Develop a Balanced Scorecard for the organization
This chapter presents the results and findings of the questionnaires and meetings which were conducted within LAPF. An analysis of the results and a discussion on relevant findings is also included in this chapter.
4.1 RESPONDENT ANALYSIS
The researcher supplied 40 questionnaires and collected a total of 38 (95%) filled out questionnaires. Among the 38 respondents 27 (71%) were male and 11 (29%) were female. As for the age,11 (29%) were in the age category of 20-30, 15 (39%) in the age category of 31-40, 12 (32%) in category of 41-50,and none of the respondent is above 50 years of age. The study covered 16 (42%) middle level staff ,17 (45%) senior staff ,3 (8%) managers and 2 (5%) directors. On average they have been working with LAPF for 3 years implying that they have reasonable experience and are familiar with LAPF working and operating environment. On the other side,25 (66%) have Bachelor degree and only 13 respondents (34%) have Master degree.
The researcher managed to conduct two interviews as summarised in table 4.1 below:
NB: For viewing response from the interviewee, refer appendix II
Post during interview
Acting Director of Human Resources and Administration
Acting Director of Finance
Table 4.1 Interviewee analysis
4.2 MANAGEMENT AND STAFF INVOLVEMENT
The proposal to develop a Balanced Scorecard for the organization as part of the study promptly gained the interest of the managers and senior staff at LAPF. The proposal was approved by both the service and team managers at LAPF and supported by the majority of frontline and senior staff members. While the senior staff members were interested in finding out what exactly would be measured and how, there was very little interest displayed among staff in the lower bands in the service. However, even this interest seemed to be short lived, which could have been partly due to their work commitments.
The following organizational goals were identified.
Promote awareness of the service.
Provide a seamless service.
Provide a service which is responsive to the social security benefits cover to the employees of the local government authorities as well as the agencies and Institution owned by Local Authorities
Provide staff with training and development responsive to the social security needs of the local community.
The following objectives were identified as shown in table 4.2 below:
LAPF Objectives and critical success factors
Critical Success Factors
Increase member satisfaction.
Reputation of service
Stakeholder relationship and satisfaction
Service delivery and responsiveness
Increase awareness of service.
Interface with members
Ensure efficient members pathway through the service.
Interface with partners
Increase members high return.
Efficient use of resources
Service delivery and responsiveness
Evidence based practice
Identify training and development needs for the service.
Flexible workforce and organization
Employee development and training
Provide members best service within appropriate setting.
Evidence based practice
Efficient use of resources
Employee development and training
Table 4.2 Objectives and Measures
4.3 LAPF Balanced Scorecards
Increase member satisfaction
Increase membership base
Frequency of members complaints
Members Survey rating
Complaints response time
Timeliness of service
dissatisfaction by 50%
Customer satisfaction surveys in progress.
Number of new members registered
(Effective use of
Invest the contributions received in a highly and secure yield investment ( Accurate investment decision making)
-Return on Investment (ROI)
Reducing operating costs by relatively 50%
Measures to ensure that aI1 investments are c1early defined in-terms of expected return
Increase in premium
Increase premium by 30%
Step to identify non registered members
Percent increase in Cash Flows
Reduction of cash collection time and addition of new product
Step to identify members needs according to the market and launching of new benefit
Return on Assets
Reduce relative operating cost by 13%
Measure to reduce non-performing assets and ovoid unnecessary costs
Effective cost reduction
Percent reduction in cost
Reduction of cost by 15%
Step to reduce data processing time
Percent reduction in risk occurrence
Percent of loss due to risk
Periodical portfolio review and regular risk analysis
Measure to introduce risk management unit
Percent error in forecasts
Increase budgetary control
Step to improve departmental budgets
Internal Business Processes
Increase awareness of
To provide more information to public about offered benefit
Steps to amend information leaflet
Steps to update website.
Steps to provide stakeholders with clear criteria for registration
Learning & Growth
Identify training and
Review (PDR) rates
100% of staff undergo
job specific and
mandatory skills training
Steps to identify staffs that have not
completed mandatory and job specific skills
Training dates published.
The BSC provides a framework and language to communicate the vision, mission and strategic direction of LAPF. Measurements are used to establish current position and inform employees as to what will lead to success in the future. Measurements set the focus on particular actions and outcomes. Establishing the current position will help understand what action is necessary to achieve organizational change.
When asked to assess current performance of LAPF on average 50% of respondent said performance is very good while 40% of respondent said it is good and there was no answer to excellent performance, bad and very bad performance. Most of respondent became aware of BSC within the period of 0 to one year (43%), this means that the proposed performance system seems to be new and therefore need proper information before starting implementation.
Proposed BSC fits with LAPF environment, on average “to some extent” was response from the staff and “Yes” from management. In addition to the measures and objectives as proposed by the researcher ,respondents added the following to the BSC framework:
Liquidity- measured by cash & cash equivalent
Timely contribution collection- measured by monthly contributions collected, penalty for delayed contributions, and court cases for defaulters
Risk mitigation for ROI, growth, and profitability
On time and accurately provision of members status on their contribution-can be measure by conducting customer survey, frequency of complaints etc.
Learning & Growth Perspective
Improve relationship between employees and management- measured by freedom of speech, room for discussion
Individual performance evaluation- measured by agreed performance criteria
User friendly and reliable information system- measured by usage ( time) , availability 24x7x365, number of breakdowns, frequency of repairs, employees survey etc.
Moreover one respondent added, “ The proposed BSC should include both bottom-up and up-down approaches where both managers and subordinates evaluate each other.”
However, fulfilling the requirements of its stakeholders is the primary focus of any Social Security Organization. Stakeholder needs may spread across different dimensions. In Social Security Fund, stakeholders are wide and varied. Members, for example, are both stakeholders and customers. To be successful, a Social Security organization would have to fully meet the changing needs of both stakeholders and customers at the lowest cost and within the limits and directives set by higher authorities, who also fall under the umbrella of stakeholders. Government initiatives and directives also largely control the extent to which stakeholder and customer needs are met. Even for a relatively large Social Security organization like LAPF, this can be extremely challenging.
Public sector organizations like the LAPF are normally assessed through process and output oriented measures like economy, efficiency and effectiveness. An over reliance on some of these measures can act as a barrier to better services outcomes. The reason to support future use of BSC was to be able to measure the performance and hence improve productivity outcome.
Outcomes have also been gaining importance in the past few years. The dimensions, outcome measures and indicators used in assessing performance reflect the needs of different stakeholders which may interconnect or even be incompatible depending on the interests of the stakeholder group. In a multidisciplinary service like social security organization, greater pressure from one stakeholder group may result in greater weight being given to a particular dimension or to some group of indicators or measures and a drive down on other stakeholder interests. In a multidimensional performance measurement system like the balanced scorecard, this can result in the development of a performance measure lacking in balance and integration. Imbalances and inconsistencies in stakeholder interests can present barriers to the effective use of balanced scorecards in Social Security organizations like LAPF.
The measurement tools used are directly linked with the strategic objectives of each goal area or perspective and are embedded in a cause and effect chain as can be seen in the strategic maps. As mentioned earlier these imprecise, hypothetical cause and effect relationships link the desired outcomes with the activities that lead to achieving those strategic outcomes. Measurement tools are also linked with targets. Targets represent the desired outcome and the end result expected of the performance measure.
Execution of the strategy and the monitoring of change are equally important. The BSC, as a tool, helps translate the strategy into operational terms and forms the basis for other activities. However, commitment from senior management is a prerequisite for successful implementation of the balanced scorecard and the management of change. Lack of support from senior management is one of the main reasons why balanced scorecard implementations fail. Engaging the whole management team in the process of building the scorecard will ensure that management is committed towards implementation.
Motivation is another factor behind failure of performance management systems like the BSC. In the public sector services like the LAPF, employee rewards for good performance often take other forms than monetary.
When asked what motivated managers to meet objectives, all interviewees identified ‘recognition’ and ‘being valued’ as the most important motivational factors. respondent replied that “. . recognition for developing and delivering a quality service; and if that means financial reward as in more money [budget] to develop and deliver services that are better.” However, there are problems associated with linking rewards to the BSC in public sector organizations like the LAPF. There is widespread debate as to whether a formula-based compensation scheme would have advantages over an unverifiable and possibly biased subjective appraisal (Prendergast and Topel, 1993). Where weights are applied to indicators and dimensions in formula-based compensation schemes, there is the argument that it may lead to game playing and a drive down on particular stakeholder interests. Local priorities and variations could also have a bearing on these measures (Chang, Lin and Northcott, 2002).
The benefits of adopting the BSC system can be quickly identified without much knowledge or exposure to BSC system. The perceived benefits are in terms of obtaining clarification and consensus on strategy, the communication of strategy throughout the organization, aligning departmental and personal goals to strategy, linking strategic objectives to long term targets and annual budgets, the identification and alignment of strategic initiatives, facilitating systematic reviews, providing a double-loop feedback to assist in learning and strategy development and the translation of better strategic alignment into the improved results (Radnor and Lovell, 2003).
Respondents agreed more strongly to support reaching the targets by applying balanced scorecard frame work. The respondents were less inclined to seeing failure to reach the targets as having an inhibiting effect on reaching the overall goals of LAPF when asked reasons to support BSC
When asked about the benefits to be gained from using the BSC in LAPF, respondent replied “it will give us direction, focus and something to look at measuring our performance, something that the whole team can participate in and not just the management.” To the same question, another respondent replied, “ it will help us identify the main actions for measuring and improving the service. It is also very practical, can be disseminated to the whole team and does not have to be necessarily applied by managers.” Using the BSC along with strategic objectives and target measures will provide employees in all levels of the organization with a clear sense of direction, their role as drivers of change and the benefits of accomplishing organizational goals. These results will be subsequently transferred to customers.
The BSC helps to improve communication, facilitate learning and influence behavior within the service. The BSC system will open channels for continuous and ongoing dialogue between staff at all levels of the organization further enabling staff to align their individual goals with the organization’s goals. It will also promote employee growth and development by identifying training and development needs and through the use of mentoring, coaching and closer supervision. This cycle benefits both employees and the organization as individual and organizational goals are accomplished at the end of the day. Thus a culture of achievement emerges from the process. As one of the respondent stated “the balanced scorecard will highlight training needs for both management and staff and highlight areas where we perform well and areas where we perform less well... I’d like to think that it will help the team get more and think that we are one team and work better.”
There are however challenges to implementing the BSC in public sector organizations like the LAPF. Unlike the private sector where the expected outcome of the balanced scorecard would be increased profits and returns for the shareholders, in public sector organizations like the LAPF, the emphasis is on getting the best outcomes for customers, while operating within limited financial resources or in essence to achieve value for money. Especially in an organization like LAPF with multiple and varied stakeholders, the application of the BSC becomes difficult. This is due to the fact that the BSC is not a multi-stakeholder framework (Bourne and Bourne, 2007). Further, the authors also warn that in the public sector, targets are imposed on organizations by the government. These national targets which may not be appropriate at the local level are compounded in the local government setting by various government departments and agencies with different requirements for information and performance data. This is particularly evident in Social security organizations like LAPF in that conforming to both national and local social security requirements and targets are necessary for the very existence and sustenance of the service. When used in public sector organizations, the format of the scorecard also changes with the customer perspective appearing in the top reflecting customer satisfaction as the top priority.
Discussion from respondent indicated that the lack of empirical evidence in exploring the usefulness of the BSC as a performance management system, may lead to managers being skeptical about accepting the BSC over other traditional measures. The BSC approach has also been criticized as being a costly, complicated and time consuming exercise (Johnston and Fitzgerald, 2000). In light of the current push towards cutting costs and achieving value for money, managers may find it difficult to justify adopting the BSC system. Both during the development and implementation phases, determining what indicators to use and how to set measurement targets could also be a major challenge.
Educating and engaging staff at all levels of the organization on the BSC system is necessary for successful implementation. One of respondent hinted he cannot comment on objectives and measures because has no deeper knowledge on BSC. This may be particularly challenging if staffs perceive the new performance management system as a threat and are resistant to change. Difficulties with the timely collection and collation of data may also pose challenges when trying to keep the system alive. Stakeholders may also equally lack adequate information on the concept of the BSC or in the use of a particular indicator to measure performance.
When asked what the major challenges to implementing the BSC in LAPF respondent replied “Engaging staff and carefully planning and involving the team resources”. Because what we have actually identified is an awful lot of work and having the resources to carry out that work within the limited resources that you have is a major challenge.” Engaging staff and moving forward as a team” was the most important challenge identified by DHRA while one respondent replied “Getting the team to own the BSC” is a challenge. Also we may be challenged to review our service and change it in light of what our performance are and may be also show up what we don’t do well.
In spite of the existing difficulties and challenges to overcome to successfully implement the system, the BSC is a powerful tool which will help align action to strategy and enable the LAPF to achieve its goals.
4.3 PERFORMANCE MEASUREMENT AT LAPF
LAPF measures its performance using budget technique. This involves setting up yearly targets, allocating funds to different activities; performance measurement & evaluation is done by comparing the budget with the actual results at the end of the financial year. This is evidenced by the DHRA and DF through face to face interview. It is obvious that the budgeting technique lays more weights on financial aspects and ignores non –financial aspects as many of them are not budgeted neither the targets are pre-sets.
The study finds out that the “very good” and “good” performance from respondents’ answers are weighted more on financial results of LAPF. However when asked about other performance measurement technique besides the BSC, majority of respondents mentioned OPRAS (Open Performance Review Appraisal System).This technique is used mainly in evaluating employee’s performance in achieving the objectives and goals set and agreed on with his supervisor. It does not measure corporate performance directly, however it may help to improve corporate performance as the employee’s objectives and goals disseminate from corporate objectives.
Besides OPRAS other techniques mentioned by respondents are;
Performance Development ( PD)
Budget and Budgetary Control
Critical Path Method
Activity Based Costing
Total Quality Management
Interview with Stakeholders
Business Process Re-engineering ( BPR)
Business Excellent Model ( BEM)
Review based monitoring and evaluation using objectives, measurements and outcomes.
4.4 CUSTOMER PERSPECTIVE
The customer is a critical component in the profitability equation, but this fact is often over-looked in any financial analysis or annual reports. Customers are a marketing asset that businesses are yet to quantify in the accounting system, yet the company that is able to attract, satisfy and keep customers over their lifetime of purchases is in a powerful position to deliver superior levels of profitability. Refer table 4.4 below that shows expected and actual figures and amounts relating to LAPF members.
Register new members
Collect current contributions
45.02 billion TZS
52.17 billion TZS
-7.15 billion TZS
Collect arrears of contributions
2.83 billion TZS
3.72 billion TZS
-0.8 billion TZS
Teachers and other private sectors
800 million TZS
985 million TZS
-185 million TZS
Table 4.4 Members Records
Source: LAPF records
Actual registration of new members is below budgeted number though current contribution seems to be above the budget. Relationship between budgeted numbers of new member is not well depicted in budgeted collection. From table 4.4 it seems more efforts is only concentrated in collecting contribution from existing members and therefore undermine effort to register new members. Measuring the customer satisfaction is not in place only measuring material output in terms of collection of members contribution is done since it easily determined. Adverse result of new member’s registration may be caused among others: Service dissatisfaction among existing members and lack of awareness-campaign to potential members.
Promote awareness of service
The respondents agreed that members are not aware of their rights, thus the exercise will help through educating them. This goes together with conducting extensive members’ seminar which still seems to be a problem with LAPF. The following organizational goals were identified:
Promote awareness of the service
Inform zonal offices and
Conduct presentation and
Attend external practices staff
Figure 4.1 Awareness techniques
Source: Researchers own construction
Respondents strongly agreed on presence payment delaying to members that cause dissatisfaction. The peculiar negative relationship between customer satisfaction and operating income could be clear signs of the imperfect nature of the market or an indication of customer’s unwillingness to try new organization. This could be temporary, though. As customers begin to identify better services and products from other competing pension funds, through word of mouth from the satisfied customers of these other funds, this trend may change over time. If this study is done again in 10 years down the line with service levels being as they are now, the results could be surprisingly different.
Customer retention is how long a business is able to keep a customer for the purpose serving the customer with repeated businesses. Respondents disagree on the dissatisfactory member retention rate, though strongly agree on frequent receiving members complaints this is contradicting results If a business is able to increase the number of customers it retains year on year, that business will be able to reduce the cost associated with customer dissatisfaction and exit and will not have to spend as much on marketing efforts to attract new customers.
As per the LAPF benefit manual, a member’s complaint should be honoured within 14 days!.The majority of respondents agreed that the response time is more than 30 days. Among other reasons , the problem is caused by poor member records keeping which should be referred before communicating the response to the members; Unreasonable delay in forwarding the claims ( from Zone offices) that need head office attention.
The study also found that LAPF had taken about five years before introducing any new benefit package. The reason been given is that, the organisation was in the transition period from Provident Fund to Pension Fund, and thus could not budget for any new benefits packages. It has been learnt that the Fund has just introduced two new benefits i.e. maternity benefit and funeral grant, which are expected to be paid starting financial year 2010/2011.
4.5 FINANCIAL PERSPECTIVE
Cash is a wheel for driving any corporation. Proper handling of cash and all financial decisions in one side ensures survival and growth. From the Fund’s current financial report it shows that cash has decreased from TZS 69.01 billion ( June 2009) to TZS 59.27 billion in June,2010.This goes contrary to most of respondents selecting ‘strongly agree’ and ‘somehow agree’ to the statement that, “There is an increase in the Fund’s Cash flow” It has also been noted that only one respondent out of 38 answered ‘neither agree nor disagree’. However table 4.5 below shows good performance in other components of financial statements:
Statement of Changes In Net Assets
Statement of Net Assets Available for Benefits
Table 4.5 Summary- Financial report
Source: LAPF records
The proper handling of cash goes together with effective measures to reduce risk occurrence as well as effective means to reduce costs without affecting operations. However many respondents raised doubts on the means of reducing costs, implying that they do affect operations, and in most cases staff-related votes, e.g. training, travelling on duty, etc. The study finds out that LAPF is exposed to risks with high percentage of risk occurrence and has no effective measures to reduce risks occurrence. Respondents disagreed that risk percentage is decreasing year after year, although there seems to be many respondents who are not aware of the risks associated with LAPF operations. The Risk management framework has been introduced to solve the problems but it is not yet implemented.
Being the Pensions Fund, LAPF needs accurate, updated and effective investments policy so as to back up its ability to pay benefits to its members. In this regard the study looks into different investment portfolios’, as to what is expected and the actual returns from each investment item as shown from the tables below: All figures in billions Tanzanian Shilling.
Type of investment
Table 4.6 Investment income collection
Source LAPF records
Actual income collection from investment ( as shown in table 4.6 above) is below budget, reasons stated by management are interest rate fall. However from table 4.7 the fund is investing heavily in government securities that are known to have low return because of low risk. This demonstrates the need of risk management unit within organization and hence the change of portfolio mixes.
Type of Investment
Actual Amount invested
Lending through FIs
Table 4.7 Investment 2009/10
Source LAPF records
The above table shows the real picture of budgeting problem with LAPF .Majority of respondents agreed that LAPF budgets are inaccurate and contain forecasting errors. The problem has also been noted by the LAPF director of finance explaining votes relating to employees being the major affected items of the budget that necessitate funds re-allocation. From table 4.7 above the findings revealed that investments budgets could not be met due to several reasons, some being the up and downs of the interests rate; and the fact that after investing 59% of the targeted amount to equity, no more IPO events were announced. Again, the Fund has received a number of applications but many SACCOS did not qualify for the loan facility.
The study also found that the Fund could not invest through FIs due to the lack of policy and regulation giving instructions and explanations on how and when the lending should be made. In a normal situation this should have not been budgeted unless the policy regulating the lending is in place. Another problem is seen with Real Estates where the reason for under investment is the delay in procurement process of some important items for constructions purposes. It has also been learnt that delay in processing official documents prior construction works has affected the investment in this portfolio.
Maturing investment TZS (67.5 bill)
This represents investment made before 1st July 2009 expecting to mature in current financial year 2009/10
Expectations went different with Treasury Bills under-performing again because of falling interest rates. All maturing loans could not be collected as one of the SACCOS has not been honouring its obligation as it was planned and this has affected the collection in this portfolio. Treasury Bonds- over performance is because the funds were invested in secondary markets. Over performance in fixed deposits is because of high interest rates offered by bank.
Table 4.8 Maturing Investments
Source LAPF records
Figure 4.2 Proposed LAPF financial perspective Performance measure with target
Invest in highly secured yield
Reduce operating cost by 50%
Percent increase in Cash Flows
Add of new products
Percent reduction in cost
Man power cost reduction
%Return on assets
Reduce relative total cost
4.6 INTERNAL BUSINESS PROCESSING
Internal business process is another perspective in a BSC framework involving the processes which an organisation must adopt and follow in order to perform better and increase satisfaction to its customers and other stakeholders. These processes are the most critical for success in any organisation. LAPF as well has to identify critical internal processes relevant to its operating environment that will concentrate and put more efforts to in achieving its objectives and goals.
LAPF processes members claims (benefit to members) on daily basis. Benefit operating manual requires any benefit to be paid within 14 days of receiving a completed form. When asked about claim processing time, more than 50% of respondents agreed that the processing time is more than one month. This is one of the main reasons for receiving members complaints. In discussing the problem, one interviewee i.e. DFA gave some reasons for delay in payment or long claim processing time. These are:
Long approval process
Time taken to send benefit cheques to beneficiaries. The problem still exists to survivors cheques where the cheques have to be handled to survivor before the court.
Unavailability of the required officer to process members payments, (when having outside assignment or on official trip)
One of the staff also gave a reason that a poor record keeping delays members payments as some records may be missing in member’s file. In another side, even a member unknowingly may be the reason for longer claim processing time. One of the staff at the benefit section claimed that some members do submit incomplete forms which necessitate the officer to put them aside until all the required documents and attachments are submitted.
LAPF has just introduced and is in the first phase of implementing PMS2 as a database for members records which is the responsibility of the directorate of members services. In addition to this LAPF also is in the last phase of fully implementing NAVISION as accounting ERP administered by the finance department. These two departments work in close cooperation with ICT department to make sure that the systems work better in LAPF environment. In relation to this, when asked about the ineffectiveness of reporting and information system, on average 60% respondents disagreed with the statement where more than half of them replied with a “strongly disagree” option. The use of NAVISION has improved the reliability of the financial reports as the system minimises errors and facilitates early production of reports. However a great care should be exercised when punching figures and data into the system to really minimise errors and produce accurate reports and data for use. This funny statement works perfectly, “garbage in garbage out.”
There was a mixed results when respondents were asked about the problem of sharing and circulating information between LAPF departments, units and zone offices. 30% respondents replied with “somehow agree” option while 33% disagreed with the statement. Few of the respondents replied with a “ strongly disagree” option .However none of the respondents has chosen a “strongly agree” option. In a practical working environment all staff should be supplied with important information within a reasonable time for them to perform their duties and responsibilities with proper guidance.
On time releases of feedback in any working environment smoothens the operations and remove unnecessary delays in completing any assignment.BSC facilitates two way communications. It serves as an effective communication tool in an organisation. Unreasonable delay in releasing feedback also delays decision making process that may have negative impact, e.g. Increase operating costs, missing out important contracts, etc. ‘LAPF departments take more than 3 days in releasing feedback to each other and/or to employees’. This has been evidenced by more than 50% respondents agreeing on the statement. From the interview conducted with the DHRA, he mentioned some reasons for such unnecessary delay that; LAPF has ineffective internal process (e.g. the process of forwarding files and letters takes long time especially when the documents originate from or destination to zone offices).Poor record keeping is another reason that cause delay in releasing feedback as some records may be missing or misplaced that necessitate time spend looking for references before communicating the results.
4.7 LEARNING AND GROWTH
Learning and growth is the fourth perspective in the BSC framework. This perspective involves objectives and measures on how an organisation learns, improves and grows. It deals heavily with employees’ issues e.g. training, empowerment, turnover, promotions, etc. For any organisation to survive in a competitive environment has to learn how to create value; this is directly related with the ability to innovate and improve the processes and resources.
Like any other organisation, LAPF has to continually improve its customer services and internal business processes. These targets are very much linked with retaining motivated and committed employees.
From the study respondents were asked as to whether training and learning opportunities at LAPF are administered fairly or not. It was then found out that on average 69% of respondents disagreed with the statement. It came openly that the problem falls heavily on to middle level staff when trying to apply for short training/courses or even long term training. Majority of respondents also disagreed with the fact that they attend training more than 3 times a year. When asked about the time spent on training annually most of them agreed that it is less than 24 hours, i.e. 3 days @ 8 hours per day. However, 35% of respondents neither agreed nor disagreed implying that they either don’t follow or keep good records of time spent on training annually. Defending the case through interview, DHRA explained that training are administered and conducted according to organisation needs. What is always done is that priorities are being set and even if budgeted employee may not attend training if the need in that current year does not arise, or the training budget is exhausted by other group.
In another side majority of respondents agreed that they are committed to achieve organisational goals and that the job environment motivates them to work efficiently. When asked about recognition, empowerment, advancement and promotions, on average 50 % claimed that they are fairly considered and administered. In supporting this DHRA during interview session made it clear that LAPF has a scheme of service which provides guidelines for employee’s advancements. The interviewee also said that, “promotion depends on performance”; not that every employee is promoted. Even if there exists a promotion budget the employee has to meet the criteria for promotions.
However contrary to DHRA , DFA falls in that group which claimed that fairness is not the case with LAPF. He said that issues relating to promotions ,advancement and empowerment are not well defined. In most cases an employee has to request for promotion after attaining a higher training level than previous held, otherwise will not be automatically promoted. In relation to this, the employee has to search for policies and regulations to quote some sections to support his request for promotion.
Employees are the assets for any organisation. Their ideas and suggestions should be carefully scrutinised and considered where possible. Completely ignoring employees recommendations without communicating the reasons de-motivate them. Most of respondents agreed that management listens to their ideas and suggestions and they are even free to face supervisors to discuss problems and complaints. However, this move seems to end after the conversation is over. This is evidenced by majority of respondents replied with “disagree” and others “strongly disagree” options with the statement that,’ More than 80% of employees suggestions and recommendations are considered and put in action’. The disagreement is also supported by DFA during interview giving reason that it is neither LAPF nor Tanzanian culture to consider employees ideas and suggestions. In most cases the head, boss, or manager’s ideas are considered. Contrary to this DHRA put it clear that LAPF does consider employees suggestions through establishing several policies that empower employees recommendations. However majority always win.
Employee’s motivation and satisfaction is derived by many factors ( financial and non financial factors) one being good salary and corresponding benefits. Motivated employees increase productivity and in the other side derive customer satisfaction. In LAPF things are quite different as majority of respondents replied with ‘strongly agree’ option that many employees complain of salary and other benefits. This contributed to more than 5% of skilled labour voluntarily quitting their jobs annually. The rate is high according to DHRA although LAPF has no planned ideal turnover rate. High turnover rate really costs the organisation as costs must be incurred in recruiting and training new employees.
In another progress, DHRA concluded that LAPF has no perfect team work although seems to improve day after day. It was not unusual coming across an employee having unhealthy working relationship with his supervisor.
The researcher widely covered employees aspects under this BSC perspective as they determine organisation future. De-motivated employees whose performance is not tied up with rewards might be one of the reasons for high operating costs, customer dissatisfaction, and overall bad corporate performance.BSC is the solution for this problem. For clear linkage between employees aspects with other aspects in the BSC framework, refer explanations for figure 1.3 (in section 1.6.1 LAPF strategic mapping) .
4.8 RESULT OF HYPOTHESIS TESTING: (descriptive)
Most of the respondents agree that management always resists to new changes. Although LAPF management is ready to adopt BSC as it may assist in performance and relevant to LAPF operating environment, management expressed fear of engaging staff and moving forward as a team in implementing it. During the interview with management personnel, they mentioned the following reasons why management does resist changes or take long time to implement and/or adopt changes be it a new system, approach or etc:
Change disturbs the system and bring stress to people
Fear of failure
Incompetence to handle/implement change process
Individual/personal interests ( will lose something when new system takes up)
Only think that people want to get money as it will be a special duty
Hard to push people to accept changes
Regardless of these problems ,LAPF management is ready to adopt changes as it consists of young and energetic managers who are always committed, devoted and want to try out new ideas and approaches so as to improve their individual as well as corporate performance
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