A Proposed framework to use Balanced Performance card to evaluate Islamic Banks’ performance

Field study in Saudi Arabia

Abstract

The present research aims at knowing opinions of employees of the Islamic banks about the need for using the complete balanced measurement system for performance evaluation. It also aims at focusing on the nature of relationship between the level of attention given to some aspects of performance, Islamic banks’ performance on the same aspects, relative significance of strategic aims of Islamic banks, and knowing the main views of balanced performance card.

The problem of the research is about to know the effect of the dimensions of the balanced performance card affect; financial dimension, customers dimension and inner processes, and education and growing dimensions on Islamic banks’ performance

To achieve the aims of the research the following hypothesis is examined; there is a statistical significant relationship between using a balanced performance card and Islamic banks’ performance evaluation. From this hypothesis the following hypotheses are derived; there is a statistical significant relationship between financial dimension and Islamic banks’ performance evaluation; there is a statistical significant relationship between inner processes and Islamic banks’ performance evaluation; there is a statistical significant relationship between education and growing and Islamic banks’ performance evaluation.

The researcher uses analytic descriptive method. The foremost results of the present study are; making use of the resources by the Islamic banks and develop their services adequately will lead to increase the incomes. The research shows that improving the adequacy of +inner initiation process leads to reducing the costs and increasing incomes. The balanced performance card dimensions; the financial dimension, customers dimension and inner processes, and education and growing dimensions has its impact on the performance quality of Islamic banks in the Kingdom of Saudi Arabia.

The research comes to recommends the following foremost recommendations:

The necessity to use balanced performance card in Islamic banks of the kingdom of Saudi Arabia as a new style to performance measurement and evaluation, depending on the four dimensions completely. This can lead to achieve banks strategic aims to reinforce its competitive prestige. It also recommend to employ qualified employees who have scientific and professional experiences to design and implement the balanced performance card efficiently and proficiently in Islamic banks. There is a necessity to develop the balanced performance card to keep abreast of the rapid development of bank environment.