How Balance Scorecard Helps in HR Planning

2.  It translates an organization’s mission and
strategy into a comprehensive set of performance
measures
 Provides the framework for a strategic
measurement and management system.
 Separates an organization's goals into
quantifiable metrics can be applied to human
resources to tackle the activities and metrics that
affect the allocation of manpower and resources.

3.  Linking clearly defined department objectives
to the company’s strategic goals
 Focusing human resource staff on activities
that will support the company’s goals
 Demonstrates the strategic value of HR by
defining and measuring its contribution in
concrete, clearly understood terms

4.  This strategic management system measures
organizational performance in four ‘balanced’
perspectives
Financial
Customers
Internal business processes and
Learning and growth.

6.  HR manager asks "How does the performance
of the organization's team look to
shareholders?“
 Without a dedicated and motivated staff,
financial success is impossible to achieve
 So collecting accurate financial data as it
relates to HR is important for the company's
overall strategy.

7.  The HR manager asks herself "How does the
organization's staff look to customers?“
 Satisfied customers keep coming back and
HR can have a huge impact on this turnover.

8.  The business process perspective seeks to
answer two questions:
"How effective is the organization at its internal
operations?" and
 "Where must the organization excel to remain
profitable?
 There are several metrics that can be measured,
including quality of products and services, the
time it takes to answer customer inquiries and
inventory management.

9.  It asks the question "What can the
organization do to improve?“
 Focuses on the development of the business's
employees.
 The idea is to create an open team-centered
atmosphere where employees feel free to
bring up problems and solutions.

10.  The balanced scorecard approach takes the
data and information
 Combines the information into a cohesive
plan for action
 From the HR perspective, this means deciding
on new processes for staff development,
payroll adjustments, increased benefits or
employee compensation and motivation
programs.

11.  Objective: Reduce turnover costs.
 Description: Develop effective recruiting
methods and new-hire orientation methods
to optimize the retention of new hires.

12.  Actions:
◦ Identify key attributes of successful employees
who stay at the company for two or more years.
◦ Utilize technology more effectively for recruiting
and screening applications.
◦ Identify selection methods that will contribute to
successful hires.
◦ Integrate branding efforts into recruiting.
◦ Revise the orientation program to ensure new-hire
retention.

13.  Measures:
◦ Cost-per-hire (financial).
◦ Turnover rates and costs (financial).
◦ Time-to-fill (business process).
◦ Customer satisfaction with new-hire performance
(customer).
◦ New-hire satisfaction with orientation (learning
and growth).
◦ Supervisor satisfaction with orientation (learning
and growth).

14. Any Query?