Hra Module 2

MODULE 2
HR FRAMEWORKS
PROF. BRIJESH SINGH

DEPARTMENT OF
MBA DBIT,
PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
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HRA Frameworks
• Current approaches to measuring HR and reporting value
from HR contributions, Strategic HR Metrics versus
Benchmarking, HR Scorecards & Workforce Scorecards
and how they are different from HR Analytics, HR
Maturity Framework: From level 1 to level 5, HR
Analytics Frameworks: (a) LAMP framework; (b)
HCM:21 Framework and (c) Talentship Framework, 5
overarching components of an effective Analytics
framework. PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
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Human Resource Evaluation Methods
Common metrics for assessing HR internal
efficiency include: Return on investment. Cost-per-
hire.
Common metrics for assessing HR compliance
include:
• Percentage of employees trained in company policies.
• Salary competitiveness.
• Diversity rate/employee demographics.
• Gender pay gap.
• Number of diversity initiatives.

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• Organizations can collect and make use
of three types of HR
measures: measures of efficiency,
effectiveness and impact. Efficiency
refers to the amount of resources used
by HR programs, such as cost-per-hire.
Effectiveness refers to the outcomes
produced by HR activities, such as
learning from training.
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• The best way to examine HR‘s progress is to compare across time
how HR leaders rate the extent of its activities and the
effectiveness of HR system features, such as the time spent as a
strategic partner and the comprehensiveness of their information
systems. In our prior surveys going back a decade or more, we‘ve
found that the level and effectiveness of HR features has not
changed dramatically. For example, the relative time spent on
strategic partnership vs. HR administration has stayed constant,
although the proportion of leaders saying they have at least an
input role or a leadership role in organization strategy has
increased somewhat, as we wrote in our 2015 book, ―Effective
Human Resource Management: A Global Analysis.‖

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• It is tempting to conclude that because the level of
strategic HR features has remained so constant, then there
has been little change in HR effectiveness. However, we
did observe an interesting pattern when we examined how
different HR features are correlated with HR effectiveness
and organizational performance. These correlations
indicate where improvements in HR features are
associated with these important outcomes. They provide
important clues regarding the potential impact of
improving different elements of HR and insight into where
being highly rated is associated with higher HR
effectiveness and organizational performance.

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• Although the absolute level of HR measurement practices
and effectiveness has been historically stable or slow
moving, over time there is evidence that some of the more
―strategic‖ features are increasingly associated with key
HR outcomes. Yet some more traditional features also
remain strongly associated with key HR outcomes,
suggesting where organizations benefit less from the
evolution toward a more strategic HR approach. It also
appears that the HR function‘s effectiveness may have
benefited more from this shift toward the greater impact of
strategic features, while organizational performance
remains associated with more traditional and ―internally
focused‖ measurement and analytics features and
outcomes.

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How We Measured HR Effectiveness and
Organizational Performance
• We measured organizational performance by taking the sum of
the responses to the question, ―How would you gauge your
company‘s performance, relative to its competitors‖ in these
three areas: ―Societal and environmental sustainability
performance‖; ―HR function performance‖; and ―Overall
company performance‖ on a scale from 1=much below average
to 5=much above average. Note that we began asking the
question about organizational performance in 2010, so the
tables of results for this outcome show only the survey years
since 2010. Next we examined the correlations between
different features of HR organizations and HR performance and
organizational performance.

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What HR Measures: Efficiency, Effectiveness
and Impact
• Organizations can collect and make use of three types of HR measures:
measures of efficiency, effectiveness and impact. Efficiency refers to the
amount of resources used by HR programs, such as cost-per-hire.
Effectiveness refers to the outcomes produced by HR activities, such as
learning from training. Impact refers to the business or strategic value
created by the HR activities, such as higher sales.
• It is common to recommend that HR measurement focus on business
outcomes. This can be incorrectly interpreted to mean that only impact
measures are truly strategic. In fact, just as with the functions of finance,
marketing and operations, a mix of all three types of measures can be
useful, and indeed measuring all three is often required to fully understand
how HR investments affect organizational performance. Each calls for
somewhat different metrics and analytics. They can complement each other
when they‘re used together.
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a
Response scale: 1 = not currently being
considered; 2 = planning for; 3 = being
built; 4 = yes, have now.
b
Based on total score for all twelve
effectiveness items as rated by HR
executives. Empty cells indicate that the
item was not asked in that year.
Significance level: t p ≤ .10, *p ≤ .05,
** p ≤ .01, *** p ≤ .001.
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HR Effectiveness
• The results for the relationship between analytics and metrics used and HR effectiveness
are shown in Table 2. The measurement features are shown in the rows, and the columns
represent different years of our survey. The numbers in the table are correlations, which
can range from -1.0 to +1.0. The higher the correlation, the stronger the relationship
between the measurement feature and the outcome measure (in this case the index of HR
effectiveness).
• Using HR metrics and analytics to drive efficiency, effectiveness and impact are all
significantly related to HR effectiveness in almost all years. The pattern over time
suggests some evolution in the strength of the relationships from efficiency toward
impact. Between 2004 and 2016, measuring the efficiency and effectiveness of the HR
function shows multiple decreased associations with HR effectiveness. This includes
items such as ―measuring the financial efficiency of HR operations,‖ ―measuring the cost
of HR programs,‖ ―cost-benefit analysis of HR programs‖ and ―using HR dashboards or
scorecards.‖ Over the same period, the corresponding correlations have increased for
―measuring the specific effects of HR programs‖ and measuring the ―business impact of
HR programs,‖ ―quality of non-HR leaders‘ talent decisions,‖ and ―business impact of
high versus low job performance.‖ Over time, measuring the efficiency and effectiveness
of the HR function and its services are less associated with HR functional effectiveness,
while measuring the pivotal impact of talent, as well as leadership decision quality, are
more associated with effectiveness.
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• The associations between the use of efficiency, effectiveness and impact
measures and the ratings of organizational performance. Organizational
performance shows a different pattern than we saw above for HR effectiveness.
• Historically, organizational performance has had its strongest association with
HR metrics focused on functional efficiency, benchmarks and HR program
effects. Over time, organizational performance is less strongly associated with
measuring the quality of leader decisions and the pivotal impact of job
performance.
• Despite frequent calls for HR measurements to engage users and drive decisions
outside of the HR function, such activities haven‘t shown an increasing
association with organization performance, yet they do show an increasing
association with HR effectiveness. Perhaps measuring decision quality and the
impact of pivotal performance are just emerging and reveal their effects first as
differentiators of the quality of the HR function. Their impact on organizational
performance may require more evidence of their effects or a more sophisticated
understanding of them by non-HR executives such as corporate boards and
investors.

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HR Effectiveness
• Table 4 shows the correlations of elements of HR measurement
outcomes with the index of overall HR effectiveness.
• Effectively supporting HR functional and operational
contributions showed decreasing associations with overall HR
effectiveness between 2004 and 2016, while effectively supporting
strategy contributions either held constant at high levels or
increased. Notably, effectiveness in every measurement outcome
is consistently associated with HR function effectiveness, so it‘s
important to emphasize that more effective measurement
supporting HR functional and operational contributions does
distinguish effective HR organizations. Still, the notable increase
in many of the items reflecting effectiveness of strategy and
decision support suggests that HR effectiveness will increasingly
associate with these categories.

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a
Response scale: 1 = very ineffective; 2 =
ineffective; 3 = neither; 4 = effective; 5 =
very effective.
b
Based on total score for all twelve
effectiveness items as rated by HR
executives. Empty cells indicate that the
item was not asked in that year.
Significance level: t p ≤ .10, *p ≤ .05, ** p ≤
.01, *** p ≤ .001.
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• Table 5 shows the correlations of HR measurement
effectiveness with ratings of organizational performance.
• It shows a pattern that is similar to the one for HR
effectiveness. Three of the four strategy contribution
outcomes increased their association with organizational
performance from 2010 to 2016, while two of the three HR
functional and operational contribution outcomes
decreased their association with organization performance
over the same time period. The results for organization
performance reinforce the view that measurement
effectiveness in strategy and decision support is emerging
as having stronger associations with success than
traditional measures of functional and operational
outcomes have.
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Conclusions and action steps
• A variety of HR metrics and analytics usage features and
effectiveness outcomes relate to both HR effectiveness and
organizational performance. Enhancing these HR features
and outcomes offer some of the most potent paths to
greater HR and organizational effectiveness, especially
considering that their historical level is only moderate.
• There also is evidence that the strategic use and outcomes
of HR metrics and analytics are increasingly associated
with HR effectiveness and organizational performance.
This is particularly true for HR functional effectiveness,
while the results for organizational performance are more
modest and mixed.
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• HR effectiveness and organizational performance aren‘t the same thing, and
they‘re not perfectly correlated. This means HR leaders face a difficult choice
with respect to what they focus on. They can choose to enhance the more
strategic HR measurement elements to improve the effectiveness of the HR
function, even though it may not have as large an effect on organizational
performance as more functionally focused measurement improvements. Leaders
outside the HR function are likely to encourage HR to improve more traditional
and internally facing measurement features and outcomes, because the
connection to organizational performance is somewhat greater.
• Because the results suggest that both operational and strategic measurement
features and outcomes have some relationship to both HR effectiveness and
organizational performance, we encourage HR leaders to push for key
improvements in both. Moreover, considering the historically increasing
associations between strategic metrics and analytics elements with HR
effectiveness and performance, we encourage HR leaders to improve the
strategic elements in particular. They‘re increasingly associated with HR
effectiveness, and we believe it is only a matter of time before that trend
extends to organization performance.
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MEASURING HR
• Measuring HR‘s performance is an
increasingly important concern for HR
professionals, senior line managers and
CEOs. The challenge of HR
measurement becomes particularly
salient when the CEO and senior
management team ask HR to justify its
contribution to the organization.
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• To respond to this challenge, HR professionals have
routinely relied on benchmarked comparisons of cost
and other efficiency – based performance outcomes
associated with activities of the HR function. But a
reliance on these types of benchmarking measures
not only fails to measure HR‘s important
contributions to firm success, it also can encourage
an approach to human capital management that is
counterproductive.
• Instead, HR professionals should judge their
performance relative to their firm‘s own strategy
rather than the HR efficiency of other organizations.
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9/15/2019 PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
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Measure must reflect HR‟s Value
Proposition
• Primary means is by reducing costs and
becoming more efficient, you have missed
an important opportunity to define the role
of the workforce in the strategic success of
your business.

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MEASURES OF HR’S STRATEGIC
PERFORMANCE MUST FOCUS
INTERNALLY ON UNIQUE,
STRATEGICALLY RELEVANT
CONTRIBUTIONS – NOT
EXTERNALLY ON MEASURES
SUCH AS COST PER HIRE.
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MOVING TO STRATEGIC METRICS
• CLEARLY DEFINE BUSINESS

STRATEGY.
• DRAW A MAP DESCRIBING THE
CASUAL FLOW OF STRATEGY
EXECUTION.
• LINK HR ARCHITECTURE TO THE
STRATEGY MAP.

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Reporting
•Reporting on the
workforce is one of the
HR‘s essential tasks.

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3 Functions of an Human Resources Report
• HR Monitoring. Regular reporting enables HR to keep a finger on the
pulse of the organizations by tracking key workforce metrics. New
trends and opportunities can be spotted early on and emerging
problems can be addressed before they significantly impact the
business.
• Management information. An HR report can also help managers in
doing their job better. An HR report can inform managers about
relevant developments in their teams and department. When, for
example, the marketing department struggles with high turnover and a
high time-to-hire, managers will be more likely to put emphasis on
retaining employees and will be aware of risks like longer replacement
times when someone is about to leave.
• Track problem areas. HR reporting also offers a great way to track key
problem areas in a transparent way. Transparency in turnover rates per
manager will encourage them to pay closer attention to retaining
employees because their own reputation is on the line! By tracking
problem areas, HR can leverage its position to drive improvements.
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How to create an Human Resource Report
• Before you start to create your HR

report, there are a few considerations
to be made about the ‗how‘ and
‗when‘.

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Automated vs. manual
• A lot of organizations still work with ad-hoc data

reports. For example, when a manager or director wants
to know something about the organization‘s workforce,
they ask HR to send them a report. After this request,
the HR data department will work overtime to produce
this report. This is an example of (inefficient and)
reactive reporting. HR reports should be deployed
(pro)actively and should, therefore, be automated.
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Static vs. dashboard
• In line with the previous point, there‘s still a fair amount of organizations that work with
manual/paper reports. This isn‘t necessarily bad: When the information isn‘t prone to change,
paper reports can be quite effective.
• In addition, an email containing a report might be more likely to be seen than an infrequent
update on an HR dashboard. This is simply because people won‘t use dashboards that don‘t
constantly add value, like David Creelman described in his blog on Why you produce HR
dashboards no one will use.
• An HR dashboard, however, offers the possibility to drill down. Turnover may be an

interesting metric, but how much of this turnover consists of regretted loss? You wouldn‘t bat
an eye when a bad performer leaves, but it‘s like shooting yourself in the foot when the one
who leaves is a high performer and potentially senior management material. Interactive
dashboards enable you to drill down into your data and make these observations. You can
either give everyone access to this dashboard or provide the relevant drill downs for everyone
to see.
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• Where the previous dashboards offer simple drill-
downs, more advanced dashboards enable you
to you can predict the future through the
predictive power of machine learning algorithms.
This gives insights into how employees will
behave, for example, which employees are at risk
of quitting. This information could potentially be
of great strategic value.
Note: in this case, the dashboard is merely the
means of displaying the information. The
predictions are made using specialized analytics
tools.
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Hygiene factor
• A final note before I show you an example of the HR report:
HR reporting is often seen as a hygiene factor. This means
that, like hygiene, solid reporting is not appreciated.
However, when someone has bad hygiene (i.e. when
mistakes slip into the reporting) people will notice and
complain.
• This emphasizes the importance of solid reporting. Accurate

reporting is not a nice to have; it’s a must-have. Without it,
HR will quickly lose its credibility.
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• Of course, every HR department should be (extremely)
good at this ‘classical’ reporting level. No discussion.
No debate. Just do it. This level should be the fully
automated, highly effective, super fast, slicing-and-
dicing, easy to read, well-structured, ‘just-click-on-the-
button’ functionality in every organization.
• Not every organization is at the ‘highly effective and

super fast’ bit yet. However, every organization should
be extremely good at doing HR reporting.
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Characteristics of an HR report
• There are several important metrics that need to
be included in an HR report. Note that most of
them are high-level metrics as they provide an
organizational overview. We‘ve published
multiple lists of HR Metrics,
including recruitment metrics and performance
metrics on this platform. These can be used for
specialized dashboards. The most common HR
metrics that are being reported on, include:

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• Seniority
• Sex: Common distinction often used for diversity purposes (see the example
HR dashboard below)
• Age: Age is becoming increasingly important with today’s aging workforce.

Age is often a key focus point for organizations that want to innovate and
reorganize.
• Education level: Educational level should only be included when available and
when relevant for the overarching goals of the organization. Otherwise, it
runs the risk of being a ‘vanity metric’ in the HR report.
• Function type: A metric like function type or function clusters might help to
distinguish different groups within the company. An example could be top
management, middle management, production personnel and support staff.

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• FTE: A Full-Time Equivalent is the hours worked by one employee on a full-
time basis. The number of FTE is often lower than number of total
employees. This holds especially true if there are a lot of part-time workers
present in the organization.
FTE provides an accurate measure of the total workload in the organization.
In addition, people who work less than 1 FTE can be considered part-time
workers.
• Employees Active: This metrics represents the number of employees working

at the organization.
• Turnover: This metric represents the number and/or percentage of

employees who left in the previous period.
• New hires: This metric represents the number and/or percentage of new
employees who joined the organization within the last year.
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• Absence: This metric represents the percentage of time that employees
were absent in the previous period on average. Another representation of
this number is the total days of absence per employee.
• Cost of absence: This metric is not a standard metric but it can make the
previously mentioned absence rate more tangible by attaching it to a
financial number.
• Cost of labor: Labor cost is the total amount of money that an

organization pays to its workforce. This number includes employee
benefits and payroll taxes. Cost of labor can be split up into direct or
indirect costs. Direct costs are the labor costs associated with people
who contribute to the primary process (an assembly line worker).
Indirect costs cannot be traced to a specific level of production (a
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43
security person guarding the fac t o r y ) .
B A NG A L O RE
• Training cost: Training cost represents the total amount
that a company spends on training new hires and the
existing workforce.
• Recruitment cost: Total cost of recruitment efforts, often
includes the costs of external agencies, advertisement
and, sometimes, lost productivity. Entire books have
been written on how to calculate this number. Read for
more information here.
• Time to fill: We‘ve already touched upon time to fill. It‘s
the number of days between a position opening up and a
candidate accepting that position. This metric will vary
significantly between job types: software developers, big
data analysts, and highly qualified salespeople are much
harder to find thanPROF.
entry-level marketers
BRIJESH SINGH, DEPT OF MBA, DBIT,
for example.
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HR reporting pitfalls
HR reporting pitfalls
There are several pitfalls in regards to HR reporting. It‘s important to address these as
they will prevent you from getting trapped in a never-ending reporting cycle.
• Automate your HR reporting: Don‘t try to generate every report manually. This is highly
inefficient and will drain the capacity of your HR data department. All reports described
in this article can easily be automated and auto-generated.
• Provide relevant information: Don‘t try to make everyone happy. If you can make 80% of
the people happy with 20% of the information, that may well be the best solution. Making
an overly complicated dashboard and reporting on irrelevant data may lead to low
engagement with the reports or dashboards and thus lower the impact.
• Fix mistakes: HR data is dirty, and there will be mistakes in your HR report. Fix those
mistakes in the source systems and make sure to help to create procedures that are
beneficial in the accurate input of data.
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How to Decide What Measurements to Use in
HR
• Due to the number of functions that the average HR
department serves, it is not possible to measure everything
that you do. In choosing what to measure, business needs
assessment in your organization will inform you about what
your employees, colleagues, and executives believe are
your most important Human Resource measures.
• A second option is to look at what processes are critical to
your organization‘s success. A third consideration is to
determine which HR processes cost your organization the
most money. A fourth is to determine which human
resources measures will help you most successfully
develop the skills and contribution of your employees.
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• From these factors, develop a doable HR
scorecard, or key performance indicators(KPI) and
begin to establish base measures for each process
you decide to measure. Start with just a few and
don’t overwhelm your time and staff with more
than you can do. It is better to consistently
measure one or two operations than to poorly
use Human Resource metrics in many.
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Examples of What HR Departments Measure
Here are specific examples of factors that Human Resource departments can measure. These are
just a few of the areas that you can consider for the development of your Human Resource metrics.
• Cost per hire
• Time per hire
• New hire failure rate
• Diversity hires in customer-facing positions
• Employee turnover rate
• Employee turnover cost
• Preventable employee turnover
• Applications received per current employees per week
• Percentage of performance development plans or appraisals current
• Cost of training and development activities with respect to company goal attainment
• Employee satisfaction.
• Length of employment.
• Components of the compensation system such as the cost of benefits per employee
The more specifically your HR measures fit your company goals, the better your measurements will
serve you and your organization.

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What Customers Want From HR
• It needs to be independent-minded, in close touch with
the workforce and able to challenge managers when
necessary. Although frameworks of HR policies and
processes are necessary, real strategic value comes from
spotting issues ahead of time and helping managers
address them. Managers and employees want support
from HR people with real professional expertise:
‗people partners‘ who can help them address their
people issues PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
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in the business context.

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1. HR should engage more seriously with finding out what its
customers need and their experiences of current HR services
• HR functions should obtain much more thorough feedback from their internal customers
– line managers, senior managers and employees. This should cover both what they need
from HR, and their user experience of current services. Such feedback, as this study
illustrates, can generate a clear overview – or ‗footprint‘ – of the HR function in a
particular organisation. It can provide fresh insights and help the HR function to focus its
efforts in areas that add value to the business.
• Among the survey sample in this study, only about one-third of managers and a quarter
of non-managers were satisfied with HR services. Although one-third of managers felt
HR was improving, a similar proportion felt it had got worse over the last couple of
years. Non-managers were also about as likely to think that HR had got better as that it
had got worse, although more of them – about half – could see no change in the quality of
HR services.

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• Customers said that they valued an HR function that
was fair, knowledgeable, did not hinder their work
and protected employee interests. The factors in HR
services that turned out to correlate most strongly
with respondents‘ ratings of their satisfaction with
HR were: being well-supported in times of change;
HR giving good advice to employees; being well-
supported in dealing with difficult people or
situations, and HR getting the basics right.
Satisfaction with HR also went hand in hand with
seeing HR as a real strategic partner and as making
an important business contribution.
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2. HR needs to be responsive – clear about what it is there
for and what services it offers; easy to contact; and able
to respond quickly, efficiently and effectively
• HR operates across a wide range of subject areas

(recruitment, performance, reward, development and
so on) and has been changing in the way it works,
and often restructuring its administrative and
advisory services. It is easy for managers and
employees to get confused by the shifting structures
of HR and its strange terminology. Managers and
employees need a clear understanding of what HR
thinks it is there to do, what services it is offering,
and how to access these.
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3. Managers want an independent-minded HR function, which
understands the workforce and can help management balance
employee and business needs
• All the participants in this study saw the HR function

as being there to support the business through
supporting all three of the customer groups we were
investigating. Senior managers were strongly of the
view that HR is there to support employees as well
as managers: ‗HR is there to support the line and
employees in order to support the business‘. Both
managers and employees appreciate the skilled help
HR often gives in resolving serious disagreements or
performance problems at individual level.
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• Effective HR services for employees are seen as supporting, not
diluting, the responsibility of the line for people management. The
ability of HR to coach line managers, especially around managing
performance, is highly valued. All customer groups emphasised
the importance of thorough training for new managers.
• In a much broader sense, managers want an HR function with its
finger on the pulse of what employees are feeling and how well
they are working. Senior managers particularly look to the HR
function to have an independent, and challenging, view of how to
balance the interests of employees with the needs of the business.
They recognize in themselves the temptation to put short-term
management priorities ahead of sustaining positive relationships
with the workforce. They need HR to help them strike the right
balance. So an HR function that is seen as remote from the
workforce loses much of its unique value to business leaders.
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4. Customers do want an HR function with strategic business
impact, but this is about solving problems that are strategically
important for the business, not about separate HR strategies
• The HR community sees itself as on a journey to

becoming more ‗strategic‘ in its influence on the
business. The customers of HR want this too, but their
vision of strategic HR is an essentially practical one.
Being strategic from a management perspective is about
working with the line – at all levels – on people issues or
problems that have a strategic impact on the business.
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5. The customers of HR want a ‘proactive’ HR function,
which spots issues ahead of time and works closely with
managers to address them
• The customers in this study used the word ‗strategic‘ less than HR people do.
They used the word ‗proactive‘ to summarise what they wanted HR to be –
neither too bogged down by inefficient administration nor too remote in an
ivory tower of policy and strategy. Proactive HR would:
• enable managers and employees to do business better by being more closely
involved with tackling people problems and issues
• help to ‗nip problems in the bud’ by spotting them early
• bring in good ideas from outside the business
• be more assertive if managers are flouting policies or codes of behaviour
• coach and train managers to manage and motivate their people better
• work ‗across the business’ to achieve more consistency of people

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management and to develop and deploy people better for the benefit of the
whole organization.

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• Many organizations have been trying to get themselves out of
‘bogged-down’ HR and work towards ‘proactive’ HR over the past
few years. However, this research shows that may have
misunderstood what their customers see as the nature of a more
strategic HR function. If they concern themselves only with HR
strategy documents, process re-design and interactions with top
management, they can drift away into ‘remote’ HR. Even though
they may think they are having strategic impact at the top of the
business, once out of touch with line managers and the
workforce, those in a ‘remote’ HR function have little value to
offer, especially to senior executives.
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6. Customers want professional HR
support from real „people partners‟
• To deliver responsive and proactive HR support, customers want HR people to
be proper professionals in HR. This means having real ‗expertise‘ based both
on theory and evolving good practice, in order to give consistent, fair and
reliable information and advice. HR people also need understanding of the
business context and the workforce perspective, and to be confident and
assertive enough to challenge managers where necessary.
• HR professionalism in this sense includes all the junior HR staff who are often
the telephone front line for enquiries. Many of these roles are no longer
primarily ‗administrative‘, and require increased HR knowledge, understanding
and skills.
• The survey in this study showed that a majority of managers and employees
find HR staff approachable, trustworthy, professional and helpful. A minority
think they are expert, reliable, innovative and easy to get hold of. Satisfaction
with HR services is strongly related to the perceived quality of HR staff,
especially whether they are expert, reliable, understand employee needs, well-
informed and responsive.
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• Managers find the idea of an HR business partner a
natural and attractive one. They do not want
business generalists in these roles, but HR
professionals who also understand the business –
someone with real HR know-how as well as
someone they can work with and who gets to know
them and their staff. Some managers value their
business partners highly but find them rather too
thin on the ground.
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• Looking at what managers have said in this study, one
wonders if the term ‗HR business partner‘ is in itself a
misnomer, born of HR‘s habit of looking at itself from
its own end of the relationship. Looked at from the
managers‘ end, what they want is not really a ‗business
partner‘ at all but a ‗people partner‘: someone with real
expertise who can help them address their people issues
in the business context.

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HR Metrics Benchmarking
• HR professionals can use benchmarking data to
compare their organization against competitors or
similar organizations.
• CEOs and board-level executives depend on

quality benchmarking data to make strategic
decisions that affect their organizations.

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HR scorecards,
Workforce
Scorecards and HR
analytics

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CREATING AN HR SCORECARD
• HR Scorecard lets you do two important things: (1) manage HR as
a strategic asset and (2) demonstrate HR‘s contribution to your
firm‘s financial success. Although each firm will depict its
Scorecard in its own way, a well-thought-out Scorecard should get
you thinking about four major themes: the key human resource
deliverables that will leverage HR‘s role in your firm‘s overall
strategy, the High-Performance Work System, the extent to which
that system is aligned with firm strategy, and the efficiency with
which those deliverables are generated.

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• However, to begin to understand what building an HR
Scorecard requires, let‘s look at that process in a
company we‘ll call HiTech. For the sake of
illustration, we‘ll focus on HiTech‘s R&D function and
explore HR‘s potential role in this unit‘s strategy
implementation model. As in many business units,
R&D at HiTech has profitability goals that hinge on
both revenue growth and productivity improvement—
two important performance drivers.
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DEVELOPING AN HR MEASUREMENT SYSTEM
• IDENTIFYING HR DELIVERABLES.
• HIGH – PERFORMANCE WORK SYSTEM.
• IDENTIFYING HR SYSTEM ALIGNMENT.
• IDENTIFYING HR EFFICIENCY MEASURES.

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CONSTRUCTING THE HR SCORECARD
• The four dimensions—HR deliverables, the High-

Performance Work System, external HR system
alignment, and HR efficiency—that should go
into the HR Scorecard and the reasoning behind
including them.

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The High-Performance Work System
• HR‘s strategic influence rests on a foundation of high-performing
HR policies, processes, and practices. However, given the
conflicting demands that HR managers typically confront, these
professionals need a set of measures that keep the performance
dimension of those HR activities at the forefront of their attention.
Such measures don‘t reflect what is as much as they remind
managers of what should be. Therefore, they can be represented
on the HR Scorecard as simple toggles, indicating
―unsatisfactory‖ or ―satisfactory.‖ Or, they can be included as
metrics along a continPRuOuF. BmRIJE.SH SINGH, DEPT OF MBA, DBIT,
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BASING THE HR SCORECARD ON THE HR
FUNCTION
• Our approach to HR performance measurement has been to adopt as comprehensive a
definition of HR as possible, hence our emphasis on what we call the HR architecture.
This has involved both a somewhat different perspective on ―HR‖ in the firm and some
new ideas about the important dimensions of HR‘s performance. Making the leap from
little or no performance measurement for HR to the concept of measuring the
performance of the HR architecture can be daunting. Some firms may be more
comfortable developing a Scorecard for the HR function as an interim step in this
process. While we believe that the benefits of a more broadly focused Scorecard are
compelling, some very good examples of HR Scorecards in practice have been organized
around the HR function.

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• Well-developed HR Scorecard should allow HR
managers to do a better job of managing HR as a
strategic asset, as well as provide a better demonstration
of HR‘s contribution to firm performance. In
organizations that have not gone through the systematic
development of a strategy map describing strategic
performance drivers and opportunities for HR, it
becomes more difficult to aggregate the relationships
that easily describe HR‘s impact on firm performance.
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GTE HR Linkage Model

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BENEFITS OF THE HR SCORECARD
• It reinforces the distinction between HR do ables
and HR deliverables.
• It enables you to control costs and create value.
• It measures leading indicators.
• It assesses HR‘s contribution to strategy
implementation and, ultimately, to the ―bottom
line.‖
• It lets HR professionals effectively manage their
strategic responsibilities.
• It encourages flexibility and change.
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COST BENEFIT ANALYSES FOR HR INTERVENTIONS
• The company‘s HR Scorecard and planning

processes indicated that they would face a
shortage of midlevel managerial talent as
their business expanded and as a number of
midlevel managers reached retirement
eligibility.
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• In many ways, cost-benefit analysis is a microcosm of the HR
Scorecard framework. Determining which elements of your work
should be ―costed‖ is essentially a strategic task; thus you should
tie it to the firm‘s competitive strategy and operational goals. For
the sake of efficiency, you should also focus this decision process
on only the vital few HR activities that really make a difference.
In other words, the HR Scorecard will help to identify the most
appropriate ―doables‖ and ―deliverables‖ that will become the
focus of a cost-benefit analysis process.

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• Determining the ROI of specific HR
interventions, whether as an end in itself or as a
means of deciding on policies and practices, is
not as difficult as it might first appear.
Nevertheless, it does require some knowledge of
finance, accounting, and the process of capital
budgeting. It also requires a consistent, step-by-
step process.
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OPERTAIONAL VERSUS STRATEGIC COST –
BENEFIT ANALYSIS
• Operational cost-benefit analyses tell you how

to improve activities that the firm already
performs. By costing such activities, the
organization can explore ways to lower
recruiting-related expenses, compare the
advantages of outsourcing the benefits function
versus keeping it in-house, etc.
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• In most cases, cost-benefit analyses of
either kind require the assembly of a
special project team. Moreover, because
you won‘t find the data you need in
your firm‘s financial or managerial
accounting system
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WHICH HR ACTIVITIES SHOULD YOU COST, AND
WHY?
• Strategic importance.
• Financial significance.
• Financial significance.
• Links to a business element of considerable

variability.
• Focus on a key issue, problem, or decision facing

line managers. PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
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THE NEED FOR FINANCIAL SAVVY
• HR managers requesting funds from senior line management
teams encounter much tougher roadblocks than their peers in
manufacturing, operations, and even marketing. Those other
disciplines have a long tradition of quantifying the potential costs
and benefits of their proposed programs and presenting these
estimates in a language that all can understand—money. In
contrast, most human resource professionals have little experience
in quantifying what they do. In a world where numbers push aside
intuition, such managers are at a distinct competitive
disadvantage.
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• First, HR managers need to familiarize themselves with the concepts of finance
and accounting, especially the process of capital budgeting. Organizations use
capital budgeting to decide how to allocate capital among competing
investments. For instance, do we buy a new building or lease space? Do we
expand our production line or move to three shifts? Do we purchase another
company or not? Not only does the capital budgeting process help the rest of
the firm determine its budgets, it also offers a strict discipline for rational
decision making. Moreover, because this process requires managers to think in
terms of the costs and benefits of each project over its entire useful life (as
opposed to just this year), it encourages a longer-term focus on costs and
benefits across multiple time periods. There are a wide variety of resources
available for HR managers wishing to improve their financial literacy—from
college courses to in-house program offerings.
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DETERMINING THE ROLE IN HR: A
THREE STEP PROCESS
• Identify potential costs.

• Identify potential benefits.
• Calculate the ROI of the
program using an appropriate
index.
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THE ROLE OF BENCHMARKING
• Benchmarking studies can be grouped into those that focus on
specific levels of a particular variable or attribute (e.g., What is
our cost per hire relative to other firms in our industry?) and those
that focus on specific processes (e.g., How does Wal-Mart operate
its world-class logistics and distribution system?). Studies that
benchmark levels of an attribute are often conducted via survey
and include large numbers of firms; studies that benchmark
processes generally include only a few firms and tend to be
conducted via site visits or telephone interviews.

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• Benchmark processes can provide a rich source of
information, understanding, and often inspiration. While
some have ridiculed such studies as ―industrial
tourism,‖ we believe that observing exemplary processes
in situ can be a very important learning experience for
teams that have the responsibility for designing and
implementing new processes within their own
organizations. In contrast, we are less enthusiastic about
studies that benchmark levels of a particular variable.
• For benchmarking to help an organization create a long-
term source of competitive advantage, the information
derived from this process would have to be rare, difficult
to imitate, and valued by the firm‘s internal or external
customers.
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• HP‘s management infrastructure relies
heavily on leveraging employee
competencies and talents in new and
different solutions. In this context, the firm
is continuously improving its intellectual
capital, and by the time your firm has
replicated what it learned in the
benchmarking process, HP will have
created new competencies to allow it to
adapt to a new situation.
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• Our ―bottom line‖ is that benchmarking of
key processes can be very helpful,
especially if it can help you learn about new
processes and ways of doing things. And if
the processes to be benchmarked come
from industries other than one‘s own, they
have the potential to grant even more useful
insights. But benchmarking of ―levels‖ of
a particular attribute should be done with
great care, if at all.
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PUTTING IT ALL TOGETHER: AN EXAMPLE
• To grasp the impact of your firm‘s turnover level, you must first have a sense
for the performance levels of the leavers and whether you could have had any
influence over an employee‘s decision to depart. Obviously, turnover among
low-performing employees is desirable. However, in these times of high
employee (and family) mobility and two-career couples, some employees
may
leave a firm for reasons unrelated to their job. In such cases, turnover is outside
your control and may therefore be unavoidable. In fact, most scholars working
in this area believe that there are four distinct categories of employee turnover.
– Undesirable, controllable. Average-to high-performing employees leave, and the firm
missed an opportunity to keep them. This is ―bad‖ turnover.
– Undesirable, uncontrollable. Average-to high-performing employees leave, but the
firm had no control over the situation (e.g., an employee‘s spouse was transferred to a
much better job). This type of turnover is unfortunate, but it is also unavoidable.
– Desirable, controllable. Low-performing employees leave, with your assistance. This is
―good‖ turnover.
– Desirable, uncontrollable. Low-performing employees leave by their own choice. This is
also ―good‖ turnover; however, in this category the firm was not aware of the
employees‘ intentions orPROF.
theirBRIJESH
performance levels and thus had no control over
SINGH, DEPT OF MBA, DBIT,
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the departures.

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PRINCIPLES OF GOOD MEASUREMENT
• Available data—not relevant data.
• Incompletely articulating its causal story.
• This is a typical set of metrics that you would find in a

company that uses measurement to monitor activities
against some standard, particularly cost control.
• The time lag between the customer’s service experience

and buying decisions to be relatively short.

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• A more appropriate model would have had those
process measures driving customer satisfaction,
which in turn would drive financial performance.
This more realistic causal connection would have
given managers actionable results that they
could then use to adjust the implementation of
the call center’s strategy at the appropriate point
in the system.
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WHY BETTER MEASUREMENT?
• A sound performance-measurement system does two things. First, it improves HR
decision-making by helping you focus on those aspects of the organization that create
value. In the process, it provides you with feedback that you can then use to evaluate
current HR strategy and predict the impact of future decisions. A well-thought-out
measurement system thus acts as both a guide and a benchmark for evaluating HR‘s
contribution to strategy implementation.
• Second, it provides a valid and systematic justification for resource-allocation decisions.

HR can‘t legitimately claim its share of the firm‘s resources unless it can show how it
contributes to the firm‘s financial success. An appropriately designed performance-based
measurement system lets you explicate those links and thus lay the groundwork for
investment in HR as a strategic resource, rather than HR serving as a cost-center to be
retrenched.

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THE MEASUREMENT CHALLENGE:
ATTRIBUTES AND RELATIONSHIPS
• Good measurement requires an understanding of and expertise in measuring
both levels and relationships. Too many HR managers under pressure to
demonstrate the HR-firm performance relationship rely on levels of HR
outcomes as proxies for measures of that relationship. In other words, they can’t
show the direct causal links between any HR outcome and firm performance, so
they select several plausible HR measures as candidates for strategic drivers—
and then simply assert their connection to firm performance.
• Even though relationship measurement is the most compelling assessment
challenge facing HR managers today, attribute measures should form the
foundation of your measurement system.

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NUMBERS WITH MEANING
• Measuring relationships gives meaning to the levels, and to
potential changes in those levels. However, those relationships are
very likely to be firm-specific. Therefore, the more the magnitude
(the impact of one measure on another) of those relationships is
unique to your firm, the less useful it is for you to benchmark on
levels. Benchmarking on measurement levels assumes that the
relationships among these levels are the same in all firms, and
hence that they have the same meaning in all firms. That‘s the
same as saying that the strategy implementation process is a
commodity, or at least that HR‘s contribution to that process is a
commodity. For this reason, we find benchmarking on HR
strategic measures to be misguided at best and counterproductive
at worst.

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MEASURES VERSUS CONCEPTS OR VISIONS
• For our purposes, the ―objects‖ in our definition of measurement are a firm‘s HR architecture and
strategy implementation systems. The ―properties‖ of those objects that most interest us are
the value-creating elements in those two systems —in other words, the HR deliverables and the
firm‘s performance drivers that the deliverables influence. We can think of these properties as
abstract concepts, but also as observable measures. First, an organization or top management team
can identify key links in the value-creation chain by taking what we call a ―conceptual‖ or
―vision‖ perspective. For example, the simple relationship between employee attitudes and firm
performance serves as the foundation of the Sears measurement model described earlier. Sears
refined its model further with brief vision statements about the important attributes of each
element in its model. If you recall, the company‘s top management decided that Sears must be a
compelling place to work, a compelling place to shop, and a compelling place to invest (the ―three
C‘s‖). As another, more specific example, a retail bank that we‘ve worked with identified ―superior
cross-selling performance‖ as a key performance driver.

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• Such concepts and visions—let‘s refer to
them collectively as ―constructs‖—are
properties of the strategy implementation
process. However, they are so abstract that
they provide little guidance for decision
making or performance evaluation.

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• Compelling and easy-to-grasp constructs are important
because they help you capture and communicate the
essence of powerful ideas. They‘re like simple but
evocative melodies that everyone can hum. Nevertheless,
they are not measures. Rather, they constitute the
foundation on which you build your measures. Clarifying
a construct is the first step in understanding your firm‘s
value-creation story. But you must then know how to
move beyond the construct to the level of the measure.
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METRICS THAT MATTER
• The measurement process is not an end in itself. It has
value only if its results provide meaningful input into
subsequent decisions and/or contribute to more effective
performance evaluation. Therefore, as you think about
the choice and form of a particular measure, stop for a
moment and think carefully about what you would do
with the results.

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• Nominal Measures. Nominal measures are the lowest level of
measurement and tell us nothing about quantity of a particular
attribute. They simply indicate differences or categorizations across
certain properties. For instance, classifying employees by gender
indicates a difference between males and females. It doesn‘t say
anything about whether one category is ―more‖ or ―less‖ than
the other on the property of gender. Nominal measures are useful
only for counting. Any numbers attached to these categories are
used as labels, as in ―category 1‖ or ―category 2.‖ In HR, gender
counts would most likely be used to assess compliance activities,
such as adherence to EEO policies, but they would have little value
in
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measuring HR as a strategic asset.

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• Ordinal Measures. Ordinal measures represent the next level up of
measurement. They provide the first, but least-sensitive, measure of quantity.
Think of ordinal measures most easily as rank-order assessments. If we know
that A exceeds B on the underlying property in question, we can ―rank‖
A above B. We just don‘t know by how much. In addition, we know that if B is
greater than C, then A is also greater than C. We can say nothing, however,
about how the difference between A and B compares to the difference between
B and C. Rank-order measures are probably most useful in performance
evaluations, such as ―good,‖ ―better,‖ and ―best.‖ Promotion recommendations
provide another apt example: The top candidate is better than the rest, but this
top ranking says nothing about how much better. (Note that for the purposes of
succession planning, this may not matter.)

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• Interval Measures. Interval measures are an
improvement beyond ordinal measures because they let
us assume that the interval between ―scores‖ of 1 and 2
is equal to the interval between 2 and 3. Many common
business performance measures expressed in time,
dollars, units, market share, or any combination of their
ratios are interval measures. For instance, a 1- point
percentage change in market share means the same
number of customers going from 34 to 35 percent as it
does going from 67 to 68 percent. (Note that these
examples are also ratio measures, which we describe
next.) The more common—and purest—form of interval
measure is one of those scales on which ―1‖ means
―strongly agree‖ and ―5‖ means ―strongly disagree.‖
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0
• Ratio Measures. In the cases of distance, dollars, and time
just described, you can see that ratio scales have an
important advantage over interval scales, because they have
a true zero point. This point of reference lets you make
meaningful comparisons between two values. For example,
you could describe one result as two-thirds the quantity of
another result. Ratio measures are also appealing because the
units of measure tend to have inherent meaning (dollars,
number of employees, percentages, time, etc.). Finally, these
measures are relatively easy to collect.
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1
MEASURING CAUSATION
• As with many large investments, you may not realize the
benefits for several years, and even then they might
manifest themselves only indirectly, through improved
levels of performance drivers elsewhere in the firm. Since
HR will always tend to be further upstream in the value-
creation process, measuring the value of human resource
decisions means assessing their impact on strategic drivers
that are linked more closely—if not directly—to the
bottom line.
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• Quantifying these relationships is by no means an
easy task. However, even if you can‘t empirically
verify a five-link chain of causation from HR to firm
performance in your organization, establishing HR‘s
influence on key interim performance drivers (such as
customer retention or R&D cycle time) has clear
financial implications. As HR managers validate an
increasing number of such links, they begin to
establish the central connections between HR and
firm performance. Having systematic and quantifiable
evidence of HR‘s contribution to seven out of twenty
strategic performance drivers, for example, is not the
complete story of HR‘s strategic influence, but it is a
significant improvement over zero out of twenty
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• Terms such as association, correlation, or causation
might come to mind—though they are sometimes used
too loosely and aren‘t always helpful. Two variables are
related when they vary together, but you may not know
for sure that one actually causes the other. You don‘t
have the luxury of arguing over such nuances, though.
You have to make decisions, and your colleagues expect
those decisions to produce results. At some point, your
job requires you to draw a causal inference about the
relationship between a decision and its result. After all,
you‘re not interested in whether a mere ―association‖
exists between a particular incentive system and
employee performance.
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• In short, you need relationship measures that are
―actionable.‖ One of the most common measures of
a statistical relationship is the correlation coefficient.
Ranging from –1.00 to +1.00, correlation coefficients
describe the extent to which two variables change
together. Unfortunately, correlation coefficients have
little actionable value. First, they are not expressed in
units that have any inherent meaning.

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• Second, correlation coefficients typically describe the
relationships between just two variables. Since most
business outcomes have more than one cause, these
measures simply can‘t capture the complexity of real-
world questions.
• The variables ―training time‖ and ―customer

satisfaction‖ might well show a strong positive
correlation.

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• There are many to choose from—but all of them have a
couple of important features. For one thing, unlike the simple
correlations just described, they all measure relationships
from a multivariate, rather than bivariate, perspective. This
means that if you were interested in understanding the
individual effect of a particular HR deliverable on a
performance driver, the measure of that relationship would
accurately reflect the independent effect of that individual HR
deliverable. Moreover, these causal models measure
relationships in actionable terms.
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• Consider the plausible alternatives to
the HR effect you are interested in. For
x to be a cause of y, for example, you
have to be confident that the effect on y
is not due to some influence other than
x. If you can keep those other influences
from varying, your confidence in your
causal inference will increase. You will
also be able to express your inference
in actionable terms.
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IMPLEMENTING YOUR MEASUREMENT
SYSTEM: COMMON CHALLENGES
• OUT WITH THE OLD, IN WITH THE NEW.
• THE TEMPTATION TO MEASURE IT ALL.
• MATCHING DATA TO THE APPROPRIATE LEVEL

OF ANALYSIS.
• SEPARATING LEADING FROM LAGGING

INDICATORS.
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MEASURING AN ALIGHNMENT

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TWO DIMENSIONS OF ALIGNMENT
• Implementing HR‘s strategic role often requires the
involvement of both human resource professionals and
line managers. Indeed, many firms rely on the
participation of line managers to implement the HR
system in a way that reflects the business demands of the
enterprise. At the same time, an organization is not likely
to view HR as a strategic asset if the firm lacks a core
group of human resource professionals who have the
competencies to deliver on that role. Therefore,
alignment along the horizontal axis focuses on the
competencies needed to implement a shared view of
HR’s strategic potential.
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ASSESSING INTERNAL ALIGNMENT
• Measurement can serve another purpose as
well. For managers who want to quickly
assess the potential of their firm‘s HR
system as a strategic asset, a simple measure
of the internal alignment of that system can
help.
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THE SOURCES OF INTERNAL MISALIGNMENT
• Even a simple diagnostic process such

as the one just described can be a
surprising wake-up call for many
human resource managers. It can reveal
that the HR system is sending
conflicting signals about what the
organization values and that it has
failed to support a strategic focus
among employees.
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• Their focus traditionally has been
operational, not strategic and systemic. A
functional specialization in compensation or
development that places little attention on
linkages and that conflicts with other
policies only worsens the situation. What‘s
more, an operational emphasis on
consistency and uniformity often overrides
any concerns about the potential impact of
internal misalignment.
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• HR has a tradition of telling line
managers what they can‘t do, and there is
a long-held belief that HR‘s problems
don‘t affect anything important in the
firm. Today, even though many of these
professionals have embraced the idea of
playing a strategic role, they find
themselves burdened with a misaligned
HR system—a remnant of an earlier
period.
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• Interestingly, misalignment within the HR system can also stem
from too much emphasis on benchmarking. Again, the strategic
elements of the HR system must be developed from a top-down
perspective—meaning from an analysis of the unique
requirements of a firm’s strategy implementation process. When
you benchmark, you look to other firms. This approach
effectively treats practices (and measures) as commodities,
because it assumes that what works in one company will work
in another.
• Specifically, you diminish the value of the component if you
evaluate it in the context of another system that was not
designed for the same purpose as your original system.
Benchmarking may help you understand processes, once you
design your HR system from a top-down strategic perspective.
Nevertheless, too often it becomes the primary input to a
bottom-up developmPeROnF.tBRpIJErSHoScINeGHs, sDE.PT OF MBA, DBIT,
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ASSESSING EXTERNAL ALLIGNMENT
• This is because internal alignment follows from
the external alignment of the HR system—that is,
the extent to which the HR system is designed to
implement the firm‘s strategy.
• Analyze the firm’s strategic drivers and the

relevant HR deliverables that contribute to those
drivers.
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• The HR Scorecard includes a set of
measures designed to assess the
degree of external alignment
between the HR system and the
requirements of the firm’s strategy
implementation process.
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A STEP UP IN SOPHISTICATION: THE
SYSTEMS ALIGHNMENT MAP
• Their advantage lies not so much in their degree of
sophistication, but in their ability to help you focus on the
activity of measurement in general. All of these tools
prompt you to think about how your company‘s HR
system is aligned with the unique demands of the firm‘s
strategy implementation process. Most important, these
simple measures ―align‖ your attention with strategic
rather than operational matters.
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Internal and External Alignment Measures on
Continuum between HR System and Strategy
Map

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• There are more sophisticated measures of alignment available that
capture the subtle interrelationships between the HR system and
employee behavior. The earlier measures focus on individual
elements of the system. They don‘t give you a complete picture of
the overall alignment of the HR system, other than as a sum of the
individual elements. A systemic perspective is essential for figuring
out how to change the system in order to improve alignment. There is
a myriad of interrelationships both within the HR system and
between the HR system and the firm‘s strategy. Whenever you start
fine-tuning any system, you have to think through the possible
unintended consequences of your changes and the ways in which
adjustments may ripplPeROtFh. BrRoIJEuSHgShINGtHh, DeEPsT yOFsMteBAm, DBIaT,nd
beyond.
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Using SAM
• Without it, an organization cannot expect its employees
to have the strategic focus required to implement the
firm‘s strategy. But employees sharpen their strategic
focus only by experiencing the various organizational
systems that guide their behavior. The SAM approach
lets you understand employees‘ perceptions of these
systems.

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To develop a Systems Alignment Map, we recommend the
following steps:
• Identify the key strategic drivers in the
firm.
• Identify the key elements of the HR system
expected to drive strategy implementation.
• Ask a representative sample of employees
to provide a list of paired ―alignment‖
evaluations for all elements you identified
in Steps 1 and 2.

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EMPLOYEE STARTEGIC FOCUS AS A PERFORMANCE
DRIVER: USING SAM METRICS TO MANAGE
PERFORMANCE
• One is overall HR alignment. You can calculate
aggregate distance between the HR system and strategic
goals. More important, you can measure changes in this
kind of alignment over time. You can also use the
aggregate ―me‖ relative to each strategic goal as another
measure of ―employee strategic focus.‖ Again,
measuring changes in these relationships over time is
particularly valuable. Finally, you can calculate ESF
(employee strategic focus) measures at lower
organizational levels, including at the individual level, to
help analyze performance problems.
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• Finally, you can calculate ESF (employee strategic focus)
measures at lower organizational levels, including at the
individual level, to help analyze performance problems.
We don‘t recommend using responses to SAM metrics to
judge employees‘ performance, however. SAM metrics
are self-reported data and hinge on employees‘ providing
honest opinions about strategic alignment within the firm.
If these measures became part of individual performance
evaluations, it would be too easy for employees to report
these data in a self-serving way. Nevertheless, much as
some managers are held accountable for the employee
survey results of their subordinates, ESF metrics could be
used as a measure of performance for managers
responsible for improving the ESF of others.

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COMPETENCIES FOR HR PROFESSIONALS
Transforming the profession.

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HR COMPETENCE
• Competence refers to an individual‘s
knowledge, skills, abilities, or
personality characteristics that directly
influence his or her job performance.
The concept of individual competence
has a long tradition in the managerial
field. Most of this work has focused on
leaders and general managers.
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STRATEGIC HR PERFORMANCE
MANAGEMENT: A NEW COMPETENCY
• Critical causal thinking.
• Understanding principles of good

measurement.
• Estimating casual relationships.
• Communicating HR strategies performance

results to senior line managers.
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Integrating Strategic Performance Management
with the Five Core HR Competencies
• KNOWLEDGE OF THE BUSINESS.
• DELIVERY OF HUMAN RESOURCE

PRACTICES.
• MANAGEMENT OF CULTURE.
• MANAGEMENT OF CHANGE
• PERSONAL CREDIBILITY
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GUIDELINES FOR IMPLEMENTING AN
HR SCORECARD
• Applying change management lessons to the HR
scorecard.
• Leading change.
• Creating a shared need for change.
• Shaping a vision.
• Mobilizing commitment.
• Building enabling systems.
• Monitoring and demonstrating progress.

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• HR Scorecards are not panaceas. They will not cure a
poorly run HR function. However, they do provide a
means by which you can collect rigorous, predictable,
and regular data that will help direct your firm‘s
attention to the most important elements of the HR
architecture. Constructed thoughtfully, the HR
Scorecard will help your organization deliver
increased value to its employees, customers, and
investors. PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
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Workforce Scorecards

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PROF.
BRIJESH 131
SINGH,
DEPT OF
MBA,
DBIT,
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SAMPLE WORKFORCE SCORECARD

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PROF.
BRIJESH 134
SINGH,
DEPT OF
MBA,
DBIT,
BANGALORE
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HR MATURITY
FRAMEWROK:
FROM LEVEL
1
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TO LEVEL 5

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People Capability Maturity ModelSM
• In order to improve their performance, organizations must focus on three
interrelated components—people, process, and technology—shown in
Figure EO.1. With the help of the Capability Maturity ModelSM for
Software (CMMSM) [Paulk95], many software organizations have made
cost-effective, lasting improvements in their software processes and
practices [Herbsleb94]. Yet many of these organizations have discovered
that their continued improvement requires significant changes in the way
they manage, develop, and use their people for developing and
maintaining software and information systems—changes that are not fully
accounted for in the CMM. To date, improvement programs for
software
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organizations have often emphasized process or technology, not people.

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• To provide guidance to organizations that want to improve the way they
address these people-related issues, the SEI has developed the People
Capability Maturity ModelSM (P-CMMSM). The P-CMM is a maturity
framework, patterned after the structure of the CMM, that focuses on
continuously improving the management and development of the human
assets of a software or information systems organization. The P-CMM
provides guidance on how to continuously improve the ability of
software organizations to attract, develop, motivate, organize, and retain
the talent needed to steadily improve their software development
capability. The strategic objectives of the P-CMM are to
– Improve the capability of software organizations by increasing the
capability of their workforce
– Ensure that software development capability is an attribute of the
organization rather than of a few individuals
– Align the motivation of individuals with that of the organization.
– Retain human assets (i.e., people with critical knowledge and skills)
within the organization
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• The P-CMM describes an evolutionary
improvement path from ad hoc, inconsistently
performed practices, to a mature, disciplined, and
continuously improving development of the
knowledge, skills, and motivation of the
workforce. The P-CMM helps software
organizations
– Characterize the maturity of their workforce practices
– Guide a program of continuous workforce development
– Set priorities for immediate actions
– Integrate workforce development with process improvement
– Establish a culture of software engineering excellence
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• The P-CMM is designed to guide software organizations in
selecting immediate improvement actions based on the
current maturity of their workforce practices. The benefit of
the P-CMM is in narrowing the scope of improvement
activities to those practices that provide the next foundational
layer for an organization‘s continued workforce development.
These practices have been chosen from industrial experience
as those that have significant impact on individual, team,
unit, and organizational performance.

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The P-CMM includes practices in such areas as
• Work environment
• Communication
• Staffing
• Managing performance
• Training
• Compensation
• Competency development
• Career development
• Team building
• Culture development
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Structure of the P-CMM
• As organizations establish and improve their people management
practices, they progress through five levels of maturity. Figure
EO.2 depicts these five levels, each of which provides a layer in
the foundation for the continuous improvement of an organization‘
s workforce practices. Each maturity level is composed of several
key process areas (KPA) that identify clusters of related workforce
practices. When performed collectively, the practices of a key
process area achieve a set of goals considered important for
enhancing workforce capability. Achieving each maturity level in
the P-CMM institutionalizes new capabilities as a result of an
organizational improvement program, resulting in an overall
increase in the workforce capability of the organization. Growth
through the maturity levels creates fundamental changes in how
people are managed and the culture in which they work.

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• In maturing from the Initial to the Repeatable level, the organization
installs the discipline of performing basic practices for managing its
workforce. In maturing to the Defined level, these practices are
tailored to enhance the particular knowledge, skills, and work
methods that best support the organization‘ s business. The core
competencies of the organization are identified, and workforce
activities are aligned to support the development of these
competencies. In maturing to the Managed level, the organization
uses data to evaluate how effective its workforce processes are and to
reduce variation in their execution. The organization quantitatively
manages organizational growth in workforce capabilities and, when
appropriate, establishes competency-based teams. In maturing to the
Optimizing level, the organization looks continually for innovative
ways to improve its overall talent. The organization is actively
involved in applying and continuously improving methods for
developing individual and organizational competence.

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• A number of improvement themes course through
the P-CMM. These themes help organize an
understanding of the structure of the model and
the relationships among the key process areas
within the P-CMM. As shown in Figure EO.3, the
key process areas are mapped to four process
categories. The four themes of these process
categories are
• developing capabilities
• building teams and culture
• motivating and managing performance
• shaping the workforce
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• The P-CMM has been designed to be coupled with a
CMM-based software process improvement program.
However, it can be used on its own to guide
improvements in the workforce practices of an
organization. The P-CMM can be used to guide an
assessment of the workforce practices of an organization,
and the SEI is piloting an assessment method. However,
the use of the P-CMM should been done in conjunction
with those in an organization who have expertise in
workforce
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HR MATURITY FRAMEWORK FROM LEVEL 1 TO
LEVEL 5
The five stages of maturity
Organizations today have an appetite to grow. As a result, HR professionals have had to
play a critical role to attract and scale talent within these organizations. Skills oft‘s five-
stage maturity model clearly demarcates the different stages that HR professionals need
to go through to evolve their talent management and learning practices, with
transformation being a crucial, separate stage.
• In the first stage, learning and talent are two distinct processes which operate in silos.
This stage is marked by an organizational culture that is conventionally hierarchical and
less collaborative in nature. There is also a high probability that learning and talent
functions run on two completely different platforms, isolating one‘s journey from the
other. This stage‘s reactive approach makes the learning function significantly less agile.
This stage is around HR conforming to meet a set of objectives.
• ―The Stage Two organization is called the target organization,‖ says King. ―Here the
HR functions start to understand that there are pathways they can create between
learning and talent management processes.‖ This is the stage where executives begin to
show more interest in raising employee engagement by linking learning and talent
management. Learning and HR heads also initiate a more proactive relationship with the
business to understand the business problems better and create plans accordingly.

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• The third stage is a transformative period. At this stage the organization gets rid
of the compartmentalization of learning and HR activities, to make more holistic
processes that increase employees‘ engagement and motivation. This stage also
represents a shift from the ‗command and control‘ type of management and puts
employees in the driver‘s seat to allow them to chart their own career paths.
• Stage four is referred as the continuous stage. The company has undergone
transformation and people management practices are relatively stable.
Employees have higher engagement levels and are motivated to perform well.
As King puts it, ―In this stage, learning and talent experiences are
cohesive, continuous and personal.‖ The workforce culture is responsive and
adaptive to change. HR operates as talent architect with a greater contribution to
business productivity.
• Fully mature, stage five organizations have become self-developing
organizations. At this level, the business fully empowers individuals to take
control of their own development and career trajectories and, as a result, attracts
the best talent in the market. The HR team in this stage has well-established
long-term and short-term strategies. They now have the ability and budget to
create world-class employee experiences which are not isolated to talent
management or learning, but consider the end to end experience.
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• An organization's maturity is often a critical factor in implementing
a learning management system (LMS). A clear understanding of
HR‘s current maturity level helps organizations reassess their
position and create a growth strategy that aligns with their needs.
With market forces today forcing firms to rapidly morph their

business models, HR is consequently undergoing a massive
transformation on all fronts. And so has been the tale of most
companies, irrespective of their size, their industries and their
modes of operation. Forces of volatility, uncertainty, complexity
and ambiguity (VUCA) have had an impact across the board. The
L&D departments in most companies have not escaped.
Understanding their current maturity levels and integrating talent
management and learning functions would help HR professionals
contribute to business productivity more effectively.

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Key Process Areas at the Repeatable Level
The key process areas at the Repeatable level focus on establishing basic
workforce practices and eliminating problems that hinder work performance.
Descriptions of each of the six key process areas at Level 2 are presented below:
• Work Environment is designed to establish and maintain working
conditions that allow individuals to concentrate on their tasks without
unnecessary or inappropriate distractions. Work Environment involves ensuring
that an appropriate work environment exists, that the work environment
complies with all applicable laws and regulations, that improvements are made
that will enhance performance, that impediments to performance are removed,
and that distractions are minimized.
• Communication is designed to establish a social environment that supports
effective interaction and to ensure that the workforce has the skills to share
information and coordinate their activities efficiently. Communication
involves establishing effective top-down and bottom-up communication
mechanisms within the organization, and ensuring that all individuals have the
necessary communications skills to perform their tasks, coordinate effectively,
conduct meetings efficiently, and resolve problems.

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• Staffing is designed to establish and use a formal process by which
talent is recruited, selected, and transitioned into assignments in the
organization. Recruiting involves identifying the knowledge and skill
requirements for open positions, motivating all individuals to seek out
qualified candidates, announcing the availability of positions to likely
sources of candidates, and reviewing the effectiveness of recruiting
efforts. Selection involves developing a list of qualified candidates,
defining a selection strategy, identifying qualified candidates,
thoroughly evaluating qualified candidates, and selecting the most
qualified candidate. Transitioning involves attracting selected
candidates, orienting them to the organization, and ensuring their
successful transition into their new positions.
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• Performance Management is designed to
establish objective criteria against which unit and
individual performance can be measured, to provide
performance feedback, and to enhance performance
continuously. Performance Management involves
establishing objective criteria for unit and individual
performance, discussing performance regularly and
identifying ways to enhance it, providing periodic
feedback on performance, identifying development
needs, and systematically addressing performance
problems or rewarding extraordinary performance.

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• Training is designed to ensure that all
individuals have the skills required to
perform their assignments. Training
involves identifying the skills required to
perform critical tasks, identifying training
needs within each unit, and ensuring that
needed training is received.
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• Compensation is designed to provide
all individuals with remuneration and
benefits based on their contribution and
value to the organization.
Compensation includes developing a
documented compensation strategy,
developing a plan for administering
compensation, and making periodic
adjustments to compensation based on
performance.
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Key Process Areas at the Defined Level
• The key process areas at the Defined
level address organizational issues, as
the organization tailors its defined
workforce practices to the core
competencies required by its business
environment. Descriptions of each of
the six key process areas for Level 3 are
given below:
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• Knowledge and Skills Analysis is designed to identify the
knowledge and skills required to perform core business processes
so that they may be developed and used as a basis for workforce
practices. Knowledge and Skills Analysis involves identifying the
business processes in which the organization must maintain
competence, developing profiles of the knowledge and skills
needed to perform these business functions, maintaining a
knowledge and skills inventory, and identifying future knowledge
and skill needs.
• Workforce Planning is designed to coordinate workforce
activities with current and future business needs at both the
organizational and unit levels. Workforce Planning involves
developing a strategic workforce plan that sets organization-wide
objectives for competency development and workforce activities,
and developing near-term plans to guide the workforce activities of
each unit.
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• Competency Development is designed to constantly enhance the
capability of the workforce to perform their assigned tasks and
responsibilities. The core competencies identified in Knowledge
and Skills Analysis and Workforce Planning provide the foundation
for the organization‘s development and training program.
Competency Development involves establishing training and other
development programs in each of the organization‘s core
competencies. Development activities are designed to raise the
level of knowledge and skill in the organization‘s current and
anticipated core competencies.
• Career Development is designed to ensure that all individuals
are motivated and are provided opportunities to develop new skills
that enhance their ability to achieve career objectives. Career
Development includes discussing career options with each
individual, developing a personal development plan, tracking
progress against it, identifying training opportunities, and making
assignments that enhance career objectives.
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• Competency-Based Practices is designed to ensure that all
workforce practices are based in part on developing the knowledge
and skills of the workforce. Competency-Based Practices involves
recruiting against knowledge and skill needs, basing selection
methods on assessing the knowledge and skills of candidates,
assessing job performance against the tasks and roles assigned to
the position, and basing compensation at least in part on growth in
knowledge and skills.
• Participatory Culture is designed to ensure a flow of
information within the organization, to incorporate the knowledge
of individuals into decision-making processes, and to gain their
support for commitments. Establishing a participatory culture lays
the foundation for building high-performance teams. Participatory
Culture involves establishing effective communications among all
levels of the organization, seeking input from individuals, involving
individuals in making decisions and commitments, and
communicating decisiPoROnF.sBRtIJoESHthSINeGmH, D.EPT OF MBA, DBIT,
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Key Process Areas at the Managed Level
• The key process areas at the Managed
level focus on building competency based
teams and establishing a quantitative
understanding of trends in the
development of knowledge and skills and
in the alignment of performance across
different levels of the organization.
Analyses of the five key process areas at
this level are highly interdependent, as
described below:
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• Mentoring is designed to use the experience of the
organization‟s workforce to provide personal
support and guidance to other individuals or groups.
This guidance can involve developing knowledge
and skills, Improving performance, handling difficult
situations, and making career decisions. Mentoring
involves setting objectives for a mentoring program,
designing mentoring activities to achieve these
objectives, selecting and training appropriate
mentors, assigning mentors to individuals or groups,
establishing mentoring relationships, and evaluating
the effectiveness of the mentoring program.
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• Team Building is designed to capitalize on opportunities to
create teams that maximize the integration of diverse knowledge
and skills to perform business functions. Team Building involves
matching potential team members to the knowledge and skill
requirements of the team, training all new members in team skills,
defining objectives for team performance, tailoring standard
processes for use by the team, and periodically reviewing team
performance.
• Team-Based Practices is designed to tailor the organization‟s

workforce practices to support the development, motivation, and
functioning of teams. Team-Based Practices involves ensuring that
the work environment supports team functions, setting
performance criteria and reviewing team performance, involving
team members in performing workforce activities, and reflecting
team criteria in individual compensation decisions.
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• Organizational Competency Management is
designed to increase the capability of the organization
in its core competencies and to determine the
effectiveness of its competency development activities
in achieving specific competency growth goals.
Organizational Competency Management involves
setting measurable goals for growth in the
organization‘s core competencies, defining and
collecting data relevant to them, analyzing the impact
of competency development activities on achieving
these goals, and using the results to guide the
application and improvement of competency
development activities.
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• Organizational Performance Alignment is designed
to enhance alignment of performance results at the
individual, team, unit, and organizational levels with
the appropriate goals and to quantitatively assess the
effectiveness of workforce practices on achieving
alignment. Organizational Performance Alignment
involves setting measurable goals for aligning
performance at the individual, team, unit, and
organizational levels, defining the data and analyses,
collecting the data, analyzing trends against objectives,
acting on exceptional findings, analyzing the impact of
people-related practices on performance alignment,
and reporting results.
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Key Process Areas at the Optimizing Level
• Personal Competency Development is designed to provide a
foundation for professional self development. Personal Competency
Development consists of a voluntary program for continuously
improving individual work processes. This program involves
developing goals and plans for personal work activities, establishing
and using defined personal processes, measuring and analyzing the
effectiveness of these personal processes, and implementing
improvements to them.
• Coaching is designed to provide expert assistance to enhance the
performance of individuals or teams. Coaches engage in close
relationships with individuals or teams to guide development of skills
that improve performance. Coaching involves selecting appropriate
coaches, analyzing data on personal or team performance, providing
guidance on methods for improving performance, and evaluating
progress toward goals for improving performance.
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• Continuous Workforce Innovation is designed to
identify and evaluate improved workforce practices and
technologies, and implement the most promising ones
throughout the organization. Continuous Workforce
Innovation involves establishing a mechanism for
proposing improvements in workforce activities,
identifying needs for new practices and technologies,
surveying and evaluating innovative practices and
technologies, conducting
• exploratory trials of new practices and technologies, and
• implementing the most beneficial ones across the
organization.

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HR
ANALYTICS
FRAMEWORK
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LAMP FRAMEWORK

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• In financial measurement, it is certainly important to
measure how the accounting or finance department
operates. Measures such as transaction processing
time, benchmark staff levels, etc. are important for
internal functional control. However, the vast majority
of measures used for financial decisions are not
concerned with how finance and accounting services
are delivered. Very few financial measures tell line
managers about how the finance department conducted
its activities. Financial measures typically tell how
well those line managers made decisions about
financial resources.

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• In HR today, the dominant paradigm remains one of
service delivery. The HR profession describes itself in
terms of its functional services (rewards, staffing, training,
benefits, etc.). The dominant framework for working with
business leaders and other constituents is based on
determining what HR services they need or want, and their
satisfaction with those services. So, it should be no
surprise that most HR measures today focus on how the
HR function is using and deploying its resources, and
whether they are used efficiently. Cost-per-hire, time-to-
fill-vacancies, cost-per-training-hour, etc. are all examples.
It is not unusual to see line managers held accountable for
these efficiency-based measures, even when their
connection to organization effectiveness is unknown.
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• The paradigm shift toward the Talentship
decision science requires future HR to model
itself more closely against decision-based
functions like Finance and Marketing, that are
accountable for improving decisions throughout
the organization about their respective resources
(Boudreau & Ramstad, 1997; 2004). Their
measurement systems are designed to direct key
decision makers to focus on the relevant
information. Their systems hold decision makers
accountable for the quality of their decisions
about financial or marketing resources.
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• In the same way, HR measurement needs to
extend its traditional focus on the HR
function, and increase its capability to
support key decisions about human capital
that drive organizational effectiveness. That
requires a framework for connecting those
investments to organizational effectiveness.
With such a framework we can begin to
identify where the potential for increased
decision support may lie in HR measures.
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• The paradigm shift toward a talent decision science is a
fundamental reason why today‘s HR measurement
initiatives hit the wall. In this article, we propose that we
can understand how HR can move beyond the wall by
using a framework that we have labeled the ―LAMP‖
model. The letters in LAMP stand for four critical
components of a measurement system that drives
strategic change and organizational effectiveness. The
letters stand for ―Logic,‖ ―Analysis,‖ ―Measures‖ and
―Process‖. Measures represent only one component
of this system. Though they are essential, without the
other four components they are destined to remain
isolated from the true purpose of HR measurement
systems.
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• Consider the concept of return on
investment, ROI. It suggests that decisions
about allocating monetary resources should
consider: (1) The inflow of returns produced
by that allocation; (2) The offsetting
outflows of resources required to make the
investment; (3) How the inflows and
outflows occur in each future time period;
and (4) How much what occurs in future
time periods should be ―discounted‖ to
reflect greater risk and price inflation.
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• These factors come together in an elegant formula that
produces an ROI number when the values of each
factor are plugged in. ROI is an example of one
decision logic from a very highly-evolved decision
science -- Finance. What is often forgotten is that ROI
is not a number. It is a logical framework for
identifying the important elements of investments and
integrating them in a way that enhances decisions.
With appropriate data, ROI can be calculated, but its
more fundamental contribution is to provide a logical
framework that identifies the critical variables, and
allows decision makers to think and communicate
more clearly about their decisions.
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• Assumptions about inflows, outflows and discount rates
are easily compared, even when data is sparse.
Discussions about the relative value of investment
alternatives are less emotional because the framework
guides them. The logic of ROI is an essential element
of its power for decision support. Without the ROI
logic, even if you were given perfect data for all the
factors of the ROI calculation, it is unlikely that you
would invent ROI. In fact, ROI is a 20th century idea,
despite the fact that accounting is hundreds of years
old. Logic, even without perfect data, is a powerful
component of organization change.

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• In HRM we do not have decision support
frameworks as elegant as ROI, and simply applying
ROI logic to HR investments is not the answer. The
ROI components are not available for most HR
decisions, and the ROI framework really doesn‘t
focus on the right questions for HR investments,
because it was developed for financial investments.
However, we can learn much from the elegance and
value of the ROI formula. Even relatively simple
frameworks are valuable when they help clarify the
connections between the array of factors affecting a
decision and the outcomes of that decision. One such
framework is HC BRidge®.
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How to Use LAMP to Find the
Measurement “Sweet Spots”
• Too often, organizations attempt to apply
measurement systems across to the entire employee
population, across the board. Examples include
attempting to get very precise headcount or attitude
data across all businesses, countries and product
lines. This often entails massive investments in data
systems and measurement interfaces, and often
requires measurement efforts in areas where the
payoff is small. It can cause resentment among HR
clients who perceive the measurement process as a
waste of time and energy.
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• More progressive organizations aim measurement efforts where
they have the most potential impact on decisions. Undoubtedly,
headcount fluctuations in some talent pools are crucial, if those
talent pools are vital to strategic success, and where fluctuations in
headcount are highly disruptive. HR leaders and managers in these
areas should be held accountable for carefully monitoring
workforce levels. Similarly, employee attitudes are more crucial in
some talent pools than others. For example, some organizations
have directed their efforts to deeply understand employee attitudes
toward talent pools that interact with customers directly, on the
premise that positive employee attitudes in these areas are most
likely to result in strong customer responses (Rucci, Kirn &
Quinn, 1998). When guided by a framework like LAMP,
measurement efforts take on more significance, and measurement
investments can be targeted more rationally.

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• Effective HR measurement systems must integrate and balance all the
elements of the LAMP framework. Every element plays its part, but is
best when used in concert with the other elements. Over-emphasizing
Logic can create frameworks that are too abstract for action, or
impossible to measure and analyze. Over-emphasizing Analytics can lead
to wasted time and energy on analyses that are technically rigorous but
have little connection to real issues and little effect on decisions.
Overemphasizing measurement can lead to information overload, with
ever more elegant measurements achieving little additional relevance.
Overemphasizing the change Processes can lead to misguided energy and
enthusiasm directed toward objectives that cannot be measures and may
not be relevant. Frameworks like LAMP can provide diagnostic logic to
help avoid information overload and be more certain that HR
measurement efforts will actually affect organization change. The exhibit
below shows some diagnostic questions suggested by the LAMP
framework. These questions can help HR leaders find the ―sweet spots‖
where measurement efforts can drive organizational change.
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• We have noted that the ever-increasing array of
available HR measures and data analysis technologies
creates a very real risk that HR measurement efforts
collapse under their own weight. Information overload
is probably a much larger danger than information
scarcity, in today‘s HR world. The answer to this danger
lies in moving beyond traditional models of HR as
exclusively service delivery, and beyond approaching
HR measurement merely as a way to construct more and
more HR measurements. Talentship emphasizes HR as a
decision science, and enhanced decisions drive
organization change and effectiveness. By combining
Logic, Analytics, Measures and Process, HR and
business leaders can vastly increase their chances of
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HCM:21 FRAMEWORK
• Executes a strategic scan of the external forces and
internal factors that can affect the three fundamentals
of an organization: human, structural, and relational
capital. Human capital is your employees. Structural
capital is the things you own, ranging from patents
and copyrights, to software programs and codified
processes, to physical facilities and equipment.
Relational capital is the knowledge and contacts you
have with external stakeholders, which includes
everyone who is touched by your organization—the
list can be quite long.
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Scan the Market,
Manage the Risk

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Externally, the forces can include at
least the following:
• Industry trends
• Competitors
• Brand reputation
• Technological advancements
• Regulations and laws
• Regional, national, and global economic situation
• Globalization demands
• Customer demands and interests
• Supplier capacity
• Materials quality, prices, and availability
• Labor supply
• Job applicants
• Educational institutions
• Stockholders

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There are also internal matters that might affect the organization‘s
ability to manage effectively. The inside list includes factors that need to
be reviewed in light of recent market trends. The list can include:
• Vision
• Values
• Culture
• Leadership
• Management wisdom
• Mission-critical retention rates
• Engagement levels
• Facilities and equipment
• Product life cycles
• Employee brand awareness
• General turnover levels
• Skills and capability levels
• Financial capability
• Ability to enter new markets
• Quality, innovation, productivity, service (QIPS) levels

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• Figure 3.1 is an outline or template, in the form of a
matrix, for a strategic scan of an organization‘s
environment. It is not all-inclusive; in practice, the list
of forces and factors that management generates can be
much larger. Still, this matrix shows the range of effects
likely to be relevant to your organization. By using this
matrix, you can see the connections and influences
across various cells. Management acknowledges
superficially that everything in an organization is tied
together; however, the interrelationships are often
downplayed. Focusing on these interdependencies is the
first place where our model brings in the critical
concept of integration.
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• Look at the template. Do you see how people and facilities
interact? How obvious is it that technology affects both employees
and customers? Only after you take this initial step can you begin
to plan for the future. Otherwise, you are operating like Lewis and
Clark, exploring an unknown territory. Every morning, you will
wake up wondering what danger will be lurking over the next hill.
• You might have noticed that, among the items listed as ‗‗internal
factors,‘‘ is brand. Although brand is a separate factor, in actuality,
a CEO‘s vision, culture, and brand must overlap and function in a
single, integrated manner. Obviously, a CEO‘s vision drives the
corporate culture; in turn, culture and brand correlate. If your
brand stands for high quality, great service, or precision, then your
culture must personify that. A loose culture cannot provide great
service or high-quality products. Additionally, culture and brand
are made visible in the way you design and maintain work spaces
(structural capital). Product quality is certainly dependent on good
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• The more you examine the matrix, the
more you will understand how
interdependent everything is within an
organization. Ironically, companies work
against that concept as they set up
separate silos for functions and reward
departments for their performance—
performance that may or may not
support the overall effectiveness of the
organization.
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Disruptive Technologies Bring Change
• Consider the health-care debate in America
today. All parties, from providers to insurers
to the government, have a stake in any
changes to be made in our health-care
delivery system, especially how to curb the
steadily rising costs while expanding health
care to all people. Providers want to do the
best job they can, while limiting their liability
for errors.

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• The old model doesn‘t work because it is
inherently inefficient. Hospitals have
always run on a cost-plus model. That is no
longer feasible, for several well-known
reasons. So, how do we disrupt the model?
Disruption seldom comes from inside,
where all the vested interests lie. It intrudes
from outside, where fresh visions are born.
In this case, we need a vision from outside
of new ways to manage inside costs.
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• This management model for human
capital development is an integrated,
comprehensive approach that aligns
each HR function with the business
vision, values, and plan, as well as with
each other HR function.
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• The vision was to provide objective data about
human resources services so that management
could make better business and personnel
decisions. The model was to focus exclusively
on data collection and management, and pass
up opportunities to become involved in
recruitment, compensation, or training.

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• The point that if you see an
opportunity, and you build a
vision and model around it, you
will generate a competitive
advantage that will be difficult for
others to upset.

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• HCM can be integrated only if we think
beyond HR processes. We must initiate a
broad study of the marketplace, using
advanced analytic tools to operationalize a
new strategic model. So often we get lost in
a problem, unable to see outside of it. This
leads to patchwork, short-term tactical
reactions rather than insightful, long-term
solutions. Even when we put out the fire,
the embers will reignite with the next day‘s
crisis.
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• workforce planning focuses on matching the staffing
requirements in business plans with the available labor
pool and the expected growth and changes in staff owing
to transfers, promotions, and departures of various types.
From there, a staffing plan is developed for filling the
holes. Unfortunately, quite often there is little
coordination or planning between staffing and
development. Siloed thinking minimizes the value of
anticipating future outputs. This is industrial-era thinking
that is essentially nothing more than truncated gap
analysis. HCM:21 overrides this, once and for all time
by providing the means for capability planning.

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• HCM:21‘s capability planning process is a
new mental and physical technology. It is
mental in that it fosters a different mindset,
with the focus on knowledge and skill, not
on job descriptions that will soon be
obsolete. It is physical in that the operating
system includes formulas and materials for
carrying out the model in practice. A
workbook is available with instructions and
spreadsheets for implementing this model.
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• With capability planning, the focus is on
the success of the organization. Your
conclusions and recommendations are
driven by the data you collected in the scan
and your risk assessment. Remember,
capability planning is a live, ongoing
program. It doesn‘t happen once a year and
then shut down, the way workforce
planning does. Your organization must
function at a high level, no matter what the
future may bring.
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The Segmentation of Skills
• Capability planning starts with skills
segmentation. While all people are
important, all skills are not of equal
importance. Treating the workforce
like a monolith is absurd and costly.
Instead, subdivide the workforce into
four categories, in terms of valued
capabilities:
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• 1. Mission Critical. A few capabilities are absolutely key to
ongoing success. If you think about it you know what these
are. They can relate to technology, leadership, finance, sales,
production, or anything else that represents a make-or-break
situation. The question is, do you currently have sufficient
mission-critical capabilities in place? Do you have backups
being developed? This is where you start capability planning.
• 2. Differentiating. Given your current or desired future
market position, which capabilities separate your
organization from the competition? These can be unique
technical, financial, service, or other skills and knowledge
that only your organization has or needs to acquire. These
often augment the mission-critical capabilities, but are not
identical.

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• 3. Operational. Certain skills are necessary to keep the
operation going. These are often characterized as
administrative and maintenance, but also include technical
skills. At times they are taken for granted or ignored. They
need to be reviewed as insurance, as their absence would
reduce efficiency, impair timely response to customer needs,
and increase operating costs.
• 4. Movable. As markets, customers, and products change,
some skills become less important or even obsolete.
Companies sometimes forget this and allow these to remain,
causing operational expenses to build. This situation became
such a massive problem in the 1980s that American
businesses had to lay off 3 million people to regain
competitive cost structures. People in these positions need to
be retrained, reassigned, or let go, and the processes
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• Changes in technology, customers, market niches,
competition, or other forces signal this need to
develop new capabilities. At this initial point, you
are better able to build the scenarios for planning,
acquiring, deploying, developing, and retaining
those new capabilities. Scenarios are stories or
scripts that spell out potential future events. They
can be best-case, worst-case, or probable case
scenarios offering a range of alternatives. In
short, if you have several different views of how
the future may unfold, you can better prepare for
the eventualities.
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Succession Planning
• Executive succession is a great
concern for boards of directors,
especially since the dotcom
crash. Many companies have a
senior management cadre that is
ill prepared for its
responsibilities.
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• Too often succession plans, when they exist,
are not up to date and not relevant. The
people responsible for succession planning
do not always have an eye toward the future.
And management development cannot be
based on past experiences alone. By the time
managers have a chance to put into play
what they have learned, the procedures may
be two to four years old. Also, managers
often fail to recognize that the future seldom
follows the forecast.
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Given these findings, we have developed an advanced
succession planning system built around four imperatives:
• 1. Responsibility. Assign a senior executive the primary
responsibility for managing the system. This person
must have the organizational power to keep the system
on track and people being developed according to the
needs of the organization and the prescribed plan.
• 2. Identification. Identify high-potential managerial and
technical personnel as far down the organization as
possible. As organizations become more complex, every
manager and professional will be delegated greater
discretionary power and faced with higher-risk
decisions.
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• 3. Design. Develop personal growth programs, and
review and update the Hi-Pos‘ progress at least
annually. Strategic capability implies that these people
be exposed to a broad range of on-the-job experiences,
as well as formal learning opportunities. Because the
market is moving so rapidly, continual review and
revision are necessary.
• 4. Effectiveness. Monitor advancements and their effect
on top-line growth and accelerate development where
necessary. All development plans link up with the
organization‘s strategic goals. Development is not about
training; it is about sustained capability in the form of
people who are intently knowledgeable and focused on
purpose.
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• Although a senior executive is responsible for management
of the succession planning system, ultimately accountability
must reside with the CEO. It has become increasingly clear
in recent years that management succession is a critical
driver of sustainability. Despite—or perhaps because of—the
inadequate planning that has characterized the past, boards
of directors are starting to hold CEOs accountable for
ensuring a continual flow of capable executives, managers,
and high-skill professionals. Research has shown repeatedly
a positive correlation between organizational performance
and the CEO‘s commitment to management development. In
the final analysis, the only corporate resource that matters is
people; all other resources are depreciating assets.

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SCENARIO PLANNING: PREPARING
FOR UNCERTAINTY
• In today‘s highly volatile and unpredictable
economy, assuming any kind of predictability in
the marketplace can be fatal. Traditional strategic
planning is worse than useless when dealing with
the uncertainties of today‘s economy. Indeed,
traditional thinking about the future, as if it were
actually knowable, is downright dangerous. Most
strategic planning approaches embody several
fundamental assumptions that are patently false in
the current business environment:
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• Industry conditions are relatively stable and predictable.
• We can extrapolate current trends into the future with
reasonable accuracy.
• Customers and competitors are well known and will remain
so.
• Competitors play by the same basic rules that have governed
the industry and its distribution channels in the recent past.
• There is one ‗‗right‘‘ picture of the future, and it can be
predicted by the careful analysis of trends and their
underlying drivers.
• Strategic planning can be done periodically (typically once a
year) as a way to step back from daily operations and be
reflective about the future.

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• As a strategic planner, your task is to
sort out which small number of
possible futures is most likely to occur
and how those alternative futures will
affect your organization. More
important, you need to develop a range
of options and determine the skills and
resources required to cope with (or to
create) any particular future scenario.
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TALENTSHIP
FRAMWORK
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TALENTSHIP FRAMWORK
The ―pivotal talent pools‖ that are the vital targets for
HR investment and leader attention.
Two paradigm shifts

• The first paradigm shift is talentship.
• The second paradigm shift is that HR and business
leaders increasingly define organizational effectiveness
beyond traditional financial and shareholder outcomes to
encompass ―sustainability‖—achieving success today
without compromising the needs of the future.

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The Talentship Decision Science
• A talent decision science is vitally needed today
since it is increasingly important to enhance
talent decisions, including structures, behaviors,
capability, learning, collaboration, shared culture,
and the like. In several companies, we have
labeled it talentship, because it focuses on
decisions that improve the stewardship of the
hidden and apparent talents of employees.
Application of talentship, showing the human
capital implications of defining an organization‘s
goals as purely financial versus as sustainability.
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• One element of any decision science is the logic
that connects decisions about the resource to
organization success. In finance, the formula for
return on investment produces a number, but its
more important purpose is to articulate what
factors are relevant to financial investment
decisions and how they combine to allow
comparisons across different investment options.
Economic inflows and outflows are matched over
time and appropriately discounted to reflect
future risk and inflation.
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• Similarly, a talent decision science requires frameworks
that show what factors are relevant to decisions about
talent, and how they combine. HR investments affect
―pivotal talent segments‖ that enhance the processes
and resources that most affect sustainable strategic
success. Research in areas as diverse as industrial
psychology, sociology, and operations management
increasingly focus on these connections (Boudreau,
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2004).

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The HC BRidge® Framework
• Boudreau and Ramstad created a
model, the HC BRidge® Decision
Framework, that outlines the logical
connections supporting talentship. The
HC BRidge® framework is based on
three anchor points—efficiency,
effectiveness, and impact—that are
common to all business decision
sciences (Figure 1).
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Efficiency
• The efficiency anchor point focuses on what
resources are used to deliver HR practices.
Typical indicators of efficiency would be
cost-per-hire and time to fill vacancies. As
noted earlier, when applied to sustainability,
efficiency would focus on the resources
used to bring HR practices into compliance
or to provide incentives that reflect
community, environmental, or social goals.
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Effectiveness
• The effectiveness anchor point focuses on how HR policies and
practices affect the talent pools and organization structures to
which they are directed. Effectiveness refers to the outcomes of
HR policies and practices on human capacity (a combination of
capability, opportunity, and motivation) and the resulting
―aligned actions‖ of the target talent pools. Effectiveness applied
to the traditional financial definition of success might include
measuring whether sales increase for individuals who receive
training or incentives. Effectiveness applied to the sustainability
definition of success would focus on how HR practices affect
human capacity and aligned actions that go beyond traditional job
and performance requirements. Capability might include
knowledge about the organization‘s social responsibility and ethics
codes. Opportunity might include time off from work to do
volunteer tasks in the local community. Motivation might include
employee perceptions that activities related to sustainability are
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noticed and rewarded.

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Impact
• Impact reflects the hardest question of the three and
most vividly illustrates the fundamental differences
revealed by a focus on talent decisions, beyond
simply HR service delivery. Impact asks, ―How do
differences in the quality or availability of different
talent pools affect strategic success?‖ This question
is a component of talent segmentation—just as in
marketing, where a component of market
segmentation asks, ―How do differences in the
buying behaviors of different customer groups affect
strategic success?‖
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• Using the traditional financial definition of success,
impact can reveal surprising results. One organization
initially believed the most important talent pool was
sales representatives, because revenue was important.
Working through the impact elements of HC BRidge®
revealed there was relatively little to be gained in
improving the quality of sales representatives. This talent
pool had received much attention already. They were
high-performing, making further improvements difficult.
HR investments would make a bigger difference in the
talent pools affecting product development, which had
been relatively ignored, and thus offered ample
improvement opportunity.

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• Applying the impact question to sustainability
can reveal similar unseen talent contributions and
new directions for HR. For example, one might
initially believe that establishing sustainable
relationships with local governments is mostly
affected by the quality of traditional contracts and
high-level contacts between executives and
government officials. Yet, in most countries, the
quality of the day-to-day relationships of regular
employees with local community members may
have far more impact on the quality of those local
government relationships.
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• There are some key lessons regarding talentship
and talent segmentation. First, the new model
does not imply dropping HR‘s focus on efficiency
and effectiveness, but rather adds impact. Second,
the typical practice practice of applying some HR
programs to everyone across the board may need
to be more focused, applying HR investments to
those talent pools that produce the best return.
Third, talentship breaks the traditional HR silos
by clearly showing it takes a mix of interventions
to improve the performance of the pivotal talent
(such as the sales support staff above).
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• Applying talentship and HC BRidge® to the sustainability
objective of alleviating hunger in Africa uncovers different
talent implications. The resources of laboratory know-how
and seed varieties are still important, but now it is for their
effectiveness in hunger reduction, not just profits. Patent
rights actually may be detrimental, because starvation
reducing requires knowledge that is unprotected, so that
collaborating companies and African communities can easily
copy and disseminate it. Commercialization is less critical
than transforming discoveries into product/service features
that provide the greatest nutrition, and applying them to low-
cost and easily used products. Protection is less critical than
dissemination (making knowledge easily copied,
transmitted, and applied to maximize collaboration).

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• The movement to seek sustainability, not
just financial returns, is embryonic in the
United States, but has significant
momentum globally. Decision makers,
opinion leaders, voters, and employees care
about sustainability. They want corporations
to reduce the externalities that burden future
generations. Sustainability is not just good
ethics; it is potentially good long-term
economics. HR has an important role to
play in sustainability.
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• Compliance and social accountability for HR
programs are an important beginning. However,
organizations will achieve sustainability more
effectively if they adopt a decision science that
helps them better understand and articulate the
connections between talent and sustainability.
The deep line of sight created by a decision
science provides the alignment necessary to drive
execution through effective decisions about
human capital, within and beyond the HR
function.

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• Leading organizations are using frameworks such
as talentship, HC BRidge®, and talent
segmentation to enhance execution of traditional
financial goals. A talent decision science built
upon these ideas applies equally well to
sustainability goals. Using a common, logical
decision-based framework for both financial and
sustainability goals makes the implications for
talent decisions vividly apparent. This takes the
debate about HR‘s role in strategy and
sustainability beyond rhetoric and toward logical
analysis and consistent execution.
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5 Overarching components of
an effective analytics
framework
• An analytical framework is composed
of five major components: an
assortment of tools, a set of useful
solution patterns, one or more model
forms, multiple research techniques
and skills, and methods for grouping
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complex information.

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• Somewhere, sometime, someone has been faced
with a problem similar to yours and figured out
how to solve it. What if you could capture that
person's hard-won information and put the
solution in a reusable form? This is exactly what
design and analysis patterns have been providing
to software engineers for the past decade.
However, these patterns generally discuss a
specific solution; they don't provide much
guidance in learning how to identify the correct
pattern and apply that pattern in the first place.
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• Fortunately, you can turn to analytical frameworks,
which combine reusable solutions with analysis
patterns, research, useful organization techniques, and
specific examples of successful approaches. An
analytical framework is a little like your own personal
library, tailored specifically to your own experience and
background.
• Analysis patterns have been used in software
development for many years to provide solutions for
data access, transaction monitoring and management,
security, messaging, user interfaces, and other
application needs. They are not meant to be
implemented into code, but rather to permit analysts to
understand complex problem domains.
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• Analytical frameworks incorporate such
patterns and also provide a checklist of
skills, tools, and techniques that are
necessary for researching a particular area,
such as business analysis or system
architecture. This can be a great boon to
companies looking for specific skills to meet
a current need. If a candidate can
demonstrate the listed experience and
abilities, it is likely that candidate will be
successful with the task.
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Understanding the analytical framework
structure
• Consider for a moment how someone trained in woodworking goes
about creating furniture. A worker restricted to a few simple tools
and her own personal knowledge may find it difficult and time-
consuming to create new pieces. On the other hand, if the same
person is supplied with a fully appointed workshop, powerful tools,
and a full library of plans and example pieces, she will find it much
easier to create complex, interesting furniture. In much the same
way, an analyst's performance can be improved by access to a set of
proven analysis patterns, powerful analytical tools and techniques,
and multiple examples of effective modeling approaches for the
capture and presentation of complex information. An analytical
framework is composed of five major components: an assortment of
tools, a set of useful solution patterns, one or more model forms,
multiple research techniques and skills, and methods for grouping
complex information.
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Table 1. Business analysis framework
Element Description
Tools Word processing, modeling software, document version

control
Patterns Industry-specific patterns, business systems patterns,
business organization structures
Model forms Organization chart, Unified Modeling Language (UML)

business case, UML activity, Zachman Framework
Techniques Observation, interviewing, document study
Skills Note-taking, active listening, meeting facilitation, team

leadership, critical thinking, reasoning by analogy
Categorization Business process framework, department hierarchy, business

use cases, business-functional dependency graph

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• In this business analysis framework, the
effective tools for the discovery and capture
of business processes include modeling
software (particularly UML modeling, if
business requirements are captured as use
cases), word-processing aids, and some
form of version control for models and
documents. Tools can be tailored for
specific needs or they can be more general
tools, such as a simple visual drawing aid.
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• Recurring analysis patterns can be effective when
applied to a particular analysis domain. In the business
analysis framework, these patterns include business
system patterns (such as order entry, inventory control,
and trade resolution), industry-specific patterns (such as
telephony routing, package shipping and scheduling, and
drug-manufacturing controls), and business structures
(such as matrices, hierarchies, and distributed
organizations). Patterns are themes that have been found
to occur repeatedly in particular business areas. For more
information on ways to capture recurring business
themes, refer to "Enterprise Patterns and MDA: Building
Better Software with Archetype Patterns and UML."
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• You can use a selection of model forms to capture
complex information. For complex analytical
analysis, a number of useful model forms exist, such
as Unified Modeling Language (UML) for software-
intensive systems, Systems Modeling Language
(SysML) for system engineering, and the Zachman
Framework for organization cross-cutting concerns.
In the business analysis framework example shown
in Table 1, useful model forms for studying business
processes include UML (for process and use-case
modeling), hierarchical organization charts, and a
potentially modified form of the Zachman model.
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• Techniques and skills are a crucial aspect of any
analysis approach. It is important to be able to
provide an assessment of the currently available
skills of an individual or team. For example, the
technique of interviewing requires the skills of
note-taking and active listening. Running a group
workshop requires the skills of facilitation and
team leadership. System analysis relies upon the
abilities to think critically about the problem
(recognizing how the problem can be divided
into smaller, simpler domains) and apply similar
solutions found in other areas.
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• The goal of analysis is to present the findings to an
audience. The best analyst in the world won't be
successful if he cannot organize the information in a
meaningful, presentable way. Automated tools
provide only part of the solution to this problem; the
overall organization of the information determines
how the intended audience will utilize the data. In
the business analysis framework, these
categorization principles are represented by business
processes (where the business is divided into sub
domains), dependency graphs between business use
cases, and the overall organization structure
(typically, hierarchical).
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Applying an Analytical Framework
• Now that you know what comprises an analytical framework,
you need to learn how to use one. There are at least three
situations where an analytical framework can come in handy. The
first is when an individual is required to change roles. For
example, a business analyst may move into a system-analyst role
or a test-analyst role. Each role has different responsibilities and
produces a completely different set of documentation and work
products. If the individual can call upon a preexisting analytical
framework (with appropriate examples), it will be much easier to
prepare for and transition to the new role. The individual must
learn which tools, techniques, patterns, models, and
organizational approaches work best in each situation. Access to
an analytical pattern for each of these areas can greatly reduce
the time spent searching for solutions.

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• The second area where analytical frameworks can prove
useful is in assessing the skills and preparation of an
outsourcing group. Most organizations that utilize near-
shore or offshore outsourcing rely on the past experience
of the teams to assess their ability to deliver the agreed
artifacts. If the outsource team is held to a particular
standard, as defined by a specific analytical pattern that
has been proven to be effective, there is higher
confidence that the team will have the correct collection
of materials and abilities. The same can be said for
internal teams, although typically these teams have
already proven a particular approach, which provides the
source for the analytical framework.
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• The third area where analytical frameworks
come in handy is in training. If you study the
framework presented in Table 1, it should be
apparent that these can form the basis for a
team-improvement training plan. You can
perform an assessment to determine whether
the proper collection of framework elements,
tools, patterns, and skills are available
already within the team members or must be
added either through the purchase of a tool
or training of the personnel.
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Creating and Adapting frameworks
• An analytical framework is useful only if the
tools are familiar to the modeler. Recalling the
talented woodworker, the finest tools are useless
without the creative application of a trained and
talented artisan. Similarly, building aesthetically
pleasing models requires adapting one or more
analytical frameworks to a problem domain. You
need to know how to select the most relevant
framework, familiarize yourself with the
elements of the framework, and adapt the
framework elements to the problem at hand.
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• Many problems have recurring aspects, so
you can often adapt a closely related
framework. For example, almost all legacy
computer systems need some form of design
investigation, if for no other reason than to
train new developers in the maintenance and
extension of the system. Therefore, a system
design framework would be more
applicable than a business process
framework.
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• The creation of a new framework may be as simple as cloning an existing framework
and adding new patterns and examples. On the other hand, more complex frameworks,
such as one that can be developed for the analysis and management of embedded
systems projects, may have little in common with other existing frameworks, so you may
need to create them from scratch. You should begin by considering the tools and
techniques you can apply to the domain. For example, you may need to modify existing
techniques, such as interviewing or group facilitation, to support the new domain. You
may be able to provide other tools to the modeler for specific tasks, such as computer-
aided software engineering (CASE) for organizing content for a federation of Web sites.
As time progresses, you can extend the framework to include multiple examples. Finally,
at the conclusion of the project, you can formally capture the techniques and patterns
that proved most useful as analysis patterns for use on the next applicable problem.
• You may need to adapt an analytical framework before it is usable in a particular
context. Adaptation of a framework involves the inclusion of new patterns or
organizational schemes to better match the needs of the subject. In this way, you can
extend and develop these frameworks for novel problem domains. As new tools and
techniques become available, and as new analysis patterns are discovered and codified,
you can add these to your toolkit and organize them into a modified framework. If the
level of modification is significant, it may indicate that you should construct an entirely
new framework.
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Putting the analytical framework to use
• Imagine that you're a senior developer who has
just been assigned to a new position of architect
for a legacy system. You were uninvolved with
the original development work, but you must
quickly learn the system and bring a staff of new
team members up to speed, which requires you to
get up to speed first. Fortunately, you have a few
things in your favor. First, you have a good set of
example architecture from other similar systems
in the company. Second, you have access to the
analytical pattern for software architecture.
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• Studying and understanding complex software
systems can be a challenging task. To be successful,
you must employ a variety of tools and techniques
to gather, arrange, and present system descriptions.
By creating and adapting analytical frameworks,
you can prepare well ahead of time and collect
useful tools and examples to use in your current
situation. Now that you know what elements
comprise a successful analytical framework, how to
reuse frameworks, and how to create new
frameworks, you'll be well prepared to tackle many
of the common situations encountered on today's
complex problems.
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THANK YOU
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ALL THE NOTES ARE COMPLILED FROM
34 BOOKS AND 76 ARTICLES.
ALL THE NOTES ARE COMPILED BY

PROF. BRIJESH SINGH
DEPARTMENT OF MBA
DON BOSCO INSTITUTE OF TECHNOLOGY
KENGERI, BANGALORE – 560074.
Call: 9964 152 152
Email: hrgurubs@gmail.com
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GOD BLESS YOU
ALL THE BEST
ALWAYS BE HAPPY
“The more I help others to succeed, the

more I succeed”
9/15/2019 259
BANGALORE

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MODULE 2

PROF. BRIJESH SINGH

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

• CLEARLY DEFINE BUSINESS

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

• Before you start to create your HR

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

• A lot of organizations still work with ad-hoc data

• An HR dashboard, however, offers the possibility to drill down. Turnover may be an

• This emphasizes the importance of solid reporting. Accurate

• Not every organization is at the ‘highly effective and

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

• Age: Age is becoming increasingly important with today’s aging workforce.

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

• Employees Active: This metrics represents the number of employees working

• Turnover: This metric represents the number and/or percentage of

• Cost of labor: Labor cost is the total amount of money that an

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

• HR operates across a wide range of subject areas

• All the participants in this study saw the HR function

• The HR community sees itself as on a journey to

• bring in good ideas from outside the business

• be more assertive if managers are flouting policies or codes of behaviour

• work ‗across the business’ to achieve more consistency of people

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

• CEOs and board-level executives depend on

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

• HIGH – PERFORMANCE WORK SYSTEM.

• IDENTIFYING HR SYSTEM ALIGNMENT.

• IDENTIFYING HR EFFICIENCY MEASURES.

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

• The four dimensions—HR deliverables, the High-

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

• The company‘s HR Scorecard and planning

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

• Operational cost-benefit analyses tell you how

• Links to a business element of considerable

• Focus on a key issue, problem, or decision facing

• Identify potential costs.

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

• Incompletely articulating its causal story.

• This is a typical set of metrics that you would find in a

• The time lag between the customer’s service experience

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

• Second, it provides a valid and systematic justification for resource-allocation decisions.

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,