Improving HR performance with balanced scorecard is very important in ensuring growth for the company. The key here is to develop a balanced scorecard that motivates workers to perform better.
Improving HR performance with balanced scorecard is indeed possible in any company or organization. You have to understand that the human aspect is very important in ensuring growth and success for the company. The productivity of each and every employee influences the success of the company as a whole. Thus, it is vital for companies to implement balanced scorecards containing relevant key performance indicators to usher in growth and success along the way.
It is actually quite difficult to control something that you cannot measure. Being human and very unique in nature, it can be so hard quantifying the worth of each employee so that you can come up with a balanced scorecard for your company. Still, this can be done, as long as the KPIs or key performance indicators being used here are indeed relevant to what is being measured. What’s more important here is that the KPIs should be in accordance with the goals and objectives set by the company.
It remains a strong fact that performance measurement systems can provide motivation for the workforce. Over the years, studies have been shown on how performance and productivity rates shoot up when workers know that they are being watched and evaluated. Call it human nature, but we really do want to appear in a positive light. Thus, when we know that we are being evaluated, we try our best to perform as productively as we can. Of course, there are exceptions to every rule, and this is no exception at all. But generally speaking, most workers are motivated to perform better when they know they are being observed and evaluated.
At present, the performance scorecard is a system employed by companies in pursuing key success factors. Both internal and external benchmarking has to be employed so that the scorecard can be as balanced as possible. For the scorecard to be motivational, the data here should then be accurate and timely. Simplicity is the underlying concept here, to ensure validity of measurements. The design for data collection should also be simple as well so that it would be convenient to maintain the databases involved in the process. This way, data integrity can be assured as well. Here are some tips that can help in developing the balanced scorecard.
First, you have to take on a no status-quo mindset. Sticking to the basics is very important here for there are no gray areas with this mindset. You are either black or white. If you are not winning, then you most certainly are losing. This is the mindset you have to take on when developing a balanced scorecard. This way, there would be no biases whatsoever.
Second, it is important to define the key success factors in the company. These may include speed, quality, and cost, just to name a few.
Third, define the stretch goals that are related to the key success factors of the company. More often than not, these goals would also be in line with corporate goals and objectives.
Improving HR performance with balanced scorecard is indeed possible with these tips. Just remember that the whole endeavor is important in ensuring the success and growth of the company as a whole.