Vous êtes sur la page 1sur 8


Many companies are using Balance Scorecard metrics to evaluate performance of their HR department by key performance factors 12 HR Scorecard: It is a tool for measuring the contribution of human resource management practices to the financial performance of an organization.13 In the past, HR managers lacked the required amounts of knowledge about the business side and general managers did not fully appreciate the HR side.14 Human Resources (HR) is normally the function which helps other parts of the organization create measurement and performance management systems for their operations 15 To integrate HR into a business performance measurement system, managers must identify the points of intersection between the HR and the organizations strategy implementation plan High HR scores in the face of low finances actually signal improved finances in the future. 16 HR scorecard measures the HR function's effectiveness and efficiency in producing employee behaviors needed to achieve the company's strategic goals. 17

In todays competitive world the economy is transforming from protectionism to highly market driven competitive environment. It is advisable to the corporate entities that it should be a market focused. As a part of HR strategy the companies should concentrate on new markets and look for additional service provider. Previously, HR managers lacked the required amount of knowledge and tactful skill about the business side. But today things have changed where the companies compete on various aspects such as price, technology, product and service provider. At this juncture, the HR scorecard will help in measuring as well as evaluating a companys performance in terms of HR. Most of the businessmen consider that employees in their organizations are the key indicator of their competitive advantage need to manage effectively the employee talent has become a crucial part in todays world. The study is based on library research or referencing method The HR Balanced Scorecard provides the means to monitor workforce indicators, analyze workforce statistics, diagnose workforce issues, calculate the negative financial impact, prescribe solutions, and track improvements. The HR scorecard is of much important when it comes to measuring just how effective the HR department of a certain company is. While understanding the purposes or reasons for developing an HR scorecard, also weigh all

the details involved in the entire business particularly those that the Human Resource handles. HR scorecard enables managers and executives to see and track the important HR measures across their company. An HR scorecard is the same scorecard system that accounting, inventory, and logistics departments use. The HR scorecard helps HR professionals to find the optimal solution for their company. ------------------------------------------------------------------------------------------------------------------

Previously HR Performance measurement had focused solely on improvement of administrative and transactional efficiency. Here the focus was increased and also included new processes for the HR organization to develop such as best in class service delivery and increased employee value and ensuring a focus on cost and value. HR scorecard helps HR professionals effectively to manage their strategic responsibilities: The scorecard encourages HR managers to focus on exactly how their decisions affect the successful implementation of the firm's strategy. The HR scorecard focuses on the firm's strategy implementation, which constantly demands change. There is an ever-increasing challenge for HR executives to have the ability to define and measure their HR division much like the other divisions are measured; with the measurable goals, metrics, and tools. As an important tool in human resources management, an HR scorecard enables managers and executives to see and track important HR measures across their company. While human resources often track HR metrics, it is important to share and distribute the relevant information to other executives and managers in a secure, real-time environment. As companies expand its operations and grows larger and larger, managing worthful employees is a big task. A company should set up a human resources department which is the best solution for establishing the assignments. With the large number of employees and improve the measuring activities they need a better system. This is where the human resource scorecard comes into the scene. The only thing that makes the HR scorecard different from the logistics, inventory or accounting ones is the fact that it is more focused on the measurement of the activities of the HR department. With its help, the managers are able to effectively organize

the companys objectives. By doing this the company will be maintained at a stable and active level. For example setting a scorecard to increase productivity through trainings is the objective. The scorecards patters should be relevant to the functions, value points and contributions of each employee. Whether in a small or large company, managing employees is a no ordinary job. The human resources department is one of the many sections that a business organization should come up. The Department is one of the important area for establishing duties and responsibilities necessary for evaluating work performance. HR personnel handle transactions on a daily basis. And as the company grows, the company will need a more robust system to better improve its measuring activities. This includes the use of human resource scorecard. With the aid of this scorecard system, the management is also able to organize objectives effectively and clearly, which is necessary in maintaining an active and stable company. In short, the HR scorecard system reduces the hassles in quantifying the worth of the company and its strategic workforce. Setting up the scorecard system, however, takes time and many considerations. Score card helps in identification of potential Milestone or metrics.. This will help if the HR department for installing an HR scorecard system. HR managers should carefully research on the status of the workforce. They should see if the current volume of employees is sufficient to stabilize the growth of the organization. Unless there are other ways to know whether ten computer programmers are enough in the IT department, HR managers should identify the relevance of each employee. The HR scorecard is of much importance when it comes to measuring just how effective the HR department of a certain company is. While understanding the purposes or reasons for developing an HR scorecard, also weigh all the details involved in the entire business particularly those that the Human Resource handles.

Since the topic HR Scorecard is of recent origin, not many studies were found. According to Becker, Huselid & Ulrich (2001) measuring of intangible assets accurately will determine the value of human capital. It has indicated that the accounting practices used are specifically meant for measuring financial and physical assets only and which is considered as competitive advantage. The concept of HR Scorecard was firstly developed by Becker (2001) from the Balanced Scorecard which was originally developed by Kaplan and Norton. Walker & MacDonald, (2001)


To develop the HR Scorecard the very first thing is that an organization has to focus on HR Department. Finding the employee talent, invest in employees development i.e growth opportunity, creating an environment that fosters employee engagement and to identity the key talent for growth and development, rewarding and retaining the competent people, upgrading of Technology, recruiting the high potential people, linking employee to productivity etc. these all are required for the successfully implementing HR scorecard.

The following are the four perspective of HR SCORE CARD:


Strategic Perspective Perspective

HR Scorecard which can be classified into four perspectives:

Perspective a. STRATEGIC PERSPECTIVE Operations Customer

Operations Perspective SOURCE: Perspective


This perspective measures company success in achieving 5 strategic thrusts (talent, leadership, Perspective customer service and support, organizational integration, and Human Resource Capability)


This perspective measures Human Resource success in operational excellence. The focus here is primarily in three areas: staffing, technology, and Human Resource processes and transactions

This perspective measures how Human Resource is viewed by company key customer segment. Survey results are used to track customer perception of service as well as assessing overall employee engagement, competitive capability, and links to productivity.

This perspective measures how Human Resource adds measurable financial value to the organization, including measures of ROI in training, technology, staffing, risk management, and cost of service delivery. Many leading organizations use their performance management systems as a key tool for aligning institutional, unit, and employee performance; achieving results; accelerating change; managing the organization on a day-to-day basis; and facilitating communication throughout the year so that discussion about individual and organizational performance are integrated and ongoing.

. The engineering field still offers a promising career opportunity which can make a bachelor lives well. Colleges and universities have long been important economic drivers in their surrounding communities, and their potential impact on the wider, regional economy has been growing dramatically. HR professionals must be business literate and customer savvy. The colleges are highly focusing for the growth and its uplifement for this they are adopting various strategies and policies for its development. Each and every college has its own goals and objectives. They are striving a hard for reaching targets. Collaboration with professional bodies such as IEEE, NHRD ISTE and so on. Almost all the engineering colleges of Warangal are in frequent touch with the university. UGC funds to the fullest extent are been utilized by them.

Colleges are striving hard to achieve business goals. They are reaching the targets. Staffing, technology, HR processes and transactions are taken care by them. Employee engagement, competitive capability, and links to productivity.

It is commonly viewed that the student as the customer. When engineers have a creative idea to meet a challenge, research grants help support them in developing and testing their idea. The colleges are known not only for its excellent academic training but also for its well-designed leadership training programmes. They have several active collaborations with the professional bodies. There is a lot of interaction with industry and institutions. Providing proper training to the students through various institutions such as IMS, E-learning, etc. Colleges for the benefit of students arranging guest lectures from the universities and also from the industry. Imminent people are called to deliver the lectures. Also providing 24 hours lab facilities for the sake of students and also sending them to participate in management activities. Weak students are counseled by the competent counselors in the colleges. They are taken proper care by the colleges in almost all the aspects wherever counseling is needed. Students satisfaction is taken utmost care and also suggestion box is also maintained by the colleges, students can drop their suggestions in that box. Providing sms facilities- a sms is send to the student if he doesnt come to college, so that absenteeism can be curtailed. Through sms he also gets the latest and proper information well in advance so that he can prepare for the activities. Seminars & Workshops Exhibitions are also conducting for the benefit of the students. Organizing different workshops for different branches and the students also participate in workshops which are conducted by other colleges also, so that there is an interaction with different students and also sharing of ideas with them. More practical sessions are also been conducted to improve their learning environment. As every college has a placement officer he takes care of students placement activities Even though there is no industries surrounding Warangal region still colleges are having good rapport with industries. Frequently making arrangements for visits of delegates/Prospective Employers from various industries, as they present their lectures and impart knowledge to the students on recent trends in the market which are very useful.

Colleges are spending lot of amount for the salaries of the staff, hiring competent people to perform the task. Colleges for growth and uplifement are investing for the purchase of

infrastructure, internet facilities, and digital library and subscribing magazines, national and international journals and for students etc. Sending staff for paper presentations and participation in workshop, seminars and also faculty development programmes and also Industry interaction investing more on staff.

Taking adequate measures for maintaining health of both staff and students providing gym facilities and encouraging sports (outdoor activities) measures. To reduce staff Turnover colleges are providing incentives and training facilities and also retaining them. A better support from Alumni can work wonders and they are striving hard and working towards building better relations. Regarding the infrastructure they are far behind the NITs and IITs. Endeavoring to be on par with these institutions.

The more a company can integrate its HR Scorecard with existing and ongoing measurement efforts, the more sustainable the Scorecard will be. one must make ongoing investments in the HR Scorecard. The employeremployee relationship had changed; employees were less likely to remain with a single employer; specialized talent is hard to find; employees expected more work/life balance; and the diverse talent pool has different interests and needs. For successful implementation HR Score card should be well communicated across the HR Department. High turnover of employees results in lower productivity, higher training, and staffing and occupational health costs and so on. HR professionals have to track and analyze turnover statistics, find out the reasons for turnover, and other issues which affect the companys performance. The HR Scorecard has made HR managers understand how to align HR strategy with the overall business objectives. HR Professionals are able to explain not only what they are tracking but also how they are performing on essential strategies for the business.

1. Arthur K. Yeung; Measuring human resource effectiveness and impact; Human Resource Management; Fall 1997, Vol. 36, No. 3, Pp. 299301 2. Becker, B.A. Huselid, M. & Ulrich, D. (2001). The HR Scorecard: Linking People, Strategy and Performance. Boston: Harvard Business School Publishing.

3. Dave Ulrich; Measuring human resources: An overview of practice and a prescription for results; Human Resource Management, Fall 1997, Vol. 36, No. 3, Pp. 303320 4. Garrett Walker and J. Randall MacDonald, Designing and implementing an HR Scorecard, (2001), John Wiley & Sons, Inc. 5. Gary Dessler, Human Resource Management, Pearson Education, 10th Edition, 2005 6. Linking People, Strategy, and Performance by Brian E. Becker, Mark A. Huselid and Dave Ulrich, Harvard Business School Press. 7. Richard E. Winter mantel, Karen L. Mattimore; In the changing world of human resources: Matching measures to mission; Human Resource Management, Fall 1997, Vol. 36, No. 3. 8. Snell/Bowander, Human Resource Management, Cengage Learning India Private Limited, New Delhi 2007 9. www.devseeker.in/content/career/Employers-VS-Staff/42.html 10. www.paulkearns.co.uk/downloading/NASA%20ballpoint%20pen.DOC 11. www.chandospublishing.com/Kearns.html 12. http://www.indianmba.com/Faculty_Column/FC1142/fc1142.html dated 12th Aug, 2011 time 10;38 Am 13. http://train-srv.manipalu.com/wpress/?p=141710 dated 12 August 2011 time 11.00 14. http://www.123eng.com/forum/f12/hr-scorecard-77479/ dated 12 August 2011 time 11.06 15. http://www.zigonperf.com/resources/pmnews/v1i20503.html dated 12 August 2011 11.16 16. http://www.farhansherazi.com/ppt/human%20resources%20scorecard.pdf dated 12 August 2011 11.22 am 17. http://www.answers.com/scorecard+hr+ dated 12 August 2011 11.24