Human relations BSC or balanced scorecard is a tool that is widely used in the majority of private and public organizations with the purpose of making their management more effective. The basic mission of this system is to make sure that all the objectives of the particular company correspond to its strategies, which eventually should result in successful goal achievement and improvement of the company’s performance. It also helps avoid potential mistakes that can prevent you from reaching your business objectives.
Several decades ago, when this system was not widely implemented, top managers of diverse companies had to adopt serious decisions concerning their business development on their own. Unfortunately, they frequently focused only on the most influential financial factors, without paying special attention to other aspects, such as the level of customer satisfaction, the professionalism of the employees, the quality of services offered etc. This is exactly where they made a huge mistake, because effective performance improvement implies the analysis of all aspects that can contribute to the company’s profitability. The work of the HR department is one of those significant factors, which should never be overlooked. Nowadays, the operation of this business unit can be improved by means of adequate BSC implementation, which involves the profound analysis of diverse business aspects, especially those that are related to personnel advancement and improvement of its productivity.
A lot of people may agree on the fact that some targets set by companies seem unclear and many employees do not feel involved in the main processes that occur inside the company. Balanced scorecard generally aims at making the goals of the organization more realistic and practical with the involvement of its staff. This system makes people feel that they really contribute to the company’s development as well as to the achievement of specified goals. HR BSC is also efficient when it comes to keeping track of the personnel’s professional advancement with regard to their role in the company’s development. This is how you will know which resources will be required to obtain the desired result.
The human resources balanced scorecard typically aims at quantifying the most significant aspects of the organization that are associated with the development of its performance. It is generally assumed that it is impossible to make any effective improvements until you do not know for sure if they are really required. If applied properly, BSC helps you determine that quickly and effectively.