The primary learning outcome of this case study analysis is to understand how the seven-step process has a crucial impact on strategic human resource management. It highlights the importance of the HR scorecard and explains how the non-financial factors are also important, along with the financial elements for balanced performance management.
Brian E. Becker, Mark A. Huselid, Dave Ulrich
Harvard Business Publishing (1527BC-PDF-ENG)
Feb 28, 2001
Case questions answered:
- What is HR Scorecard?
- Linkage between balanced performance management and value creation for business.
- Difference between HR drivers and HR enablers.
- Identify key HR deliverables.
- Seven step process for strategic HRM.
- What is your perspective on the interdependence of business strategy and human resource strategy?
- Identify and outline a real-life example where a linkage between business and HR strategy is highlighted. (The answer can be in the form of a flow-chart and not paragraphs.)
- According to you, what is the key to cultivating internal and external alignment of the HR system for generating competitive advantage? Explain it with example and diagrammatic presentation if possible.
- Create a checklist of best HR practices used in the chapter including examples. Do explain the HR practices you mentioned in the checklist.
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Case answers for Clarifying and Measuring HR's Strategic Influence: Introduction to a Seven-Step Process
Summary – Clarifying and Measuring HR’s Strategic Influence: Introduction to a Seven-Step Process:
This whole report on Clarifying and Measuring HR’s Strategic Influence: Introduction to a Seven-Step Process mainly focuses on how to have the positive behavior of the employees towards the organization. The primary learning outcome of this report is to understand how the seven-step process has a crucial impact on strategic human resource management. It highlights the importance of the HR scorecard and explains how the non-financial factors are also important, along with the financial elements for balanced performance management.
It also discusses the importance of value creation in various aspects like financial perspective, learning growth, customers, and internal business process of the organizations. And for achieving HR deliverables, it presents how to properly use the performance drivers and enablers. In short, it helps to formulate some vital HR strategies which would help to sustain the competition.
Introduction Strategic Influence of the HR:
HR Scorecard is used to allot the monetary and non-financial objectives and plans to the different exercises of the business, which would accomplish the critical strategies of the organization. It is similarly used to direct the outcomes. It is a procedure for dealing with the representative execution and for adjusting all workers to crucial targets. It is achieved by allocating budgetary and non-financial objectives, observing and evaluating performance, and rapidly making the remedial move. It connects the HR activities and the effectiveness and efficiency in delivering great jobber’s conduct expected to accomplish the organization’s objectives. The fundamental HR Scorecard relationship aims at defining the HR activities in such a way that it connects the employee behavior towards organizational outcome to achieve excellent organizational performance and strategic objectives.
Balanced Performance Measurement is a powerful tool used to measure both monetary and non-monetary objectives like financial perspective, learning growth, customers, and internal business process of the organization. It takes into account both the tangible and intangible resources of the association. It accurately measures the performance using past financial data of the organization and also takes into account the various factors other than financial objectives like R&D process time, customer satisfaction, customer loyalty, employee loyalty and employee focus, etc.
Value Creation deals with how efficiently and effectively the employee had process the work and delivered on time and achieved some customer loyalty and satisfaction, which would increase the return on the capital employed. So, there is a link between Balanced Performance Measurement and Value Creation. There is a balanced performance if the proper value creation is done as value creation includes various financial and non-financial aspects that are significant to measure the performance of the work.
An HR driver is somebody who assumes the liability and responsibility for the HR deliverables. Apart from the management of the everyday activities, they also draw the attention of the team towards the main project, keep up quality gauges with the conveyed work, and decide the project execution and specialized techniques.
HR Enablers’ agents go about as complements to the driver. They go past the assignment of viably driving the project exercises and spotlight on the components that engage the group by encouraging a stable, hard-working attitude, high spirit, fulfillment, and achieving individual and expert achievements. They help to accept the change brought by the performance drivers for the HR deliverables like the performance driver would say to decrease the processing time, then enablers would motivate the department to achieve the target.
Empowering agents are truly adaptable at working with all the colleagues, inside and outside of the task and association. It enables everybody in the group to:
- Adjust to the general objective.
- Genuinely interface with why the project’s broader objective is significant.
- See their very own motivation in the group through their commitment and learning.
- Feel approved for their sources of information and perceived for their endeavors and yields.
There are two of HR deliverables: performance drivers and enablers.
Examples for HR performance drivers are some set value behavior for an employee like being adaptable, taking some initiative for some new project, resolving some complex issue increase the productivity, decrease the time required for the process also giving the bonus for some achieving the financial and also some non-financial objectives for the organization.
Examples of enablers are some programs which would help to increase the core skill of the employee like some training program, performance appraisal, profit sharing, bonus for overtime, recognition, assigning extra responsibility, compensation program, succession planning, develop organizational story and culture, etc. programs would enable to the achievement of the corporate goal.
Strategic HR examines employees and decides the activities required to expand their value to the organization.
- Clearly define the business strategy: The main objective is that we should adequately clarify the business objectives to the employees, and we should convey the organizational culture in the form of a story for the better understating of the employees.
- Build a Business Case for HR as a Strategic Asset: The managers should be able to align the business goal with the benefits associated with it and make an employee an asset for the firm.
- Create a strategy Map: The organizational process should be adequately mapped so that the value creation is easily spotted.
- Identify HR Deliverables within the Strategy Map: We should frame various HR deliverables according to the strategy map made earlier.
- Align the HR Architecture with HR Deliverables: We should align the story with the HR deliverables, which would help in…