HR Scorecard: Strategic Human Resource Management
HR Scorecard: Linking Strategy and Results
A scorecard is a methodology used to link economic management with results. The balanced scorecard helps reduce uncertainty and facilitates risk management in decision-making. It serves as a valuable decision support tool.
Strategic Role of HR
HR’s role is expanding to include the measurement of intangible assets. HR acts as a strategic asset architect, analyzing elements of the value chain. The HR scorecard integrates HR systems with business performance measurement, examining key success factors and their relationships.
The 7-step model modifies the architecture of HR as a strategic asset. Scorecard creation involves extracting relevant HR products and aligning HR implementation both externally and internally, focusing on professional skills.
The most impactful action HR managers can take to ensure strategic contribution is creating a scorecard that convincingly demonstrates the impact on business activity. This involves strategically developing an architecture to understand how to create and measure value.
HR Function Architecture
This includes competent professionals, HR systems (strategic actions), and worker behaviors (skills, expected results).
HR must efficiently fulfill basic functions like incentives while providing strategic direction that supports both these functions and the overall business strategy.
High-Performance Work Systems (STAR)
Every element of HR is designed to maximize the quality of human capital. This includes well-informed selection and promotion decisions, strategies to support capacity, and compensation policies that appropriately increase performance. Examples include incentives based on job level and work performance, talent indices, skills development expenditure per employee, and differential incentives.
Human resource management can be defined as the administrative process applied to the enhancement and conservation of effort, experience, health, knowledge, skills, etc., of the members of the organization, for the benefit of the individual, the organization, and the country.
Key Features of HR Management
Professional Supervision of Staff: This involves monitoring staff, with supervisors acting as colleagues who assist and guide subordinates.
Staff Administration: This includes the application of accretion, developing and administering policies, programs, and procedures to provide an efficient administrative structure, capable workers, opportunities for advancement, job satisfaction, and adequate self-confidence.
Industrial, Labor, and Human Relations: This encompasses all types of business interactions, including vendor-client relationships. Any interaction between two or more people is relevant, not only within the organization but in all labor-related contexts. Personnel management utilizes available resources.
HR Functions
Other functions include: Staff Planning (determining policies and procedures, conducting organizational structure studies), Employment (recruitment, selection, hiring, and induction), Training, Wage Administration, and Health and Safety Training.
HR Objectives
a. To promote and achieve greater quality and quantity of production with partners, because the increased profitability and value of a company benefits them. b. To orient activities towards meeting employee needs, allowing for their welfare and development. To maintain and enhance good human and labor relations between employee and employer, providing the company with appropriate human resources. Summarizing the objectives of Human Resource Development:
- Create, maintain, and develop a set of collaborators with sufficient skills, motivation, and satisfaction to achieve the objectives and goals of the organization.
- Create, maintain, and develop organizational conditions that allow for the application, development, and satisfaction of employees and the achievement of individual goals.
- Achieving efficiency and effectiveness with available staff.
Employability: The ability to work in a team and adapt to change.