Abstract

Balanced Scorecard elaborates the mission and strategy of the organization by providing clarity to guide the employees in order to make them more informative for discharging their respective functions efficiently. It is also a tool which is used to make Performance Management System more effective for improvement of the performance of employees.

In this study we investigate the factors which are likely to affect the Balanced Scorecard among the I.T. Industry executives in India as I.T. Industry has transformed India’s image from a slow moving bureaucratic economy to a land of innovative entrepreneurs in spite of all odds.

The present study is a survey research to collect the data because it is found to be the most suitable method for answering the research questions and for this a structured questionnaire has been used. Convenience Sampling is used to collect the data from executives of I.T. Industry of National Capital Region who are thought to have desired information. Questionnaire of this research aims at collecting quantifiable data for the analysis.  This requires the adoption of Likert Scale to measure the employee attitude. Each degree of agreement is given a numerical score and the respondents’ total score is computed by summing these scores.

Factor Analysis of Balanced Scorecard makes the construct of different sub-factors in order of their importance for Performance Management System in I.T. Industry.  The results are obtained through orthogonal rotation with Varimax (least significant factors) in which it is found that customer perspective, financial perspective and learning & growth perspective are highly significant while internal process perspective is moderately significant. 

This study has given a basis of data to the management through which management can take a decision to implement Performance Management System in a better way. Such study may be replicated in different business sectors within India.

Key Words: Balanced Scorecard, I.T. Industry, Performance Management System, Executives.