Often companies that want to optimize performance and reach certain strategic goals do not pay attention to a very important aspect in the work of the company. They focus on financial indicators, investments in infrastructure, market research etc. But they tend to forget about their personnel, i.e. the people who work for the company. Even possessing the best equipment, infrastructure, innovative technologies and smart management system, all this will be in vain unless the company possesses educated, efficient, well motivated and satisfied personnel. Human resource management has become especially popular in the recent days. No wonder, with automation of production routine work is mostly done by computers, machines and robots. These days, companies want to use minds of employees but not their hands. Creative ideas coming from personnel often lead to a breakthrough performance. This is why an effective human resource department is a must for any company that wants to succeed.
The work of human resource department and their goals and objectives must be well integrated in company strategy. So, human resource performance should be constantly evaluated in order to introduce amendments and changes to human resource policy and reach strategic objectives. As already said above, the right choice of personnel and the right attitude towards it is precondition for great performance.
Using balanced scorecard system, it becomes easier to evaluate efficiency of human resource department, set strategic goals in this direction of development, identify key problems and weaknesses, as well as introduce response and countermeasures, if necessary.
Evaluation of human resource management is done mostly in two perspectives of balanced scorecard: internal processes and learning and growth. Human resource department needs to make sure it spends the minimum amount of money to get the best professionals in a certain area. Besides, it is necessary to educate new employees and help them integrate into the company stuff.
Training and education is very important because of high competition in the market. Competitors are looking for to wiping out rival companies by introduction of new technologies, methods and of course by educating own personnel.
Balanced scorecard system is really helpful in monitoring and evaluation of human resource department performance. Moreover, a set of indicators (key performance indicators) will help integrate strategy of human resource department into a general company strategy. With the help of balanced scorecard it is possible to anticipate possible problems and obstacles on the way of strategic goals implementation.