Fahid Memon 1029104

HR SCORECARD INTRODUCTION
The HR (human resources) scorecard matches business strategy against HR deliverables and objectives to provide a statistical basis by which HR efficiency and contribution to strategy implementation can be measured. As such, the HR scorecard is a management tool which allows a business to: 1. Manage HR as a strategic asset and a source of competitive advantage. 2. Quantitatively demonstrate HRs contribution to the firms financial results and bottomline profitability. 3. Create and measure the degree of alignment between the strategy of the business and its HR architecture. When used effectively, HR scorecards link the things people do with the strategy of the company. The HR scorecard also allows HR architecture to evolve which is measurement managed and systematic. And the HR scorecard allows the human resource function to fill a strategic role in the business participating fully in the balanced goals of cutting costs and creating added value. In total, the HR scorecard makes it possible for HR to enhance its role as a strategic business asset. Reasons for HR Scorecard HR departments typically measure elements that are measurable such as hiring times for filling open positions, turnover rates and workers' compensation-related issues such as lost time and injuries. Such an approach fails to address an HR department's contribution to a company's business goals, including reducing operating costs, and increasing sales and profit. An HR scorecard attempts to provide a link between HR operations and a company's business targets. Implementation of HR scorecard Kaplan's and Norton's work emphasized strategic alignment as part of an overall business performance. An HR scorecard can enlighten senior management to the forces behind more easily measured financial results. To implement HR scorecard a seven-step model is defined below: First, HR managers must define the company's business strategy to employees and define employee roles in achieving that goal. Second, HR departments must make the case for their role as a strategic partner within an organization. Third, a strategic map is created to identify the HR department's position in an organization's chain of command and barriers to its contribution to business success. Fourth, HR deliverables are established for the strategic map that identifies changes and potential contributions to overall company success. Fifth, the HR structure is aligned to achieve established deliverables. Sixth, a strategic HR measurement system is designed that provides for moving from traditional measurable like turnover and employee satisfaction to more intangible measurable.

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Finally, the new measures are implemented and constantly reviewed and modified.