The impact of strategy performance management methods on employee well-being: a case study to analyses balanced scorecard effects

Abstract

The study investigates the effect of the Balanced Scorecard, one of the performance measurement systems, on employee well-being (EWB) in organizations. As a result of the literature research, it is seen that employee welfare is examined in 3 different areas: Job Satisfaction, Organizational Commitment, and Job Engagement. One of the most important factors for the success of an organization is the happy employees who contribute tremendously to the improvement of the organization's performance. Both qualitative and quantitative measurement methods were used for this study. The surveys that have used for this study included 27334 employees in the state of Michigan and the surveys data were analyzed by Statistical Package for Social Sciences (SPSS) 28. The study revealed that the BSC strategies implemented in the State of Michigan improved organizational performance in the four perspectives of financial, customer, internal process, and learning & growth. The statistical results of employee satisfaction surveys show that BSC increases job satisfaction by 68.30% (R-squared: 0.683), work engagement by 71.00% (R-squared: 0.710), and organizational commitment by 21.30% (R-squared: 0.213). With the BSC strategy and learning-growth perspective that has been in effect for 20 years, employee satisfaction has been increased, organizational commitment and job engagement have been prioritized in the State of Michigan. The result of this study will help leaders and HR departments measure and increase employee well-being with performance measurement tools.