Creating the HR Scorecard

The HR Scorecard is a tool used to measure and HR function's effectiveness in cultivating the employee behaviors need to achieve an organization's strategic goals.

To create an HR scorecard, an HR manager must:

Be aware of the organization's strategy
Understand the causal links between the organization's performance and HR activities, employee behaviors, and organizational outcomes
Have metric to measure all activities and results involved

Steps in Using the HR Scorecard

1. Define the business strategy: Organization executives begin by translating the organization's strategic plan into actionable strategic goals.

2. Outline the Organization's Value Chain: To achieve the organization's goals, employees engage in specific goal-directed activities. Managers need to understand these activities and the way each activity creates value for the organization.

3. Identify the strategically Required Organizational Outcomes: To achieve the organization's strategic goals, the organization identifies the end state or the strategic organizational outcomes.

4. Identify the Required Workforce Behavior and Competencies: Identify the key employee behaviors to be exhibited in the organization to produce the desired strategic outcomes.

5. Identify the Strategically Relevant HR System Policies and Activities: HR identifies the activities and policies that will assist in employees obtaining the identified competencies. For example, what types of training or organizational development interventions are needed to improve or update employee competencies.

6. Design the HR Scorecard Measurement System: Those metrics and measure are defined that will be used to verify if the outcomes have been achieved. If the outcomes are achieved, these metrics and measure will help identify the levels of the outcomes.

7. Evaluate the Measurement System: Hr periodically evaluates measure and links to make sure that they are still valid.

	Created by britneysoll about 9 years ago

Grade 11 Human Resource Management Note on HR Strategy and Planning, created by britneysoll on 11/09/2015.