What Is the HR Scorecard Approach - Assignment Example

HR SCORECARD ……………………… College………………………….. ……………… What is the HR Scorecard approach? identify and elaborate with examples the ten steps in using the HR Scorecard approach to create a strategy-oriented HR system. Though human capital has become an extremely important key element in creating and sustaining values in the organization, there is no specific consensus blueprint for recognizing, developing, managing and measuring of this intangible asset (Deb, 2006, p. 383). For human resource managers, it is no enough to explain why and how the people do what they do, but rather, they must be able to measure the performance and to link the contributions of the people to achieve organizational goals. The HR Scorecard, which was originally described by Robert Kaplan and David Norton in 1992 and has been endorsed by writers such as Becker, Huselid, and Ulrich (2001) is a system approach that makes the case for HR-based measurement systems to be clearly linked to the strategic aims and values of an organization (Scarbrough and Elias, 2002, p. 19). This approach is a management system for filling the gap between what is usually measured and what is actually necessary for the organization. The HR scorecard provides a strategic framework that assesses the effectiveness of an organization and organizational performance, basically from four perspectives. They are financial perspective, customer perspective, internal or operational perspective and strategic and organizational learning perspective (Fisher, Schoenfeldt and Shaw, 2008, p. 77). The Ten-steps of HR scorecard The HR scorecard is not an easy-to-handle system as it consists of several steps and is rather a lengthy and difficult process. These steps are designed and developed with a view to improve the effectiveness of HRM policies and practices in order to add values (Paauwe, 2004, p. 194). 1- Define Business Strategy: The first step is clearly defining the HR strategy so that HR managers will be able to identify its dimensions and understand the strategy. 2- Outline Value chain activities: It involves building a business case of HR as a strategic asset and it provides more practical analysis of the proposed strategy. 3- Creating a strategy map: The organization must be able to describe how its ultimate financial and other goals are linked to the key success factors in relation to its customers, people, operation, technology and processes. Creating strategy map helps understand this relationship, as described by Kaplan and Norton (Becker, Huselid, and Ulrich, 2001, 19) 4- Identifying strategically required outcomes: This step relates to identifying HR deliverables like skills, motivation and work environment (Kandula, p. 28) within the strategy map. 5- Identifying required workforce competencies: This involves identifying and assessing the requirements of the people involved in the strategy and measuring their competencies in order to ensure who fits for the desired strategic process. 6- Identifying the required HR policies and activities within the organization 7- Creating HR scorecard: Although scorecard would be different from firm to firm, a well created scorecard would be able to help HRM manage the HR as a strategic assets and demonstrate HR’s contributions to the financial success ((Becker, Huselid, and Ulrich, 2001, 53). 8- Choosing HR Scorecard measures 9: Summarize scorecard measures on digital dashboard and 10: Monitor, Predict and Evaluate the measures and changes thereon 2-On-the-job training can be enhanced if trainers know the four-step job instruction technique. What are the four steps in job instruction? Explain what happens in each step with examples. Learning occurs not only through classrooms, but also when people perform a particular task or when people are getting in to some experiences. On the job training is a systematic process conducted at employees’ workplace area to provide them with knowledge and skills required to perform specific job and tasks (Lawson, 2007, p. 2). In teaching a job, the trainer or educator is required to a) decide what the learner must be taught in order to help him do the job effectively, b) have right tools, equipments and materials ready and c) have the workplace properly arranged (Wang and King, 2008, p. 224) Once these are done, the instructor or trainer must instruct the learner by the four basic steps, they are preparation, presentation, performance and post-works, that are called Job Instruction Training (JIT) (Milligan, Maloney and Maloney, 1996, p. 84). These four steps are detailed below: 1- Preparation The first step in Job Instruction Training is preparation which is basically preparing both physically and psychologically for the training program. If the instructor is training an employee who is supposed to work in a computer process, the trainer is expected to be ready with computer, software and other assisting materials. Werner and DeSimone (2008) stressed that preparation should include providing employees with training manual, handouts and other job aids that are to be used for references (p. 169). The basic elements of preparation stage of Job Instruction Training include a) putting trainee at easiness, b) finding out what trainee already knows, c) Motivating him to have a positive mind in the training and d) setting up the task (Wang and King, 2008, p. 224). 2- Presentation: The presentation of the task is also an important stage that the trainee should be able to understand and replicate the task being assigned. As Milligan, Maloney and Maloney (1996) emphasized, the trainer should tell, explain, illustrate and question the employees in order to understand how they do particular job (p. 85). The presentation stage thus involves: a) telling, showing and illustrating in order to put over the new knowledge, b) instructing them slowly, clearly one point at a time, c) checking and questioning repeatedly and d) ensuring that the learner really knows (Wang and King, 2008, p. 224). 3- Performance Tryout (Practice) This is important for the trainee to master a particular set of skills and abilities. The trainer is required to let the trainee do the task and make them show what they are doing. This step involves: a) testing the trainee by making him perform the job, b) asking questions beginning with what, why, how and when, c) observing his performance and correcting the errors, d) continuing this until trainer knows what trainee knows (Wang and King, 2008, p. 224). 4- Post-Works (Follow-up) As its last stage, the trainer requires to conduct a follow-up in order to ensure that the trainee is making progress in doing a particular job. It is actually a reviewing step that helps the trainer measure the quality of the task he performs. This stage involves: a) putting the employees on his own, b) checking frequently to ensure that the learner follows instructions and c) close follow-up until the employee is qualified in performing the task ((Wang and King, 2008, p. 224). What are the factors leading to job stress? Identify five suggestions for reducing job stress and explain how each suggested method could work well. Job stress or occupational stress are mental or physical conditions that arises due to perceived threat of danger and pressure to remove it. Job stress is resulting from increased complexities of work, mainly when an environmental situation presents a demand that threats to exceed a person’s capabilities (Byars and Rue, 2008, p. 329) Factors leading to Job Stress 1- Job Mismatch: All the jobs require specific skills, experience, qualifications and knowledge and therefore employees who do not possess required skills or knowledge may be unfit for the job that causes stress. 2-Threat of Job Loss: one of the factors leading to job stress is threat of job loss due to many factors like recession or organizational factors. 3- Role Ambiguity: Bratton and Gold (2001) found that role ambiguity exists when the job is poorly defined and job relates various uncertainties of job expectations when job supervisors have different expectations of the job (p. 141). 4- Role Overload: Byars and Rue (2008) found that Role Overload is another common reason for job stress. It occurs when employee is incompetent at a job or employee is asked to do more than time permits (p. 330). 5- Working conditions: As Byars and Rue (2008) listed, when the job environment is unpleasant, or there is improper regulation of temperature, or there is social isolation or the job involves erratic work hours, the employees may feel tress at work (p. 330). 6- Job Design: Bratton and Gold (2001) found that when the jobs have limited variety of tasks, low discretion and it does not activate employees’ upper levels needs, they are likely to cause stress at work (p. 142). 7- Harassment: Many studies have found that sexual and racial harassment is a major factor that leads to occupational stress. Suggestions for reducing work stress 1- Selective Hiring: The recruiting and selection process should be designed in a way that employer recruits and selects only those who are fit for the job, and they are knowledgeable and skilled enough for the desired task. This can help reduce job-mismatch and thus to reduce job stress among the employees. 2- Better working condition: Facilitating better working environment is critical to avoid job stress. The working conditions must be good and appropriate so that employees will feel happiness in work that in turn can help reduce job stress. 3- Equal Opportunity: Employee discrimination and any types of harassment should be discouraged so that every one in the organization will be mentally sound with their works. 4- Attractive Job design: When the job is designed, employer requires to ensure the each employee have to perform variety of interesting task in a way the he wont be bored with jobs. 5- Motivation at Work: Motivation, both intrinsic and extrinsic, is highly critical to bring high performance working. Employees who are motivated feel satisfied with his roles and tasks and that can help reduce the job stress. References Becker, B.E, Huselid, M.A and Ulrich D (2001), The HR scorecard: linking people, strategy, and performance, Illustrated edition, Harvard Business Press Bratton, J and Gold, J (2001), Human Resource Management: Theory and Practice, Illustrated second edition, Routledge Byars, L. L and Rue, L.W (2008), Human Resource Management, Ninth Edition, McGraw Hill Irwin Deb, T (2006), Strategic Approach to Human Resource Management, Atlantic Publishers & Distributors Fisher, C. D, Schoenfeldt, L. F and Shaw, J.B (2008), Human Resource Management, 2008 Ed, Dreamtech Press Kandula, S. R (2004), Human Resource Management in Practice: With 300 Models, Techniques and Tools, PHI Learning Pvt. Ltd Lawson K (2007), Improving on-the-job training and coaching, American Society for Training and Development Milligan, R. A, Maloney, T. R and Maloney, T (1996), Human resource management for golf course superintendents, Illustrated edition, John Wiley and Sons Paauwe, J (2004), HRM and performance: achieving long-term viability, Illustrated edition, Oxford University Press Scarbrough and Elias (2002), Evaluating human capital, CIPD Publishing Wang, V. C. X and King, K.P (2008), Building Workforce Competencies in Career and Technical Education, Illustrated edition, IAP Werner, J. M and DeSimone, R. L (2008), Human Resource Development, Illustrated edition, Cengage Learning Read More