【正文】 erterm financial impact of people management and HR practices on business results. Customer: This area of the scorecard focuses on the perceptions key stakeholders have about HR effectiveness and peoplemanagement programs, such as customer satisfaction and retention. Operational: This area of the scorecard focuses on the internal efficiencies of critical HR processes — for example, productivity, quality, cost, and cycle time. Strategic Capability: This area of the scorecard takes a broader view of the development of critical people capabilities that can help the anization achieve and maintain petitive success. Details on this topic can be found in the People Scorecards article. Human Capital Modelling Human Capital Modelling (HCM) is a more sophisticated approach to determining the impact of your employees on business performance, guiding potential investment decisions, focusing your strategic planning and measuring the return on your investment. 中國最大的管理資源中心 (大量免費資源共享 ) 第 13 頁 共 64 頁 It works by identifying your anization’s strategies and the talent requirements to achieve these strategies. It then incorporates the HR strategies and the people leverage points in the business value chain. It identifies how HR impacts these leverage points and then builds a fully developed value chain that measures the impact of human capital and HR activities on business outes. One such model used by Hewitt with some clients is to look at the relationships between employee engagement, capability, utilization and business performance (see National Australia Group article). Engagement is the state of emotional and intellectual involvement that an employee has in the anization. Engaged employees are those individuals that want to and do actually take action to improve the business results of their anization. Capability measures the extent of knowledge and skills. It is impacted by the anization’s ability to attract talent, training, learning and development opportunities as well as employee experience levels. Utilization indicates the extent to which employees are able to apply their skills for the anization’s benefit. Organizational structure, policies and procedures, technology and clarity in the anization’s objectives and direction impact the level of utilization. 中國最大的管理資源中心 (大量免費資源共享 ) 第 14 頁 共 64 頁 By understanding the relationship between these higherlevel levers and business outes such as customer loyalty or revenue generation, anizations can direct effort into the areas of greatest impact. For example, identifying how investments in specific people programs (like leadership and career development) impact business results through improvements in anizational capability and employee engagement is a powerful strategic weapon in the battle for differentiation and petitive advantage. It also sends a very clear message to senior leaders in the business about where to focus their attention. Details on this topic can be found in the Predictive Modelling article. As more panies move towards adopting sophisticated peoplemeasurement tools, it needs to be made clear that understanding people value is the starting point, not the endpoint. HCM is not about proving that people add value to the business. Good leaders already have this fundamental philosophy. It is also about guiding investment decisions and understanding the tradeoffs among HR programs, between capital and people investments and in people decisions. With the human resource function being considered a strategic partner, sophisticated measures that gauge its effectiveness and impact on business are being thought of, formulated and applied We see an interesting paradox when it es to the reporting of people measures. In many anizations, while HR continues to build its strategic capability and leaders look for ways to build value through their people, HR measurement activities continue to remain focused on evaluating efficiency or accuracy. Calculating the ratio of HR staff to employees, absenteeism, employee turnover, number of payroll errors and the like and benchmarking them against best practice petitors still account for a lot of HR time. These measurements work in a situation where HR and employees are seen as a cost to be managed. Today, when HR is being viewed as a strategic partner, these measures provide little insight into the value HR adds, its linkage to a pany’s business strategy and the areas it needs to focus on to impact business further. 中國最大的管理資源中心 (大量免費資源共享 ) 第 15 頁 共 64 頁 Moreover, this places many HR functions at risk in a number of ways. These are typically lag measures — providing no indication of future performance for the management to take action. They can, of course, also reinforce a pattern of leadership behaviour, which views the HR function as a cost. Further, benchmarking focuses on what others are doing and can inhibit innovation and creativity. An alternative model of HR measurement is beginning to emerge in which anizations are focusing on the effectiveness of their HR function and not just its efficiency. This emerging measurement mindset is illustrated in the table below. The starting place for any modern HR measurement needs to be a strategy that makes explicit the role that the HR function plays in the achievement of business objectives. Many businesses are turning to the development of HR Balanced Scorec