Human Resource

Human Resource Management

1 Introduction

1.1 Human resource scorecard

The Human Resource (HR) scorecard is the visual representation of the key measures of the human resource department achievements, productivity and performance of the firms where the factors such as costs, budgeting, management strategy for the employees and other stakeholders of the companies as well as turnover rate, customer service, training and development program and performance management are playing crucial role in enhancing the management strategy of HR, where the firms are able to strengthen their employee’s base successfully and enhance their performance (Noe et al., 2017).

Figure 1: HR scorecard

Image result for hr scorecard

(Source: Cascio, 2015)

In the HR scorecard, there are two factors which are lagging indicators and leading indicators. Under lagging indicators, there are the factors such as financial metrics, which improves the future outcome o the firm. On the other hand the leading indicators are such as research and development, customers satisfaction and employee’s strategic planning through which the management of the HR department of the firms are trying to enhance the performance of the employees and create values or all the employees and staff members in the organisation. Under the financial indicators, there are financial growth, improved cash flows, lower bad debt, net interest margin, proper revenue mix and reduces overhead expenses through which the organisations can handle the employees strategically. On the other hand, the customers are the key stakeholders of the business and in this regard, under HR scorecard, it is necessary to manage the customer loyalty, improve customer’s satisfaction, enhance customer retention and ensure high quality service so that the businesses can strengthen their customer’s base in near future (Bratton & Gold, 2017). Moreover, it is necessary to develop internal business process in order to manage the HR scorecard and in this regard the cross sell products, customer relationship management, proper organisational culture and employee’s confidence are important to manage in the workplace so that the leader can motivate the employees to perform better and achieve future organisational goals. The learning an development programs is also beneficial to handle the HR scorecard, where employee growth, critical skill and knowledge enhancement, personal growth and company goals as well as proper knowledge management contribute in achieving the ultimate aim of the business strategically (DeCenzo, Robbins & Verhulst, 2016).

1.2 Linkage between balanced performance management and value creation for business

The leaders and managers of the corporate firm focus on the performance management of the employees where they try to develop effective strategic planning for satisfying the employees so that they can perform better ad contribute positively to achieve the firm’s objective proficiently. In this regard, the strategic planning of providing high incentive and performance related pay to the employees is effective to motivate the staff to perform better. Additionally, structured salary and yearly bonus are also beneficial to create values for the staff members at the workplace (Noe et al., 2015). On the other hand, the managers of HR department try to focus on knowledge management so that they can enhance the skill and capabilities of the employees successfully and in this regard, providing proper training and development program, engagement with the employees and group discussion are effective to manage their talent and enhance their capabilities to perform better at the workplace. Apart from that, the budgeting, workplace planning, encouraging the employee’s creativity, giving them freedom to work and flexibility to choose working hours at the workplace as per heir convenience are also advantageous to create values for the employees and motivate them to perform better (Brewster, 2017).

Figure 2: Balance performance management and values creation

(Source: Bratton & Gold, 2017)

Through the above mentioned strategies, it is possible to manage the performance of the employees and it has crucial impacts on the strategic implementation and strategic focus of the employees. This in turn provides a scope to all the employees to enhance their performance as a whole at the organisation and mange their responsibility proficiently to contribute positively in the firm’s achievement in near future. Hereby, there is strong linkage between the performance management strategies of the employee at the workplace and the firm’s performances as a whole where the staff members are focusing on enhancing their contribution with their full capabilities in order to mange maximise the performance of the firm as a whole.

1.3 Difference between HR drivers and HR enablers

The major performance drivers are such as strategic alignment, leadership, organisational culture, organisational structure, talent and capabilities, decision making and accountability, which are important to reshape the HR strategic planning through which the managers of the HR department can manage the performance of the employees.

Figure 3: HR Performance drivers

Image result for performance drivers

(Source: Sparrow, Brewster & Chung, 2016)

On the other hand, performance enablers are such as organisational training and development program, performance appraisal and merit pay, technological up gradation, organisational culture and infrastructure and HR budget which are playing crucial role in developing strong relationship with all the staff members and enhance their capabilities to performance better (Sparrow, Brewster & Chung, 2016).

Figure 4: HR Enablers

Image result for hr enablers

(Source: Berman et al., 2019)

Through the HR drivers and enablers, it is possible to focus on strategic planning of the organisation and maximise customer’s satisfaction by customer relationship management and service excellence.

1.4 Identify key HR deliverables

The key HR deliverables are such as,

  • Recruitment and manpower planning and restructuring
  • Preparing job description and induction process for the employees
  • Developing structured salary and managing payroll
  • Statutory compliance and staff welfare through PF and ESI and other yearly incentives
  • Performance appraisal and salary reviews
  • Employee’s engagement and motivation activities
  • Disciplinary action and management of workplace’
  • Organisational culture and employee’s communication

Through the above mentioned HR deliverables, it is possible for the managers to follow a path which is important to develop proper strategic planning for implanting the HR drivers and enablers so that the deliverables can be achieved efficiently where the managers can enhance the performance of the firm as a whole by creating values for all the employees at the workplace.

1.5 Seven step process for strategic HRM

In order to implement effective strategic planning for the human resource management, the seven step map is crucial for the organisation were proper steps are illustrated through which the performance of the firm can be managed well. In this model the first step is develop appropriate business strategy and  build proper planning for reallocating strategic asset at the organisation (Berman et al., 2019). The second step is to create the strategic map which is important for managing tangible and intangible assets of the firm.

Figure 5: Seven step process for strategic HRM

(Source: Brewster et al., 2016)

In this regard, both the leading and lagging indicators are necessary to be applied in the strategic map. Identifying HR deliverables in the strategic map is mandatory where in this present case, the deliverables are such as organisational culture, HR performance management, preparing job description and induction, taking disciplinary actions and making the activities ethical at the workplace as well as performance appraisal, structured salary, employee engagement and motivation which can be developed through the fifth and sixth step of the model, which are aligning the HR activities with HR deliverables and designing the strategic measurement system with HR scoreboard (Stewart, & Brown, 2019). Through this step, the managers of HR department try to implement the strategic planning of organisational training and development program develop HR functions and system of working at the workplace, managing change and improving service excellence at the organisation (Brewster et al., 2016). The seventh step is to manage the above mentioned strategies of HR management and measure the performance for enhancing the firm’s performance as a whole as contribution of the employee’s motivation and values creation for the employees are effective to enhance the performance of the firm as a whole.

2. Analysis and evaluation

2.1 Perspectives on the interdependence of business strategy and human resource strategy

The business strategy is mainly important to identify the directions that the organisation wishes to go with the business environment. On the other hand, the human resource strategic planning is beneficial to manage the human resources of the firm who are the major stakeholders to achieve the organisational success. Hereby, the business strategy provides a suitable path to the human resources which are followed each of the employees to perform better and contribute positively in the firm. The human resource strategy is effective for the managers to improve communication and develop partnership working practice at the firm where all the staff tries to follow the vision and mission of the organisation in order to perform better and maximise the organisational values.

2.2 Identifying examples which linkages the business and human resource management strategy

Business strategy is the set of competitive moves and actions that the business uses to attract the customers compete successfully in the market and gain market share sustainably to achieve organisational long term goal. In this regard, for example, the business strategy of the firms is to attract a wide range of customers by service excellence. In this regard, the managers develop the human resource strategy for motivating the employees with monetary and non-monetary rewards and encouraging their creativity, so that they can perform better and contribute with their full potential in order to deliver high quality service that will match the expectation of the customers, and it in turn helps to satisfy the customers and provides an opportunity to the business to strengthen their customer’s base, which is mainly the business strategy and aim of the company. Hereby, the business strategy is supported and aligned by the internal human resource management strategy, where the employees are the key stakeholders to deliver excellent services to the customers according to their needs and preferences. The leader develops the business strategy and the manager focuses on developing strategic planning for managing human resource so that they can feel interested and secured to perform and work collaboratively to maximise the business strategy of the firm. For example, the human resource strategies management strategies of providing proper training and development program, giving incentives and performance related pay, providing freedom and flexibility at workplace and suitable organisational culture further helps the workers to perform better and fulfil the business strategy of enhancing service excellence so that the organisation can retain long term clients for their business expansion.

2.3 Key to cultivate internal and external alignment of HR system for generating competitive advantage

External alignment of HR system is to ensure that the HR policies, procedure and practices are aligned with the organisational strategic planning and on the other hand, the internal alignment ensures that the policies, practice and procedures of HR are reinforced and the organisational workplace successfully. in this regard, for example, the practice of developing suitable organisational culture is necessary which is external alignment of HR. recently, the firms are concerned in developing proper organisational culture by providing cultural training for managing conflicts, developing team building activities, encouraging employee’s creativity, enhancing communication and cooperation as well as providing freedom to work and flexibility to choose the work timing. These are the major strategies of the firm to ensure internal alignment of HR policies and practice. Moreover, the policy of Minimum wage pay is also implemented were the firms ensure internal alignment by reviewing the salary structure and develop proper payroll for the employees successfully.

2.4 Checklist of best HR practices

Policies and practice of HR strategic planning

Fully implemented

Partially implemented

Limited implementation

Existing proper policy manual

Open meeting and group discussion

High cooperation at the workplace

Partnership working practice

Positive interaction and communication at the workplace

Business meeting and open records

Personnel record management

Fair recruitment and selection

Proper job description

Proper benefits are there

Existing compensation and performance related pay

Health and safety at workplace

Disciplinary actions

Scope for personal and professional development

Appropriate training and development program

Privacy in workplace


Freedom to work

No discrimination

No cultural diversity

No grievances and harassment

Drug free workplace

Suitable organisational culture

The above mentioned checklist is important to manage the internal alignment of HR strategic planning where financial appraisals and rewards as well as non-monetary rewards such as organisational culture, diversity management, personal d professionals development scope, health and safety at the workplace and no discrimination are necessary to create values for all the employees at the workplace and it in turn helps to maximise their welfare and motivate them to perform with their full capabilities so that the firm’s performance can be enhanced and maximised. Freedom to work, flexibility, fair recruitment and selection, induction process as well as training and development program, motivation and encouraging employee’s creativity are also helpful for the managers in HR department of the firm to implement proper policies and practice of HR in the workplace and lead the employees towards achieving the organisational success.  


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Bratton, J., & Gold, J. (2017). Human resource management: theory and practice. London: Palgrave.

Brewster, C. (2017). Policy and practice in european human resource management: The Price Waterhouse Cranfield survey. London: Taylor & Francis.

Brewster, C., Vernon, G., Sparrow, P., & Houldsworth, E. (2016). International human resource management. London: Kogan Page Publishers.

Cascio, W. F. (2015). Managing human resources. New York, NY: McGraw-Hill.

DeCenzo, D. A., Robbins, S. P., & Verhulst, S. L. (2016). Fundamentals of Human Resource Management, Binder Ready Version. New-York: John Wiley & Sons.

Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2015). Human resources management. Instructor2015.

Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education.

Sparrow, P., Brewster, C., & Chung, C. (2016). Globalizing human resource management. Routledge.

Stewart, G. L., & Brown, K. G. (2019). Human resource management. London: Wiley.


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