What are the areas of HRD in which BSC can be implemented?
What is the importance of performance measurement systems for Sustainable HRD? What are the problems associated with the successful implementation of BSC? Hypotisis: Implemetation of Balanced Scorecard(BSC) has a major contiribution towards Human Resourse Development(HRD.) Theoretical framework.
By carrying out a preliminary research, I have found out that the organizations of 21st century is facing a fires competition and arising new challenges due to increase in the global competencies. Therefore it is very critical to formulate the most suitable strategies for their market sustainability. Hence, it is vital for the organizations to predetermine the performance of the organizations in order to incorporate the organizational goals and objectives. Therefore it is greatly important to establish the most suitable and effective performance measurement system in order to build a concrete base on continuous Human Recourse Development(HRD). That is when the balance score card comes to view. The Balanced Scorecard is believed to be one of the best performance management approach originated by Robert Kaplan and David Norton in 1980’s, which was fully packed and presented in Harvard Business Review in 1992.
Silk (1998) cited in Andrew Gautreau (2004),estimated that approximately 60% of Fortune 1000 companies either currently have or are experimenting with a balanced scorecard. Non-financial measures like quality, customer satisfaction and innovation became increasingly important, and competitors were focusing on these non-financial areas. There for, both internal and external measures are used in BSC. It is vital for the companies to have a balanced approach on external measures like customer satisfaction and internal measures like employees satisfaction. Companies must have both types of measures in order to implement a strategy (Andrew Gautreau,2004).
Elements of Balanced Scorecard
Kaplan and Norton (1992), in their balanced scorecard (BSC) model, proposed the division of firm performance to four perspectives: financial, customer, internal process and innovation and learning. They put competences and resources in the fourth perspective, signalling that they enable achievement of performance levels in other dimensions.
For each perspective, financial, customer, internal process and learning, they have performance indicators, which must be filled in as targets. The BSC also drives actions strategically to attain the vision and deliver excellence in all areas of an organization. According to Schmidt et al., (2006), the BSC is a powerful tool with several features, and to get the most benefits, it must be well implemented in a dynamic environment. Amaratunga et al., (2002), BSC systems can assist the organizations to gather critical information on both financial and non-financial grounds to provide a reliable guidance to pinpoint the problems. There for this could lead to effective improvement in the business process to achieve organizational goals. He also says that BSC is recognized as an effective tool which can be understood by all levels of the organization.
Human Resource Development (HRD)
Human Resource Development (HRD) is the frameworks for helping employees develop their personal and organizational skills, knowledge, and abilities. HRD includes such opportunities as employee training, employee career development, performance management and development, coaching, mentoring, succession planning, key employee identification, tuition assistance, and organization development. Along...