The document discusses how HR can contribute to an organization's strategic performance. It notes that a 5% improvement in employee attitudes can drive a 1.3% improvement in customer satisfaction, resulting in 0.5% revenue growth. However, HR typically measures elements like hiring times and turnover that fail to address its contribution to business goals. The HR strategic contribution (HR SC) provides a link between HR operations and business targets by clarifying strategy, developing an HR business case, consolidating HR policies, creating a strategic map, identifying HR deliverables, aligning the HR architecture, designing a strategic measurement system, and implementing the strategy.
Human Resource Scorecard, HR Scorecard illustrates the most important actions performed by the human resource department including its achievements, productivity, etc. HR Scorecard can also be stated as a procedure by which the non-financial, as well as the financial targets or metrics, are assigned to the HRM related activities group which are needed to accomplish organizational strategic goals and monitor results.
For organization, HR Scorecard development is continuous process. It is crucial for the HR professionals to keep themselves ready and prepared in order to face changes within organization.
A company is only as good as its workforce. A company does not generate ideas, does not give service, and by itself is neither efficient nor productive. People make all of those things happen. In that sense, employees are the most important component in the quest to improve business results. It makes sense to treat employee-related expenses as an investment in the workforce. Like any other investment, this critical company investment must yield a healthy return. At Sage, we call that the Return On Employee Investment or ROEI.
These are not easy times for HR managers. Like other executives, they must do more with less. A viable approach to the consequences of an economic downturn is tighter “strategic alignment” of HR processes to the company’s overall competitive strategy. One way that HR managers might adapt to doing more with less is to develop initiatives that designate HR as a strategic partner to revenue-generating business units and to the executive team.
Human Resource Scorecard, HR Scorecard illustrates the most important actions performed by the human resource department including its achievements, productivity, etc. HR Scorecard can also be stated as a procedure by which the non-financial, as well as the financial targets or metrics, are assigned to the HRM related activities group which are needed to accomplish organizational strategic goals and monitor results.
For organization, HR Scorecard development is continuous process. It is crucial for the HR professionals to keep themselves ready and prepared in order to face changes within organization.
A company is only as good as its workforce. A company does not generate ideas, does not give service, and by itself is neither efficient nor productive. People make all of those things happen. In that sense, employees are the most important component in the quest to improve business results. It makes sense to treat employee-related expenses as an investment in the workforce. Like any other investment, this critical company investment must yield a healthy return. At Sage, we call that the Return On Employee Investment or ROEI.
These are not easy times for HR managers. Like other executives, they must do more with less. A viable approach to the consequences of an economic downturn is tighter “strategic alignment” of HR processes to the company’s overall competitive strategy. One way that HR managers might adapt to doing more with less is to develop initiatives that designate HR as a strategic partner to revenue-generating business units and to the executive team.
If the focus of corporate strategy is to create a sustained competitive advantage, then the focus of HR is to maximize its contribution to that advantage through its architecture.
This presentation explains how human resources managers can make the maximum contribution toward establishing value for your company and its shareholders.
I've updated my slides on the Business Partner concept and included it in my class on the HRBP Model. Class is next week, February 27-28 at the Pace Midtown Campus.
HR Metrics Consulting provides non-traditional HR solutions to optimize employees as well as organizational performance. It is pioneer in introducing evidence based management frameworks for workforce management in Pakistan and its indigenously developed programs have been approved by Human Resource Certification Institute USA www.hrci.org for continuous professional development and recertification of HR professionals worldwide. This is an unprecedented honor for an HR consulting firm in the history of Pakistan.
Learn about the key components of the strategy planning process in HRM, including goal setting, environmental analysis, and implementation strategies. Discover how these elements work together to create an effective HR strategy that aligns with organizational objectives and drives success.
2. “what is HR’s contribution to the organisation’s
strategic performance?”
3. A 5% point improvement in employee
attitudes
Drives a 1.3% improvement in customer
satisfaction
Which will result in a 0.5% improvement in
revenue growth
4. Help business to determine the value of HR
department.
Human capital is intangible and difficult to
measure
5. Typically HR dept measures elements such as
hiring times, turnover rates & workers
compensation related issue
Fails to address HR departments contribution
to a company’s business goals.
HR SC provides a link between HR operations
and a company’s business targets
6. Clarify the business strategy
Employees should know what is their role in
organisation and how to achieve goals
7. Develop a business case for HR as strategic
asset
HR personnel should be able to explain why
and how HR can support strategy
Consolidate appropriate HR policies
8. Create a strategic map for the firm
Diagram showing link in value chain
?critical strategic goals
?performance drivers of these goals
?how to measure progress
?barriers to achievement of goals
?recognize employee behavior needed
?missing employee competencies
?decide what to change
9. Identify HR deliverables within the strategy
map
Performance drivers and enablers