Module 3: Overview

Discussion: Performance management at the corporate level;

Reading 3: Aligning service strategy through super-measure management

Video: Balanced scorecard: managing future performance

Mini case: The hotel Paris international Case Study B: Verizon Communications,

Inc.: Implementing a human resources scorecard.

The Balanced Scorecard Approach

Basic Model of How to AlignHR Strategy and Actionswith Business Strategy

Figure 3–9

Translating Strategy into HR Policy and Practice

The HR Scorecard Approach

HR scorecard Measures the HR function’s effectiveness and

efficiency in producing employee behaviors needed to achieve the strategic goals.

Creating an HR scorecard Must know what the company’s strategy is. Must understand the causal links between HR

activities, employee behaviors, organizational outcomes and performance.

Must have metrics to measure all the activities and results involved.

Strategic HR Relationships

Figure 3–10

HR HR ActivitiesActivities

Emergent Emergent Employee Employee BehaviorsBehaviors

Strategically Strategically Relevant Relevant

Organizational Organizational OutcomesOutcomes

Organizational Organizational PerformancePerformance

Achieve Achieve Strategic Strategic

GoalsGoals

The HR Scorecard Approachto Formulating HR Policies,Activities, and Strategies

Figure 3–11 Source: Copyright © Gary Dessler, Ph.D.

Outlining the Value Chain

Value chain analysis Identifying, isolating, visualizing, and analyzing the

firm’s most important activities and strategic costs. Identifying the primary and crucial activities that

create value for customers and the related support activities.

Each activity is part of the process of designing, producing, marketing, and delivering the company’s product or service.

Shows the chain of essential activities. Prompts future questions.

Simple Value Chain for “the Hotel Paris”

HR Scorecard for the Hotel

Paris International Corporation*

Figure 3–13

Purposes of Performance Management Systems

Facilitate employee development Determine specific training & development needs Assess individual & team strengths &

weaknesses Determine appropriate rewards & compensation

Employees must understand & accept performance feedback system

Enhance employee motivation

Purposes of Performance Management Systems Facilitate legal compliance

Documentation is strong defense against charges of unlawful bias

Facilitate HR planning process Alert organization to deficiencies in overall

level & focus of employee skills

Strategic Choices in Performance Management

Reciprocal Relationship Between T&D & Performance Management