| There is no argument that good and proper use of | | | | indicating the extent of employee contribution to the |
| performance metrics can help organizations to better | | | | organization. The HR department should view the rest |
| understand its overall efficiency and effectiveness - | | | | of the entity as a customer. This can be achieved by |
| whether in terms of people, processes or programs. | | | | developing human capital in the organization, which can |
| However, many leading organizations do not just stop | | | | be measured by putting up a HR balance scorecard. |
| at collecting and analyzing performance data. They go | | | | The HR department is mainly responsible for |
| out of their way to use performance as a driving tool | | | | workforce management and it can also play a crucial |
| to improvements and turn strategy into successful | | | | role in the financial performance of the organization |
| action. Simply put, leading organizations use | | | | and the quality of customer service as well. |
| performance metrics for effective management. | | | | Workforce management constitutes the recruitment |
| Usually, leading organizations that differentiate | | | | and selection process, employee compensation and |
| themselves from all other organizations have | | | | benefits, turnover issues and information resource |
| measures that are well understood and agreed upon | | | | concerning HR issues. They can also address the |
| by managers; associate strategic and operational | | | | organizational needs by evaluating different |
| measures together; regularly update their scorecards; | | | | departmental goals and strategies and see how the |
| balance financial and non-financial performance | | | | department itself can meet the goals of the other |
| measurements and effectively relay measures and its | | | | departments in terms of employee issues. |
| progress to employees. | | | | When implementing an effective HR balance |
| Over the past few years, the balance scorecard has | | | | scorecard system, there should be strategic focus, |
| become an important measurement system that is | | | | assessment, change in planning and implementation |
| being used in many organizations to measure | | | | and continuous improvement. The assessment phase |
| management performance. This tool translates a | | | | involves several step such as audit measures, |
| company's goals and objectives into a set of | | | | developing new necessary measures, application of |
| comprehensive performance measures that give a | | | | new measures, analysis and report. Moreover, |
| strategic framework for effective management | | | | implementation of track metrics and revisiting |
| system. Basically, the balance scorecard is a visual | | | | scorecard cascade should also be taken for |
| representation of the company's strategy. It is | | | | continuous improvement as well. |
| designed to measure the success of an organization, | | | | However, there may be a number of barriers to |
| department or business unit, balance short term and | | | | developing an effective performance measurement |
| long term plans and various success measures such | | | | system. These include unclear objectives and informal |
| as customer, financial, internal business processes as | | | | feedback systems, excessive measurement systems |
| well as Human Resources development and systems. | | | | in the organization or deep-rooted management |
| Moreover, the balance scorecard is also a means of | | | | systems. The HR department should be able to deal |
| merging strategy with action measures. | | | | with these barriers to effectively implement the |
| The Human Resources department plays an important | | | | balance scorecard. |
| role in measuring an organization's performance by | | | | |