Balanced Scorecard: The Key to Employee Well-Being the Impact of Balanced Scorecard on Employee Well-Being: The Case of State of Michigan-USA

Abstract

While the organizations have started to use methods consisting of financial and non-financial measures to track progress when they realized that traditional strategic management and performance measurement methods based only on financial data were not sufficient to plan the future and to be strong in competitive environments. The balanced scorecard is one of these methods that has been widely adopted and is the most popular performance method by researchers which uses a "four perspective which is financial, customer, internal process perspective and learning growth perspectives.

The main function of the learning and growth perspective is to drive the major sources of human capital, informational capital, and organizational capital in the organizations. One of the most important factors of organizational success is happy employees who make a tremendous contribution to increasing organizational performance, proven by many researchers.

The objective of this study was to research the impact of the Balanced Scorecard on employees' well-being, its theoretical frameworks and concepts, and empirical research. The survey of the study involved 27334 employees working in the State of Michigan and has been analysed by 28 of Statistical Package for Social Sciences (SPSS). The study demonstrated BSC strategies were implemented in the organization have improved organizational performance in the four financial perspectives, customer, internal process, and learning &growth perspectives. With the BSC strategy, which has been followed for 20 years, and the learning and growth perspective, the organization increases the satisfaction of its employees, while organizational commitment and job engagement come to the fore. Statistical results from employee satisfaction surveys showed that BSC increased job satisfaction by 68.30% (R square: 0.683), job engagement by 71.00% (R square: 0.710), and organizational commitment by 21.30% (R square: 0.213).