Effect of Balanced Scorecard on Employee Job Satisfaction at the Kenyatta National Hospital

Abstract

A well-implemented balanced scorecard not only measures financial outcomes but also integrates metrics related to employee performance and job satisfaction. This alignment can result in enhanced employee motivation, engagement, and ultimately contribute to higher job satisfaction. The objective of this study was to examine the effect of the balanced scorecard on the employee job satisfaction at the Kenyatta National Hospital. Three theories, that is, expectancy theory, the model of job characteristics, and social exchange theory were used in this study. This study adopted a descriptive.7cross-sectional survey.7research design on 1950 employees of Kenyatta National Hospital. The researcher sampled a total of 195 employees selected through stratified random sampling. Primary.7data was collected using.7a structured.7questionnaire with data analysed through descriptive and regression.7analysis. The findings showed that balanced scorecard was implemented in the departments of Kenyatta National Hospital. The employee job satisfaction was found to be low as reflected in employees not happy working there; poor utilization of employee skills and capabilities; lack of opportunity for promotion; unsupportive supervisors; and poor match of job descriptions and roles. The study also found that balance scorecard and employee job satisfaction had a strong relationship. It also found that balance scorecard perspectives contributed 32.2% to employee job satisfaction. The results also showed that balanced scorecard had a moderate positive effect on employee job satisfaction (regression coefficient=0.188; p=0.001). The study concludes that Kenyatta National Hospital has low employee job satisfaction. The study also concludes that balanced scorecard has a positive effect on employee job satisfaction in Kenyatta National Hospital. The study recommends that Kenyatta National Hospital undertake regular assessments of the financial, customer, learning & growth, and strategic alignment perspectives within the BSC framework. The hospital also needs to create team work among the existing employee teams within the hospital; ensure fair appraisal and promotions; and undertake regular training among the employees for improved employee job satisfaction within the hospital. This study suggests similar studies with a focus on other factors influencing employee job satisfaction; other measures of employee job satisfaction and different approaches to the balanced scorecard; and other organizations other than the Kenyatta National hospital. Other researchers can also use a survey other than a case in their future studies.