Human Resource’s Scorecard


A balanced scorecard was first introduced as a strategic development tool by Kaplan and Norton, who aimed to connect the company’s vision and strategy to key parts of the business, such as finance and stakeholders, operations and productivity, customers and markets, and learning and innovation (SBMC, 2014). A balanced scorecard ensures that the goals of each part of the business are consistent with the overall vision and strategy of the organization. Moreover, a balanced scorecard provides metrics for measuring the performance and progression of each unit towards the goal. Lastly, a balanced scorecard acknowledges the role of all workers and managers in improving the company’s performance (SBMC, 2014). Therefore, a balanced scorecard offers a comprehensive approach to strategic planning that helps the company to achieve better performance.

HR Scorecard

For HR, a scorecard is an important tool that facilitates the efficient use of human resources by the company. It allows promoting connectivity within the organization by ensuring that the work of personnel contributes to the overall performance outcomes (Adecco Group, 2011). Thus, the HR scorecard is beneficial for the management as it enhances the productivity of human resources. Moreover, HR scorecard is also useful for the HRM department, as it can help to identify any weaknesses of the workforce or areas that require further training. Applying HR metrics to determine workers’ performance provides the necessary insight and guidance for organizational change and training. For instance, it can help to identify particular units or teams that lack training or skills to fulfill organizational goals. In addition, it facilitates efficient talent management within the company, which can also contribute to positive results.

However, one of the most important features of HR scorecard is that it determines metrics for measuring workforce effectiveness in achieving the prescribed goal. As noted by ASUGtv (2013), there are a lot of cases when HR specialists measure actions rather than the outcomes. For instance, the HR departments collect information on turnover, training, and recruitment. However, it is more important to measure how these activities contribute to the success of the organization and help in creating a better, more efficient workforce (Bruce, 2008). HR metrics used in the scorecard can help to determine if a new training program is more effective in helping employees to develop skills and abilities that would help them in achieving individual and organizational goals. Moreover, it can assist in determining the impact of organizational change or policy on the productivity of employees. For instance, if a new compliance program has been implemented, HR metrics can help to understand if employees use it appropriately.

HRM Contribution to Success

Without a doubt, employees form the core of every organization, regardless of its size or the type of products sold. In businesses that rely on customer service, employees can help to improve customer satisfaction scores, whereas, in production and manufacturing companies, human workers ensure the good quality of products provided to customers. HRM is thus an integral part of any organization, and effective management of human resources helps companies to achieve customer loyalty, brand awareness, and customer satisfaction. However, HRM is often viewed as a separate construct that is not involved in the executive decision-making process (ASUGtv, 2013).

This results in a disconnection between the HRM and other parts of the company, which means that the management loses an opportunity to use HRM as a business partner (ASUGtv, 2013). Provided that the HRM workers have sufficient knowledge about the company and its operations, they can help to improve the productivity of the workforce. For instance, if any major organizational change is planned, HRM managers can help to make slight alterations or accommodations to ensure that the change does not have an adverse effect on the workers and cause dissatisfaction. Moreover, HR managers can provide essential insight that can help business executives to plan the implementation of critical projects, as they often have detailed knowledge of the workforce and its strengths and weaknesses.

Conclusion: Human Resources as Critical Assets

The view that human resources are business costs that have to be minimized is prevalent in developing countries that rely on the large-scale production of goods, such as India, Pakistan, or Malaysia. However, in most developed economies, HR specialists view human resources as assets that can enhance the company’s performance. Indeed, human resources are used in all types of businesses, including those that use automated production lines instead of manual labor.

Human resources are especially valuable in companies that communicate with customers directly, such as hospitality and retail companies. An efficient and motivated workforce can help to ensure that the products provided to customers are of excellent quality and that customers are continually satisfied with the service they receive. Therefore, I believe that human resources should be perceived as assets to be managed rather than costs to be minimized. HRM tools and strategies can help businesses to improve their use of human resources; in turn, efficient management of human resources can assist the company in developing its performance and productivity, thus becoming crucial for success.


Adecco Group. (2011). The power of HR metrics: Growth, performance, sustainment [Video file]. Web.

ASUGtv. (2013). How HR can be a business partner [Video file]. Web.

Bruce, S. (2008). HR metrics: Two common errors that make them worthless. HR Daily Advisor. Web.

Shree Balaji Management Consultants (SBMC). (2014). HR balanced scorecard lesson: SBMC [Video file]. Web.

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