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t 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 Scorecards to begin their measurement transformation. Some Sample Balanced Scorecard Measures The Balanced Scorecard is a strategic, business measurement methodology developed by Robert S. Kaplan and David P. Norton. It is on their framework that Hewitt Associates has evolved the HR Balanced Scorecard. It provides business leaders with a tool and a process to measure the performance of people practices and the HR function from multiple perspectives: Strategic Perspective — the results of strategic initiatives managed by the HR group. The strategic perspective focuses on the measurement of the effectiveness of major strategylinked people goals. In the example overleaf, for instance, the business strategy called for major anizational change programs as the business faced major restructuring and multiple mergers and acquisitions. In this context, the anization’s change management capability will be a key factor in the success or failure of its execution. Therefore, measuring the ability of the business to manage change effectively is the core measure of the effectiveness of HR and will be a key strategic contribution to the future success of the business. Operational Perspective — the operational tasks at which HR must excel. This piece of the Balanced Scorecard provides answers to queries about the effectiveness and efficiency in running HR processes that are vital to the anization. Examples include measuring HR processes in terms of cost, quality and cycle time such as time to fill vacancies. Financial Perspective — this perspective tries to answer questions relating to the financial measures that demonstrate how people and the HR function add value to the anization. This might include arriving at the value of the human assets and total people expenses for the pany. Customer Perspective — this focuses on the effectiveness of HR from the internal customer viewpoint. Are the customers of HR satisfied with their service。 are service level agreements met。 do the customers think they can get better service elsewhere? Conducting an HR customer survey might typically arrive at this. All four ponents of the scorecard are used to define and measure the effectiveness of peoplemanagement activities and how the HR function executes them. This provides a strategic measurement and management process to show the connection between a pany’s business strategies and goals and its HR strategies, activities, and results. The Balanced Scorecard can provide an ideal approach to measure the contribution that human resource management makes to business success. With the HR Balanced Scorecard in place, Hewitt can assist anizations in selecting, designing, and implementing scorecard and analytic software, which allows them to easily monitor the workforce indicators that are key to their business success. Such solutions enhance HR’s ability to provide counsel to line management and deliver results that make a difference to the achievement of their goals and strategy and thereby to shareholders. The apparent and inherent values that the HR Balanced Scorecard brings include: ? Measurement provides the data and facts to support business decisions, giving credibility to HR remendations and initiatives。 ? Collecting and using data to make decisions regarding retaining and motivating the workforce, giving the anization a petitive advantage in the marketplace。 ? The right mix of lead and lag measures helps the business assess its strategic alignment and progress towards its objectives。 ? HR will be proactive in identifying potential improvements and bringing suggestions to the business that improve bottomline results。 and ? A business and linked measurement framework focuses activity on those tasks that contribute to anizational success. This process lifts the role of HR from being viewed purely as a cost centre to that as strategic business partner. Traditional Measurement Focus Emerging Measurement Focus Single framework based on accounting rules Multiple measures and performance categories Simple, linear causal relationship between measures Multiple, plex, nonlinear relationships Shortterm perspective Longterm perspective Focus on past performance。 a “snapshot” looking backwards at performance indicators Multiple timeframes including forward looking indicators View people as costs to the anization People as assets, investments Financial measures dominate in reports and information systems Financial and other perspectives。 measures tracked, reported and evaluated regularly The HR Balanced Scorecard is also consistent with the initiatives many anizations are introducing to their peoplemanagement practices like crossfunctional staffing, variable pay, team and individual accountability and multiple feedback sources. The measure would eventually help the anization understand the effectiveness of HR policies and processes. As Kaplan and Norton note, the Balanced Scorecard has ―...enabled panies to track financial results while simultaneously monitoring progress in building the capabilities and acquiring the intangible assets they would need for future growth. The scorecard wasn’t a replacement for financial measures。 it was their plement.‖ It is difficult to overstate the power of measurement as a tool for change and strategic impact. As we have all heard before, ―What gets measured, gets done.‖ Measuring the contribution of HR to business success is the foundation to its being a strategic business partner. HCM Trends In Europe Organizations ac