Performance Evaluation of a University: a Balanced Scorecard Framework

Abstract

This thesis seeks to demonstrate the suitability and necessity of a more managerial perspective on the performance evaluation of universities. The thesis first describes the apparent similarities that exist between the for profit and non-profit sectors, particularly as regards the need for efficiency and effectiveness, thus dismissing at the very outset, any conventional notions of the continuing disparity between the two. This paper then discusses the changes that have taken place in the management accounting philosophy within the corporate sector, over the last two decades. Of particular import has been the recognition of the multi-dimensionality of organizations as well as the need for performance evaluation frameworks capable of linking daily operations and activities to organisational objectives. A clear shift is evident in the role of performance evaluation systems, from a strictly control focus to a combined focus on planning and control. The balanced scorecard is identified and described as a conceptually straightforward performance evaluation framework, capable of addressing the growing challenges of management accounting. Literature on developments in the higher education sectors in such diverse countries as England, The Netherlands, America and Australia form the basis for a study of the changes that have occurred, the systems used, and complexities and problems faced by institutions of higher education. It is shown that the higher education sectors of this diverse range of countries have been subject to a similar set of developments and consequent pressures. That is, common difficulties and challenges have arisen in these different countries with their relatively diverse higher education systems. This leads to the possibility that similar changes are on the horizon for newer higher education systems, such as that of Malaysia. There appears to be a universal need for improved effectiveness in university operations and management. The balanced scorecard is depicted as a plausible means of capturing the essence of effectiveness as has been identified by different parties in the specific context of universities. Finally, this thesis attempts to demonstrate that the balanced scorecard is able to focus managerial attention on critical issues that have been faced by universities during this period of change. This is accomplished via an improvised case study on a Malaysian private university.