The design of a HR scorecard has five
With the top management's approval HR
should draft a clear plan of action and
communicate it to all the employees. HR
should first analyze business strategies
and the implications of HR on it.
Defining the measures
The initial search and analysis help
formulate a HR strategy. Based on this
analysis the goals and metrics to be measured
must be defined. While doing so HR should
link each of the HR practices to other
organizational goals and their outcomes.
At this stage HR defines the roles and
responsibilities of the employees. To
secure the information, access must be
restricted to a few employees. Moreover,
it should be user-friendly.
HR must now seek approval from other
departments and business units. Also the
goals, the information and the benchmarks
must be realistic.
Step 5: Measuring
HR must ensure effective communication
and appropriate implementation. Communication
generates the feedback critical for the
success and enhancement of a project.
Tata Engineering implemented the balanced
scorecard at a business unit level and
called it The Business Unit Balanced Scorecard.
Tata integrated it with their TBEM (Tata
Business Excellence Model) process for
internal assessment. The TBEM process
fosters an environment of high performance,
learning and sharing. The balanced scorecard
acted as a guideline for developing similar
scorecards for other support functions.
Tata Engineering realized that HR perspective
must also be highlighted. This would integrate
the HR activities with various aspects
of business and help achieve the organization's
end-objectives. HR can thus contribute
significantly to the business. The balanced
scorecard at Tata addressed the following
HR concentrated on ROI on the human capital
HR developed the resources necessary to
meet internal and external customers.
It incorporated and trained employees
in areas of customer satisfaction and
The HR at Tata used the resources developed
to restructure their HR processes.
Learning and growth:
The HR team was equipped with the resources
to deliver the programme.
The HR scorecard at Tata defines the overall
strategic priorities and guides the HR