THE IMPLEMENTATION OF BALANCED SCORECARD (BSC) IN MEASURING PERFORMANCE IN MALAYSIA HIGHER EDUCATION INSTITUTIONS

Abstract

Higher Education Institutions (HEIs) under the Ministry of Education Malaysia (MOE) are considered as the catalysts for excellence in the national education sector. The education sector has always enjoyed the highest national development budget and this has proven that the government's commitment to the education is paramount. Growth rates for researching output and quality are among the highest in the world, and higher education institutions in Malaysia has achieved a strong ranking among their Asian counterparts. Malaysia must make adjustments, including transforming higher education systems to thrive in an increasingly challenging global economic environment. Therefore, a form of performance assessment mechanism needs to be developed to evaluate on the performance and quality of services delivered in line with the goals set. The Balanced Scorecard (BSC) is one of the most widely used assessment instruments in assessing the performance on the institution. Therefore, the purpose of this study is to highlight the importance of BSC in the measuring performance in the Malaysia HEIs. Many previous studies have been conducted to evaluate the effectiveness of BSC especially in corporate companies and the results of these studies show that BSC has a positive and beneficial impact on the organization. However, there are still fewer studies which involve the Malaysia HEIs in conducting BSC-based performance evaluations. In addition, a strategic map will be developed to guide the implementation of BSC in Malaysia HEIs. When implemented, it is hoped that the BSC can be used by management to assist in the implementation of long-term strategies as a tool in monitoring and evaluating the performance of Malaysia HEIs in addition to preparing for future educational challenges