THE EFFECT OF CULTURAL DIMENSION ON BALANCED SCORECARD IMPLICATION IN IMMANUEL HOSPITAL

Abstract

This study investigates the issues of balanced scorecard implementation through literature review and questionnaire, and then consider the cultural characteristic as the implication on the management practice in Immanuel Hospital. In particular, the literature review approach used to find the issues of balanced scorecard implementation as performance measurement include the balanced scorecard world-wide implementation problem, the key success factor that essential to makes the balanced scorecard implementation success, and the companies that more likely to use balanced scorecard as the performance management system. Moreover, issues of balanced scorecard in Immanuel Hospital are identified by giving a questionnaire to the staff and managers. The national cultural characteristic consideration as the implication on the management practice of Immanuel Hospital is identified by collecting the data from Hofstede’s cultural theory. In total, 25 balanced scorecard articles are analyzed and 28 respond from staff level and manager level are collected. The findings reviewed and analyzed from literature found that performance measures, communication, information system, reward system and employee involvement are the most issues to be discussed. From the questionnaire given, findings on the issues of balanced scorecard implementation in Immanuel Hospital are lack of preparation on facing new strategy, less optimum management practice, lack of human resource management and lack of communication. Finally, the study gives suggestions for Immanuel Hospital while working on balanced scorecard concept which takes the advance action in creating a strategy as orientation, strengthen hospital culture, focus on long-term benefit and performance indicator and improve the MIS comprehensively.