Measure productivity of HR department with BSC
Sunday, June 27th, 2010It sometimes happens that companies fail to succeed although they have a very professional and competent personnel. The problem lies in human resource management. It is important to efficiently use human resources. For example, a builder may have the most up to date and professional tools, but if he doesn’t know how to use them the work will be poorly done. The same applies to business. Professional employees are those instruments to achieve strategic goals. But in this instruments are misused there will be no positive results. Human resource department should think of the ways how to use professional qualities of every employee to the benefit of the company. At the same time, human resource managers should think of the ways to create positive atmosphere and suitable working conditions for people employed in the company.
Every business should have strategic goals otherwise it is doomed to fail. Strategy also implies human resource management. It is impossible to improve the company without improving its personnel. One can give employees the most effective tools to achieve success, but if employees are not ready to use them nothing will happen. Any investment should be supported by training and coaching of personnel which should be ready to operate on a new level. That’s why, evaluation of HR performance is vital for any company. Human resource department is not earning money, that’s why inefficient human resource management wastes it.
The 4 perspectives of BSC
In measuring product image of any business measurement of HR efficiency is a must. Of course, different businesses have different approaches to human resource management and evaluation of HR performance. Obviously, it is impossible to measure performance of human resource department at an industrial enterprise and in a law firm in the same way. However, there are some generalized guidelines and sets of indicators difficult for a certain business area.
Influence of HR on business productivity
Evaluation of HR performance implies measurement of human resource key performance indicators. They may be subdivided into several categories like retention, recruitment, employment, education and training, working conditions, HR ratios, loyalty and satisfaction etc. Each category includes me numerous indicators representing certain aspects and key success factors in different business areas.
Evaluation of HR performance with balanced scorecard ensures that the company aligns human resource management with the general strategy of the company. So, by implementing HR goals the company does not conflict with the general strategy and mission.
