HR Scorecard: By:-Bryan E. Becker Mark A. Huselid Dave Ulrich

HR SCORECARD
By:-
Bryan E. Becker
Mark A. Huselid
Dave Ulrich
Meaning of HR Scorecard
• A concise measurement system, often summarized on a
computer screen in a “Digital dashboard”.
• Shows the quantitative standards or “metric” the firm uses to

measure HR activities.
• To measure the employee behaviours resulting from that

activities.
• Thus to measure strategically relevant organizational outcomes

of those employee behaviours.
Objectives
• To highlight in concise but a comprehensive way, the causal link
between the HR activities & the employee emergent
behaviours.
• To measure firm wide strategic outcomes & performance.
• Supplementary tool to Kaplan & Norton’s Balanced Scorecard

which doesn’t focus on HR practices.
• In short to project HRM as a strategic asset.

In word of the authors
In our view, the most potent action HR managers can

take to ensure their strategic contribution is to develop
measurement system that convincingly showcases
HR’s impact on business performance. To design such a
measurement system, HR managers must adopt a
dramatically different perspective, one that focuses on
how human resources can play a central role in
implementing the firm’s strategy.
Basic HR Scorecard Relationships
Current Scenario
• HR is still seen as a paper pushing work in most of the
organisations.
• New economic realities are putting pressure on HR to widen

its focus from administrative role to broader strategic role.
• More use of intellectual capital pushes HR to show how they

create value for their organisation.
Information required for creating a HR
Scorecard
1. Company’s Strategy
2. Causal Links
3. Metrics
HR as a Strategic Asset
Strategic asset is a set of difficult to trade & imitate,

scarce, appropriate, specialized resources &
capabilities that bestow the firm’s competitive
advantage.
HR Scorecard Process
1. Define Business Strategy
• Define company’s strategic plans
• Translate broad strategic plans into specific, actionable

strategic goals
2. Build a business case for HR as a
strategic asset
• Strategy implementation in terms of money
• Implementation is more important than selection
Value Chain
Value Creation Process
.
3. Create Strategy Map
• Strategy map is a diagram that summarizes the chain on major

interrelated activities that contribute to a company’s success.
• Or simply map the value creation process

4. Indentify HR deliverables within Strategy
Map
• Where on the map can HR create value
• Identifying the HR deliverables
5. Align HR architecture with HR deliverables
• Strategy tells us what deliverables to focus on
• Structure of HR systems to provide deliverables
• Ex- rewards, competencies, organisation design,

training & development programs.
• Internal & external assignments

6. Design strategic HR Measurement System
• Using the information collected & derived from earlier steps

create a HR scorecard.
• Choose correct Hr deliverables
• Choose correct measures/ metrics
• Balance of financial & non financial measures, short term &

long term goals, external & internal goals.
Examples for assessing employee Morales &
motivation, and for HR activities
• Employee attitude survey results

• Employee turnover
• Level of organisational learning
• Employee productivity
• Customer complaints
• Transfer requests
• Percentage of employees making suggestions
• Job understanding level of employees
Examples for assessing HR system activities such
as Testing, training & reward policies & practices
• Proportion of employees selected based on validated

selection methods
• No. of hours of training employees receive per year
• Percentage of job filled from within
• Effective internal communication
• Percentage of employees eligible for annual merit cash or
incentive plans
• Regular assessment via formal appraisal method
7. Implementation , monitoring & evaluation
• Summarizing in a digital dashboard
• Scorecard has predictive nature
• Monitoring the measures is very important
• Dynamic causal relation exists between Strategic

measures & employee behaviour.
Advantages of HR Scorecard
1. Distinguishes between HR Doables & HR Deliverables
2. Control costs while creating value
3. Measures leading Indicators
4. Assess HR contribution to strategy & bottom line
5. Makes HR more strategically responsible & focused
6. Encourage flexibility & change- views no.s as a means to an end not

an end itself
Themes of HR Scorecard
LEADING
• Key HR Deliverables
• High Performance Work Systems
LAGGING
• Extent to which HPWS is aligned to firm’s strategy
• Efficiency with which deliverables are generated
HR Scorecard & Efficiency
HR Scorecard emphasizes HR value creation

tempered by attention to efficiency
OPERATIONAL STRATEGIC
High ROI HR deliverables

--------------- disciplined by attention
to benefits & costs
Low ROI HR doables driven by Indiscipline attention

cost control that ignores efficiency
Competencies of HR Professionals
1. Business knowledge
2. Delivery of HR practices
3. Management of Change
4. Manager of culture
5. Personal credibility
THANK YOU
PRESENTATION BY:-
NANDINI NIM
BBS 3HR

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HR SCORECARD

• Shows the quantitative standards or “metric” the firm uses to

• To measure the employee behaviours resulting from that

• Thus to measure strategically relevant organizational outcomes

• To measure firm wide strategic outcomes & performance.

• Supplementary tool to Kaplan & Norton’s Balanced Scorecard

• In short to project HRM as a strategic asset.

In our view, the most potent action HR managers can

• New economic realities are putting pressure on HR to widen

• More use of intellectual capital pushes HR to show how they

Strategic asset is a set of difficult to trade & imitate,

• Define company’s strategic plans

• Translate broad strategic plans into specific, actionable

• Strategy map is a diagram that summarizes the chain on major

• Or simply map the value creation process

• Strategy tells us what deliverables to focus on

• Structure of HR systems to provide deliverables

• Ex- rewards, competencies, organisation design,

• Internal & external assignments

• Using the information collected & derived from earlier steps

• Choose correct Hr deliverables

• Choose correct measures/ metrics

• Balance of financial & non financial measures, short term &

• Employee attitude survey results

• Proportion of employees selected based on validated

• Summarizing in a digital dashboard

• Scorecard has predictive nature

• Monitoring the measures is very important

• Dynamic causal relation exists between Strategic

2. Control costs while creating value

3. Measures leading Indicators

4. Assess HR contribution to strategy & bottom line

5. Makes HR more strategically responsible & focused

6. Encourage flexibility & change- views no.s as a means to an end not

HR Scorecard emphasizes HR value creation

High ROI HR deliverables

Low ROI HR doables driven by Indiscipline attention

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