The effect of balanced scorecard on psychological empowerment and managerial performance in Malaysian hotel sector

In current competitive business environment where basic service facilities are homogenous, hotels must adapt themselves and find way to improve their performance. For hotels, their performance depends on how they deliver service to create value to customers. Hence, hotels need to emphasize on perfor...

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Main Authors: Abdul Razak, Shazrul Ekhmar, Mustapha, Mazlina, Abu Kasim, Nor Aziah
Format: Article
Language:English
Published: UTHM Press 2016
Online Access:http://psasir.upm.edu.my/id/eprint/52976/1/Article.pdf
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author Abdul Razak, Shazrul Ekhmar
Mustapha, Mazlina
Abu Kasim, Nor Aziah
author_facet Abdul Razak, Shazrul Ekhmar
Mustapha, Mazlina
Abu Kasim, Nor Aziah
author_sort Abdul Razak, Shazrul Ekhmar
collection UPM
description In current competitive business environment where basic service facilities are homogenous, hotels must adapt themselves and find way to improve their performance. For hotels, their performance depends on how they deliver service to create value to customers. Hence, hotels need to emphasize on performance of employees, especially the operation managers, because their performance in delivering service quality is vital to determine the level of customers’ satisfaction. Prior study has found that the use of Balanced Scorecard (BSC) is positively related to managers’ performance. However, it is unclear whether the use of BSC could improve managers’ performance in hotel sector. This study intends to provide useful insights by examining the effect of the use of BSC and performance of hotel managers in Malaysia hotel sector. It is also proposed that the effect of the use of BSC on manager’s performance is indirectly through mediating variable of psychological empowerment. Data were collected from a survey of 133 managers in 3, 4, and 5-star hotels in Malaysia. Results from Structural Equation Model (SEM) indicate that the use of BSC significantly influences managerial performance through mediating effect of psychological empowerment. In particular, the results highlight that the use of BSC influence manager’s psychological empowerment, which in turn, influence managerial performance.
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spelling upm.eprints-529762017-11-21T04:37:45Z http://psasir.upm.edu.my/id/eprint/52976/ The effect of balanced scorecard on psychological empowerment and managerial performance in Malaysian hotel sector Abdul Razak, Shazrul Ekhmar Mustapha, Mazlina Abu Kasim, Nor Aziah In current competitive business environment where basic service facilities are homogenous, hotels must adapt themselves and find way to improve their performance. For hotels, their performance depends on how they deliver service to create value to customers. Hence, hotels need to emphasize on performance of employees, especially the operation managers, because their performance in delivering service quality is vital to determine the level of customers’ satisfaction. Prior study has found that the use of Balanced Scorecard (BSC) is positively related to managers’ performance. However, it is unclear whether the use of BSC could improve managers’ performance in hotel sector. This study intends to provide useful insights by examining the effect of the use of BSC and performance of hotel managers in Malaysia hotel sector. It is also proposed that the effect of the use of BSC on manager’s performance is indirectly through mediating variable of psychological empowerment. Data were collected from a survey of 133 managers in 3, 4, and 5-star hotels in Malaysia. Results from Structural Equation Model (SEM) indicate that the use of BSC significantly influences managerial performance through mediating effect of psychological empowerment. In particular, the results highlight that the use of BSC influence manager’s psychological empowerment, which in turn, influence managerial performance. UTHM Press 2016 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/52976/1/Article.pdf Abdul Razak, Shazrul Ekhmar and Mustapha, Mazlina and Abu Kasim, Nor Aziah (2016) The effect of balanced scorecard on psychological empowerment and managerial performance in Malaysian hotel sector. Journal of Technology Management and Business, 3 (2). pp. 1-13. ISSN 2289-7224
spellingShingle Abdul Razak, Shazrul Ekhmar
Mustapha, Mazlina
Abu Kasim, Nor Aziah
The effect of balanced scorecard on psychological empowerment and managerial performance in Malaysian hotel sector
title The effect of balanced scorecard on psychological empowerment and managerial performance in Malaysian hotel sector
title_full The effect of balanced scorecard on psychological empowerment and managerial performance in Malaysian hotel sector
title_fullStr The effect of balanced scorecard on psychological empowerment and managerial performance in Malaysian hotel sector
title_full_unstemmed The effect of balanced scorecard on psychological empowerment and managerial performance in Malaysian hotel sector
title_short The effect of balanced scorecard on psychological empowerment and managerial performance in Malaysian hotel sector
title_sort effect of balanced scorecard on psychological empowerment and managerial performance in malaysian hotel sector
url http://psasir.upm.edu.my/id/eprint/52976/1/Article.pdf
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