This website uses cookies to ensure you have the best experience. Learn more

Human Resources Essay

4794 words - 20 pages

Human Resources Key Performance Indicators
Gabčanová Iveta
Abstract

The article brings out a proposed strategy map and respective key performance indicators
(KPIs) in human resources (HR). The article provides an overview of how HR activities are
supported in order to reach the partial goals of HR as defined in the strategic map. Overall the
aim of the paper is to show the possibilities of using the modern Balanced Scorecard method
in human capital.
Key words: key performance indicators, entrepreneurial sector, HR scorecard, performance, Balanced Scorecard

1. INTRODUCTION
Many companies have implemented tools for measuring their performance in order to stay in
business and ...view middle of the document...

e. operational objectives are transfer into 4 perspectives.
Journal of Competitiveness
Vol. 4, Issue 1, pp. 117-128, March 2012
ISSN 1804-171X (Print), ISSN 1804-1728 (On-line), DOI: 10.7441/joc.2012.01.09

joc_1-2012_v3doi.indd 117

117

17.4.2012 10:56:22

Based upon the model of BSC introduced by Kaplan and Norton (2007) and consequently its
application in the area of the human resources, a new tool HR Scorecard for the management
and measurement of the human capital was established. Becker, Huselid and Ulrich (2001)
who have outlined HR Scorecard, added that it does two important things:
 manage HR as a strategic asset,
 demonstrate HR´s contribution to firm´s financial success.
Also Ulrich and Brockbank (2005) appended that strategic contribution accounts for almost
half of HR´s total influence on business performance. Norton (2009) made a key point about
what differentiates the scorecard from other business performance measurement frameworks
in the marketplace: “Many people will build a list of measurements that are non-financial and think that they
have a balanced scorecard, but in our view the scorecard has to tell the story of company´s strateg y. The biggest
mistake organizations make is that they think that scorecard is just about measurement.” Huselid, Becker
and Beatty (2005) also confirmed that the HR Scorecard is designed to guide management
of the HR function. The essential part of the HR scorecard is the strategy map. Kaplan and
Norton (1996) called the strategy map to represent the firm´s value chain. These are diagrams
of the value chain, such as those shown in figure 1.
Financial

Return of Capital Employed

Customer Loyalty
Customer
On – time
delivery

Internal/Business Process

Learning and Growth

Process Quality

Process Cycle Time

Employee Skills

Fig.1 – A Simple Illustration of Value Creation. Source: Robert S. Kaplan and David P. Norton,
The Balanced Scorecard.

Huselid, Becker and Beatty (2005) declared that the elements in the HR Scorecard are key
leading indicators for workforce success. Key performance indicators are assigned to each
perspective in strategy map and lately KPIs on HR level became significant benchmark in the
entrepreneurial sector. Bean and Gerathy (2003) presented that according to their experience;
KPIs are valid and effective when applied in a consistent and comprehensive manner. Further,
they declare that financial performance must be respected as the critical measure of the success
for every business but financial KPIs are closely related set of operational metrics i. e. on HR
level, too. Bauer (2005) stated that once KPIs have been indentified, defined and formalized,
118

Journal of Competitiveness

joc_1-2012_v3doi.indd 118

17.4.2012 10:56:22

business leaders may feel that KPI battle is won. Where possible, KPI targets must be based
on concrete data and non-manipulative formulas. Griffin (2004) pointed out that there...

Other Papers Like Human Resources

‘’A Flexible Firm Model Optimizes The Use Of Human Resources’’

838 words - 4 pages ‘’A flexible firm model optimizes the use of human resources’’ Kalleberg, 2001 * Social and economic changes in the past century have underscored the need for organizations to have greater employment flexibility. * Industrial countries and manufacturing sectors emphasize in human resource management that organizations can adapt any changes in technology, in labour markets, price competition, in capital markets internationally and

Human Resources In India Essay

1919 words - 8 pages . All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. For more information, e-mail info@gartner.com or visit gartner.com. EUKEINEAPROVRW012110 ® Key Initiative Overview Strategic Insights on Key Initiatives All your initiatives are important, but some are mission-critical. Key Initiatives organize the vast Gartner resources around the projects and programs at the top of your list, helping you achieve

Human Resources Management

310 words - 2 pages internal mobility of employees, negotiation With workers, fixation and implementation of rules and regulations regarding wages, salary, allowances and benefits to the workers. The philosophy of the company was based on Total Quality Management (TQM) and Kaizen. The company was highly environment-friendly and was oriented towards customer’s satisfaction. Fragrance was facing an acute crisis due to high rate of absenteeism among its

Management Of Human Resources

4128 words - 17 pages style using the third person. Any graphical representations in the main body must be clearly referenced beside or beneath Common Assessment Criteria Applied for ASSIGNMENT 1 - Essay (50%) Marks available Essential Resources: • Resources listed on the lecture schedule and on Moodle • The student handbook 1. Research-informed Literature Extent of research and/or own reading, selection of credible sources, application of appropriate

Evolution Of Human Resources Management

548 words - 3 pages CONTRIBUTION OF THE BEHAVIORAL SCIENCES The behavioural science approach is concerned with the social and psychological aspects of human behaviour in organisation. The understanding of human behavior was enhanced by contributions not only from the traditional disciplines of psychology, sociology, and anthropology, but also from social economics, political science, linguistics, and education. The interrelationships of these various disciplines

Human Resources Policies And Practices

2857 words - 12 pages criteria, control and performance management. * SOFT HRM: The soft model of HRM is based upon human relations school and is identified by Storey as involving `treating employees as valued assets, a source of competitive advantage through their commitment, adaptability and high quality. The need to gain commitment of employees, the interests of management and employees should coincide, integration and team work. Resource Management. Storey sees

Human Resource Management

357 words - 2 pages Human Resource Management Roles Abstract Human Resource Management Roles In any facility there is a human resources department. The human resources department has many roles within the company. The roles include doing background checks for new employees, interviewing and hiring for positions, training staff, benefits, making sure the company is in compliance with the federal and state regulations, employee evaluation and

Critical Thinking 3-A

664 words - 3 pages QUASTIONNAIRE The Human Resources Department is structured, organized and equipped to provide overall strategy, direction and effective management of the organization's human resources function to accomplish organizational objectives. 2. Does the senior-level human resources manager report to the same level position as all other major staff and line departments within the organization? _____ 3. Does the senior human resources manager

Human Resource

615 words - 3 pages INTRODUCTION Senior manager in organisations very often do not take into account the human resource perspective when planning the strategic direction of their organisation. Many human resource departments concentrate solely on the operational aspects of human resources. Very often there is too much thought of human resource techniques as ends in them rather than as needing to mesh with broader objectives in organisation terms. Strategic

Paper

333 words - 2 pages internal types of data and organization are organizational purpose, planning, operations, human resources, technical resources and financial resources. The organizational purpose means having a good mission statement, one that the organization can back up with proof because this is their logo that represents them and says to the public what they’re about. Planning is about using current information (data) to plan for what’s next such as people’s needs

Business

311 words - 2 pages deployment and manipulation of human resources, financial resources, technological resources and natural resources. Since organizations can be viewed as systems, management can also be defined as human action, including design, to facilitate the production of useful outcomes from a system. This view opens the opportunity to 'manage' oneself, a pre-requisite to attempting to manage others. The verb manage comes from the Italian maneggiare (to handle

Related Essays

Human Resources Essay

316 words - 2 pages Human Resources Manager Job Duties: * Maintains the work structure by updating job requirements and job descriptions for all positions. * Maintains organization staff by establishing a recruiting, testing, and interviewing program; counseling managers on candidate selection; conducting and analyzing exit interviews; recommending changes. * Prepares employees for assignments by establishing and conducting orientation and training

Human Resources Essay

4695 words - 19 pages Human Resource Management has evolved mainly in accordance to the fact that human resources need to be managed strategically for the firm to enjoy sustainable competitive advantage over competition. Several scholars have noted that managing people is tedious than managing technology or capital (Barney, 1991; Lado and Wilson, 1994). Firms that learn how to manage their human resources well would have an advantage over others in long run since

Human Resources Task 1 Essay

1305 words - 6 pages Human Resources, Task1, Constructive discharge                A constructive discharge occurs when an employee is legally justified in claiming that he was compelled to resign because the employer has made working conditions intolerable (By Gerard E. Dempsey and Janet N. Petsche August 1, 2006).In this situation, an employee resigns because the employer was unresponsive to a harassment complaint. Complaint is about policy requires employees to

Ib Business Human Resources Management

9334 words - 38 pages workers are, the higher the supply of labour tends to be * However, a high degree of geographical mobility, especially between rural and urban areas, can lead to overcrowding and worsened living conditions 2.1.3 – Compare present human resources with future requirements and evaluate strategies for developing future human resources. * HR departments need to calculate future staffing needs to avoid having too few or too many staff, or staff