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HR Score Card
HR Score Card
-SUBMITTED BY
Group 19
K.Dharani
Kavivarma R K
Sravya
EVOLUTION OF HR SCORE CARD
Since its inception in 1992 the Balanced Scorecard has changed and evolved. This
is important as Robert Kaplan and David Norton have managed to keep the
concept fresh and aligned with current management thinking. The downside of
this is that the understanding of the Balanced Scorecard concept varies widely
depending on when individuals learnt about the Balanced Scorecard.
In addition, the names and content of the four Balanced Scorecard perspectives
have changed over the years. Especially the Learning and Growth Perspective has
been developed and refined. In the past companies have struggled with this
perspective and have often renamed it into a Human Perspective to only focus on
staff satisfaction, training and turnover or into an innovation perspective to focus
on future developments. The danger is that companies miss out other important
enablers of future performance.
To address this problem, Kaplan and Norton have articulated what they consider
to be the principal components of the Learning and Growth perspective, namely:
Balanced Scorecard Sub Section: Human Capital (Employees' skills, talent, and
knowledge)
1. Financial Perspective:
The balanced scorecard uses financial performance measures, such as net income
and return on investment, because all for-profit organisations use them. Financial
performance measures provide a common language for analysing and comparing
companies. People who provide funds to companies, such as financial institutions
and shareholders, rely heavily on financial performance measures in deciding
whether to lend or invest funds. Properly designed financial measures can provide
an aggregate view of an organisation’s success.
Financial measures by themselves do not provide incentives for success.
Financial measures tell a story about the past, but not the future; they have
importance, but will not guide performance in creating value.
a. Historical Data:
How did we do last month, last week, this year, last year, and so on?
b. Current Data:
c. Future Data:
From a financial standpoint, the purpose of a business is to create wealth for its
owners. Output measures or historical financial measures help an organization
keep score of how well it is doing at creating wealth. These data are always past-
focused because they are based on events that have already occurred: our net
profit for the year versus last year, our sales revenue this year versus last year,
and our average stock price this month versus last month. These are all measures
of corporate performance that are based on history. Any financial information
that goes into a report to sharehold-ers or other stakeholders would typically fall
into the category of historical data.
Another measure of today’s financial results is the amount of cash the business
has on hand or the total value of its assets as compared with its liabilities. This is
a good measure of an organization’s overall financial health. These types of
financial metrics should answer the question: How are we doing today?
The third type of financial data needed in a complete set of measures is used to
predict the company’s future financial performance. These forecasts are used to
plan for future workload and resource requirements. Another common future-
oriented financial statistic is the amounts invested in research and development
as a ratio to sales revenue or profit.
Organizations often cut back on these costs during tough times, which may cause
them to mortgage their future for the sake of short-term financial gains. Growth
in sales from a particular geographic region or a particular industry may also be
a future-oriented financial statistic if the company is looking to grow into new or
emerging markets.
2. Customer Perspective:
The core measurement group of customer outcomes is generic across all kinds of
organizations.
a. Market share
b. Customer retention
c. Customer acquisition
d. Customer satisfaction
e. Customer profitability.
3.Internal-Business-Process Perspective:
i. Deliver the value propositions that will attract and retain customers in targeted
market segments, and
For incentive purposes, the learning and growth perspective focuses on the
capabilities of people. Managers would be responsible for developing employee
capabilities. Key measures for evaluating managers’ performance would be
employee satisfaction, employee retention, and em-ployee productivity.
Within this core, the employee satisfaction objective is generally considered the
driver of the other two measures, employee retention and employee productivity
Profit Driven
• How must our people learn and develop skills to respond to these and future
challenges?
Balanced score card strategy Mapping:
One of the most powerful elements in the BSC methodology is the use of strategy
mapping to visualize and communicate how value is created by the organization.
A strategy map is a simple graphic that shows a logical, cause-and-effect
connection between strategic objectives. Generally speaking, improving
performance in the objectives found in the Organizational Capacity perspective
enables the organization to improve its Internal Process perspective, which, in
turn, enables the organization to create desirable results in the Customer and
Financial perspectives .
EXAMPLE: STARBUCKS BSC