Multi-dimensional performance evaluation models and an application of Balanced Scorecard

vABSTRACTMULTI- DIMENSIONAL PERFORMANCE EVALUATION MODELS AND ANAPPLICATION OF BALANCED SCORECARDEnder TUNÇERDepartment of Business AdministrationAfyonkarahisar Kocatepe University, The Institute of Social SciencesAugust 2006Advisor: Assist Prof. Dr. Veysel A0CAToday, an effective evaluation system is crucial in the success of companiescompeting wihtin complex areas. A successfully-applied performance evaluation systemprovides constant monitor of success of the firm. It is needed that performanceevaluation systems aiming to evaluate the success of companies within all respects takeinto account the non-financial dimension, as well as the financial dimension, too. It isseen that performance evaluation systems based on the financial dimensions which havebeen utilized so far have been insufficient to measure all the factors bearing criticalimportance as to the success of the companies. Multi-dimensional models have beenstarted to be developed in order to eliminate the deficienfies and insufficiencies of thetraditional performance evaluation systems. Some of these models are: BalancedScorecard Model, The Stakeholder Scorecard Model, Lynch-Cross PerformancePyramid, 360 Degree Performance Evaluation Model.In this study, primarily, a conceptual frame has been found out in relation toperformance, organizational performance, and dimensions of organizationalviperformance. Following this, the study has mentioned the traditional performanceevaluation systems and the multi-dimensional performance evaluation methodsdeveloped so as eliminate the deficiencies of those traditional methods. The study hasalso examined the Balanced Scorecard Model, that is being one of the the multi-dimensional performance evaluation methods. It has elaborated on the four dimensions,which are the criteria components, and financial dimension forming the BalancedScorecard, customer dimension, inter-company function, and learning and developmentdimension.In the application process, in accordance with the aim of the study, a field studywas organized at Afyonkarahisar Ozdilek Shopping Center in the form of interviewsconducted with the managers, and thus was created the Balanced Scorecard of therespective company. The performance of Ozdilek can be assesed with all respects by theuse of the Balanced Scorecard that has been formed. Considering the criteria Ozdilekhas determined in relation with the company?s Balanced Scorecard, it can be claimedthat Ozdilek has reached the expected numbers wiht respect to the financial, customer,and learning and development dimensions. It is seen that the firm is generally successfulalthough being under the estimated aims in terms of the inter-company functionsdimension.