THE HR/HRD SCORECARD

ASSESSING AND COMMUNICATING THE EFFECTIVENESS OF YOUR HR AND HRD

EFFORTS.
MADE BY: Garima Gupta Gaurav Dwedi Gaurav Saraswat Harsh Sharma Harshi Mehrotra Harshit Khatri

Our Objectives . . .
Introduce the idea of leading indicators as a way to measure HR effectiveness

Describe the power of the HR Scorecard

HR Scorecard process Explore the application/use of the HR Scorecard.

Share the benefits of HR scorecard.

The HR Scorecard
Focuses on leading indicators.
Defines the do and do not. Provides cost savings. Helps HR managers focus on and manage their strategic

responsibilities.
Encourages HR flexibility and change. Determine value of human resource.

Provides a set of metrics.

 The HRD Scorecard tool focuses on four

perspectives:

1.HRD System Maturity

This perspective help us to ensure whether the

HR tools and practices are well implemented and are used properly.Its the duty of the HRD to ensure that the tools and practices are linked with the Business Strategy and that it suits the Organizational Structure.

2.HRD Competence SCORE

The members of the organization should be competent enough. They should posses the competencies as required by the position to

work effectively. The competencies required by each and every individual can be zeroed in with the help of Competency Mapping.

3.THE HR Culture
O- Openness C-Collaborative T-Trustworthiness A-Authenticity P-Proactive A- Affiliative C-Confrontation E-Experimentation

4.Business Linkages with HR

This is where most of the HRDs fail.They simply don't link their objectives and practices with that of the organizational objectives/strategies.The changes that occur to the business with respect to its Vision,Mission,Objectives and strategies should also have a direct impact on HR too.Thus the HR should work in alignment with that of the business

Sample of HR Scorecard
Name of the Organization INSURANCE

HR System Maturity Grade

HRD Competence Score

HRD Culture Grade

Business Linkages Grade

Overall HRD Maturity Rating

B*

C*

AB*CD*

Steps in creating the HR Scorecard

Step 1:

Define the business strategy

Step 2:

Outline the companys value chain

Value chain for The Hotel Paris

Step 3: Outline a Strategy map

Step 4: Identify the strategically required Organizationl Outcomes.

Step 5:
Identify the required workforce competencies

and behaviors.

Step 6:
Identify the required HR system ,polcies

and activities.

Step 7:
Choose HR scorecard measures.

Step 8:
Summarize the scorecard measures in

a Digital Dashboard.

HR Scorecard in use
Several human resources departments, including Verizon and the United States Department of Transportation, have adopted the balanced scorecard as a tool to measure HRs contribution to the bottom line. The scorecard is used to continually monitor HRs activities throughout the organization, determining whether the people management systems create value and help to drive the company towards business objectives

Measuring HRs Contribution

The HR Scorecard
Shows the quantitative standards, or metrics the firm uses to measure HR activities. Measures the employee behaviors resulting from these activities. Measures the strategically relevant organizational outcomes of those employee behaviors.

BENEFITS OF HR SCORECARD
It reinforces the distinction between HR doables and deliverables It enables cost control and value creation It measures leading indicators It assesses HRs contribution to strategy implementation It lets HR professionals effectively manage their strategic responsibilities It encourages flexibility and change

The HR Scorecard Approach to Formulating HR Policies, Activities, and Strategies

examples
Situation: In 1992, Sears, Roebuck and Company was experiencing a difficult condition. The company was losing $3.4 billion annually. Actions: The CEO and the executive team used the balanced scorecard framework to create a culture of feedback and learning by implementing three strategies to make Sears a compelling place to shop (the customer perspective), a compelling place to work (the employee perspective), and a compelling place to invest (the financial perspective). . Results: By 1999, the company had $2.41 billion in operating earnings and it was named the most innovative general merchandise retailer by Fortune.

Situation: After the 2000 merger between GTE and Bell Atlantic, Verizon needed to amalgamate and recalibrate the new HR function with the corporate goals. Actions: Verizons HR function formed a core team that identified goals, pertinent metrics and implemented a balanced scorecard composed of HR metrics that link directly to the organizations business priorities Results: Following the creation of a joint scorecard, HR can explain and defend project and staffing decisions that may be out of the ordinary or counter to perceived strategic necessities. HR leaders now have a tool which supports a focus on tactical excellence while ensuring alignment with business strategy.