The document discusses HR scorecards, which measure HR's contribution to business results and strategy alignment. An HR scorecard has four perspectives: financial, customer, internal, and learning. It is implemented in seven steps: clarify strategy, develop HR architecture, create a strategy map, identify HR deliverables, align architecture, design the scorecard, and execute. The scorecard links HR goals to company objectives and defines key performance indicators to measure strategic objectives across recruiting, productivity, development, and talent management.

1. HR ScorecardHR Scorecard
Dr. G C Mohanta, BE(Mech), MSc(Engg), MBA, PhD(Mgt)
Professor
Al-Qurmoshi Institute of Business Management,
Hyderabad - 500005

2. HR Scorecard
Measures HR Deliverables and objectives
Quantitatively demonstrate HR’s contribution to
firm’s financial results and profitability
Measure the degree of alignment between business
strategy and HR deliverables
HR Scorecard links the things people do with the
strategy of the firm.

3. Development of HR Scorecard
The development of an HR Scorecard must be done
with four perspectives in mind as follows:
A financial perspective to address strategies that
satisfy customers
A customer perspective that asks what customer want
An internal perspective that addresses the stated
desires of customers and designs processes consistent
with those desire learning perspective that taken into
account .
HR employees can implement steps to align HR goals
with the overall company mission, vision and business
objectives.

4. HR Scorecard Implementation
It has seven steps model:
Clarify the business strategy
Develop HR Architecture
Create a strategy map of the firm
Business Indicators
Results
Identify HR Deliverables in the map
Align HR Architecture with HR Deliverables
Design HR Scorecard
Execute/Implement

5. HR Architecture
The HR function (services)
The HR management system
Supporting policies and practices such as
 Create links between promotions and competencies
 Provide skills training
 Attract and retain high performers
Strategic Employee Behaviours

6. Drive Long term
Shareholder Value
Enhance ROI of HR
Strategic Initiatives
Develop Internal HR
Capabilities
Develop Strategic
Employee
Competencies
Deploy HRIS System
HR Strategy MapHR Strategy Map
Financial
Internal
Customers
HR Internal
Process
Learning
Create Positive
Work Environment
Enhance “Internal
Customer” (Employee)
Satisfaction
Enhance Employee
Productivity
Apply Excellent
Recruitment
Process
Optimize
Performance
Management System
Implement Best
Talent Management
Practices

7. Drive Long term
Shareholder Value
HR ScorecardHR Scorecard
Strategic ObjectivesStrategic Objectives Key Performance IndicatorsKey Performance Indicators
• Shareholder value
• Shareholder value growth
• ROI of HR Strategic Programs
and Initiatives
Enhance ROI of HR
Strategic Initiatives
Enhance Employee
Productivity
• Profit per Employee
• Revenue per Employee

8. HR ScorecardHR Scorecard
Strategic ObjectivesStrategic Objectives Key Performance IndicatorsKey Performance Indicators
• Ranking in “Best Place to Work Annual
Survey” (conducted by Fortune
Magazine)
• % of Employee Turn Over
• Employee Satisfaction Index
• Employee stability
• Improved Process cycle times
Create Positive
Work Environment
Enhance “Internal
Customer” (Employee)
Satisfaction

9. HR ScorecardHR Scorecard
Strategic ObjectivesStrategic Objectives Key Performance IndicatorsKey Performance Indicators
Develop Strategic
Competencies
Apply Excellent
Recruitment Process
• Average lead time to recruit employees
• Recruiting cost per employee
• Performance of New Recruits during the
First Two Years of Employment
• Average Lead Time to Develop Strategic
Competencies
• Average Lead Time to Close Strategic
Competencies Gap
• % of Strategic Competencies Available
within the Organization

10. HR ScorecardHR Scorecard
Strategic ObjectivesStrategic Objectives Key Performance IndicatorsKey Performance Indicators
Optimize Performance
Management System
Implement Best Talent
Management Practices
• Number of Qualified Talents per
Strategic Positions
• Progress of Talent Development Plan
(actual vs. plan)
• % of Senior Managers who Have Been
Promoted Internally
• Average Competency Assessment
Scores
• Number of Performance Feedback
Session Conducted per Year

11. HR ScorecardHR Scorecard
Strategic ObjectivesStrategic Objectives Key Performance IndicatorsKey Performance Indicators
Develop Internal HR
Capabilities
Deploy HRIS System
• % of HR Employees who Develop
Individual Development Plan
• % of HR Employees who Fully
Execute Their Individual
Development Plan
• Progress of HR Portal
Implementation (actual vs. plan)
• Accuracy Level of HR Database