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The Effect of Balanced Scorecards and KPIs on Decision Making of Top Management in the Oil & Gas Industry

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Added on  2020-02-03

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The Effect of Balanced Scorecards and KPIs on Decision Making of Top Management in the Oil & Gas Industry CHAPTER 1 INTRODUCTION 1 1.1 Introduction 1 1.2 Research problem statement 2 1.3 Research questions 3 1.4 Research objectives3 1.5 Research contribution 3 1.6 Limitations of the study 4 1.7 Definition of terms5 1.8 Research organizing7 CHAPTER 2 LITERATURE REVIEW 9 Introduction 9 Research framework 20 Hypothesis development 21 Summary 21 REFERENCES 22 Illustration Index Illustration 1: Balance Scorecard 13 CHAPTER 1 INTRODUCTION 1 1.1

The Effect of Balanced Scorecards and KPIs on Decision Making of Top Management in the Oil & Gas Industry

   Added on 2020-02-03

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The Effect of Balanced Scorecards andKPIs on Decision Making of TopManagement in the Oil & Gas Industry
The Effect of Balanced Scorecards and KPIs on Decision Making of Top Management in the Oil & Gas Industry_1
Table of ContentsCHAPTER 1 INTRODUCTION.....................................................................................................11.1 Introduction...........................................................................................................................11.2 Research problem statement.................................................................................................21.3 Research questions................................................................................................................31.4 Research objectives...............................................................................................................31.5 Research contribution............................................................................................................31.6 Limitations of the study........................................................................................................41.7 Definition of terms................................................................................................................51.8 Research organizing..............................................................................................................7CHAPTER 2 LITERATURE REVIEW..........................................................................................9Introduction.................................................................................................................................9Research framework..................................................................................................................20Hypothesis development...........................................................................................................21Summary...................................................................................................................................21REFERENCES..............................................................................................................................22
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Illustration IndexIllustration 1: Balance Scorecard...................................................................................................13
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CHAPTER 1 INTRODUCTION1.1 IntroductionIn each and every business enterprise, employees are considered as the firm's mostvaluable asset as well as its biggest expense. It means that firm's productivity and profitabilitydepends upon ensuring that the worker's performance needs to exceed to their full potential.Hence, in regard to survive and prosper in current economic times, businesses can no longermanage using financial methods alone. Moreover, firm should focus upon improving non-financial measures such as product quality, customer satisfaction and brand preference in orderto attain desired objectives (Wu, 2012). In regard to manage company's performance it then usesKey Performance Indicators in order to analyse the track performance and base key strategicdecisions regarding managing people and resources. Using balance scorecards is beneficialmethod in order to attain sustainable development of the firm and thus it will lead business to thelevel of success. Thus, top management of oil and gas industry focuses upon undertaking balancescorecards and KPI's which helps them to make effective decision making so that number ofoperational activities can be managed in an effective way. Such methods are considered as one ofthe best way to enhance the work performance and overcome problems (Barnabè, 2011).It helps in facilitating top management in order to track execution of activities insignificant way so that objectives can be accomplished in an effective way. KPI and BalanceScorecard are considered as best factors which helps in bringing effective sustainabledevelopment to develop and implement strategic decision within oil and gas industry. Topmanagement within firm requires to effectively control and monitor the process so that properanalysing number of factors play a crucial role in sustainable development. Key PerformanceIndicators also helps in improving performance measurement so that top management within oiland gas industry can make effective decisions regarding business success (Grigoroudis,Orfanoudaki and Zopounidis, 2012). It can be stated that through such performance measurement methods i.e. BalanceScorecard and KPI it helps top management of oil and gas sector to effectively measure the1
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performance of their workers and attain desired results. Balance Scorecard helps in consideringas an effective tool in order to develop strategic planning and management system which helps inproviding a great support to working of firm (Sundin, Granlund and Brown, 2010). However, itis mostly accessed by different organisations and enterprises worldwide in order to have properalignment of business operations to the vision and strategy of firm. Further, it also facilitates inenhancing the internal and external factors such as communication, monitoring etc. so thatcrucial decision can be taken within firm. 1.2 Research problem statementBalance Scorecards method is considered as a strategic planning and management systemin order to provide a great support towards organization's working. However, it is mostlyundertaken by different firms around the globe so that proper alignment of business operationscan be done towards the vision and strategy of firm. Moreover, it also facilitates in improvinginternal and external factors such as communication and monitoring etc. Furthermore, KeyPerformance Indicator is another measurable factor that helps in demonstrating how effectivelyfirm helps in achieving key business objectives (Arzu Akyuz and Erman Erkan, 2010). Topmanagement of firm faces serious issue in establishing the pressure of correct KPI's so thatperformance of employees can be analysed, reviewed and accessed. It assists business to obtainzero defects as well as best customer satisfaction. Hence, it can be considered the oil and gasindustry is more focused towards using such approach and attain results. Businesses are alsofacing serious issues in regard to decision making process with the help of this research conflictscan be assessed in an effective way (Chytas, Glykas and Valiris, 2011).Furthermore, it can be assessed that oil and gas industry is facing different problems inrelation to decision making process. In regard to improved focus upon balanced scorecards andKPI's, businesses can overcome problems to attain success. However, improper application ofbalanced scorecards is also identified as one of the main issue for the firm. It is crucial forbusinesses to have effective understanding of key aspects in order to lay the focus upon currentresearch (Wu, Lin and Chang, 2011). Further, it will help in regular development of firm andthus lead towards accomplishing activities to attain impressive level of success. There is no study2
The Effect of Balanced Scorecards and KPIs on Decision Making of Top Management in the Oil & Gas Industry_5
being made in such field and also workers are not satisfied with the end results from the decisionmaking process of top management. 1.3 Research questionsWhat is the role of balance scorecards in decision making process of oil and gas industry?How KPI's impact upon the effectiveness of decisions?What are the way in which oil and gas sector can utilize both balance scorecards andKPI's for effective accomplishment of decision making process?1.4 Research objectivesMain aim of the research to investigate “The effect of Balance Scorecards and KPI's ondecision makers of Top Management in Oil and Gas Industry”. Here, in regard to betterunderstand regarding the subject matter Oil and Gas sector has been selected. It will help inexposing the effect, impact of Balance Scorecards upon strategic decision making. Objectives-To determine the role of balance scorecards in decision making process of oil and gasindustry.To assess the impact of KPI's on effectiveness of decisions.To recommend ways through which oil and gas sector can utilize balance scorecards andKPI's for effective accomplishment of decision making process. 1.5 Research contributionIt can be assessed that through carrying out the present study it focuses upon identifyingthe effects of benchmarking and KPI's so that it helps top management to enhance theperformance of employees and make crucial decision to attain success. Also, the quality andsignificance of research will highly depend upon the contribution that research will help inadding it as a value (Northcott and Ma'amora Taulapapa, 2012). Further, researcher aims todevelop theory and practice in this field as well as policy development so that success can beattained. Scholar aims to justify the work through contributing something to theory building andpractice it within the field as well as policy development in the particular area. However, a3
The Effect of Balanced Scorecards and KPIs on Decision Making of Top Management in the Oil & Gas Industry_6

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