried out, the method that was used, the research method, the sampling technique, how the data was collected how the validity and reliability test was carried out. It also explains the need for the pilot study followed by the limitation and the ethical considerations which were related to this research.

3.2Research Method

Given that the purpose of this study is to investigate about the factors that affect the implementation of Balance Scorecard in the RRA, the quantitative approach was adopted. In a quantitative research data collected can be in arithmetical terms or in a scale. Almost, all management research carried out generally comprise of some numerical data or data that can be calculated to help answer the research questions and meet the objectives. These arithmetical data need to be analysed and interpreted. Quantitative analysis techniques range from creating simple tables or diagrams that show the frequency of occurrence and using statistics such as indices to enable comparisons, through establishing statistical relationships between variables to complex statistical modelling (Saunders Lewis and Thornhill., 2009).

3.3Research Design

The choice of a research design to adopt in a particular study is determined on the basis of the purpose of the exercise. In other words, the research design was formed based on the research objectives. There are many examples of research design namely causal-comparative research, correlational research, explanatory research, descriptive research and exploratory research (Wikipedia, 2015). Explanatory research seeks to explain the relationship among variables whereas descriptive research describes the characteristics of a particular phenomenon. (Saunders Lewis and Thornhill, 2007) explain that exploratory studies are particularly useful to understand the problem and to clarify the nature of the problem. Exploratory research can involve conducting an in-depth search of the literature, interviews experts in the field, and conducts focus group discussions to get information about a given phenomenon (Saunders et al., 2009).

The research design for this study is exploratory research. This is because the purpose of the study is to understand the perception of RRA employees on Balance Scorecard. Exploratory research is better than the others since it allows the researcher to understand the participants perceptions. The closed-ended questions help to get the participants perceptions on how Balance Scorecard can be beneficial to government business. This would not have been possible if other research designs were applied (Saunders et al., 2009).

3.4Research ApproachAs recommended by (Saunders, Lewis and Thornhill 2003, 88), a combination of the inductive and deductive research approach will be used. Ingelstedt, Jnsson, and Sundman (2009) explain the deductive research as developing existing theories and hypotheses to design a research strategy to see if the theory is valid or not. They also state that the inductive approach consists of collecting data that hopefully will bring new information to the research to help in establishing a general conclusion with respect to the topics being discussed. An inductive approach was used at the start to search the variables and possible relationships. On the other hand, a deductive approach will then be used to collect data and test the hypotheses. 3.5Target Population

The target population were the employees of the Rodrigues Regional Assembly and a quota sample of 90 employees was targeted by the researcher to facilitate the study.

3.6Sampling Strategy

Due to time constraint and cost effectiveness, it has not been possible to interview all the employees of the RRA so as to determine the causes of the lack of implementation of Balance scorecard at the RRA. In addition, this would not have been practical. According to (Saunders et al., 2009:210) this is precisely where a sampling strategy is useful. A sample is a sub-group that will participate in the study to generate data that can be applied to the population. In other words, a sample is a small group selected to represent the population (Opoku-Antwi, Amofah,, Nyamaah-Koffuor, and Yakubu,., 2012:212). Sampling has enabled the researcher to save time and collection of data becomes more practicable as fewer people are involved.

A random sample was used for this study. It also reduced cost and saved time. According to (Cooper and Schindler, 2003:184) a simple random sample is considered a special case in which members of a population have a known and equal chance of selection. Once the data had been collected, time was dedicated to the examination and testing the data for accuracy for data analysis.

3.7Research Instruments

In line with the aim of the study, a survey questionnaire was used to collect from large number of RRA employees. The questionnaire is a widely used research instrument and has been considered as the most effective way to collect data. According to (Sekaran, 2003) it is efficient, especially when the researcher knows exactly what is required and how the variables of interest can be measured. The respondents were asked to rate their answer based on the 5-point Likert scale: strongly agree, agree, neutral, disagree and strongly disagree.

3.7.1 Questionnaire Layout

The questionnaire was made up of four sections, as follows:

Section A: The questions in this part will tend to seek the general awareness of those respondents as regards to the knowledge of Balance Scorecard framework.

Section B: This section measures how RRA employees assess to review and critical factors hindering the implementation of Balance Scorecard.

Section C: This section measures employees perceptions and recommendations on how best to adopt Balance Scorecard.

Section D will contain 3 questions. It tends to acquire the overall position held of respondents, qualifications and years experience in the service. Scaled questions have been used so that the officers will not find them difficult to answer, as the probable choice has already been inserted.

3.8Pilot Study

According to Cooper and Schindler (2003:76) the data gathering process usually commences with a pilot testing. It is to identify whether there are any weaknesses, faults and limitations that the researcher may come across during the research and also on research instrument. It also enables the test the validity and reliability of the research and to amend questions if need be. (Turner, 2010:757) says that pilot testing allows to take corrective actions well in advance prior to implementation of the study and (Saunders et al., 2009:394) say that a pilot testing also helps to ensure that the research is feasible

The questionnaire was pretested on ten (10) RRA employees. The researcher found that the respondents were comfortable and understood clearly the question set. The respondents took about fifteen minutes to complete the questionnaire.

3.9Administration of Questionnaire

After that the questionnaire was pretested and revised, it was distributed to the participants. Authorisation to conduct the survey was sought from the managers of the chosen RRA sections. The questionnaires were personally administered and the researcher was present for face to face contact to translate the questionnaire for the customers who poorly understand English. Personal administration ensured a good understanding of the questionnaire. According to Bell (2008:147) it is important to ensure that the respondents have no problems understanding or answering the questions. He also suggested that before the data is collected, the researcher has to find out how long it will take to complete the questionnaire, the clarity of the questions, if the layout of the survey is clear and if there are any questions that are ambiguous. A maximum of twenty five questionnaires were administered per section, so as not to be too demanding upon the employees.

3.10 Data Analysis

Before performing the data analysis the raw data was first edited to make sure that there was no error, any omission and to make take remedial action where possible in order to achieve the maximum quality standards. Next, raw data were directly entered into the Statistical Package for the Social Sciences (SPSS) software to determine frequencies, descriptive statistics, mean comparisons correlations, cross tabulations, and designing of graphs and tables. 3.11Validity Validity refers to the extent to which a measurement does what it is supposed to do (Saunders et al., 2009:371). The same authors identified four types of validity of which there are: Face validity involves questioning the participants in pilot study whether the questions are relevant to the research objectives.

Content validity is alike to face validity the difference is that the researcher must get the views of professionals on the appropriateness of her research instrument. According to Cooper and Schindler (2003:233) face validity measures the relevance of an instrument while content validity gauges its adequacy. The researcher did not have to test the validity of the questionnaire, since it is a standard.

3.12Reliability

According to Cooper and Schindler (2003:236) a measurement is reliable if the results are consistent. Reliability is a necessary contributor to validity but not a sufficient condition for validity. Reliability is the degree to which measurement are free from random or uneven error. Cronbach Alpha which is a measure of internal consistency reliability that is the average of all possible split-half coefficients resulting from the different splitting of the scale items (Malhotra, 2004:268), was used to check the reliability. This test is widely used, to measure internal consistency and to determine reliability.

3.13 Ethical Considerations

In the conduct of this research, the researcher has made sure that no ones right is being violated. The researcher took the following precautions:

Each respondent whether or not they agree to participate in the study. They were not compelled to take part in the research;

Anonymity was preserved which maintained privacy and enhanced openness in respondents answer;

The participants were given perfect justification as to the reason of the survey and were told that might not answer a question at which they felt that they were uncomfortable;

All data collected were kept confidential by the researcher.

Some RRA employees felt awkward to fill in the questionnaire in front of their supervisors. They were asked to complete the questionnaire at their own pace and in a private area. It was also important to inform the targeted participants that if they did not feel at ease, they had the right to decline participation in the survey. They were assured that all the information would be kept confidential and that all the data would be stored securely and, the reporting of the findings would not allow identification of the participants. 3.14 Limitations of the Study

This research study however had various limitations which are as follows:

A small sample size was chosen. This exemplifies the point that if the study sample was larger , it would have resulted in different findings and recommendations if the cross section of RRA were selected across Mauritius;

There have been certain difficulties in administering the questionnaire written in English to poor-English speaking employees. The questionnaire was literally translated and by doing so, could have lost certain definitions and purity of words; and

The lack of previous empirical research and tested scales in Rodrigues can prove to be another limitation, but sets the pace for other researchers to explore more in depth research on the subject matter of this study.

3.15Conclusion

This chapter has given a broad map of the research methodology for the study. It has It has presented the different steps that was followed by the researcher while carrying out this study mainly the research approach and method, which was used to ensure reliability and validity of this research which provided answer as to what are the factors that are hindering the implementation of balance scorecard in the RRA

The chapter four that comes next is about the results and findings.CHAPTER 4

RESULTS AND FINDINGS

4.1 Introduction

This chapter focuses on presenting the findings of the survey through tables, bar and pie charts. An interpretation of the findings will be undertaken. This is followed by an analysis of the gap scores by dimensions, analysis of the relative importance of the dimensions and priority dimensions and perception of overall service quality. Discussions of the findings from the data will be supported by the relevant theories.

The table 4.1 below shows the reliability statistics

Reliability Statistics

Cronbach's AlphaN of Items

0.98418

Table 4.1: Reliability Statistics

A Cronbachs alpha is 0.984 was obtained which is very good. It indicates that the data collected is very reliable.

4.1.1Response Rate

A 100 % response rate was achieved. This is due to the fact that RRA public officers were asked to fill in the questionnaires which were collected immediately at their respective site of work.

4.1.2 Part A: Respondent Profile

Section D of the questionnaire attempted to determine the profile of the respondents to ensure that the opinion of each category of customers was taken into account.

Statistics

In what section of RRA do you workYears of Service in the public sectorRRA employees level of training/education

NValid909090

Missing000

Mean1.932.871.63

Median2.003.002.00

Mode242

Std. Deviation.515.997.550

Table 4.2: The descriptive statistics of the demographic profiles

Table 4.2 above represents the descriptive statistics of the demographic profiles. It shows that for sector of responsibility of RRA officers, the mean is 1.93, the median is 2.00 and the mode is 2 suggesting that all are found among those respondents that agreed. For the years of service in the public sector the mean is 2.87, the median 3.00 suggesting that they are found among those with no opinion. However, the mode 4 is found among those that disagreed. Finally as far as the level of education/training of RRA employees are concerned, the mean 1.63, the median 2.00 and the mode 2 suggest that they are found within the agreed group.

4.1.3Sector of Responsibility

The figure 4.1 is a pie chart showing the sector of responsibility of the respondent (N= 90)

Figure 4.1 Sector of Responsibility (N = 90)

Figure 4.1 shows that majority of the respondents were from the finance section, (73.3%), 16.7% from management and administration and 10% from procurement section. The survey is to assess the general level of awareness of BSC framework among officers in the finance operation cadre and having a majority of 73.3% of respondents in the finance section suit the researchers objectives. Answers that would be provided to this research question would be more reliable. 4.1.4Total years of experience in the public sector

The figure 4.2 is a pie chart showing the total years of the service that the respondents have in the public sector (N=90)

Figure 4.2: Total years of service of respondents in the public sector (N = 90)

Figure 4.2 above indicates that majority of the respondents have 30 years and above which 33.3 %, that 30% of respondents reckon between 20 - 29 years, 26.7% with 10-19 years of experience and a few have 0-9 years of experience in the public sector (10%).

The largest number of the respondents has 30 years and more years of service in the public sector which means that more participants have greater experience in the service which is very useful for the survey.

4.1.5Employees highest level of education/training

The figure 4.3 is a pie chart showing the spread of RRA respondents level of training/education (N=90)

Figure 4.3: Spread of RRA respondents level of training/education (N=90)

The figure above shows that many of the of respondents possessed tertiary education qualification (56.7%), 40% have secondary education and only 3.3% having followed technical training as their highest qualifications. This shows that the public sector is now equipped with more skilled and qualified employees. The total of those who have pursued higher studies has a total percentage of 60% which includes those with tertiary education and technical training.

4.2Analysis for each statement

The findings of this section have been analysed by presenting the responses for each statement.4.2.1 Measures public sector employees of RRA knowledge of Balance Scorecard framework

Figure 4.4 is a 3D column chart showing RRA employees knowledge of Balance Scorecard framework (N = 90)

Figure 4.4: knowledge of employees of Balance Scorecard framework employees (N = 90)

From figure 4.4 above it can be observed that the five statements (i) the term Balance Scorecard and its usefulness are clear to me, (ii) I am fully conversant with the uses and objectives of Balance Scorecard, (iii) I have use Balance Scorecard on several occasions to measure financial and non-financial performance in the public sector, (iv) I am aware that my work units/sections use Balance Scorecard to align our work with the RRA mission and vision and (v) the RRA uses Balanced Scorecard to measure the performances of its employees showed similar patterns, many did not have an opinion. The range is between 46.7 70% of respondents having no opinion. The percentage of those agreed with the statement that public sector employees of RRA knowledge of Balance Scorecard framework ranging from 6.7% - 36.7% agreed and 16.6% - 30% disagreed. There is only a few who have strong knowledge of balance where the frequency range between 0 to 6.7% for those who strongly agreed. On the other hand, a range of 3% to 10% strongly disagreed that they have knowledge of balance scorecard.

Table 4.3: - showing RRA employees knowledge of Balance Scorecard framework (N=90)

Statistics

A1A2A3A4A5

NValid9090909090

Missing00000

Mean2.773.003.133.103.27

Median3.003.003.003.003.00

Mode33333

Std. Deviation.8871.006.962.750.731

Table 4.3: - showing RRA employees knowledge of Balance Scorecard framework (N=90)

All the five statements (i) the term Balance Scorecard and its usefulness are clear to me, (ii) I am fully conversant with the uses and objectives of Balance Scorecard, (iii) I have use Balance Scorecard on several occasions to measure financial and non-financial performance in the public sector, (iv) I am aware that my work units/sections use Balance Scorecard to align our work with the RRA mission and vision and (v) the RRA uses Balanced Scorecard to measure the performances of its employees have similar mean (2.77, 3.00, 3.13, 3.10 and 3.27), median 3.00 and mode 3 which indicates that they lies within those which had no opinion.

Apparently, there are some degrees of awareness of the Balanced Scorecard among the employees of the RRA. The majority of the respondents did not have opinion; this may be due to the fact that they do not know exactly what is meant by Balance scorecard and what its concept is. Implementing BSC in such condition may hamper the initial stage of the implementation process. It is imperative to have a clear understanding of the BSC initiatives more precisely, what are the different perspectives, the different measures in order to ensure a good execution of BSC.4.2.2 RRA employees assessment to review and critical factors hindering the implementation of Balance Scorecard

The figure 4.5 is a column chart showing the RRA employees assessment to review and critical factors hindering the implementation of Balance Scorecard (N=90)

Figure 4.5: - RRA employees assessment to review and critical factors hindering the implementation of Balance Scorecard (N=90)

In figure 4.5 above statements B6 -the strategies of the RRA are fully understood by me and all my colleagues and B8 - the Budget processes of the RRA are linked to its strategy showed similar patterns in responses with 40% and 43.4% agreed, 40% and 43.3% had no opinion, 20% and 13.3% disagreed and none strongly agreed. Statements B7-the objectives of the RRA are linked to its strategy and are clear to all employees B9-management of the RRA pay little attention to long term strategy and more time on short term critical decision-making and B10-the RRA has sufficient resources and organizational structure to implement the Balance Scorecard have similar responses with 33.3%, 40% and 16.7% agreed, 60%, 43.3% and 53.3 no opinion, 6.6%, 16.7% and 30% disagreed.

The table 4.4 shows the mean, median and mode of RRA employees assessment to review and critical factors hindering the implementation of Balance Scorecard (N=90)

B6B7B8B9B10

NValid9090909090

Missing00000

Mean2.872.772.702.673.23

Median3.003.003.003.003.00

Mode2a32a33

Std. Deviation.889.671.694.874.849

Table 4.4: - RRA employees assessment to review and critical factors hindering the implementation of Balance Scorecard (N=90)

In table 4.4 above statements B6-the strategies of the RRA are fully understood by me and all my colleagues, B7-the objectives of the RRA are linked to its strategy and are clear to all employees, and B8-the Budget processes of the RRA are linked to its strategy, B9-management of the RRA pay little attention to long term strategy and more time on short term critical decision-making and B10-the RRA has sufficient resources and organizational structure to implement the Balance Scorecard have similar mean (2.87, 2.77, 2.70, 2.67 and 3.23), median 3.00 and mode 2-3 suggesting that the data lies within those with no opinion on the subject matter.

The majority of the respondents did not an opinion concerning the critical factors that still hinder the implementation of BSC in the RRA. This is probably due to the fact that as noted previously they do not have a full understanding and awareness of the theory of BSC. However, concerning those who had an opinion a larger percentage perceived that the management pays little attention to the long-term strategy and more time to the short-term critical decision-making. They considered that they fully understood the strategies of the RRA and that the objectives of the RRA are linked to its strategies employees are linked to the strategies and that the RRA has sufficient resources and organisational structure to implement the concept of BSC.It therefore can be concluded that the RRA has almost all successful factor to implement BSC only that the management should focus both on the short- and long-term measurement. However, it is to be noted that large majority of the respondents did not have an opinion on the subject matter.4.2.3 Measures employees perceptions and recommendations on how best to adopt Balance Scorecard

The Figure 4.6 in a column chart showing RRA employees perceptions and recommendations on how best to adopt Balance Scorecard (N=90)

Figure 4.6: RRA employees perceptions and recommendations on how best to adopt Balance Scorecard (N=90)In figure 4.6 above all five statements D11-it is critical that RRA measure its performance relating to its customers, internal process, learning and growth of its people when adopting Balance Scorecard, D12-the RRA can best manage its strategy over the long run by using Balance Scorecard, D13-the financial and non-financial measures of the budget are best measured using Balance Scorecard, D14-lack of competition and organisational capabilities are threats to Balance Scorecard adoption and D15-before implementing Balance Scorecard, the RRA should improve the manner of its service delivery and checking its overall strategic intent showed similar patterns in responses with 36.6%, 40%, 33.3%, 33.3% and 56.7% agreed, 60%, 60%, 60.7%, 56.7% and 43.3% with no opinion, 3.3%, 0%, 0%, 10% and 0% disagreed; 13.3%, 3.3%, 3.3%, 3.3% and 26.7% strongly agreed and 3.3%, 0%, 0%,0% and 0 strong disagreed.

The table 4.5 shows the statistics of employees perceptions and recommendations on how best to adopt Balance Scorecard

Statistics

C11C12C13C14C15

NValid9090909090

Missing00000

Mean2.572.572.632.732.17

Median3.003.003.003.002.00

Mode33333

Std. Deviation.849.562.550.684.824

Table 4.5: Employees perceptions and recommendations on how best to adopt Balance Scorecard

Again all five statements D11-it is critical that RRA measure its performance relating to its customers, internal process, learning and growth of its people when adopting Balance Scorecard, D12-the RRA can best manage its strategy over the long run by using Balance Scorecard, D13-the financial and non-financial measures of the budget are best measured using Balance Scorecard, D14-lack of competition and organisational capabilities are threats to Balance Scorecard adoption and D15-before implementing Balance Scorecard, the RRA should improve the manner of its service delivery and checking its overall strategic intent showed similar results with mean (2.57, 2.57, 2.83, 2.73 and 2.17), median 3 except for C15 with median 2 and mode 3. It indicates that the mean, median and mode lie within those with no opinion except for C15 median within those that agreed.

Here again a majority of the respondents did not have an opinion on whether BSC should be adopted in the RRA and what are the best ways to adopt the latter in the organisation.

However, among those who had an opinion, a large proportion agreed and strongly agreed on the following factors:

It is critical that RRA measure its performance relating to its customers, internal process, learning and growth of its people when adopting Balance Scorecard.

The RRA can best manage its strategy over the long run by using Balance Scorecard.

The financial and non-financial measures of the budget are best measured using Balance Scorecard.

Lack of competition and organisational capabilities are threats to Balance Scorecard adoption.

Before implementing Balance Scorecard, the RRA should improve the manner of its service delivery and checking its overall strategic intent.Only a small percentage did not agree on the previous generated list.

4.3 Results of Cross tabulation and Hypothesis Testing

4.3.1First Hypothesis

The first hypothesis is designed to look at the measures public sector employees of RRA knowledge of Balance Scorecard framework in relation to employees total years of experience in the public service.

H0: - There is no relationship between I am fully conversant with the uses and objectives of Balance Scorecard and total years of Service in the public sector.

H1: - There is no relationship between I am fully conversant with the uses and objectives of Balance Scorecard and total years of Service in the public sector.

Cross tabulation

Crosstab

Years of Service in the public sectorTotal

0 - 9 years10 - 19 years20 - 29 years30 and above

I am fully conversant with the uses and objectives of Balance Scorecard.Strongly AgreeCount60006

% of Total6.7%0.0%0.0%0.0%6.7%

AgreeCount3150018

% of Total3.3%16.7%0.0%0.0%20.0%

No OpinionCount0927945

% of Total0.0%10.0%30.0%10.0%50.0%

DisagreeCount0001212

% of Total0.0%0.0%0.0%13.3%13.3%

Strongly DisagreeCount00099

% of Total0.0%0.0%0.0%10.0%10.0%

TotalCount924273090

% of Total10.0%26.7%30.0%33.3%100.0%

Table 4.6 Cross tabulation of B2 and A2

The cross tabulation public sector employees of RRA knowledge of Balance Scorecard framework in relation to employees total years of experience in the public service showed that for those who reckon 0-9 years of services, 9.7% (6.7 + 3.0) agreed. For those with 10-19 years of services 16.7% agreed and 10% had no opinion were observed. For those with 20-29 years of service 30% with no opinion were recorded. As for those with 30 years of services and above 10% had no opinion and 23.3% (13.3 + 10) disagreed were noted.

Chi-Square Tests

Chi-Square Tests

ValuedfAsymp. Sig. (2-sided)

Pearson Chi-Square151.025a120.000

Likelihood Ratio134.078120.000

Linear-by-Linear Association62.92410.000

N of Valid Cases90

a. 15 cells (75.0%) have expected count less than 5. The minimum expected count is .60.

Table 4.7: - Cross tabulation of B2 and A2.

From the chi square test we can observe that Asymp. Sig. (2-sided) = 0.000 which is less than 0.05. Therefore we reject H0 and conclude that there is no relationship between I am fully conversant with the uses and objectives of Balance Scorecard and total years of Service in the public sector.

First Correlation

Symmetric Measures

ValueApprox. Sig.

Nominal by NominalPhi1.2950.000

Cramer's V0.7480.000

N of Valid Cases90

Table 4.8: - Symmetric Measures of B2 and A2.Cramers V test with Value = 0.748, which indicates a strong association between there is no relationship between I am fully conversant with the uses and objectives of Balance Scorecard and total years of Service in the public sector.

4.3.2 Second Hypothesis

The second hypothesis aimed at testing how RRA employees asses to review and critical factors hindering the implementation of Balance Scorecard against their level of education/training.

H0: - There is no relationship between the RRA has sufficient resources and organizational structure to implement the Balance Scorecard and the RRA employees level of training/education.

H1: - There is relationship between the RRA has sufficient resources and organizational structure to implement the Balance Scorecard and the RRA employees level of training/education.

Cross tabulation

Crosstab

RRA employees level of training/educationTotal

Secondary levelTertiary levelTechnical/Professional training level

The RRA has sufficient resources and organizational structure to implement the Balance Scorecard.AgreeCount150015

% of Total16.7%0.0%0.0%16.7%

No OpinionCount2127048

% of Total23.3%30.0%0.0%53.3%

DisagreeCount018018

% of Total0.0%20.0%0.0%20.0%

Strongly DisagreeCount0639

% of Total0.0%6.7%3.3%10.0%

TotalCount3651390

% of Total40.0%56.7%3.3%100.0%

Table 4.9: - Cross tabulation of C10 and A3

The cross tabulation of how RRA employees asses to review and critical factors hindering the implementation of Balance Scorecard against their level of education/training yielded 16.7% agreed and 23.3% no opinion from those with secondary level education. For those with tertiary education level 30% with no opinion and 26.7% disagreed were observed. Finally for those with technical training level only 3.3% was noted.

Chi-Square Tests

Chi-Square Tests

ValuedfAsymp. Sig. (2-sided)

Pearson Chi-Square66.094a60.000

Likelihood Ratio67.06760.000

Linear-by-Linear Association42.51510.000

N of Valid Cases90

a. 5 cells (41.7%) have expected count less than 5. The minimum expected count is .30.

Table 4.10: - Chi-Square Tests of C10 and A3

The chi square test it can be observed that Asymp. Sig. (2-sided) = 0.000 which is less than 0.05. Therefore we reject H0 and conclude that there is relationship between the RRA has sufficient resources and organizational structure to implement the Balance Scorecard and the RRA employees level of training/education.

Second Correlation

Symmetric Measures

ValueApprox. Sig.

Nominal by NominalPhi.857.000

Cramer's V.606.000

N of Valid Cases90

Table 4.11: - Symmetric Measures of C10 and A3Cramers V test with Value = 0.606, which indicates an association between the RRA has sufficient resources and organizational structure to implement the Balance Scorecard and the RRA employees level of training/education.4.3.3Third Hypothesis

The third hypothesis was designed to measures employees perceptions and recommendations on how best to adopt Balance Scorecard against their sector of responsibility.H0: - There is no relationship between the RRA can best manage its strategy over the long run by using Balance Scorecard and in what section of RRA do you work.

H1: - There is a relationship between the RRA can best manage its strategy over the long run by using Balance Scorecard and in what section of RRA do you work.

Cross tabulation

Crosstab

In what section of RRA do you workTotal

ManagementFinanceProcurement

The RRA can best manage its strategy over the long run by using Balance Scorecard.Strongly AgreeCount3003

% of Total3.3%0.0%0.0%3.3%

AgreeCount1221033

% of Total13.3%23.3%0.0%36.7%

No OpinionCount045954

% of Total0.0%50.0%10.0%60.0%

TotalCount1566990

% of Total16.7%73.3%10.0%100.0%

Table 4.12: - Cross tabulation of D12 and A1

The cross tabulation of the measures employees perceptions and recommendations on how best to adopt Balance Scorecard against their sector of responsibility yielded 16.6% (13.3 + 3.3) agreed and 23.3% had no opinion on the subject matter for those working in management and administration. As for those working in finance section 23.3% agreed with 50% with no opinion were observed. Finally for those working in procurement section 10% had no opinions were noted.

Chi-Square Tests.

Chi-Square Tests

ValuedfAsymp. Sig. (2-sided)

Pearson Chi-Square38.541a40.000

Likelihood Ratio44.21740.000

Linear-by-Linear Association31.82810.000

N of Valid Cases90

a. 4 cells (44.4%) have expected count less than 5.b. The minimum expected count is .30.

Table 4.13: - Chi-Square tests of D12 and A1

The chi square test it can be observed that Asymp. Sig. (2-sided) = 0.000 which is less than 0.05. Therefore we reject H0 and conclude that there is a relationship between the RRA can best manage its strategy over the long run by using Balance Scorecard and in what section of RRA do you work.

Third Correlation

Symmetric Measures

ValueApprox. Sig.

Nominal by NominalPhi.654.000

Cramer's V.463.000

N of Valid Cases90

Table 4.14: - Symmetric measures of D12 and A1

Cramers V test with Value = 0.463, which indicates a weak association between the RRA can best manage its strategy over the long run by using Balance Scorecard and in what section of RRA do you work.

4.4 Conclusion

This chapter has provided an analysis of the data collected from the survey. The analysis was related to the literature review and especially with the objectives of the research listed in the introduction chapter.

It has been observed that first there is no relationship between I am fully conversant with the uses and objectives of Balance Scorecard and total years of Service in the public sector. Second, there is relationship between the RRA has sufficient resources and organizational structure to implement the Balance Scorecard and the RRA employees level of training/education. Finally, there is a relationship between the RRA can best manage its strategy over the long run by using Balance Scorecard and in what section of RRA do you work.

The next chapter is discussion and the researcher will make a conclusion and present some recommendations concerning the subject. CHAPTER 5

DISCUSSION

5.1Introduction

This chapter will summarise all the findings and recommendations from this study. The findings from literature review will first be deliberated followed by those of the empirical study. Afterwards, the requirements of implementation