Very Imp Hr Scorecard.pdf

HR Scorecard Dr. G C Mohanta, BE(Mech), MSc(Engg), MBA, PhD(Mgt) Professor Al-Qurmoshi Institute of Business Management, Hyderabad - 500005

HR Scorecard Measures HR Deliverables and objectives Quantitatively demonstrate HR’s contribution to

firm’s financial results and profitability Measure the degree of alignment between business strategy and HR deliverables HR Scorecard links the things people do with the strategy of the firm.

Development of HR Scorecard The development of an HR Scorecard must be done

with four perspectives in mind as follows: A financial perspective to address strategies that satisfy customers A customer perspective that asks what customer want An internal perspective that addresses the stated desires of customers and designs processes consistent with those desire learning perspective that taken into account . HR employees can implement steps to align HR goals with the overall company mission, vision and business objectives.

HR Scorecard Implementation It has seven steps model: Clarify the business strategy Develop HR Architecture Create a strategy map of the firm Business Indicators Results Identify HR Deliverables in the map Align HR Architecture with HR Deliverables Design HR Scorecard Execute/Implement

HR Architecture The HR function (services) The HR management system Supporting policies and practices such as

Create links between promotions and competencies  Provide skills training  Attract and retain high performers 

Strategic Employee Behaviours

HR Strategy Map Drive Long term Shareholder Value

Financial

Internal Customers

HR Internal Process

Learning

Enhance ROI of HR Strategic Initiatives

Create Positive Work Environment

Enhance Employee Productivity Enhance “Internal Customer” (Employee) Satisfaction

Apply Excellent Develop Strategic Implement Best Optimize Recruitment Talent Management Performance Employee Process Practices Management System Competencies

Develop Internal HR Capabilities

Deploy HRIS System

HR Scorecard Strategic Objectives

Drive Long term Shareholder Value

Enhance ROI of HR Strategic Initiatives

Enhance Employee Productivity

Key Performance Indicators • •

Shareholder value Shareholder value growth

•

ROI of HR Strategic Programs and Initiatives

• •

Profit per Employee Revenue per Employee

HR Scorecard Strategic Objectives Create Positive Work Environment

Enhance “Internal Customer” (Employee) Satisfaction

Key Performance Indicators •

Ranking in “Best Place to Work Annual Survey” (conducted by Fortune Magazine)

•

% of Employee Turn Over

• • •

Employee Satisfaction Index Employee stability Improved Process cycle times

HR Scorecard Strategic Objectives Apply Excellent Recruitment Process

Develop Strategic Competencies

Key Performance Indicators •

Average lead time to recruit employees

•

Recruiting cost per employee

•

Performance of New Recruits during the First Two Years of Employment

•

Average Lead Time to Develop Strategic Competencies

•

Average Lead Time to Close Strategic Competencies Gap

•

% of Strategic Competencies Available within the Organization

HR Scorecard Strategic Objectives Implement Best Talent Management Practices

Optimize Performance Management System

Key Performance Indicators •

Number of Qualified Talents per Strategic Positions

•

Progress of Talent Development Plan (actual vs. plan)

•

% of Senior Managers who Have Been Promoted Internally

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Average Competency Assessment Scores

•

Number of Performance Feedback Session Conducted per Year

HR Scorecard Strategic Objectives

Develop Internal HR Capabilities

Key Performance Indicators •

% of HR Employees who Develop Individual Development Plan

•

% of HR Employees who Fully Execute Their Individual Development Plan

•

Progress of HR Portal Implementation (actual vs. plan)

•

Accuracy Level of HR Database

Deploy HRIS System