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Sustainability of private higher education institution in Malaysia

Research Title:

Sustainability of private higher instruction establishment in Malaya: Exploitation Balanced Scorecard attack

1.0 Introduction

Presents, economic system shifts towards knowledge-based economic system. For people to be competitory in an intense environment, they will seek to better themselves, and therefore demand for come ining third instruction is quickly increasing. Public universities in Malaysia were non able to provide sufficient topographic points for the increased demand. Hence, authorities divided the instruction system into public and private instruction system. Private higher instruction establishment ( PHEI ) in Malaysia consists of universities, university colleges, virtual/e-universities, unfastened universities, abroad subdivision campuses, and IT academies ( Anon. , n.d. ) .

Since the PHEIs introduced the twinning plans and foreign grade plans, registrations of PHEIs raised 60.1 % in 1998 – 2000 ( Anon. , n.d. ) . These increased demand encouraged PHEIs in quickly enlargement. Harmonizing to the statistic from Ministry of Higher Education ( Higher Education Malaysia, 2010 ) , figure of PHEIs in 2010 are 516 and it leads to the competition of PHEI becomes tough. PHEIs in Malaysia face with some challenges, for case, PHEIs did non have financess from authorities. Malaysia ‘s public universities are to a great extent subsidised, hence, its fees are much lower than PHEIs. As a consequence, PHEIs are less competitory than public universities. Harmonizing to Arokiasamy et Al. ( 2009 ) , PHEIs besides confront other challenges, such as publicity issues, multitask duties, unsure construction, and accent on research without proper installations and wage. On the other manus, Umashankar and Dutta ( 2007 ) province that, an establishment failure is due to deficient strategic planning, hapless administration construction, enlisting and keeping of staff, uneffective internal control, hapless budgeting and a deficiency of communicating and feedback.

Consequently, to better the fight and face the challenges, PHEIs are necessary to set up a set of public presentation direction tools which assist in building aims and criterions ( Chen et al. , 2006 ) . In add-on Lee ( 2006 ) indicates that, result of an establishment, such as pupil ‘s academic attainment, pupils ‘ quality and effectivity of service, is non caused by individual factor, but it is the consequence of well-planed and managed performance-oriented direction pattern. Thereby, balanced scorecard ( BSC ) is the most suited public presentation direction tool to better establishment fight because it advocates heightening an establishment through balanced position. Besides that, Firgio and Krumwiede ( 1999 ) proved that, BSC is more effectual than other public presentation direction systems ( cited in Kettunen, 2006 ) . Therefore, establishment can choose BSC as its public presentation direction pattern to heighten its competitory strength.

Traditionally, administrations used fiscal step to mensurate their public presentation. However, entirely depending on fiscal step, or lag index will endanger the administrations ‘ net income because it promotes short term program ( Chavan, 2009 ; Papenhausen and Einstein, 2006 ) . In add-on, Karathanos and Karathanos ( 2005 ) commented that, merely concentrating on fiscal step will take to ineffectiveness in placing drivers or activities. On the other manus, BSC focuses on fiscal and non-financial steps, which include fiscal position, client position, internal procedure position, and larning and growing position ( Pineno, 2008 ) . BSC is widely used for net income organisation, and it assists the companies in accomplishing important success. Ministry of Higher Education in Malaysia provinces that, most of the PHEIs are profit endeavor ; hence, BSC can be used in mensurating its public presentation. Even the PHEIs are non a net income administration, BSC is besides flexible to implement in non-profit administration, such as educational establishment ( Papenhausen and Einstein, 2006 ; Dorweiler and Yakhou, 2005 ) This public presentation direction system is able to help PHEIs in bettering quality and run intoing client demands ( Chen et al. , 2009 ) and eventually obtaining sustainability.

2.0 Research Aims

To analyze whether Balanced Scorecard is utile in helping a private higher instruction establishment deriving an border over other challengers.

To detect how Balanced Scorecard helps an establishment in accomplishing sustainability.

To place what benefits Balanced Scorecard can offer to institution and how does this benefits create competitory advantage.

3.0 Research Questions

Does Balanced Scorecard helpful for an establishment in carry throughing sustainability?

How does Balanced Scorecard assist an establishment in obtaining competitory strength?

What benefits can institution achieve through implementing balanced scorecard attack?

4.0 Hypothesiss

Through the execution of Balanced Scorecard, a private higher instruction establishment is able to achieve its sustainability.

The direction processes of Balanced Scorecard consist of translating, pass oning, concern planning, and feedback and acquisition, will enable an establishment to accomplish desirable competitory advantage.

Balanced Scorecard can lend to operational efficiency, high quality of service, better teamwork and better apprehension.


Communicating and Associating

Business Planing

Feedback and Learning

Private Higher Education Institution in Malaysia


5.0 Theoretical model

6.0 Literature Review

6.1 Institutions ‘ Strategy and BSC

PHEIs in Malaysia face many challenges, to prolong in the market ; deans of PHEIs should unclutter about their scheme, strategic placement and alliance to the competitory environment ( Thomas, 2007 ) . Balanced scorecard enables an establishment formulates scheme ( Laitinen, 2006 ; Dorweiler and Yakhou, 2005 ) . For different establishment, it might implement distinguishable scheme. As Kettunen ( 2005 ) mentioned that, for early-stage of life rhythm, they should implement rapid growing scheme ; in the center of life-cycle will put profitable growing as their scheme ; and the mature terminal of life rhythm by and large defined profitableness as scheme. In add-on, he besides states that, for an establishment to prolong in the market, it is sufficient to keep cost and gross in balance.

Harmonizing to Kettunen ( 2005 ) , scheme describes the motion from mission ( present place ) to vision ( future place ) . Mission is normally the mark which an establishment is likely to gain ( Punniyamoorthy and Murali, 2008 ) . An illustration of mission is, “ the promotion of excellence in the creative activity, sharing and application of cognition, typically described in footings of instruction, scholarship/research, and public service/outreach ” ( Cardoso et al. , 2005, pg.1 ) . Vision of an establishment could be underscoring the regional development.

Most of the establishment will hold mission and vision statement. Harmonizing to Chen et Al. ( 2006 ) , mission and vision are important for an establishment because with a valued mission and vision, an establishment is able to heighten educational quality and sustain in the industry.

6.2 Institution Sustainability and BSC Management Process

After puting scheme, mission and vision, managers/deans normally find hard to interpret scheme into an apprehensible aim, and public presentation step at different dimension of the establishment ( Davis, 1996 ) . Given this state of affairs, employees will perchance make non lend to the administration efficaciously, and this in bend will make a disadvantage for the establishment and it might dawdle behind the fight. BSC provides a model to back up scheme version and realization ( Achterbergh et al. , 2003 ; Punniyamoorthy and Murali, 2008 ) ; hence it plays an of import function in helping an establishment in achieving important sustainability.

Kaplan and Norton, the laminitis of BSC separate four direction procedures, which are interpreting the vision, pass oning and associating, concern planning and feedback and acquisition, These procedures is to explicate, trial, adapt and adjust the scheme ( Achterbergh et al. , 2003 ) .

6.2.1 Translating the vision

Since an establishment has its ain scheme, vision and mission, BSC provides a model to interpret the scheme into a clear and apprehensible aim. Tohidia et Al. ( 2010 ) place BSC as a strategic planning method, which is used to accomplish ends and vision.

Comparing to traditional public presentation step, BSC provides an incorporate public presentation step. In BSC, it turns the scheme into four positions, including lead indexs and slowdown indexs, to supply an equal rating about the establishment ‘s public presentation. The four positions reflect cause-and-effect relationships, finance aims are aligned with internal procedure aim ; larning and growing aims drive to client position. As a consequence, direction can efficaciously pull off the operations and easier to accomplish the scheme.

Kaplan and Norton besides classify BSC as a public presentation measuring system. As Chen et Al. ( 2006 ) and Chen et Al. ( 2009 ) reference that, an effectual BSC must foremost hold proper cardinal public presentation indexs ( KPI ) to mensurate achievement degree, and therefore accomplishing establishment ‘s ends. The laminitiss of BSC, Kaplan and Norton commented that, ‘if you ca n’t mensurate it, you ca n’t pull off it ‘ ( cited in Kettunen, 2005 ) . To enable an establishment manage its public presentation, the direction must put a balance set of indexs and make up one’s mind what to benchmark and what public presentation will it mensurate.

These are the illustration of scheme subjects, aims and KPI of each position of an establishment:

Fiscal Position

Strategic Themes – completed fiscal construction ( Chen et al. , 2006 ) ; gross growing and mix, cost reduction/productivity betterment, and plus use ( Bose and Thomas, 2007 ) .

Aims – increasing income, increasing assets usage rate, and cut downing human resources costs ( Chen et al. , 2006 ) .

Measures – return on investing ( ROI ) , return on equity ( ROE ) , and runing income ( Bose and Thomas, 2007 ) ; return on capital ; improved stockholder value ; and plus utililisation ( Chavan, 2009 ) .

Customer position

Strategic subjects – agreement with client outlook, promote school image ( Chen et al. , 2006 ) .

Aims – regional development, pupil satisfaction, competitory advantage of companies, high quality of instruction and applied research and development ( Kettunen, 2007 ) .

Measures – client satisfaction degree ( Chen et al. , 2006 ) ; school repute, alumna public presentation ( Chen et al. , 2009 ) ; keeping, new client acquisition, client profitableness, market and history portion ( Bose and Thomas, 2007 ) ; ratio, enrollment rate, product/service properties ; and client relationships ( Chavan, 2009 ) ; continuance of clients, graduation rates and registrations of pupils from underrepresented population groups ( Wu et al. , 2010 ) ; employer satisfaction ( Thomas, 2007 ) .

Internal Process Perspective

Strategic subjects – Organisational acquisition and direction, higher quality of staff members, first-class larning environment ( Chen et al. , 2006 ) .

Aims – advancing information engineering and set uping public presentation taking civilizations, increasing staff quality and heightening staff administrative ability, set up a high quality service procedure, complete instruction installations, and the proviso of first-class learning quality ( Chen et al. , 2006 ) .

Measures – develop merchandises and services ; present merchandises and services ; and “ post-sales ” services ( Chavan, 2009 ) ; research quality and learning quality ( Thomas, 2007 ) .

Learning and Growth Perspective

Strategic subject -higher quality of staff members ( Chen et al. , 2006 ) .

Aims – Employee instruction, successful scheme execution ( Crain, 2009 ) .

Measures – client public presentation and bringing service ( Antunes et al. , 2009 ) , employee capablenesss ; information system capablenesss ; motive ; and authorization and alliance ( Chavan, 2009 ) .

KPI are developed to measure the accomplishment of the aim and it provides a signal about whether the overall scheme is feasible ( Wu et al. , 2010 ; Thomas, 2007 ) . In add-on, Cardoso et Al. ( 2005 ) province that, BSC is a direction information system ; KPI is able to mensurate the organizational public presentation, measure the achievement of the ends and correct the scheme if it is non executable. It can be so advancing an establishment competition and enable an establishment to excel the rivals and eventually accomplishing sustainability.

6.2.2 Communicating and associating

After interpreting the scheme into strategic subjects, aims and steps, it is necessary to pass on and associate to the staff within the establishment. Communicating and linking is an of import measure in the BSC direction procedure. Although the scheme is feasible, it will non be attained if the staff did non understand about the aims and their function.

In this procedure, dean of an establishment has duty for discoursing and pass oning their scheme throughout the establishment and associate the scheme to departmental and single aims ( Thomas, 2007 ) . When dean debates the scheme and aims to the staff, it promotes a opportunity for staff to negociate about the scheme. Staffs in bend enhance their apprehension of the scheme and aims. Therefore, BSC provides a model for communicating and execution of scheme, and it has been seen as a communicating tool ( Kettunen, 2005, 2007, 2008 ) .

Harmonizing to Punniyamoorthy and Murali ( 2008 ) , BSC as a public presentation direction system, it aligns the vision and mission with all the functional demands and daily operation. With the top-down alliance of vision, it provides a way for staff in how they should lend efficaciously to the establishment ‘s marks ( Chen et al. , 2009 ; Chavan, 2009 ) . As Kettunen ( 2005 ) indicates that, a BSC works best when it inspires employees to innovatively achieve the aim, and therefore assist an establishment to prolong. If they accomplish the aims, direction can so associate the employees ‘ part to wagess, and consequence in easy apportioning the resources ( Dorweiler and Yakhou, 2005 ) . In add-on to ease the resource allotment, wages is an encouragement and motive for employees to efficaciously and expeditiously done their occupation.

BSC encourages the constitution of co-ordinated scorecards at every degree of an establishment ( Atkinson, 2006 ) . Every dimension and staff is participant on scheme achievement. In an establishment, for illustration direction and lectors make a conjunct attempt on carry throughing a consistent end ( e.g. better pupil quality ) . Therefore, BSC is an attack promotes better teamwork at the top degree and better communicating at all ( Kettunen, 2006b ) .

Strategy map is an instrument of BSC for communicating, non merely to internal staff, but besides external stakeholders. Strategy map is a graphical representation which includes the aims of each position, and describes the cause-and-effect relationships of four positions ( Chen et al. , 2006 ; Kettunen, 2005, 2006a, 2006b, 2007 ) . In some degree, words can non explicitly transmit information or aim to people. In contrast, a ocular representation enables people to easy grok something. Strategy map, as a ocular representation, illustrates how aims can be achieved. From the diagram, employees can understand what are the departmental marks and single aims, and how does it impact the other dimensions of an establishment, and finally whether they will achieve the ultimate aim. Thereby, it is able to heighten staff apprehension of establishment ‘s scheme and their function in lending to scheme executing. On the other manus, it besides facilitates the apprehension of external stakeholders. Investors and stockholders might better their assurance in the establishment, because they realise that the strategic aims are accomplishable. As a consequence, they will be willing to put more capital in the establishment. The invested capital can be used for development of the establishment, and therefore increase their fight. The followers is an illustration of an establishment ‘s scheme map.

( Beginning from: Tohidia, et Al. ( 2010 ) )

6.2.3 Business Planing

This direction procedure besides plays a important function in achieving sustainability. Management plots a series of programs to carry through each position ‘s aims.

Learning and growing is apparent that it is a most influential factor of extension instruction ( Wu et al. , 2010 ) . As BSC is a causal relationship, it will impact other positions such as client position and fiscal position. Learning and growing position therefore is important to establishment ‘s sustainability. Wu et Al. ( 2010 ) emphasise that, for an establishment to hold sustainable operation and development, they have to trust on continual invention and growing. In other words, establishment should non merely see the internal operation procedures, but besides invention procedure. Innovation procedure is a tool for establishment to add value to clients both the long term and short term ( Bose and Thomas, 2007 ) . Comparing to public university of Malaysia, authorities provide grants and fiscal aid to those universities for research ( Arokiasamy et al. , 2009 ) . Arokiasamy et Al. ( 2009 ) suggest that, to derive competitory advantage, PHEIs have to upgrade its academic makings and to set up a civilization of instruction, research and services among faculty members. Harmonizing to Chen et Al. ( 2006 ) , employees are encouraged to be advanced, they should take part in quality betterment plans to heighten organizational direction and improves the quality mark of staffs, and as a consequence, acquisition and growing position is the footing of BSC. Chen et Al. ( 2006 ) besides emphasis that, when staff are fostered quality consciousness, it will heighten establishment internal procedure and administrative efficiency. In add-on, establishment should put more on human capital to better the quality of its lectors and decision makers, and so they will supply higher quality of service to clients ( Kettunen, 2007 ) .

Kettunen ( 2006a ) indicates that, the aims in larning and growing perspective hold to be reached by aim in the internal procedure to accomplish the coveted results in the client position. Internal procedure position drives the stakeholder satisfaction and the establishment ‘s fiscal results ( Papenhausen and Einstein, 2006 ) . Hence, Wu et Al. ( 2010 ) conclude internal procedure position as the most of import position among four positions. Cardoso et Al. ( 2005 ) indicate that establishment should heighten its nucleus concern countries such as instruction, researching and public service to better institutional effectivity. Therefore, establishment must supply a high quality of service procedure, excellent of learning quality and best instruction installations ( Chen et al. , 2006 ) . By concentrating on occupation specification, integrating of ICT and uninterrupted betterment of the work procedure will assist an establishment to accomplish the mark above ( Lee, 2006 ) . Job specification should be based on sharing of work and avoid overlapping work ( Kettunen, 2007 ) . Integration of ICT will heighten the operational effectivity through the usage of advanced engineering. Thereby, this dimension enables to add value to clients by supplying high quality of service and it will promote cost efficiency. In add-on, Wu et Al. ( 2010 ) remark that internal operations are the nucleus value of establishment, if it can be continually improved and adjusted, establishment ‘s overall public presentation will be upgraded.

Chen et Al. ( 2006 ) and Lee ( 2006 ) have a same position, which is for an establishment continuously improves its capablenesss will take to better public presentation in their client position. Chen et Al. ( 2006 ) besides remark that, sweetening of client satisfaction will non merely ensue in higher concern net income, but it besides facilitates concern development. Besides that, Kettunen ( 2005 ) besides prove that merely when clients are highly satisfied to the service, they likely to go on their behavior to devour in the establishment. Therefore, it is important to better both internal and external client satisfaction. Internal clients of an establishment include lectors, decision makers and pupils ; external clients are authorities, general populace and parents ( Chen et al. , 2006 ) . As PHEIs in Malaysia ‘s grosss depends on pupil ‘s tuition fees, establishment must foremost and foremost expression into pupil ‘s demand. Harmonizing to Umashankar and Dutta ( 2007 ) , to fulfill pupils ‘ demand, an establishment is necessary to supply a better instruction environment and acquisition environment. They besides province that a good acquisition environment includes installations, adjustment, physical environment, policies and processs, and interpersonal dealingss and communicating. On the other manus, establishment should advance social duty to fulfill external client. For illustration, they should go to public charity and community cultural events to better its image and repute ( Chen et al. , 2006 ; Chen et al. , 2009 ) .

Fiscal position is a image of economic effects, and shows the consequence of client position because the scheme realization of the value proposition will interpret into fiscal result ( Bose and Thomas, 2007 ; Papenhausen and Einstein, 2006 ; Tohidia et al. , 2010 ) . Harmonizing to the research made by Sivalingam ( n.d. ) , mean fee of PHEIs Malaysia scope from RM7, 500 to RM 13, 000 per annum. It is much higher than public university in Malaysia ( RM1, 400 ) . Hence, establishment should pull off its resource decently and look for ain fiscal aid ( Arokiasamy et al. , 2009 ) . Chen et Al. ( 2006 ) express that to properly manage resources ; establishment should efficaciously utilize their schoolroom, library and other instruction installations. Besides, computerised system can cut down the figure of employees, or it must inspect and give preparation to unsuitable employees, and consequence in overall fight. On the other manus, Arokiasamy et Al. ( 2009 ) remark that Malaysia ‘s PHEIs are required to bring forth its ain grosss. Kettunen ( 2007 ) suggests that, establishment should seek efficient ways to bring forth high-quality end product given by the limited fiscal resources. They provide an illustration, increase the fiscal resources to favor better service or highlight the economical production of services. In other words, fiscal position concerns with how the establishment programs or controls the limited fiscal resources to deduce maximal benefits ( Lee, 2006 ) .

6.2.4 Feedback and Learning

Harmonizing to Self ( 2004 ) , intelligibility of BSC gives a clear image about its public presentation in the signifier of pie chart. In add-on to supervise the public presentation, BSC assists an establishment in pull offing public presentation ( Umashankar and Dutta, 2007 ; Karathanos and Karathanos, 2005 ) . BSC, as a public presentation rating tool, provides feedback on the scheme realization procedure. It can place the beginning of job why an establishment unable to accomplish its scheme subjects or aims ( Thomas, 2007 ) . Therefore, by measuring the public presentation, establishment can utilize BSC to advance the necessary alterations in institutional operations. McDevitt et Al. ( 2008 ) and Kettunen ( 2005 ) indicate that BSC is non merely a tool for associating the mission and scheme but it besides a acquisition theoretical account that supports uninterrupted betterment and environmental reactivity. Since BSC provides feedback and promote uninterrupted betterment, BSC hence can help an establishment in redefining the scheme and mission to history of the altering environment ( Chen et al. , 2006 ; Bose and Thomas, 2007 ; Kettunen, 2005 ) .

7.0 Research Method

7.1 Sampling Method

The sample population of PHEIs in Malaysia is 516. I will take 400 of establishment as my sample frame. I select the chance sample as my sample technique. Probability sample is “ the opportunity, or chance, of each instance being selected from the population is known and is equal for all instances ” ( Saunders et al. , 2006, pg. 207 ) . Within chance trying techniques, stratified random sampling is most suited for this research proposal because it is easy accessible and less cost. Stratified random trying divides the sample population into relevant strata and it might obtain a more accurate consequence because different degree of establishment might hold different results. Therefore, I divide the PHEIs into several groups, such as universities and university colleges, colleges, abroad subdivision campuses and others. I will so take systematic random sample to analyze the consequences. The consequences will demo proportionally to the size of each group and the ultimate consequence of research will be easy to measure and explicate.

7.2 Measurements

Since the cause and consequence are already known, I am analyzing and detecting the effects of BSC brought to establishments. Hence, this research proposal is an explanatory survey. In this survey, I start with building hypotheses to analyze the BSC theory and finding the relationship between BSC and the sustainability of PHEIs. Therefore, deductive epistemology is my research measuring. Deductive is used to prove the theory and explicate the causal relationship between variables ( Saunders et al. , 2006 ) . Epistemology is “ concerns what constitutes acceptable cognition in a field of survey ” ( Saunders et al. , 2006, pg. 102 ) . As this proposal is developed in quantitative and qualitative point of position, this survey uses pragmatism as research orientation. Realism is that “ what the sense show us is world, is the truth ; the objects have an being independent of human head ” ( Saunders et al. , 2006, pg. 104 ) .

7.3 Data-Collection method

As mentioned above, I am utilizing deductive attack as my measuring. To prove the hypotheses in this research proposal, I propose to utilize study as my data-collection method. Survey is the manner to roll up a big sum of informations from a ample population in a extremely economical manner ( Saunders et al. , 2006 ) . I select study as data-collection method because it allows me to compare the consequences from different classs of PHEIs, such as university, university college, college and other types of PHEI. Besides, through comparing the consequences from different features of PHEIs will enable me to hold better understanding about the effectivity of BSC in different category of establishment. In add-on, I plan to utilize assorted method as informations aggregation technique, which uniting qualitative method and quantitative method. Assorted method is an ideal technique in this research proposal because the results of BSC consist of quantitative and qualitative information. Qualitative information comprises client satisfaction, establishment ‘s image and repute, operational effectivity, procedure efficiency, staff committedness and eventually establishment ‘s sustainability. Qualitative information is fiscal results such as ROI and ROA. Mixed method, thereby, will hold better understanding about the important effects of BSC brought to establishment. I will take to utilize semi-structured questionnaire as qualitative method ; and structured questionnaire as qualitative method. The marks of semi-structured questionnaire are lectors, decision makers and general populace ; pupil will be my mark for qualitative method. Semi-structured questionnaire will give a topographic point for interviewees to show their existent feelings about BSC and its results. Structured questionnaire, on the other manus, is a simple manner for pupils to reply their satisfaction degree. As a consequence, assorted method will supply me a wider image about results of BSC.

In this survey I tend to utilize longitudinal survey. As Saunders et Al. ( 2006 ) reference, longitudinal survey is a survey which concern with the alteration and development, and it is able to give the research worker a powerful penetration into developments over a period. I prefer to utilize longitudinal survey because it gives me a better apprehension about the public presentation of an establishment before and after implementing BSC. From at that place, I can clearly understand how BSC benefits to the establishment.

In order to guarantee the dependability of this research, I will seek to cut down the participant prejudice and participant mistake. I will cut down participant mistake by taking a impersonal clip for making study. It might guarantee that the participants are replying the questionnaire in a just emotion. I will explicate each inquiry to the participants and the motivation I construct this research, so that the participants grasp the aim of this study and reply the questionnaire genuinely. On the other manus, to understate the menace of cogency, I will do certain the study is made during a suited time-frame, and have a larger sample frame to guarantee the cogency of the research.

7.4 Possible consequences

The hypotheses I set in this research proposal are: BSC is able to help an establishment in accomplishing sustainability through its direction procedure and obtaining certain benefits from the execution. Malaysia ‘s PHEIs likely will accomplish sustainability because an establishment can expeditiously transform its scheme and mission to employees through the direction procedure. Besides, BSC as an information direction system, public presentation direction tool and communicating tool, might profit an establishment in footings of operational effectivity, co-operation of employees, high quality of service, and increase educational quality. Therefore, the consequences obtained might be consistent with the hypotheses.

8.0 Decision

In Malaysia, demand for third instruction is quickly increasing. Private higher instruction establishment Malaysia is confronting many challenges, such as public university in Malaysia, research, and support. Balanced scorecard is deemed to keep or better an establishment ‘s sustainability. Comparing to other research workers, they tend to analyze how four perspectives benefits to an administration or establishment. In this research proposal, I focus on direction procedures of BSC. Management procedure includes translating, pass oning and associating, concern planning and feedback and acquisition, which provides wider image than merely emphasised four positions.

In the beginning phase, an establishment should concentrate on scheme preparation ; it assists an establishment in puting scheme, vision and mission. A scheme puting should on the footing of its life rhythm. For illustration, a mature establishment will specify profitableness as its scheme. It will be so translated into a set of balanced steps and aims. BSC includes both lag indexs and lead indexs because entirely dressed ore on lag index will promote the direction acts in short term and disregard the profitableness in long term. Therefore, BSC concerns on whole image, which are fiscal position, client position, internal procedure position and acquisition and growing position. After interpreting the scheme and aims, BSC, as a communicating tool, communicates the aims to staff and link the aims to daily work. In the communicating procedure, it is normally used scheme map to pass on to internal and external stakeholder. Therefore, staff will hold better apprehension, teamwork and efficient day-to-day operation. The undermentioned procedure is concern planning. An establishment is necessary to take action to carry through each position ‘s aims. In this procedure, direction is responsible for directing the staffs in finishing the scheme subject ( s ) . Finally, BSC provides feedback to establishment and adjust and redefine scheme to account for altering environment. This uninterrupted betterment standard enables an establishment to obtain competitory advantage over others.

However, BSC do give some restrictions to establishment. Throughout the direction processes, BSC merely able to place the jobs but did non supply the solutions for establishment. In add-on, BSC is a causal relationship ; one position failure will impact other positions. The causes ( internal procedure position and acquisition and growing position ) require high staff committedness. An establishment has to carefully pull off its staffs and supply sufficient encouragement, and so staffs will lend expeditiously and efficaciously to operations.

It can be concluded that, BSC, as a public presentation measuring system, communicating system and strategic direction system, provides higher benefits than costs to institution. The whole benefits will convey important sustainability for private higher instruction establishment in Malaysia.


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