Professional Documents
Culture Documents
BALANCED SCORECARD
Presented By :
Human
Resources
Personnel
Management
Personnel
Administration To Provide
Greater Value
Emerging HR Roles
Business Partner
❚ Knows Mission
❚ Understands business processes
❚ Understands organizational culture
❚ Understands nature of public service
❚ Recommends alternative solutions
❚ Is innovative and creative
❚ Thinks strategically
❚ Communicates well
Change Agent
❚ Designs and implements change process
❚ Uses consultation and negotiation skills
❚ Builds relationships on trust
❚ Works well in teams
❚ Uses coalition building skills
❚ Demonstrates problem solving skills
❚ Willing to take risks
Leader
❚ Takes risks
❚ Manages conflicts
❚ Demonstrates ability to make a decision
❚ Effectively manages resources
❚ Models ethical behavior
❚ Applies coaching, mentoring, and
❚ Counseling skills to develop talent
THE EVOLUTION OF HR FROM
PROFESSIONAL TO STRATEGIC PARTNER
❚ Initially :
❘ Administrative & Professional
Firm
Balanced Employee Strategy
Performance
Performance Strategic Focus Implementation
Measurement
Knowledge
Management
System
Alignment of HR Architecture with
HR Deliverables
❚ Architecture
1. Leading indicators of HPWS
2. HR system alignment
3. Lagging indicators
Creating An HR Scorecard
Contd…
❚ Balance Between Cost Control and Value Creation
HR deliverables
(empty set) disciplined by
attention to both
benefit and costs
ROI
Undisciplined attention
HR “doables” to value creation that
driven entirely misjudges benefits and /
by cost control or ignores efficiency
Strategic Focus
Creating An HR Scorecard
Contd…
Benefits
Estimates : good
Cost Estimates:good
Calculations : NPV
Frequency : Regular
❚ In 1997 – 98
❙ culture management and
❙ personal credibility.
❚ assessing HR performance.
❚ rewarding it appropriately,
❚ Dimensions Assessed:
❙ Openness
❙ Collaboration
❙ Trust & Trustworthiness
❙ Authencity
❙ Proaction
❙ Confrontation
❙ Experimentation
❙ Learning Culture
❙ Listening
Evolution of Balanced Scorecard
❚ WHY ???
❙ Lack of clarity as to what should be measured and
how should it be measured
❙ Provided feedback around internal and external
Balanced Scorecard
❚ Based on Vision & Strategy of the company
❚ Varies from company to company
❚ Through Identified Drivers, manage areas,
❘ Customer satisfaction
❘ Internal business process
❘ Strategic specific measures
❘ Financial objectives
Four Key Areas :
By Kaplan & Norton
❚ Learning and growth perspective
❚ Deals with people
❚ Emphasises on continous learning through
❙ Mentorship
❙ Tutorship
❙ Providing communication channels to focus on
solving problems
Four Key Areas :
By Kaplan & Norton
❚ Business process perspective
❚ Refers to internal business processes
❙ the mission-oriented process - unique areas
of business
❙ the support process – business processes,
which are more repetitive in nature
Four Key Areas :
By Kaplan & Norton
❚ Customer Perspective
❙ Critical predictor of future success of an
organisation
❚ Financial Perspective
❙ Timely and accurate financial related data
BSC APPROACH TO HRM
Key Performance Indicators
❚ Performance measures also serve as a clear basis for aligning
all HR objectives with the company’s business goals.
❚ KPI’s help in assessing the progress and introducing
corrective action in a timely manner
❚ Need for “management by fact”
❙ An organization’s internal and external customers
❙ The performance of an organization’s products and services
❙ Market competitive comparisons
❙ Employee-related statistical data such as attrition rate, turn over
costs, and labor cost
❙ System integration and support
Developing A Balanced Scorecard
Step 1: Identify clearly defined value drivers for the audit
function
❙ Review
❙ Communicating
❙ Through interviews, surveys and team discussions
A Final Glance….
❚ World-class companies are investing to ensure
that their internal audit function delivers full
value in high-impact areas such as risk
management—and your company should
consider pursuing the same route