HR Scorecards: Improving HR Performance - Essay Sample

Introduction

Human Resource (HR) Scorecards are a visual depiction of core elements of human resource management productivity, accomplishments, and other critical organizational factors (Goldbach, Barbu, & Bidireanu, 2018). The significant aspects measured using the HR Scorecard in firms include employee performance, hiring, turnover, costs, training, and the organization's alignment towards the achievement of the goal (Goldbach et al., 2018).

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Order now

Application of HR Scorecards in Developing HR Performance Appraisal Strategic System

In implementing the HR Scorecard, the HR professionals define the strategic business strategy inconsideration to specific, measurable, accomplishable, realistic, and timely (SMART) objectives for the firm (Goldbach et al., 2018). Business indicators which reflect the economic stability of the firm are then identified. Regular meetings are held to review the progress of the planned strategy (Goldbach et al., 2018).

Definition of HR Scorecard in Different Organizations

The HR Scorecard is defined similarly in the majority of the organizations. Even though different firms have different word definition of the HR Scorecard, the idea presented is similar across various organizations (Goldbach et al., 2018).

Differences and Similarities

The primary similarities between the HR scorecards in the majority of the organizations are that they both have objectives, measures, action plans, initiatives, and goals they intend to achieve. Across all organizations, the HR Scorecard has four primary perspectives - customer, financial, internal, and growth (Goldbach et al., 2018). The HR Scorecards in different organizations also have a specified strategy in which it is planned and executed. The differences of the HR Scorecard in various organizations are that the policies being pursued are unique depending on the organization and the industry it is operating in (Goldbach et al., 2018).

The Types of Metrics Incorporated In a Scorecard

A balanced HR Scorecard has four principal elements which are critical to the success of the organization - learning and growth, financial data, customer perspective, and business processes (Goldbach et al., 2018). Learning and growth element primarily deals with the training of the employees towards the achievement of the set goals. Financial data includes total sales, incomes, and expenditures used by the firm. The customer perspective assesses client satisfaction with the set price, availability, and quality of the product being offered while the business processes investigate the progress of the product in the highly competitive market (Goldbach et al., 2018).

How HR Scoreboard Metrics Help HR Managers Make Decisions

HR managers use the four HR metrics in making informed decisions upon analysis (Goldbach et al., 2018). The metrics provide vital information regarding the performance of the product in the market and the effectiveness of employees towards achieving the set objectives. The feedback from the customer perspective is critical towards gauging the success of the product at hand (Goldbach et al., 2018).

Metrics Alignment With Organizational Goals

The four metrics address critical factors that are likely to determine the success of the organization. Customers and financial stability play a vital role towards the sustainability of a firm; hence their presence on the HR Scorecard implies alignment of the metrics to the organization's goals (Goldbach et al., 2018).

Importance of Well-Designed Set If Metrics

The organization of metrics on the HR Scorecard is essential. The excellent order enables the HR team to understand the request of the objectives being pursued hence concentrating on the goals. It also provides clear feedback to the HR team, which enables them to reorganize the strategies in case of a failure of the previous plan (Goldbach et al., 2018).

HR Scorecard

• Employ reporting time On time Late arrival
• Daily goal accomplishment Achieved Failed to achieve
• Daily sales Targets met Failed to achieve targets
• Customer needs Satisfied Unsatisfied

Fig 1.0. HR Scoreboard

Conclusion

Different organizations have adopted the HR Scorecard to help them evaluate and manage core elements of their business, the customers and finance of the firm play a vital role towards the success of the firm hence being the two key metrics considered while developing the HR Scorecard. The growth and business processes aspects are also incorporated to give a clear visualization of the firm's key elements.

Reference

Goldbach, I. R., Barbu, I. F., & Bidireanu, A. (2018). Human Resources Management In Education. LUMEN Proceedings, 5(1), 162-173. Retrieved from https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.shrm.org/hr-today/trends-and-forecasting/research-and-surveys/Documents/2018%2520Employee%2520Benefits%2520Report.pdf&ved=2ahUKEwjW7eLwgOfiAhUDJhoKHVt4BvQQFjACegQIAhAB&usg=AOvVaw2PwtP-_H2JA30jIyP408lr