Managing Innovative

Strategic HRM: The

Balanced Score Card
Performance
management system at
ITC Hotels

Presented By: Group 1

20PGHR01 Akshita Agrawal
20PGHR03 Anirudh Modi
20PGHR10 Yogesh
20PGHR19 Ayaz Ahmad Ibrahimi
20PGHR28 Radhika Tilloo
20PGHR55 Vaibhav Pitliya
INNOVATION
PRODUCT TECHNOLOGY

PROCESS HRM PRACTICES AND WORK

INNOVATIVE INTERVENTION NEEDS

Strategic HRM Focus Supportive culture
INNOVATIVE APPROACHES OF PMS
Human Capital Appraisal

People capability maturity

model

Balance Scorecard

Balance score card ties business strategy to Human Resource strategy

ROLE OF HR
Alignment of business
Talent management Change in attitude strategy to HR strategy

Ulrich`s model Jackson& Schuler model

Six HR Roles:
 Strategic Partner  Partnership

 Change partner  Change facilitator

 Administrative expert  Enabler

 Employee champion  Innovator

Together makes a business  Strategic

partner role
 Monitoring
 INTEGRATED APPROACH

A 1 B C D E

The Big Five Self Career enhancement Confidential section

Appraiser list form filled jointly Target record containing future
Assessment
competencies by appraisee & sheet(Identifies big plans for individuals
Appraisee’s point essential for appraiser five & its weightage in terms of growth
manager in the assigned for big in organization
department. five)
REMUNERATION SCHEME
PERFORMANCE PAY MATRIX BASED ON TWIN AXIS

 Individual performance(His/Her
final annual appraisal rating)
 Organization performance
Old System of PMS in ITC
FEATURES ADVANTAGES
PMS based on grade structure for all employees

Structured system of salary and remuneration
linked to grades and increments, which were
given based on performance.
Remuneration was fixed with small variable
components
Only variable component - annual increments or
increases on a promotion.
Very little built in incentive or detterent to induce
superlative performance.
 While it meets with the prevalent salary
expectations, it does not bind the
organization to long term commitments
 Person does not enjoy advantage of one
year’s good performance for lifetime
 Rewards directly proportional to
performance

Only little difference between great performers

and bad performers
New System of PMS in ITC
PHASE I: BALANCED SCORECARD
Balance scorecard aligned to organization needs and
strategies.
It is prepared on five parameters - Customer
perspective, Internal process, Financial perspective,
Employee perspective, Societal perspective
Output is measured to see performance on these
parameters
For every function, there was a separate balanced
scorecard.
For every position, it was customized as per the job
functions. Objective process
Cascading scorecard approach linking employees to
objective of organization.
PHASE II: THE DESIGN
Necessity of Input-Output equilibrium
70% of the performance would be measured
objectively through balanced scorecard
30% of the performance would be measured
subjectively through CAREER REVIEW FORM
Developmental career enhancement aspects -
appraisee and appraisers point of view is taken
into consideration
The monitoring role and enabler role merging
with the employee champion role
Big five traits- Extraversion, agreeableness,
openness, neuroticism, conscientiousness
Key competencies and then Feedback
  Suggestions invited on balance scorecard from
all units
 HR played facilitating role for career review form
Phase 3 w.r.t. all levels in organization
 This also brought in administrative expert role
 Hence moved HR towards strategic partner role
  BSC utilised hard HRM approach and focused on
Innovation areas like cost, outputs etc.
Effectiveness  Career review form utilized soft HRM approach
and focused on areas like talent management
etc.
 Cultural Analysis
PEOPLE – ORIENTED
CULTURE
 Focus on care and development
of people
 Policies – people centric
 Regular feedback
 Cross-functional trainings/
informal activities
- Better employee
relations
- facilitates an open
environment
ROLE CULTURE
 Seniority has always been
rewarded over merit
- hierarchy prevalent
- certain degree of
authoritarianism.
 People
- encouraged to start their own
processes/ behavior
- free to form their own teams
to work on various projects
 Encourage more employee
participation.
DEFENSIVE CULTURE
 Extremely strong Trade Union
 Conservative and rigid in their
approach regarding any kind of
changes introduced in the
system.
 Essential for employee to
establish a good rapport with his
colleagues and supervisors.
EVOLVING CULTURE
 Values history and tradition.
 Experimentation is encouraged.
WELCOMCREATIVTY INDEX is
present for every department,
where every person is
encouraged to come up with
various ideas and plans - the
most innovative idea gets a prize.
 In the performance appraisal
form there is a separate section,
which marks people on their
creativity- WELCOMCREATIVITY
Implications
POSITIVE NEGATIVE

 Culture would help select people with the right
kind of attitude.
 People would be loyal and attrition rate would
be low.
 Working environment appropriate for people
working in night shifts
 Favoritism culture might effect the morale of
employees who are newer to the organization.
 Rigid union – problem for management while
convincing them for new changes.
 Benchmarking Apple uses the scorecard as a device to plan long-term performance, not as a
device to drive operating changes.
Customer Perspective:
It emphasized market share and customer satisfaction by developing its own
independent surveys in order to track its key market segments around the
world. Market share was important to attract and retain talent.

Internal Process Perspective:

Apple It wanted employees to focus on core competencies like user-friendly

interfaces, powerful software architectures, and effective distribution systems.
It is experimenting with obtaining quantitative measures of these hard-to-
measure competencies.

Innovation and Improvement Perspective:

It emphasized on employees’ attitudes by conducting surveys which has
questions concerned with how well employees understand the company’s
strategy as well as whether or not they are asked to deliver results that are
consistent with that strategy

Financial Perspective:
It emphasized shareholder value as a performance indicator. It also helps
Source: https://
managers in each major organizational unit assess the impact of their activities
hbr.org/1993/09/putting-the-balanced-scorecar
d-to-work on the company’s valuation and evaluate new business ventures.
 Benchmarking Rockwater, a global engineering and construction company, thought to
translate their strategic objectives into tangible goals and actions.
Customer Perspective:
1)Pricing Index for Tier II customers and Market Share for Tier I customers
2)Customer Ranking Survey
3)Customer Satisfaction Index

Internal Process Perspective:

Rockwater 1)Hours with customer

2)Tender Success Rate
4)Project Performance Index
5)Project Closeout Cycle
3)Safety Incident Index 6)Rework

Innovation and Improvement Perspective:

1)Rate of improvement Index 5)Revenue per employee
2)Number of employee suggestions
3)Staff attitude survey
4) Percentage Revenue from new services

Financial Perspective:
1)Return on capital employed 4)Profit Forecast Reliability
2)Cash flow 5)Sales Backlog
Source: https://
3)Project profitability
hbr.org/1993/09/putting-the-balanced-scorecar
d-to-work
Thank you!!