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Used by managers to assess the value of HR function.
Measures the effectiveness and efficiency of the HR
function.
System of measurement.
Shows ‘metrics’ that the firm uses to measure HR
activities as well as the employee behaviours.
Manages HR as a strategic asset and also measures the
contribution of HR to the financial success of the firm.

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Define business strategic strategy.
Outline the value chain of the company.
Identify strategic organizational outcomes.
Identify required workforce competencies and
behaviour.
Identify relevant HR systems and practices.
Design HR Scorecard measurement.
Periodically evaluate the measurement system.

3. HR Scorecard was developed in India by Rao.
The model is based on following assumptions:
 Competent and motivated employees are needed to
provide quality products and services.
 The commitment and competencies of employees
can be developed.
 The HR competencies of HR and line managers play
an important role in the implementation of HR
practices and systems.
 The HRD culture created through HR practices and
systems and by HR professionals.
 The HR practices, systems, competencies, and
culture must be aligned with business goals.

4. HR audit is conducted to obtain a score on the HR
Scorecard.
It involves assessing each of the factors(HR systems
maturity, HR competencies, culture, and business
linkage) and assigning a score to each factor.
HR
practices
maturity
HR
HRD
competenci culture
es of HR &
line
manager
HR &
business
linkage
Overall
grade/ratin
g
A
A
C
AABC
B

5. HR Practices
HR
Audits
(Types)
HR
Professional
HR
Department/Fu
nction

6. Four types of assessments
made for each HR Practices
Activity
Customer
Value
Cost/Benefit
Research

7. HR Professional must possesses four clusters of
competencies:
1. Knowledge of business
2. Knowledge of HR
3. Knowledge of change processes
4. Personal credibility

8. The competencies of the HR function may be
determined by summing the individual
competencies of HR professionals.