Managing Innovative Strategic HRM

The Balanced Score Card Performance management system at ITC Hotels

Aayush Sharma – 20PGHR02 Aeshita Sinha – 20PGHR12 Pankaj Jajoo – 20PGHR21

Group 03 Ratnesh Agrahari - 20PGHR30 Sulagna Moitra – 20PGHR39 Swastik Mitra – 20PGHR59

1
Introduction
Innovation of products and technological
Innovations insystems
product
Product Innovation
technology

Innovation of job design, work organization and HR practices

Work organization and HR
Production processes
practices

• According to Hope-Hailey (2001), it lies in organizing principles and social relationships

that exist between people (Kogut and Zander, 1992)
Organization innovative capabilities
• According to Jackson et al (1989), it lies in HR strategies and identifying the promotion
of a creative environment

Efficiency and
It has led to
effectiveness within
increased Due to the less
organizations have
Innovative Strategic Human Resource Due to the shift from
a regulated
competitions
between Indian and
thus became very
important to ensure
research haven
being conducted in
Management Adoption in Indian environment to a
free economy,
multinational
organizations,
retaining and
deploying of
SHRM, organizations
started to approach
foreign investment globalization and various innovative
Organizations has increased internationalization
workforce and focus
on performance-
performance-based
of domestic systems.
based incentive
businesses.
systems.
The Balanced Score Card
Approach
Integration of Strategy formulation and Implementation through Innovative Performance
Management System

Incorporation of Intangibles in Quality Customer Research and

Innovation
Management Retention Development
regular performance evaluation

More than a measurement framework

Provides a novel means of translating strategy into

action Evolution of Scorecard

Ensures the behaviors of employees at all levels of an

organization are aligned with strategy
 Research Lacunae: Role of HR and
Innovation
Devise innovative
business strategy
HR practices to support
Routes for Process Change

• Maintenance of current competencies

Focus on talent management
Importance
• Recombination of new ones with old ones which
of HR role requires a focus on learning and innovation
Change the attitudes and mindsets of employees
• Building of completely different ones which
Alignment of Business strategy to HR Strategy requires a great deal of experimentation

Jackson and Schuler(2000) Six HR Roles

Partnership Change Facilitator Enabler Strategic Innovator Monitoring

• Concern for bottom line • Execution of strategic • Ability to build • Capable of educating the • Emphasis on numbers or • Comfortable in using and
• Understanding of money changes commitment into action managers bodies needed, to the interpreting both “soft”
• Understanding of market • Creates sense of urgency • Responds to • Knowledge top type of talent and skills and “hard” data
and business • Conceptual and articulate organizational needs executives plan needed in the • Effectiveness in own
• Long-term vision of thoughts • Recognizes the • Involved in the strategy organization. areas of responsibility
business direction importance of teamwork formulation of the • Emphasis on talent and other areas of the
• Capable of building executive committee needed for executing organization.
relationships • Develops and sells own future strategies
plans and ideas
Research Design and Site Identification
The Case
 Successful implementation of balanced Score card performance management system at ITC Maurya Sheraton and Towers, NCR

A thorough Cultural Holistic rebranding of Hotel chains by ITC a few

Interaction with 45 years ago led to distinction of 4 brands
Analysis through multiple stakeholders
open ended of the Hotel chain
interviews
ITC Hotels : Super deluxe and premium hotels.
WelcomHotels : Five star first-class hospitality
Fortune Hotels & Resorts : Mid-level hospitality
WelcomHeritage : Palaces, forts, havelis, and resorts
Secondary data
sources/ PPT used in Insights from the VP
The Basis of HR
communication
Case Why ITC Hotel Maurya Sheraton & Towers?
Construction Leadership position in Hospitality sector
27 years old legacy
Location: NCR
Employees: 1300
Single case embedded research design (Yin, 1994),
 General Performance management Architecture

Old Methodology New Methodology

• Structured system
• Remuneration linked to grades dependent
on performance
• Very little variable component
• Very little incentive
• Focus on take home earning
• Meets salary expectations without binding
long term commitments
• Rewards meritocracy
• Person cannot reap the benefits of one 1
good performance throughout his life
 5 Parameters of Balanced Score Card

Customer Perspective Financial Perspective

• Guest feedback form
• Previous scores mentioned
• Targets are mentioned
• Responsiveness
• Service quality
• Resource utilization
• Cost vs Revenue
• Inventory maintenance
• Supplier relationship

Internal Perspective Employee Perspective

Social Perspective • Welcome Reviews • Learning & Growth
Employees
Customer
Financial
Internal Perspective
Perspective
Perspective
Perspective
• Preventive measures taken • Positive &negative incidents
• Networking with authorities • Percentage turnover of staff
• Innovation
• No. of critical incidents

Social Perspective
• Contribution to society
• CSR index
 The Career Review Form
• This form assesses the subjective aspect of measuring a person’s performance which is fixed for 30 %
OBJECTIVES
• To is encapsulate the Big Five (The 5 Perspectives), the key competencies and the feedback which needs to
be given to the senior managers.
• To allow for inputs taken on key parameters ad assessing potential for future growth .
SECTIONS:
A: The big Five / Self Assessment.
1. Revisiting the Big Five
2. Providing background against which the employee performed
· 3. Providing a framework to prepare for appraisal discussions
B: In this, the appraiser must list the various competencies that are essential for a manager in that department
according to which the rating is given.
B1: Career Review Sheet : Here the list of competencies are listed and given ratings
B2:
1. Captures a set of the internal processes which differentiate from competitive set.
2. Here the rating reflects the success/ failure achieved against each of the processes
C: its main aim is to explore the core competencies of the individual and those which require development in the
context of the appraiser’s current responsibilities.
 CAREER ENHANCEMENT
Here according to the various competencies developmental actions are chosen.:
Alternatives:
• Formal training programs
• Exposure to a functional or business area/ unit
• Inputs from an identified person within an organization
• Self-development efforts
In addition, the various levels of preparedness of individuals against competencies for the next job are assessed.. This
proves to be very successful as both the appraisers and appraises alternatives are matched and then tailored accordingly.
Target Record Sheet – This is again a joint exercise, which identifies the Big Five and the weightage
assigned for the Big Five.
Form 4: Confidential in nature. Here the overall rating of the appraiser is kept an account of
Phase III: Implementation and Review
• During final phase, the balanced scorecard was circulated to all the units. Various suggestions were invited and presented.
• The HR initiative was how HR plays a role in facilitating Career Review Form in conjunction with all the organizational
levels. This phase exemplifies the administrative expert role/monitoring role of HR.

This widens the HR role as a Strategic Partner & Change Agent, an Innovator and a Strategist.
 Effectiveness of Innovation: The supportive Culture

• Trade union is strong and thus the employees have an emphatic backing.
• Top management thus must ensure people centric policies.
People culture: • Various activities for its staff and provides welfare amenities. Department designs their own
feedback forms, for employee

• Hierarchy and authoritarianism is prevalent.

• The staff is always encouraged to work in teams, with some interference from top. Various cross
Role Culture –functional workshops are organized for the employees. A common cafeteria is present in the
hotel where members of all levels sit together and discuss various issues
• Not even a single respondent complained that they weren’t being involved.

• WELCOMCREATIVTY INDEX is present for every department. Every person is encouraged to come
Experimentation up with ideas and the most innovative on gets a prize.
• In the performance appraisal form there is a separate section, which marks people on their
culture creativity

• Trade union is strong and conservative regarding changes in the system. Evolving Cultures –
Maurya Sheraton has a very traditional culture where the same beliefs, customs, traditions are
Defensive Culture being carried out since many years.
 What Next?

Maurya Sheraton is working to: BSC Implementation future of hr

• garner the support of the Trade
Unions, to back the Balanced Score
card and the value Index through out
the organization.
• design a formal mentoring policy
where every month employees can
have discussions with their
supervisor’s one to one basis.
• Half of large US firms have already
adopted the BSC and many more are
considering
• Implementation of a BSC requires IT
support and numerous software’
• vendors have taken the opportunity
to build software solutions to support
a BSC implementation.
• wrong solution can undermine the
entire BSC development effort and
the credibility of the performance
• In future, HR can further
institutionalize by becoming a player
in strategy implementation and
establish better metrics for itself and
the organization. For example,
applying HR six sigma to its HR
scorecard, can help quantify a
metrics for the deliverables of HR.
Annual HR
• culture audit would further facilitate
this process

• management system is important

that the vendor which customizes the
automated Balanced Score card to
the unique needs of ITC, should be
selected with further research.
THANK YOU