Company strategy with balanced scorecard – common approaches to HR
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Every business organization aims to enhance it performance levels and shift the focus to the information era of competition and provide greater value to its stakeholders. The concept of Balanced Scorecard (BSC) emerged from such requirements, a performance management instrument that can be integrated into the working of the business processes and used effectually for executing and monitoring of tasks by the workforce.
Since time immemorial, management experts have performed various studies and researches in this field and an independent management consultant Mr. Art Schneiderman led the rest of the specialists in deriving the very first Balanced Scorecard in the year of 1987, followed strategically by the celebrated duo, Robert S. Kaplan and David P. Norton who identified and defined the major perspectives representing an organization’s aspects, that were:
1. Financial perspective
2. Customer perspective
3. Internal Business perspective
4. Innovation and Learning perspective
The Human Resources is one of the most critical components of an organization taking the onus of accelerating the productivity and effective usage of human capital in the organizational procedures. Human resource practices have a direct correlation with the organization’s performance and require successful integration with the organizational goals to prudently apply the theoretical concepts with practical connotations. HR elements can have some major areas of significance involving employee accountability, scalable administration, recruitment and retention aspects and many more.
A balanced scorecard acts as a link between management perspective and HR activities to achieve long term vision of top management.
The widely used HR metrics are inclusive of job satisfaction and related periodical feedback sessions with the immediate supervisor and HR coordinator; furthermore, employee turnover is another major facet that entails the cost to company, the cost of new hiring to fill in along with new recruitments, followed by valuable training and development methodologies to augment working and on the job learning modules. Overall, the Human Resource assessment of such metrics infers transferring of these intangible inputs into tactical values holding value and scope for betterment, which in turn leads to efficacious reference of data and information and further link the Human Resource policies with the management vision.
The Balanced Scorecard has been successfully integrated with the chief Human Resource functionalities comprising the recruitment process which is the most critical of all as the future of the business performance is dependent on effective recruitment of the right people for the right positions to deliver the right performance at the right time.
Moreover, amplifying the execution of the goal sheet objectives and transforming them into measurable results ensures the prosperity of any business in the volatile market scenario. Likewise, the training possibilities must be explored to the fullest to extract the best out of the workforce and offer growth opportunities keeping in mind the business goals. Honing employee skills certainly broadens the compass of working simultaneously keeping up the motivational levels and morale to the optimum intensity.
The performance stimulus can include monetary as well as non-monetary benefits to the limit of extending growth prospects to the deserving employees, correspondingly checking the internal factors like the incoming challenges and control prospects. The leadership aspect encompasses the alliance between the process managers and the vital success factors that contribute to the business ambitions under the direction of the management superiors.
