Analyzing KPIs and Balanced Scorecards' Effect on Oil & Gas Decisions

This report investigates the impact of balanced scorecards and Key Performance Indicators (KPIs) on the decision-making processes of top management within the oil & gas industry. The research methodology chapter outlines the interpretivism philosophy, deductive research approach, and descriptive research design employed to analyze the subject. The study examines how these performance measurement tools influence business development, strategic planning, and overall organizational growth. The findings highlight the significance of KPIs and balanced scorecards in enhancing transparency, improving objective implementation, and facilitating effective communication within the oil & gas sector. References from various sources support the claims and provide a comprehensive understanding of the topic. The research aims to provide insights into the utilization of these tools and their effects on decision-making processes, helping organizations enhance their decision-making abilities and overall success.

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

TABLE OF CONTENTS
PART A...........................................................................................................................................1
REFERENCES................................................................................................................................3
CHAPTER 3: RESEACH METHODOLOGY................................................................................4
Introduction.................................................................................................................................4
Research Framework and design................................................................................................4
Study population and sampling...................................................................................................8
Instrumentation...........................................................................................................................9
Data collection..........................................................................................................................10
Scale reliability..........................................................................................................................10
Data analysis.............................................................................................................................11
Summary...................................................................................................................................12
REFERENCES..............................................................................................................................13

PART A
Decision masking aspect for the top management of the business plays a significant role
in attaining effective and well defined results for the organizational growth. It creates a
significant impact on business development and growth aspects in the industry. KPI (Key
performance indicator) is one of the effective tool to measure and analyse the business
performance against the set standards. balance scorecards is considered as the crucial
performance measurement tool that helps in measuring individual performance so that success
can be attained effectively. The two measures are crucial in attaining valid and reliable results for
the study analysed in the overall analysis.
Lu and Goh, (2016) stated in the findings that balance score card is one of the significant
and most effective tool for identifying and monitoring the performance of the business unit. It
acts as an effective tool for measuring the financial and non financial performance of the
business unit in an effective and well defined manner. Marr (2012) revealed that the stated aspect
develops a significant base to quantify different aspect of business growth which develops a
reliable aspect for strategic planning and development aspect for the business. The evaluation
stated that different perspective of performance analysis is defined by applying the stated tool in
the analysis.
According to Oyaneder and Valderrama (2016) usability of performance tools such as
balance score card and KPIs have helped companies in enhancing their efficiencies for making
decisions for growth and development of the companies. These business tools have helped
business units in making informed business decisions which has enhanced the overall growth and
success aspects of the business units. The research findings for the present study will help the
researcher in making informed decisions for the business analysis. Peng Xu, Chan and Qian,
(2012) stated in the findings that performance tools such as Balance score card and KPIs have
helped companies in enhancing transparency aspects within the companies which has helped in
minimizing the situations of conflicts within the business unit. Another perspective of the topic
was attained from Schaltegger (2011) which revealed that implementing Balance Scorecard
strategy assisted in significantly improving the implementation of objectives and strategies so
that proper control and monitoring can be done to obtain business progress. It is one of the best
communication device that helps team members to inform the other members of the team
effectively. Thus it helped companies in developing business objectives in effective and
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measurable aspects for the analysis (Wadongo and et.al., 2010). Hence the overall evaluation of
the study reveals that performance measurement tools has developed significant impact on the
decision making aspect of the business development and growth of the business units. It has
helped organizations in enhancing the decision making aspect as the performance and evaluation
of the company develop widely through implementation of the stated method. Also, KPI's helps
in measuring the values that are related to the essential business objectives so that performance
can be monitored effectively and efficiently. It also assists in identifying the sales and marketing
objectives so that firm needs to rely upon the set objectives in order to help employees to
perform effectively.
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REFERENCES
Lu, Q. and Goh, 2016. A SCOR framework to measure logistics performance of humanitarian
organizations. Journal of Humanitarian Logistics and Supply Chain Management. 6(2).
Marr, B., 2012. Key Performance Indicators (KPI): The 75 measures every manager needs to
know. Pearson UK.
Oyaneder, L. V. and Valderrama 2016. A new balanced scorecard approximation to enhance
performance management systems of Chilean wineries. Journal of Wine Research. 27(1).
pp.1-18.
Peng Xu, P., Chan, E.H. and Qian, Q.K., 2012. Key performance indicators (KPI) for the
sustainability of building energy efficiency retrofit (BEER) in hotel buildings in
China. Facilities, 30(9/10), pp.432-448.
Schaltegger, S., 2011. Sustainability as a driver for corporate economic success: Consequences
for the development of sustainability management control. Society and Economy. 33(1).
pp. 15-28.
Wadongo, B. and et.al., 2010. Key performance indicators in the Kenyan hospitality industry: a
managerial perspective. Benchmarking: An international journal. 17(6). pp. 858-875.
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CHAPTER 3: RESEACH METHODOLOGY
Introduction
Research methodology is a significant and crucial aspect of research analysis. Axinn and
Pearce, (2006) defined Research methodology as a philosophical framework within which a
research is conducted and based upon. It helps the researcher in defining the tools and techniques
for undertaking the research and attain the valid results for the analysis. This is a significant
aspect of research analysis which helps in attaining valid and reliable results for the studies. The
aim of the present research is to evaluate the effect of balanced scorecards and KPIs on decision
making of top management in the oil & gas industry.
In order to attain the stated aim a detailed and systematic analysis of the study will be
carried out. The following chapter will define technical aspects of undertaking the study. It will
outline the methodology that the researcher will adopt to attain specified results (Hoy, 2009).
This section entails appropriate discussion that will be incorporated in the research for the
purpose of attaining most suitable and realistic data as per the given subject matter. It will also
identify research gap by developing a significant link between the research problem and
methodologies in order to achieve the specific research results.
Research Framework and design
Research framework helps in identifying and analysing different aspects of the study
which effectively helps in defining and designing the research issues (Jackson, 2010). It develops
a detailed framework of analysing the research problems and considerable solutions for the same.
Research framework for the present study has been effectively discussed henceforth.
Research philosophy
Research philosophy helps the researcher in defining the methods and measures
undertaken for conducting the research and attain valid and reliable results for the analysis. This
section of the study helps in developing a deep insight about the ways in which relevant data for
the study will be collected and analysed to attain specified results for the analysis. It provides the
researcher a detailed analysis about research issue and measures to resolve the same. This creates
a significant impact on the analysis and evaluation of the mentioned issue. Bell, (2005)
categorised research philosophy for the study into two major aspects Interpretivism and
positivism. The mentioned philosophies plays different role in different problems.
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Interpretivism is an effective method which develops a well defined analysis for social
research problem. This philosophy is applied in social researches as a detailed analysis of the
changing perspectives of people are undertaken for the study (Johnson and Clark, 2006). This
philosophy focuses on analysing the specific issues and people's perspective for the same. This
helps in integrating human interest in the stated research topic. The present study focuses on
evaluating the effect of balanced scorecards and KPIs on decision making of top management in
the oil & gas industry. This research problem will be carried out on the basis of interpretivism
philosophy which will be help in effectively analysing the research issue and attain effective
results for the issue. It will be effective for involving top management perspective for the study.
Positivism philosophy on the other hand is an effective and well defined approach to
undertake scientific researches (The positivist and phenomenological worldviews, 2007). This
philosophy is based on factual data and observations attained from the market. The mentioned
philosophy will not be applied in the present analysis as it will not analyse the human aspects
related to the study (Merriam, 2009). Present research topic demands a detailed and clear
analysis of the methods adopted in the study and its impact on individual and business decisions.
Moreover present study will be carried out on qualitative method while the positivism
philosophy is often applied on quantitative research method. Hence the present study will apply
interpretivism approach which will carry out the study on the basis of data collection.
Research approach
Accurate accomplishment of research results demands the researcher to develop
appropriate path to successfully to attain the end results for the study. Research approach helps
the researcher in developing a broad and detailed overview about the research problems and
prospects demanded by the researcher (Neergaard and Ulhoi, 2007). It will help in developing a
well defined base for undertaking the research and developing a clear idea about tools and
techniques adopted for the analysis. The major approaches adopted for undertaking the research
includes inductive and deductive approach. These measures helps in developing detailed and
well defined analysis for the stated issue.
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Deductive approach focuses on attaining a detailed understanding of detailed issue to
attain information about the same for the resolving the research problem. The approach adopt an
integrated method of attaining the data and undertaking research methods to attain the reliable
results for the study. This approach adopt hypothesis testing method for attain a clear and
detailed analysis about the mentioned topic. The present study aims to evaluate the effect of
balanced scorecards and KPIs on decision making of top management in the oil & gas industry
(Whiteley and Whiteley, 2006). For this, the researcher will adopt deductive approach which will
focus on developing a detailed research analysis on the mentioned topic which are KPI and
balance scope car approach. Data was collected to analyse the significant and use of the approach
mentioned in the study. Hypothesis testing method will then be developed for the topic to attain
clear and effective analysis on the topic (Johnson and Clark, 2006).
Inductive approach on the other hand is used for the studies which focuses on attaining
results on the basis of stated theories or analysis. This method is effective in attaining a clear
analysis on the topic mentioned. Research question if the common approach applied in the stated
method. This research approach will not be applied in the present study as the research issue
focuses on attaining a detailed analysis on a specified issues which are to be carried out for the
present analysis. Hence inductive approach will help the researcher in attaining structures and
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Illustration 1: Research approach
(Source: Johnson and Clark, 2006)

well defined information for the stated topic which will help in developing a detailed analysis of
the mentioned topic.
Research design
Research design helps in developing a clear aspect of defining research problems and
measures to attain results for the study (Crowther and Lancaster, 2012). It helps researcher in
effectively defining the tools and techniques which must be adopted to undertake the research
and attain valid results for the topic. It is defined as different styles applied in the study to
effectively attain the research objective. Different researches adopt different designs to
effectively attain the aim of the study. Major designs to carry out the analysis involves
exploratory research, descriptive research, experimental research, case study analysis, casual
research etc.
The present study will adopt descriptive research method for attaining the aim. A
descriptive study focuses on analysing the research issue and carry out a detailed analysis on the
subject mentioned. It focuses on collective data about the mentioned topic and evaluate the same
as per the research problems. Bernard, (2011) analysed that Descriptive research is aimed at
casting light on current issues or problems through a process of data collection that enables them
to describe the situation more completely than was possible without employing this method.
Exploratory research on the other hand focuses on resolving the research problem by evaluating
new theories and issues related to the subject mentioned in the analysis. The present study has
not adopted the mentioned design because the current study is not focusing on exploring the new
topic or theme. Experimental research is carried for scientific purposes thus it will also not be
adopted for the mentioned topic (Quantitative and Qualitative Evaluation Methods. 2007). The
overall study will adopt descriptive research design which which will be effective for attaining
results for the present study.
Research type
In order to attain effective and valid research results for the study researcher need to
adopt definite research types to carry out the study and attain valid results for the analysis.
Researches are undertaken in different types and measures. Qualitative and quantitative methods
are the common types of researches adopted for the analysis (Lillis, 2008). Qualitative method
are adopted for the social researches which demand effective involvement of human perspective
for attaining the well defined results for the study. This research type helps in developing a
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detailed analysis of different methods and tools which provides interpretative overview of
research problems. According to Blaxter and et.al (2006) Qualitative methods are based on
words, perceptions, feelings etc. rather than numbers and they include experiments, interviews,
focus groups, and questionnaires with open-ended questions. This method is effective for
attaining the general perception about the research problems and issues. It has been stated to be
an effective means of attaining results from different point of view. Quantitative method on the
other hand is a rigid research type which attain accurate and reliable results by applying
scientific of mathematical measures to attain the results. This method measure the level of
occurrences on the basis of numbers and calculations. It is research type which reflect results in
the form of numerical data and results. For conducting this research type different methods such
as correlation and regression analysis, close ended questionnaires, SPSS methods etc. are applied
in the study.
The present study aims at analysing the effectiveness of KPI and balance score card
method in decision making aspect of the business. For attaining the stated aim qualitative method
will be applied in the study(Walliman, 2009). This method will help the researcher in developing
a detailed and well defined analysis of the research data for the current study. In addition to this
the data for the study will be collected from employees of oil and gas industry thus qualitative
method will be effective for interpreting the results and data attained by the employees of the
companies.
Study population and sampling
The above analysis of the study reflects different aspect of conducting the research and
tools and techniques applied for the same. Analysis of population is significant for understanding
the overall research results and effectively collect the data for further analysis. Data collection is
a very significant part of the study. Bryman and Bell (2007) analysed that research results are
directly linked to data collection aspect referred in the study. It creates an effective and well
defined impact on effective analysis and design.
The present study focuses on understanding the effect of balanced scorecards and KPIs
on decision making of top management in the Oil & Gas Industry. he data for the present study
will be collected through primary as well secondary sources. Population of the research will thus
play a very significant role for the study. The researcher will evaluate the UK market to
effectively analyse the research aspects for the analysis. The oil and gas industry of UK is
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prospering effectively within the economy. Reteaches and data reveals that UK employs about
440000 people in the industry out of which about 10000 employees are operating at strategic
level. The primary data for the present study will be collected from the top managerial
employees hence population of research will be 10000. the present study will attain the sample
from BP plc UK which employs about 80000 employees (Creswell, 2013). Adopting random
sampling method 60 top managerial executives from BP plc will be selected by the researcher to
attain clear and well defined results. This will help in developing well defined and accurate
results for the study. In addition to this the stated technique has been adopted because of the
limitation of time and resources as well. Thus the proposed measure will develop a clear and
effective result for the stated research issue.
Instrumentation
Research analysis and data collection plays a significant and well defined roles in
attaining the research results for the study. Instruments fall into two broad categories, researcher-
completed and subject-completed, distinguished by those instruments that researchers administer
versus those that are completed by participants. Different instruments are used to conduct
different types of researches on the stated topic (Field, 2007). Research instruments involves
surveys, questionnaire, check list, flowcharts etc. This develop effective and detailed analysis for
the results and evaluation methods. Research instruments helps in analysing the research
evaluation aspects and also helps in attaining valid results for the study.
The present study will attain subject based instruments for attaining accurate and reliable
information for the study. The secondary research will be conducted through in-depth analysis
and snowball sampling approach however for primary research analysis survey method will be
adopted. Survey will be conducted from the top employees of BP plc. This will help in
developing effective data for the stated aspect (Quantitative and Qualitative Evaluation
Methods., 2007). Questionnaire instrument will be used for the study in the given case which will
help in developing a well defined aspect for the study. A semi structured questionnaire will be
developed for the study which will help in attaining well defined and effective data for the study
(Forzano, 2011). This will develop a well defined means of attaining detailed plan for the present
analysis and attain effective results for the study as well. Moreover motoring instruments such as
check lists, excel sheets and flow charts will also be applied in the study to attain the well
defined results for the study. Hence it can be evaluated the analysis on the present topic will be
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