4.7
REFERENCES AND ADDITIONAL READING
Brewster, C, Houldsworth, E, Sparrow, P & Vernon, G. 2016.
International human resource
management
. London: CIPD.
Crawshaw, RJ, Budhwar, P & Davis, A. 2017.
Human resource management: strategic and inter-
national perspectives
. 2nd edition. Los Angeles: SAGE.
Lussier, RN. 2017.
Management fundamentals: concepts, applications and skill development.
7th
edition. Los Angeles: SAGE.
Rees, G & Smith, P. 2017.
Strategic human resource management: an international perspective.
2nd edition. Los Angeles: SAGE.
Witcher, BJ & Chau, SV. 2014.
Strategic management: principles and practice.
2nd edition. An-
dover: Cengage Learning.

27
HRM3704/1
Study unit 5
Measuring human resource management within
organisations
Contents
Page
5.1 Introduction and outcomes
28
5.2 The balanced scorecard
28
5.3 The HR scorecard
29
5.4 The workforce scorecard
30
5.5 Conclusion
30
5.6 References and additional reading
30

28
5.1
INTRODUCTION AND OUTCOMES
HR professionals are increasingly challenged about their role in organisations. Measuring
the performance of HR and the contribution of HR to a company’s performance consistently
emerges as a key theme. HR accountability is regarded as very important today. This learning
unit focuses on a variety of instruments that can be used in the measurement of HR.
Learning outcomes
After you have completed this learning unit, you should be able to:
y
critically discuss the key forces that drive the use of scorecards in organisations
y
evaluate organisational performance by means of the balanced scorecard, the HR
scorecard and the workforce scorecard
y
differentiate between the components of the balanced scorecard, the HR scorecard
and the workforce scorecard
Key concepts
The key concepts in this learning unit are as follows:
•
balanced scorecard
•
customer perspective
•
internal perspective
•
innovation and learning perspective
•
financial perspective
•
HR scorecard
•
workforce scorecard
•
workforce success
•
workforce mind-set and culture
•
workforce competencies
•
leadership and workforce behaviour
5.2
THE BALANCED SCORECARD
Study
Robert Kaplan and David Norton developed the balanced scorecard in the early 1990s.
It allows managers to look at organisations from the following important perspectives:
y
a customer perspective – how do customers see us?
y
an internal perspective – what must we excel at?
y
an innovation and learning perspective – how can we continue to improve and create value?
y
a financial perspective – how do our shareholders see us?
Compiling a balanced scorecard is the responsibility of a team, which should include mem-
bers of top management and line managers from business units and support groups such
as human resources, fi
nance and information technology (IT). Training and communication
are essential elements for implementing a balanced scorecard in an organisation. Linking the
balanced scorecard to the budget and linking employees’ pay to performance could also be
considered. The strength of a balanced scorecard is that it provides a simple tool to ensure


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