The main benefit of the HR Scorecard is that it allows the senior management to debate and reach consensual agreement as to exactly what are the key relationships and capabilities that the company must master. The company has to focus on the internal processes of learning and growth, non financial perspectives of the customers, if the company aims towards strategic success and high financial results.
The other benefit of the HR Scorecard is that it forces the HR managers to and their leadership team to debate and agree on the elements that what values must be delivered to the organization. The values include management, leadership, and compensation and employee development. It must also be seen that how organization will deliver these elements, with the question that do HR function require special skills to do so, if not then how this will be achieved and delivered (Becker, Huselid,. & Ulrich, 2001).
The HR Scorecard can not only help in creating a common purpose among the team, but also Powerful and sustainable outcomes can be achieved if the HR leaders spend time with business leaders with one-to-one interviews or within focus groups. The HR might think that they are able to deliver the value to the organization, but the business leaders might think on other way.
First of all it is very important to concentrate on the key drivers of the company’s performance. In most of the companies, the customer value generated through the products is the result of cumulative and complex processes, which is referred to as the value chain according to Michael Porter.
In the business performance management system, the HR mangers have to identify the elements to intersect with organization’s strategy plans. On the other hand it is seen that performance drivers of HR such as competency, motivation and availability are very fundamental, thus the process of locating them on the map could be difficult.
HR is accountable for the financial performance in an organization. The financial perspectives should be at the top of the Hr scorecard at least in the publicly traded organizations. The HR leaders should be able to describe to the other employees that how their target is being accomplished with cost control and revenue growth.