Abstract:
The balance score card (BSC) is a management system that maps an organization’s
strategic objectives into performance with four perspectives such as financial,
internal business perspectives, customers, and learning and growth which provide
relevant feedback as to how well the strategic plan is executing so that adjustment
can be made if necessary. The score card itself is essentially a performance
measurement frame work with two key objectives; converting strategy into specific
goals for different sections of the organization, and communicating that strategy to
all parts of the organization. Hence the associations between four perspectives in
balance score card and performance should be examined. Various studies have been
done on the above theme, but no enough studies have been conducted in Sri Lankan
context, especially in banking sector. Thus the present study is initiated on “Balance
score Card and business performance as a comparative study of state and private
sector banking Organizations in Srilanka “with a samples of 143 respondents in 16
banking organizations in eastern provinces. The results from the operational
hypotheses indicates that total perspectives (CP, IBP, LGP, and FP) have a
significant relationship with business performance which means, as the total
perspectives increase business performance increases in state banks and private
banks. Whereas learning growth perspectives and customer perspectives
significantly contributes to total perspectives in both banks are important
contributors to positive Business performance, specially learning growth
perspectives are significantly impact on state banks. But the private banks customer
perspective is mostly impact on business performance.
