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1 HR AS A STRATEGIC PARTNER ‘The Measurement Challenge How can we ensure that HRs at the table and not on the table? ‘on your firm's human resorss "arte" sum of he OR fncsion, te broader HR yen dhe suing employee ebaviors Why ees ee aces inp How dest HR ach ‘wc ep yo compny to excel inthe markeace? TY yor erguniztin ike mest, you're roby finding it dieu wo aniver tes qutone In ou expercce many HR managenext teums ave «well evelood son oftheir pariments sist ae (teat rom the perpetve of HR), bu the CED 2d Sir lie a ‘many ns eects want belle at “people are ot impor tan ase” bt they tent understand how he HR aon nes ‘What exits stuaica? We beeve that hte probiens hve the sme fot ete: HR's inet on fm performance iia > tnetur. Consider te elements and exces of yrs haan {etous ariectare bt ae tached on regula bse, You might have Facade tal compensate, employe ver, ot pr hr the per ‘cenaeof employes bo ada performance praise swe SCORECARD subj temo deed isi ayes. Al of activites hae leds whe same boal conse: Frm wih mor efecive HR ma grt sytem conten euperer i pee. Yen cur eading and consing work Wi executives we consi tenth cntoted (and were cnfonad these pedis "BALE con conto fem suc dos’ meant is nw fe ‘ively contin osucess in any given busines. Mangere HR ad ine) ave repented caged ws withthe gueton, Based on you ‘seach how ean make HR 3 sti tin my fa? Wehvecometbeleve ta the aac ocsgy and ingle meat a seatepe HR measurement yeni we cal ths Dok an Scorcard—repesens a pt vet fas cn et Sigs tnd deploy a moe eecive HR sty Hower inplemeng eer ‘ivemenurement stems isnt ey t wre, we would seat mere ‘of tem, nan, beng el assur esl ough masa tment et be tvestenag. Many manager wil vidi ey can Bu ‘ston ou expres, fms equemly uae inhi people ‘ast s ingore, inves inthe won ways, Moreover ay firms scm to be untae of the conseaents of fcr nests dino involving people Te most eee way we how o change he eee Insisto dvelopameavreent sytem designed lik pope sate) nd performace Tis what his ok sien do. ACKNOWLEDGMENTS This project das inspiration ad wis fa he fons ad suppor fmaty individual Weare especial indeed to Garet Wakes ie toro HR Pang, Mesrement sod Analysis at GTE (oom Veen) ‘Steve Ki, VP fr Inovation and Oriana Develoeent Sears. Gat and Steve were very generis wih oth hei time aod ther pacioce, roving + window into te best cane wrk on BR meaterentsysems. Te ade will ao uly recogie te oe lei ek we owe o Bob Kapisn and Dave Naa, We bye tected not only fam th ork on “elned”stoperermance mene ‘met but lo fom the pasion and gery wih wich they share ‘hose ides. Bran Becker and Mark Hse weld aso like to hak Reed Kel and Bob Linge of Preece, LLC ete ‘son and ess ater meas Hsin i perme, They played a condensin hese et, a a tine when fies des weren't ery well ace (Our wor his ao benefited nmensly fom thence of de sari of eolengues, We would partly ke to tank ane Bares, Dik Beary, Wayne Bran, Stn cso, Sve Key Pa 1 Randal Scere tr ablyt Fame testes bout eae ‘ent od ther willingness ode se eae nd stare ti sgh Carl Taz’ aan withthe Galo prog was wa esta contbutonto chapter Wayne Caio beso had an port if nce on ou aking especialy evden chapter ‘This peje would ne have been peste witout he nani spo tbe Schl of Management and Labor Relations a Rages Unies, ‘he Human Resource Pasig Scie, athe SHRM Found. In dation fing cof hi sesh Rtg so provided Ma ih Sabha work oo is projet. Mark woul a ike thc tos graduate stems in HR Seategy, HR Measurement rd Fail “Analsisfor HR Manages, wo canal change i 98 help ih ‘We aso owe sei debt of gratings tothe ets the Hard Business Scool Press. The reader wil bene fom i gens at im, ffs of Nicola Sin and Laure Jom to move ws ay mo ‘ual eadences to write Bke eae, nal, we te ta rtf oo fail, who prove ove and support ico valableo mess Mane 8 Huse fo hs ew ce tn whe mete of Sma mace tues The Sarandon oe w apa ‘se fora cast maag eg Seve fs of oo wl ak ig comin. Fit, evict ef eu adel, who nip 1 ae ative ibs canoe st aed Soc est ieee epsicaton Seen, he moa aot ver of ug ‘esr opacities aero vik Sal sages fbn capl prow Ax! ay ma imo he conpencis ires yHR peal ay be em {eran expan ca eee te promi fs mesa pene Ses meeting ht eee Meme te lige edo eae rus td neg Tenp ‘sncwo ear neo corpus ek Beno Save Bens ew gnenton of lo mas md mage oe so bmp Te Sconce Se sen ay ‘be ew Homny mang Preface and Acknowledgments Prorestiowats 1 nomAN RESOURCES ar tren alleged ‘stake mie seaesepenpecse epi et ol ae ana th We nd tte HR pesos espn ih challenge ment ing HR's perornace an ts oabuce 10 he fi’ peoonanee Consenty emerges a ahy the, Thi scald come at suri: ‘The ls cecate as be ihe yan everincesingapreciaion fore vale of tne set and De soil wend owl Sue- ‘8 proce sear ten sch a Raker Kalan nd Dat ‘Notes Balaeed Scorer New opprtnies for HR profesor, new dod fr HR's scout. ew peipectvs 09 meas {ng rgtazand pronase veal converged Thr ook iene Ici ted on ore hana dae of acaemiceearch on the HE ecormace ininsiy and pended yc cong workin Wie ‘oge of companies, The ret new spp manepig fis "Gk weber” (esa af he HR fupton be bade Hm. sx reing employe behav) aa trac mete a ei ‘s cosbtn te en's errno ‘Om work me wl cl tar ose) is easing HI eens wth cretion ty tuned wheter, nd fy Row mach ik Thor HR nce contin om cess. Overhead ‘hore collteddat oe HR ang uli fom ey 3000 fms Ad have mahed te dat wi eae, pont sok ‘mutes a acnaning perfor ans. Weve ited ese co ‘es, flowed ti peomance ces Une rite cae abot em, tod Foreword Bos Kartan ano I yinst nerroDuceD the ides of «Balanced Seoec in 1992 Horo Buies Review ati Since that time we. and our onsahing rant, ave ha the oppetusty design Balanced Scorecards in move tan 200 companies. Tes desis vat sar with he sume spe quien, Wha your egy? This xp ce ha given us fr rhing nights lt he way Ul exec teams dk about rate andthe ogaiatons. The ypc exec eam bas high ere of wrens nd cones rnd te Hac srategy, aswell at he pies for oper frosts improverent They Iya tae linked cone sod easomes sates ie who we tere segments, what vaae propritn, ath is tas impoved recent eae But he worst cera eee or ie uderttng of suas for developing aman capi. Ther ile sens itl ea anda real for for tinking abo ie subj, Wore et, me hve see ie impeovemen i ts oer the past The greet concem hr ht, the New Benoa, hae ap ‘al isthe foundation of ale cation (Vass ste show that op 0 5 percent of cerporton’s vei tad ce itn ast) Tis esata neresing lenin: The ae ti mot impr the lest aderstod lest prope o messes td ete, es suet ‘eto management Clery, we se aa wulonhed Ata ew economic ‘model spls ough the scnory, 2 nw sence of mangement needed an economy where vale cen is domipaed by human ‘pial and ate tangible ast, thee can be wo ete ing poi Contents Forevord by DaviaNortn Preface and Atnowtedgnets FR as. Ste Pater The Messrement Challage Caifying od Messring HR's Sate lnfence: natn oa Seven Sep Process (Croaing an HR Scorecard Cost Bene Als for HR Interventions “Te Principles of Good Measurenent Mensring HR Ament Competencies oe HR Proesionals (Gude forkmplementing an HR Scorecard Append: Resear and Ress Ides Abo he Athos 8 in Bt snipers To Mary, Emily, and Ethan To Rebecea, Rachel, and Robert To Wendy, Care, Monit, and Michael SCORECARD Linking PEOPLE, STRATEGY, and PERFORMANCE BRIAN E. BECKER MARK A. HUSELID DAVE ULRICH This isa firs step ton reving on people x scuce of compe lve advange but doe ily expo te benef OF BR oe 8 regi set ‘Thealipment perspec: Sx : Perspect: Sei manage se smployees a a 1s ss, bot Bey don't ines in cvrauling HRY capablivs ‘Theft, he HR syst cant eveage managcvens peepee, Te hchperomance preci: HR dob exe ew Im en ei i ape co fa se iemetton Te rm magi ene Contin encase me sma fe gt ete lh in ine wen amen pion char ‘ney sed nora. sb tins, galt adeno te fein hgghg lpr of mage nat ch tend rope a 9. aovge, aan sd ean, ‘sLTas ew ppm ca at te enn a ds cB Yeteven when una sc ena sri mes sr is taal yes en ao how wk ese ‘toward realizing it ‘Se fst ‘sc view hems pt cn HR manger can to coer ‘herrea cotton stony meant eae voc osas HRs np nwt pment ‘imeutenen sen HR manages ma alten ons erosive th sew nes racy se ‘len inom Be fm sategy. Wah pope Sola Sete Hater rang ge ma aed xs ho peopl ema aus tna veo Teaming sera steps ia jew fo HR pat Sot te exes ren et at Iblis fet yn fr beste rs ee ci a ht i aes eng coed a iu. tessa abd ie tr ect te Cenacle insole es. eres !uchoxlel pil Wi he ah mised meant the HR wchiaare en mes te ilaeee wee scr ats ses Pc ithe compen nd ne us seas A recent experience fears pmpaly sets specie In 2 company ne ted we kd the preset whit od wo Rm. Be ‘gc sped hatte ala ret ws ving hi io earings {al the of his competi In snp ems, HS e's S100 of as flow had ht vl $2.00, whe ie arent compe’ S10 of ith om ba tet veo $400, He woe it les Be cult Change the mae peeption of th longterm vale fs ois t's amine his fm mold rein nde and posi become 8 {skcover target He soa age pron personal et worn e fim, ane word hat twas aed aight a told be "When weased him how be wash ls HR execute m gap- Png wit is rBiem, be dese the question wit a wave of it and an i, yea of HR i ey alent But hi basics. HR” He aknowleged that ie HR deparinet hd launched inovaive recing tetnigus performance bed pay stems, and eenve tenplaye communicsons, Neel, edn tse thse incor ‘eevane tie pclem of ow o case ness’ percesions of his ‘Sit mon ter curmexing, comes acquire the fm. ‘The sal this tat the HR excel ihn try missed valde ppt fe had andes and ns how! 1 meas eco neon Between invents in HR archiecire an sheer vale, hinge igh ave trod out ile Armed wit an awareness of how invests vale nang, be might have Beppe ‘ld the economic cate ones harbor vale "The ory of Sears, Roebick and Cos recent resfomstion ands insarkconta hi neo a shows What compatses can achive ‘when they do align HR wae Iger xgunizationseraegy® Afr ‘hgling with kof fecal oes in ian inte ety 180, Sere conpltelyoverbed esatey plementation foces. Led by Ahr Maine, senior manent ta inoporaed the fll range of perfomance divers it the process, from the employee ‘rough Snmcil pecorune Theo, hey arid new sping tion Fe Sas tobe compel plat fr invest they sal he Company matin tocome a cmpeling pace to sop. For 0 be ‘onpling lace sop inst become a compen leo woe ‘Bt Secs id’ jut eave tis erepe vs ine execute se cortpeitupnfitlecrorenplyesto putin ei wallets ara} ‘mnt an cape ssh joss, Now cr thi aes you seve we ciao te mplensonel os cmp apy He mt met epee ad cmt wre. depen of eel noes comps les aig ssn tt le real ae as yorcmmeti’ How wel Your exit HR mea cee ert eve at yon eed yet it Fx mo he ae ‘ot te vey dmc Nore lpr eens whe Fetes lak eo rs cl ma egy ea oa ‘her donate tat son tiny ces ow Se ‘ae feterene, drs dommes ttc tar mee What is important. -_ “ess ue nen ese ec tng st ni tn sino fom site steady payed base le AS Be pach sre of pod nett fe fom ysl ae ‘tal il srr mange ne om ns amen za fw ceva rt omen Ma ees ‘hy ae ten henge eee ae pe une te er Bot derma oe 0 seep st he cre ees eteman terol aiot o tues mane ee ‘taps’ ured copes a oes ope ive tvnage" Tk sh iene btn sig ee senses hte pny srl an on ‘sin py sc a 60depe perc spas Test Stee apbiy wie oe ey vi omens Be ‘econ is oie ataldgh tay mane be {eons tas uy cope Sey ps eee ath fn’ compete cg stu te na Sen ey Sate rey ‘Ths HR tet pt nim suey ea sexier ay ato masa meso of le compete petal Bato rea porate ees ‘get ms nent en's ate pn toca ‘4 saig a sagen te mee Tse ys ee ‘etnpos ha sue Rin ey ma one ene ‘som ap” perspective emphasising compan and titonal HR) o's "wp-domn” perspective (emphasing the plementation of sa x) Filly hy nee nova iaesent yt that wit them ‘Eenons er eles on messrs tat mater to CEOs namely, fis poy bre vale ‘THE EVOLVING PICTURE OF HR: FROM PROFESSIONAL TO STRATEGIC PARTNER Recent decide tae wtesed dai si in the oe of HR. Trae tionally, mnugers stv the homsa emer faces pinay ans iste aod profesional HR af focesed on dninstring brett th ote poland operations fancons an it dank of them tele plying pt inthe Sim's vel sae. fons to meatre HRs isftence nthe Bs efomance efected tie mind ot. Specialy, eoests examited metotclopes nd pra ties ta aoc te eel of te india elo he id ob and te india pci oh employes telson, incentive ‘Sompencton a forth) Tee sth movements inital ‘mpoje pefoonance would sumac eaance the rgarization's efomance ‘Aloha eter tenpted exed the rnge of Hin ‘abe Tt povided Sam insight ino the comple ofa stseic HE tucietr. And singly pit de encourage HR manage hin ferent about here nthe 18s, new emphasis on sreay and he inpaance of HR ems enerpe Resear an pens lke ep ecole ‘he ingct of sigaing thn tens wits te company’ lee sale) implementation efort—and serine fe gua) of ta Inder, sihoogh many Kinds of HR moses ei ey, we cn thik of them a epeseatag te following even of human recuces 8 sage se: Tre peroel perpen: Te ites and pye people st dre fecom hing he ey best or deep eceponal poe. The compenston perpen he Sn ses bos, icine Py, ‘ineningal discon ing tesa high endow peor, ete he vison With ta. Sarthe ep way to manage tis saategy wid measuement tem rele hs isn nals ‘ices, Spesieay,th am developed bese means fret of the de “compen Forex, sgpt fore don ‘eps eal Seas asa compeling le woe ”Smlly aco ‘ago bing “fn pace shop” Ser cane ame "enapelivg yas ‘0 bop" Te tam ete hs pret rer by ewig ss ‘Std sees equi enplne competencies an ely tea sieves foreach of te"3.Cs at eer veh ugh he cepa, ‘Theseconpcencestenteane the funn on hh eS ble {nb esa, renaing skein pvormnce amare creation ‘au proton acne. Seas even cated Sun Uneaten to tran empoyestoachiw te any defied compe Te tatoos ‘3 sniican fanitrrond tht ees tcl rep inde ‘we fr toe hat colle mesure ely Few fens tave kes sch compretersive ppc ote mes rm of suateyinpknenttion at Sas as. Greed rel cee Insti are chanced by aclear “ine fs” beeen pages ‘sd customess. Ts het valuceton stay ease ate, Bue tha doesn't mean Wt ter indasties can't aecomplsh sf Te alles: maybe geet see evans, WHY HR? WHY Now? Conder te flowing ‘nmost nde snow posi by ome eration mar Aeace machinery and eupmen th compare ha lace bythe ting soa fs Acct machinery ond ep, ens a the ferenig facto Ay oye efecto & company th a al ft iment lp he ils an br ow af in workoc cold be bat i bins atl uy A company ha et swore, whe png ts eupmer ald ‘This exp copies the dees ewe yi and intel apital—and eas he unique advange of eater The Cove Cole Companys experince tesifes to ths rey Acconieg to en CRO anes Chest entering te bk fs pb at 0 Sn oki ae ale ee ay om ad totinngsnet jens ee Te eve wae: HRS eng eg pti sige oo be resign me of nape set oie capa indy’ coy, Suan, sper bere peromane ‘einen contin one coop ge Taal geek te lm fd eel bas ety etn ‘Si geenmtl manne Bu eagle dimers Sinn eon gy mint bi, Be colt. peor pertenoc ww oes Bey eran, {pet ar compete sage ry sms pay a De inca ures nd apes fd erguinatont nba steno eons ‘stiokeyemdlrofhamen pil sin pe pose leven ‘Bye ie ar welr ch gow, each and eso be nd inaagbi se ao sugges tt ooagng HR egies raty flea il fm Bone eed o mass angie aes In Torta he benef of HR aan et ce a shay lta {ome igh oly whch HR rol sll ped ath anor {nampa the opin ey inlet ym Thble11 Tangle versus nang Ase ‘tba tg INTANGIBLE ASSETS GENERATE TANGIBLE BENEFITS ‘The inreing importance of omisztons apblies and intangible sats Is moch sae thn endemic culate Trends in US uty ‘marks eft ise Specialy these maas hve shown & eosisat wiesng othe ro of i marke vale a fen (es the Shrbolds asesmeat of he fm’ vole) 1 bok vale ie tae= oie inal iaesonen). Tis a as mean bled in oe ast ten year aloe ee Spe 1-1), Tha nomenon is ween, bets patultyntenoriy in companies that ely hes on ele Capialas ei soarce of ompettiv advange, Some of thes shave lnvene ney pew boss mel bated sy ca intangieaes, For example, Dellané Amszo.com, which escily el income "es, have eed extndnary guns in heboler ale tragh it ‘adios ny faancelanasaowncding inal nei ution model. Ars taf fins ml pro manages ‘eve int rte vege analy, 35 peers heres de ‘Sons cri by niacin le 12) gue 11 Mkt to Book Value of 54? 500 —— EPPO OR PEPE LESE ‘Tes ress ne sing fr sever ess. i ic tha tes seven of tie nantes ar afte by a rae fecsed HR sys fem. ee dwtly or inde. Sein, ce a he mos import Intangible ced by Sac al) she ably tigen sey “ie content wih on of he nding een ou ook, taney hate aly eect nay be moe inporant an be ‘ra ied popu ang) congrese dferece ete ‘tac covet and ingle meneton othe diferace baween Ses in ker gone. Ths former emphases what ane you play he ter, Now yop your had ‘Ye espe the high asking of sontegy implement in he le Shani! aly ae often fred pir eft to col informe tion on is for of eens crete, roe hey eso toh uconvnonal sues penton cnt pho ers ‘indy come withcostoers, and rane: Osan do Sek tec prema mem i se nnn Inlence te perepons ofthe markt By airing the HR tec tar ith the Sim's vel erty, HR peso coldplay ay role in shaping those perceptions ‘Manages, oa tue by te gay foetal ineraton they reve Aso vary of mcs aaa, Table? Top Ten Note Vrs Considered by FancalAralyts Suites rays tna operon. custo andenpiyes,}.Low and. isl te utes ‘ofthe sy aking nonfat sexoracapes fom ‘ch ey ved ths ype of wfomaton nd whee er ma hey would ewig tet ie cw the aly th norman wi he vm fms Preity, managers plced get value on Snmcial u, aml they ao exes high dpe of cones their om Ss Smaciainfomaton, Manges placed grea vase on informatio ‘an oti i's nan xp x wel Yet they gave tr oma fms xeely low marks onthe ult of employee slated ta Te gap eween the desired and asl dats quality fr peopl was are tat iy prcstgs pointedly eta espe nay oer category tht they sia ‘A CLOSER LOOK AT INTANGIBLES: ‘THE MEASUREMENT CHALLENGE (OTE (no pat of Vez as en ender in tas to develop meas ures of intangible sets toch as hua pal. The rm chin’ bot the Kimions of waonl scouting mess for mage asses, nd the pret epesented by tte “alnced” perfomance esses sys Acig Lane, Wha, ep CPO ‘dren bowen hana ail ad copie rail ess 1s rt realy oppo in radon acountng prate. it on wear bing drt he pot of i ok thie to mese age sue more arnt ik isos ‘nd finance poison wlio kat amon cpt meres ier dor ofa company ae Cnty, tsinspeople everywhere resonie the inporance of tnangies in woday’s mackeplice. Yer managing thes leans HRM proficiency. HR ‘anaes were pricy ited inthe to rast the e's Seay and operational gust sctomable HR gos, and subeauety ‘0 inplemest hve gol Yer tw say embed HR within be Inge ye of ete pletion tht ted ott hase test ‘mgoran influence on corporeal performance. This Was roe ‘whe fm perfomance wae este es per elo cash ow pes employee, or make vale er enploye. The auhors conch that ‘mos ims re aleady eons acceptable evel of tcl RM competecies and fenens, ong tat atin HR ls ven lmiisbed in value, but simpy reno lnger adequate sats) he ‘vider sei demands the HR fncton The competencies tht HR ‘maneperneedtodeelop—andte oes ative he pet npat on fim pafoeaoce wre baines snd epic HRM competence. The HR System ‘The HR sym she Enc of IR seaticnuence. The al of this system acs ne bok is wm we ell High Perfomance ‘Work Sytem (HPWS), nan HWS, cach cement of eH sem signed to marie the over qi of human capt! Hroepoat ‘heerlen, Tod and matin ok of lee Bama ap ta, an HPWS does the flowing + inks its slecton and promotion dss to vale compen roel + develops stripe timely and flv spp or dhe kl demanded ty he es ee implemen: tad + enacts compesain and perforane mange! polis tht ‘ac rein, oie ihpefomance employees ‘Thoms co heist may soem obvious However, hey ace vital sepsinimpeovig the quality of eupoyee decisionmaking thoughout (be expnization somthing fat makes ood bases Sense Usd ‘ood command-an-conolmanageneat noel inceasngy £00 oF {sion sb. fr HR crs vbe,afrm needs ost ach ssdnface agra wotce, Dat ping hem india HR os sat aces bay ew be km ye ey ie Tning trsaly ga e orca ck ‘he's conn td a erste hes nay items ten hh alg beac spc sca stn indepen a ma yen ee ‘inj el nar ete Lvs of Sens Tg if ‘THE LAWS OF SYSTEMS THINKING ] ‘Th yori i fusca for seve pin cx nl tec ch seca whe che | Sing boned te soot ir tck we wince | alps is yn kin ted yaeet e | "iy eis Cn fom en’ “Si me ‘tf ies boos pt, Tye yay ele Suet lr eampn nse Wises Coser | | RO SISSS Sem iwmceyten | Scntwonwaniaiacponstontaivanestasttaca | he Eay Wy Ot Ural Lab Bact On perc beet | so ii ne pec pe, | Fetes ta ew HRY abe sien mle aly ‘ein wh ev Lt nt enon wee. one Ee re Nt Cty Read in Tine aed Se Tow | | _ speat eaters tees etn a! nea inci Hs | (the srg eer Tis lag bec cane an fet or ME po ‘Sane ely pinay on cosveniod, oun petrmance ees. blr y ety ings itr dann te ee ‘ns eke do rly wen ceil pecle Trea Laveoe Pinas An Of be Lat Odo Soe 9 Necemigs ort On vie ssn improve et asl petarmane peter Yano Rt ee ks aot oe Han lp Never tae HR nr er 0 fsa al hingsin erent eam ey wk ‘rg eee spleen ces Fecal See {pent can lee sneer ro ot ‘hin veal gmt paca met S20 mln ating a pan Hai Don't To Sal Eph: Orin cle mth einer wi te plies of thr Spare erat wth he fer" At ‘ee ptt geet poe et pel evege pos ar ee api oe Sl amare ince oni eoranei sy be mache dc bac of | (Ow depionof he HPWS she von qusin Whi, x, re he specie pes and race tht el ohh perlomans? Sac 1980, wo of save eco enn vey of he HR anagem ‘ystems in US. ply bed cangnsn The odin of dis rach lft as ee ame ary of HR yen tt es a bcd rn ‘Secon of pb ed mf ith sles preter on $5 alone ae hn 10 employes Tes dats on HR syste en ach! wth ‘ably avalible dat on fens prorsace, This seach porns ‘Segsng a now aces mtn 24D] options ach survey eb so cnet an PWS inde that esis be eter which in’ HR stem cei wih the ine oa high perfnmaace HR sree. Table -3 compare sino 1998s elt wo ens ft igh perfomance HR conse Base ono ‘HWS dex, we clad each fm’ percent rankig inom sale ‘tndthen compared sane inte op dela he HPWS nde wih ‘hes ine bom eee sever cater, Te ess inal 13 are base ce the 429s oa 1998 sample. However he esse ery obs a igh sia foro 195, 1994 and 1996 sles" Teble13_ compart f hand Low HR Mangement sty ‘tee dura acnteropemaceeors| ne "a0 Pea ners mat crs Receipes evi Sletemehtonmmensyienantastorsates 20 Ato Enemaacorimocucmingtirontimtdn 362 Eauctatcinmasegeenbieatiindnsy 56 Somer ry nee eu ‘Toe eens between hes wo rop of fms ae vy aban, ‘ian tee dierent ely to ie sins. or. Fs wih igh efrmance wok ystems adopt IR aapement po ses very fern to tose opted by im ith ow performace orkyseme They dev conidebl meee treating end selection the tain wth mich preter vgn hy do alt me pee ‘ce manigenext tie compenstion To they we teats mech rater extn hey have rophydoble th uber of FR poesia Peremploee. ani te are ach ess ely fo be uid Inde te ‘ot ting abn ofthese comps i no any on BR manage men pracioe treating or tor compensa. Rad the difernces re mach oe comprebensie—in yeni. ‘The HR outcunes asics wih his em ae songebensie well Compared with ow-peroring HR sasgencet ym ery ‘est ims incur sample ze ch more liey Wo Beve devel a hear ‘sei itr and communi efecvely oemplaye na ion ty are moe ly ave ht KR porns red postely in both hr ediona and steps. They areas marie © ne devehpedsconpretenive meant syn forcommariet ing sve ancal oration o employes, Fly, fos wih he mst ertve HR snnagemet syste eh ‘ted deumaaly Higher perlommane Empayee trae was leo tal, sles por eployee ere fou tines ge, and rao of Be att vale the bok abe ofa hy indvtr of mangement qi a8 indates he exe to wich manages bs ince Harel inal vest tore hn the tines ge igh perme compe. An HPWS ica suatgy inpementaion system, embeded within te Sim's er seg smplemetton sytem, HR ites i tt ager system at many ferent pins ad perhaps wih ml. pe clemen ofthe HR sytem a te sme pint Unestanng boo ‘Messy toe pons of imersecon i your own fm, ow to slgn the HR ye accondny, he Key to scting ag le for HE ‘nd nomng bo to measire HRs impact on ae ean nad, ams mat cons sharpen hes avarenese of ow welt HR se ‘ums conponeats ae alpsed tha bow cb hey rene or i flict wid one ante. AS an expe of rine fm igh Combine sbovemarie pay poles Wid compres ertormase suger syens,Tscombinlon he cla teed tpn so enploye yoo dmg wate cp tr epee poranace By conte wien se conan en Sonic aon mig enone conyesto wl oben ‘cm a her rove aie bert nial conte rater eed wef ch etn ers ee ‘Siprjercatamer tipi so ie htt mst on abe {Soe amicable But fr fe ae diesen Opertin roves acres ht ce enn cvs yet oe tm tat ot ods be meg inne pest fen gy eRe o mp a cas Aad we Sr whe ich genta ume rt ey eed sn he med copes hat HR Ba Be pest In or view, he ligament proces wat bop with es de sug of cura so compen, pot fe emf wha nd of valet oaeon generis nd ey Strabo slate esc ol ley ae ato fre evel of cntomers, operons, pp sd Tse Robt deste terest Wa is shee uadereandngo he vahecraon oes the craton cat thn Sgn a uriegy Iphone mel ht pres wee competences dle teh thot te it Tene rma then gcd tard he gnerston of ere compeenss nd bk ire In ct ey evi nacre High erence ork Sycaiot st espn of ppt HR ps ant octet che cpoee on, deve opti, eoranse magenta so tn ay ih se pts ae Seppe In an HPWS, te fs HR ger a prac hw 4 Seong agen wie G's compte ig) wo opera goa Morey ou HPWS wil be feet No supe bt expe Cinco cpa omni iuejm tone ecru ‘trope ane teiaFx ean, al 1 how ot Np om ce hrc ari oni pay Homer be fom ante tt eng fo wl ier abate Sims sets ‘Saeple Employee Behaviors ‘iimuy ay dacuin of sei of nae rates human ail wl ingest Fes bpd evo te es plein i rpmzatn Is oe ee hs aoa aloe se Cat doapetavon tat nn gem ces viet ‘We weiner our etl peso eal bet setae In clap? we desc a one aking epee Ser fw wm parm, The woh cops eka tc of igaig epitopes apo ses et {ey enous ad mot an drug oh tg ple Si iy, ne ee sate behav ae se peer. iow te rely serv ogni en's ae Tes se Selvin wl alin eel apres Te et el et oe ‘havior tt fw out bbl oe competi fed 1 efi. The we betas ht Sos’ heel sos fhe frm sal ties si snes Te sn ‘aor eer ht eet at ky pina eet bss ws va eh, An examples einer teat ‘leh thc sling lee ine acho al unk “eggs oaron behav itt ore oa ine ad eae HRs cctbono fom peop Wah ens {re imprau? How tal ty "manage Ne seed ae fw {eis nmin Ft te eptince te eb Wl te ees ty ‘erinpstuns we tmpemenc ef ems rue Unless ing om pron nd poe within eee cee abe be fey. That ile athe nts ew erly reed ght th fim snd tie with speci as wey eins rte vie de Seconds stl seme Gat we st “ex pe bebo dy Tey atte el se eps HR feces ipo entre ef HR om Ba Aligned ith e's ay ALIGNING PERFORMANCE MEASUREMENT AND ‘STRATEGY IMPLEMENTATION You ae undoubtedly fama with he aeton ta “what ges mess ‘wed gts miga—and wat gr mange ete acomplsed" Bath eet lly? Can ening ogni pes provide con ‘peut avanage? We bee at developing mesuemen competary ‘important, eesti can a ae athe eel ote fr. Bat ou Imanages (HR or cderwie) hve song competencies i thi ae, Ln ‘cea eus, HR managers ave bes sled ae abotfnsee and ‘evounting Now thy mst ove thei menses a wel. ‘We re ithe est emphs theimportns of meas baie perce fom be prgecive of stag plement, er an ‘ving simply on Sagi esas. Rober: Kaplan aod David Norton's ‘Balanced Serear apponh ined this cone of moving tend ‘nee finial messreent Tue isto on ms pec nt aly the oscil elements of le cul bul ads thecason bs ‘5 proces al ling and growth elements. Then, it st develop tangle ways oases each "Te premise undersngthe Balanced Scar appoac that se. Jor managers ave pdf to» auch utente oth financial dine ‘Soar of perfomance, and mt cnongh tenon the foes tive ‘Gos rse Ate lean ese inher carbons cats "pafomance driven" ae win minagenens cont nm, ‘he ene Balanced Screed measurement Sse NCATE AES toatvly engage with he ery implementation poces rer us snl ment nasi ress By sein the vial proces mews {ssn hem, and reply contncaig te fi’ pefomance ot ‘hese cote employers, anager enue tthe ent ition parcpa in ray impeennion The Balanced Scored aproach us makes raey everjone sss. PURPOSE OF THIS BOOK nhs book, we nies the cial question of how HR prcitionerscan ‘eset conto this rg iplereretion and has be thee sd ot one able. We lieve ta efcve mea erent ysis serve to impoant purposes: They gig deisce making rough he gna, nd the serve a basso ev: sing performance. The mesure apeoach we deter aeses ‘hese wo papas ia ice was. Fit encores cer, consistent. ‘ad shared view of Pw therm ca plement ese x eae eve Inte orion. Ice’ guaancehtevey employee can alte ‘eco vale eon proces, tt il ee tea epee ‘asaclearenderstnig of is ber owe len de pce, User sods alo bs osent and ow ile Semen he xp cose vane cesion Seon, ct are fe aap tfc oe vil sess at el makers Aneel cal snr iy rma meas of i performance a agar Yt ths etre wad bab be coaeodie ese ba may reuues wuld wack Wes ats) eflcive ea ene en oto etn wre messes “Th his prac spaces eps ese val ew es es ines tie age dso snes i nan ‘ot vale In comentzsl eas cost ol sch sar, ing, ew on oping poi, vey tao ask employee tatsctin, wl ote oc ey elon eye Stowno ase arm ven nb bn ‘Weve aoeganedth beak ound tw eel ee Te Bt th i's BR arietuepone aye HR meager ye tea have asap en performace. Th es rca come sno sup oat HR pens They tlre hac ld says en ipa ify manne eae ‘GR no id recpiet eve Bar ete HR asthe pei res etm ie by med et aay ymin cx. Topps CK Pet Gy Heel resins eon psto'a ene amr aoe {Siig opi pow) ar dan jot cca manages ox tng on ecg ore Howes te nines oo fe plane, HR sy toe aed nt op son's sea ipleectation hat ager amen He at {ice to ssi compte advange ada ace. Ts step ola mis weap ne pt of HR sess Tobe se, Be Held mene ee Sen $Seastmeny yan Revere thas eal es ng ae ting, gh beter wl erect Te mw wen eg, ‘se hat pfsicea do sire nes nen cry flee ‘le Titans oe desing te rs aed so Gx Being ste parochial comrced acy wha cptis deve asst ney teeta ete ‘isd ow HR sft thos capa. Thi i acanging tsk, for HR's trading! les ts ninitave experts employes chang and agente of cing te es important his rw enone “Te seood key tet fs Bok fins ear he Bt. reflect theo ost conmon uesbns We hear ran HR practons: + How can we mess he ve of wht me doin HR in tr ht Ine and general managers wil wenn aed eg? For exe, tow ua we determin te een on venment ROD of ew ingand develope prog? + How can HR mets encorporsted in yeas measures of business performance? Ta demonstrat is stati contbuton serie anaes, coe a ensure yas that es cn ditess + oe contol (ving ou sot a the HR. encton a easing praia eficieny oud of HR) snd + ale cetio ensuing tat te HR acter intent wih the Senay implenetaion ocess) ‘we've sen, Kapa and Nate's Balanced Scorecard framework tas eed esomou tno, i pt Deane nao ess mut the Sani eth snl cous hos ses. {Eafaenork dt we wil da on evi is ok In ton, we ‘eck to stengten an arpic of e Balsced Scored ppoach a Noro sd Kapa hemsles snags to Be is weakest eae ‘he qston of ow beso inert HRs oe ios’ earner of ties performance. They neh fllowig phen come pete meats comeing [HR and pape read er mgs hate ee aly mo Ct for men Ieper oom othe ders of ee epaies TA pp eapoiting sce oof he mt npr adpn he ‘eomean mesure a monn revo proms the row fil and orginal eps. Prefers ‘led prt ea mo ego hae mae ey es. and rina alpen wih er sate bees ® (nba designed to close the sap that Kaplan and Noxon hve “Menifd. The famewek tat we preset bere wl ep HR pact develop the concept operational el they eed sta their le ina Woy ht ds mela vale: Moreover iwi sb ‘ham how to deronstt ths sin in tems tt sean HR aes ander leaders wl is omelin. ‘OUR FOCUS ON HR MANAGERS ‘The rede il eth we have era our work sd i le of the HR pofssina ahr ha fe pone manage By adopting cht focxs, we donot reas oe the mpreson ha Ene manager iy ‘important ole a making HR a seep at In fa the appre ‘ales nd beavis ofan ergtiae's lead team ar hype eqs for HK realize the pte ole we esrb in beck To tion, there ae many general managers who tonal vow of sole woud eneft fom an ittadcin to the ides Neve Jes, HR minegesbave te eats pasion ak inthe fate re of HR inhi organs and tee we ave chose oot be ook othe parculr allege. USING THIS BOOK ‘The pent Sve cps te Book show you hw to ally ere & measurement system for aesing HR's obton vale create our fm. Caper 2 desabes + seven-sep proces that wl lp he foundation for HR's srategi inacce, We Spiel Mgt th Iimpartnce of talc foeted HR areca a « rerspie fora measurement syste th can ink HR with im performance (Chapter ho ls oot a rocess for developing he HR Seca ese on he concepts dissed in hater 2. We specilly dss ow oincrport concep sch fcc, vle cretion nd ip ete the HR metre en, JWR meanest ao eas big abe evaluate HR progr sad naive wit te same rg deions ewer te epeiason Tn chapter 4 we dese aes for ot ene il ao HR profesional itemise eon invert fer hese Jeans. Caper 5 oe proces forvaldaing equi of te measure ment tem you develo and the dist peter. Here we explore ‘way deemine when "epoghiscoouh” define scouts fr the mexsurenet proceed present guts fr develping ness ‘seme chanpon in your rpnizaton, ‘Caper 6 foes on one of th mst cl mesure cha Ieages fo om atemping to mange HR ata aegie atthe problem of alignment In ths chapter we deste several wae ik ‘Shou alignment and offer several senate mestrematsproaches ‘Chapter 7 dicuses the prvaling competency mdel fo HR {esiomals and hw our ew of wha cones an gpoprie tof HR competes is infucaced by the demands of srepe meee Tchr 8 we concn wt asco he calngesinvled in implemesag a seatepcaly focal HR acitec and HR Seore- ‘and We develop a sevensep mode for pling and erating the ‘ange management acts tesco with be plementation eto For those eaters rere inte fl eter of the thor wader inning of or approach, we velo povied an spent tte back ‘ofthis ook dserng our esac are [A FINAL NOTE OF ADVICE AND ENCOURAGEMENT (Gey, design ny now eserement yom feria at it 2sy—ifit were most companies woul hive ale done it Erbe tis challnge les ine an lt of xf that We encourage you > ‘oars toh ech chat in he bok esac snd vo aly {ngewe ones a mich as resi. Tis mene inking sho ow your onn HR actiteue operates and ening way in which escancosomio oo apace moet he une neds nd chances 1s of your frm. We ai Fly expt you ele our ene HR sat In masteig the wos describ in hbk Aer lel ineoation ‘comes ony wea pope War ope onthe os resing cen of ‘ewer 2 CLARIFYING AND MEASURING HR'S STRATEGIC INFLUENCE Introduction to a Seven-Step Process Irwstecion st We olds how enplneeantade ve nt ‘dren Saran vedi eds fas se tones Meio th anempoe'sabily she come ara der of pve Belen. We wera aie eb is pce sii rats We Dean oe ex how 6 ‘hang ing or bn nary aoe ems sso Ricmsao Gunn! se oan sgn i HR ahectie With lazer plan or tte inlet sod devises away tomes that alg ‘ace hth comany' ft entered 8 ling the "sry" of how ‘ale is ceed wn he ernzaton. Specialy, Sears excaves Clare how thi employes ve camer ssscton a how that ‘ata in tum, fe ven fi prormance The the need the sty by invehing a boa cone secton of ser mange provi ing developmental operniies for toe supervises who lke the leer sks ace to implomeat the sew Suey at alening ‘eH sysem to spp te dae uly important thy dese messes dat then est ter pests aout bow enploee Beinn, cute sae ‘ion isacalpromoce alike. Ino words Seas moved teyond the hype and devised ways to demonsrate ety HR's contbuton to anplemmtson ofthe company's new Sree) man resource managers could ww ce hd evieoe tha "3p ingevenect melee sine il dive 3 pin imprreane cost safe, which ata wl dive improvement ne te govt? BALANCED PERFORMANCE MEASUREMENT ‘To astewe the kid of satey lignan that Sears scored, company most engage ins to-sep pots, Fs manners have undead filth "sory how alee cested ete fom. Once tie achive this understand, hey cn then design eacenen ‘ste bse on hat soy. Ween ik of tis procs aes af wo mea questions Pir how shoul sate be implemented nor fe? Tis sont: way f asking Bow the fm grr vale. Asing ths question fociss te organization on two mensions of the satey ile ‘memati sy Srvadih: The company mst and to mee thn Sec, which ae jose ouomer of stg) ieplemttaon To {rly sp the value ceation sry tegen rat ase focus on proce eivers (ac scott loyal) hat ithas ened as "hey ssc ators” Cause fon Tiss te serie of inkages among fesncil nd oarancil detminans offen perfomance. Al nates ned to ave an understanding ofthis ow (eagh mos ack 1 Acompreenson af eusl fw puts maspes oink yond the ana sl preci the porate of eer ind of succes nator ent ena to hve sat importa natn wears of srcess: Manage also eed to understand incorporate te "ss loi” tit vests oan vein oe crac. Pipa 21 Sows be indo asi amevod th arm can concepts ‘ary asking ial bow stay soul te inlets, ‘Secon, wht perfomance measie cpt this broadly defied raegy impleemsaton process? Tis queen encourages ma grt atch meres oth conceptual fsndtion ht hey en Sued ae ndestaning te fms vale reson sy (nce high-evel minges have bese hse Wo qesons, ey ‘mast then omic ito mde manages ard oa eeployees. ‘That way. every member of be orgninion kro how osoppot he firm's seen. These queso li ep the opeizaton decd how 19 allocte resources eos 10 eae Ife into eve cet Hy. Finally, and most import, the lsghisgeorted by te qosions siete decison dat every employe makes, every Fura 2A Sel stration of Vl Cention [Rarer eat] —_ = uacalpeemane measeeaet rede, sch he oe we srs bisboak ll ares oe gost gent {wer sesine oo Te mal reopes eng o oa ine adage et tf farce! ad moval ear, ts, tals adgofege de compen, ave raseing comet seg te Sim's esomen. operons, cles, a aly tod ges HR instr oy, Fy el Neigh te inpatient ea ta Laing ots, eh hal meter yly nt oy ‘sss aceite Such input of pir es ty whee tae aye ‘eth rms ee noes Te pop oa fering en ie decir settee ng orca By hling ne raren sin! Thtore yuo weeds 92 oc ‘scaled eadng naar Thi ee fer eso, Sst rig ice RAD fc tne, ese son oyloye seat co. Ths lara at fe ey ‘evs fits tt dive inp ote fens Sey Any ‘hey prety empha de rat a INTEGRATING 11K INTO BUSINESS PERFORMANCE MEASUREMENT: UNDERSTANDING HK DELIVERABLES wig te mops eng ey ss a sel ‘nesting HR' rationally eave rin ving pasion! er. formance, Once acompany Remy sacs HR in stg) impenn tatoo system, it canta see the conection between Hand the company’s success vers By messing Hk ec onthe rien, ‘tei an quanty ARs ove artes ‘Toler HR in stain forme neste te bangers mut ietity te poss of ntreton between Hd orgnaon’s sate implemation pln. We ca tisk of tse POG sac HI delves, namely tae tomes ofthe HR acter tht sero eect their's reg. Thin in comet > HR “dosti” hat fous on HR eficey sod avy cou Te Selveabies come in vo catego: eomince divers and enables LAR perfomance aver are cor peipe ated cpaiice ete, uch a employee prafuctvty er emplyeeslsfiton Even thogh tee may soem so important at be esr, hres actully sage ‘erect ot of pefcmance dives, Each im cso iene omm Set bused on uniqesharcteritic and ie equrenens of is Sea ip implementaon proces. Babler reinforce perfermaace dives, For example pareslr change i company’ reward sce might encourage peveaie Imanfeanc ier than recive mates Aa empbass on preven {ve mamtenane might in tua eau” a performance diver eed ie delivery." Ay pesforaance driver ay have seer eubles- ‘Tae enablesbenseles, in laon may sem nde, bin wel ‘ee theicumaiive fet can ave stg importance Le lok et hve wo ctgeries of HR erable a ror dual HR Peformance Drivers, a e tems eet eceeteee Seiceee sonasncanl ececte meena Sone eee eee ed fereonem eee anae acerca eeeeeieeeeee aera tees eee eaeeeeeed Sereeeaeeseeenriany cate company’s performace In is expe, the reward sytem Has been "ance toa soe age concer sb “peoplsaes “bet one canal hw these meas refit le creat inthe Moreover, managers fn dnt understand the dela ner cing instars High HR scoe inte ae of low ania stay Sign improved Sassi nthe fare, asiming tht ibe leading ndtors ae also pst Te revene eqs toe, cores Sto financilsin the face of weak HR dives and other een inca shoul aie cencers abou fate fei pefornance. Te lesson? ‘Because tly talanced performance mess sem eet bth ‘erent and te Sani perormuce anges sere em ‘feral tes he wy thy do dso! perteance meso ening key HR pctermance divers abe challenging, use ‘hey ae onigue to each fm. The experience at Quits Comportion offs an pt exampe At Qasim, sealing mafcte fa ‘4 compuer peripherals, cxcuives eis somethieg they ea ‘imeovohe” In Quota’ vw, being fest tae dos et ean being fro amconee or most «new rode! Rate ‘means ht castemers actly get the aew prods hey wan wen hey wat them din he qaries hey que. Tne-o-vlume gs on ‘apd produc development bo the sacifie of uty pl Be tility 0 ramp up prodoeson fast esough o mest csomer me (Qua ised tf ue Beko sch a tying exe ad dpa, taking inte for oo’ own development. vesling ies in an obetve moe, ae tine-o-volume diver Thee is ching a ec ose tow th ipsa these War tthe sscses of th comp. Quast inst ety ia se oonaee ets anaes ihm egal weit Whe ata fe mance measures. Ined, neh toms and ert py baad on Francia esa. a onal co a employe’ adherent ote valve ‘whos. AB on senier execute sbsemed, “Yow can't Sng et elton whl ving ple dead edi eid yeu” HR Enablers As we meone. HR ene rife oe perfaman vn. Ta r= ‘ide ater etal fem ees enn rc ere france ve, en Yesllng" might bes enter, We eneuge uc sore ze of mich on HR xe hey on ER puttnce ives, tt dary expend te coment. Rr irc be hn ing jot nts of AR joordenbles Yor ‘teen (ine en ht rc he mae ceva HF peor anes y dunking tt ow set HR cable i ae oteree vein he spon bs a case Seopa ur enprence wih ar mony cnet whl 9 Ine en mangers do’ cones JR ele Hh vans Pe frac avn inthe reader aeaion.T peru fk od (toed ite fos i tl espe rn eve The Ato eed set af promene ers at Hae ced {osrang oesing conte tr pdt kre, sls SSK Hovever ts es sl empnized seve er ste, Se crit el bl elon + ning programs tht fosasedon serie rather les, + pcfrmanceepraisa and si pay het rence Service rather + hiking pacts tedon service competes aterthan aes on petecies: ‘ tamove ae ht dines soni ig betwen eles ‘nd etl citer and ‘tow pay an ene fr teller, who were cnsieedveread rae than source of evens gro Because of the disconect beeen is new ols eat’ HR bls thetek fd chee slr and poses ages Wit tte reali nal, was singly nal imple s ‘ew lesa. The sem erie a fe nie BR se eres {snplaye Bebavor fm mary plas Thos HR bus eat many more ‘etnies teal or unpote—te fr’ key perfermance eines Aste xa ome Dnking dy ass Rowen tis to cveroa he poner of HR. enahe. When the Wells Pago Oslie ‘Banca Services (OFS) roup plemented Baluced Seocer ‘measur te firm's over pores toward its eal of growing event {Dimainzing pois, eed re key epee + nae i high sale an high pte vale customers + acess vee per coor and + reduce cont per aston, Figure 22 aces the “ory” of how OFS expected fo aioe those goals. OFS alo ite serra MR perfomance dives a it {el woul pny animperant par inte succes oft ey shown in ‘he Leaman Grom etn ofthe ge: + strat and rein ey OFS player and sa + entunce OFS heh seat and sscesion pina: *iscese mange competency al unto competency ll level + cominedevelment ofthe OFS oaniraton nd cle ad + deploy te Screen eed itn OFS. Acconing 1 Mary D’Agosin, Pt sae t OFS, toon. Ing tee HI ver sgn an inp ep for Wels Faso ich the cole “embraces nancial measure” Bu OFS manages wet ‘chive cmsensis on ow hese HR eer ty lleted the free state gral. A a su, wile the company aie to mentr ese ives yay teat o fray bald tat itt Some 4 sor, buna cures manager hold erate the deg 1 ‘nhc firm's entre ton of ents from eaplyee sect evelopment an evars—sipperts the non-H vers tied in the firm's Sconca, Fer eurpi oue commen pevinmsncee 3 “develop super serie guaiy But fie manager sgging is highs mover niin reefer esc ual. bw ante chee third serie quay el sate ence ‘sppoe an rprizae’s RAD faction Bd te tele of a. Stale new pot nmovans a ey peromance ve By sanding how the RAD sit conics tothe fs lager suey Implenesiaton proces dhs oruiati’s HR manage cou realy rere ies fr embing tbe RAD asses. Specially, sb nigh Suge rea stn ht escouapes marke anova tie suring fancon thx prose techologil eerie and inceatist Fgwe22 Praininary Una Map > escourge ow evel employee oer nang ey RAD ten This nd of sae sakes for ae bases pater beten HR a the restof te rin A SEVEN-STEP MODEL FOR IMPLEMENTING 'UR'S STRATEGIC ROLE. How can HR formal thisKnd of ste le? Figure 2 ates bow HI can links aeverals to the fs stg implements roces While ela 0 aia genet fis dln Sequentchapes we sri tor ou ne lowing seven pe Siep I: Clearly Define Busines Seegy At he sraapy- development “abl” senior HR ledes provide ‘essen perspec. BY fossng on how to implement the sete rahe thn sly an wha he soley const thy can faa a Sscusin abou how fo commune the fm's goatee the ‘ratiznie, When suai rls atone Sereoped wt an eye owed hw they wil es inplemcted and comurnicted vaphou he ora Jaa, they ted to become very genre fr example, "monnite operating efcien”e “increas peace in inmate takes” ¢ “improve produit” Thee pose ate +0 vague that inal employees singly an noo oa ation ahr them Wis, employes a uccogie tem as une to tc fm. T set, We tn run a singe periment inca execute dation cases, We {8k pats to wnt dw thief’ isn or vn steno which we hen ee esoviag any metee of efi’ mae) and redisute among the proup Nex we as papa pik ut hae ‘mn mision wd vision sateen frm de cllection ‘These sae IO 0 vague—aod 0 sala most very il fo Catv your crpaiaton’s stay in piv terme can tke ‘acts. The ey thing Is wo ste the fm’ ls sacha nay that cenpeyes undestand tir ole an the rpmiaaton knows fo 0 menses sucess aeting the, ‘Step 2: Build a Business Case for HR as Strap Asset (Once = fim cies ie step, haan ecuce profess ned to ‘ld cla bier ce or why ad ow HR ca spp i ae, In mang hs business case you hve the benef ofa eat of sem uc esearch o suport your recommendations, While acompreersive reves of his research beyond te cope of soak, wea hight De key sul Fs, evdecegubered fur mina suey and roe tha 2800 fms engl uggs hat a high pecormance work gure 23 Transforming he WR Architecture in a Stroteg set ‘eran en mr) | aga + + system bas sin, postive infence on & a's Gani per ‘ance Figure 2-4 its tere The casi e241 hich fim’ HR 9 ‘emis conient wit our pencils af ph eormance Wok Sy ‘er, rng fe Ofte lowest rate enc uve to 10 fre ght The aus epee market vale per employee associ wih difie! points om ut 1996 HR index. One ga he ‘ernst mater de HR, "igwe 2-4 as nes ht he ets fom vest in igh evormane HR stay se a iar Pa insane pest ve tice distinc exper ste HR stems bene ne fred on ‘pfrnane Fir, ms moving ft lve penal makings othe ‘rent pent oy pict ingronetcn nm perma ‘ths pit HR fos ove from being nena to sey Implemenon asin newal sentence, Su difecy by Figs 26 Hata Suc of Va Creation aos 3 ‘0000 | nt Cangas eaten ingsoving tte tenth pre te HRM ase ra ae sie Hy aeting ou of he a Sond forte bond mile ange (ene sitet pocedle fa) roving he qaiy of Sms HEM stn has it arial ‘nyc nin erfrmince Tas mas casino asx maton fms paren to fessional fesin uns esr This toprach does no damage bu HRM sil el a stale pee Finally tm above he set pete ot only have doped the netorate HRM races an ipementd the lll res stg “bi” of he firm. As» acta mate, above te Sith reel, the maz npc of HRM os firm perfrmice is besa IDs free fs below te tment persenle, bot fr deen estons THe very best ms or supe ey the pets rm com ‘Hig the appopiate HRM poles and paces ito ax imal ‘beret sytem hat sity aianed wit sins pris nd ope ng inativer mont Hel eee ecole vale. In essence, ou fhdiagr pi tothe sg anil returns salable Gs a tly nea the ality of tir HRM systems ‘Wile thee eet are sail sgicat cepa ming tha hey de no representa raps ul. Tot simple hanes nan HR pac te will ot mmedaely send firs ck rice sarin Remember to HR mesniredvees a en hun source ten, Chg {ng ts system bythe magatde rue to enjoy thee pins thes ‘ie, ni aod sone effort I's fw Say ht egies & Ironformation of te HI fonction sd ys, If could be one ‘verge, haan cic tems woul be easy inated an woul ‘FRY owe mac of he wep charaer The sins cae fra rape HR oe ustalso incorporate HR ey ilar. on sty kplemuntation and be role of seaeiely fecal meat sts Pipi? dors the mode fr such a esis cae Based on our mos scent survey of moe than 40 ie ‘Tse sae tl a single ut owes sory. Coen wih he re ite ofthe book, cr research sgget at seaegy inplemeataton, ‘her hn sategy conten, difleettes succes from untseeo fms inp achat choore an appropiate sae that ‘0 implement ttle, Moreover, scam sae) impels Sine deven by employe sree foc HR sates alles, ad talanced prormance measreneet atm The linia of use soateyinplsnetsion sa satel faced workfece hich me ould consider he ulimate HR performance iver, Final bane efomance measurement system, tandem with an lige HR sytem nd elec knowledge mange sh fowedaton for tae cally eased organization” Step 3: Create a Satey Map Clarifhing your i's sayeth ge fer inpemertng tht sat yt isthe tse. a most xpos, the seve ‘buted ise ms posts serves isthe eso compl, ‘lave pest wht Michael Poste lero a the fas Yel ‘hain’ Al ims ave soe chsin—ven het haven't aie lian he company’s pramnane mesieent ysttn mu account for every akin at hn “Todi dhe vilue-teaton process in your oannaton, we san ‘mend ht the top- and idevl managers who wil be inca ‘he Gim's satay develop wht Bob Kaplan aod Dave Nowe call uate) mapa reece the Sisal tain? These we degransof the alte chain, suchas ve showin ges 2-1 and 2 Sach gp ‘epesetion of company’s vale csi eve iw the fen aes salen terms ht mangers a employes ie ca rasp an ct on ‘The valoe-ain mapping proces sould vole manages fom all fancions across the osiation, This brad prpaton oot ely mpeoves the gal of he crtgy mp bt ao eres bu enon Ete player To begin tbe maping pros in your ov razon, {ikea clos nok t your companys sete objecies nd ak yoursel the folowing qetons: + Which stg golobjosineotcomes rca mie a ice tohaver + Wat ete perfomance diver foreach gos!” + Ho: woud we messre rors toward hese gous? + What othe bes tot ahiovement of ach goal? + How wonld employees sed bv ene th he company ioe thve poae? + fete HR facto roiding he company wt he employee com cocies and bebvirs esse abive thee objenives? + Hot what ee change “Tete simple queson car genes wealth of information boat tow well «fos HR ution hus oes coetwing the ease tion's succes. We als suggest uplementing hese cussions with 2 ‘eyo eter infoatorptering tol, nln qoestonnaes © testemplyee anderstandig of he fi’ gol, and srveysto ges te adlionl data sout the fm’ performance ders ae guia ‘onal capes. Once yom hk you be fl pictur of Your i's ‘le in, sani infrmane hat youhave eon a cow Ceptal mvt using Inguage aot grapes hat make sese io your ‘spunzaton. Ten st for vadesanding and scene in sal rps of epnion leas and thought leaders Suvaphowt he im, “tnegy map of eval seton pros comin poten, recites, tot which nail recess eve Be pounce. mal company vale these hypotheses oly fir achieving ta {gtvon efomanee doves and uerviag the impact of hee revs fim erfrmance, However, fe casnaon can rpc dpc he ‘laos mang performance dives sil ppg thei alae Chai itcan ave ht mach ore codecs sate imple. ‘on pn ‘Sears igo example fan xgnization ht had chance est ‘es ypoeses and father eines ep) map tase on atl expe ‘ce: Begiming with he workshop veut melded in cuper, 1, Sears raat exhaed it anderstanding hse onstrts sit ined more exprence with he ds! it subseqcl sed 0 shane be gual of ss measrement stem Figure 2 desces te tone conpreensve (al performance inst") neg map that Sent develope tthe el oe fle ei sxe ‘Sp 4: Lenify HR Deliverables within the Stoegy May We mentioned tie ht HR creates ch of ve at he ps of Intestin between the HR ser and he sey nplemeriaon sysem. Maximizing tha vale seqies an understanding of bth side, ‘ofthat intersection. Hera, HR minagers lacked the reise Knowledge of the snes sd ofthe intersection, sl general mages i ns fly apeesite te HR side. Whe his gop bs oarowed recent decades bun resource mang shod ae pinay espns ili fr depicting bo HR perfomance dirs and HR enabler te stay map, "Th proces can bei, On the one ind can scarce fomance dives sch as employe comptece, nto, sd ra stl sso fundamen at ey te virally pose os where oleate thm one ap. To prams ep, we econ ‘king youl which 8 deb verables os bath perenne dives snd enabler) spp te fimevel performance driver depicted the Ssutegy map. Ty to oes othe Kids of seep bear tha woul fiction of competency, evar od werk onion For example, your fim may deide at employer subty (ie, low tumors improves RAD cpl ime (feel perfomance dive Enployee say is ths Key HR enabler. Seing hs coaestin wosld prompt you t design pollcies ach as above a Sais or tomsts-dt wow encourage lenghy tne song expe en ai Hl a For 2-6 Sears “oa Peron Inder" Made fr Pine etal tres oe — f LINKING 1 TO STRATEGY Ar GTE | Sep toa 3 ia he mde desi hs ap ae stiptowat i he ompey ts epee es he ces | pene Best me In sneer tc ‘erento pent Sg got ete | | Scoecnlefr he xcs GE sap ire ofboth | te tee natn st parted ie etn of 2 ooeny | ing en es ge tom | | sp hi pamig pce cle “Leer 20 Te inp | einai seri pied aes | sent seamen opt wont ne sma ew flew exp i | se mt +H api, Moin, GTE HR i tp wih ee hgh eet sae tahoe Ee sei rw Ot ee ts ea) | sestiu tttecane x pang fc rte ping fren ow Bl ‘Seed Seoreat, Sone samples ofthe uses inde long. nweseedtbe celine fee | tracing sa egy nena TE? | ‘tp 5: Alig the HR Architecture with HR Deliverables Lp ent nos, you've been thiaking op down” whereby rae lls sy which elias you shoud fsa Step 4). Now he ee Son's How canbe HR ayes remads, competencies, work ren. tin, ce) be seus soa fo prove tose deiveabes Figue 2-7 {Twos how e yeopely aed HR system cess be HR devenble Gow tarmover among ser RAD employes) ht ene 2) pron francs dive ele ie) ae matey map. The expnce at OTE. ‘Tate eae cones Axed inthe sidebar Linking HR 2 Seg a OTE" OTE bs developed a Scored fo the HR anton {lect fot on enerse wide HR perforance ives, tic cas seateie “rats” These ae buman-apta-elat as het aperan te scent soatey inplemenaon ower. ate et pci inka! oa atic bsiness robe. However GTE has alo wed these sete "aust gue ts naif ng HR probes aig i resetive anes unt, Tis ‘Srey slr to cur utn of Ge Hensler, which ig fas pam of ing! forthe HR ahere- For empl, i on SBU, @ ‘Sone pereratoe veri making sericea hey make deat ‘Bue oo els by GTE HR, he HR deere owe ot tes is sable und engiged workforce” We woud ifietine this deveble {san FR ener teseie woud nore tothe evel a ents {NE HR perfrsane driver Final. GTE HR als te HR sytem 10 Provie te aecesy leat sequen, incentive lis cule i tesa ean dante provide he required HR delve ‘GT Ha alo worked th nial busines nist éeelop 'SBU speci ag maps that mest descibe a guide HRs combton fo he uns staegy For example, GTEs Weel gue 27 Intestino mR wth tatny Map Cotmaror op 0 dca os ney matt acs sales nde ‘i ried wid bes lds Wieden pens meted to nplenent ht sey, Fg 28 ees de ‘hon eee HR nies td fsa peroomane Hee ‘elm ders asec of ss oops gure pent el oe ph cit om flowing Sp sgh 4 te SBU ve pete Sep 3 ee dag enpeny model an lpmen propane HR ee, ah specealy raed yt seg ine Ym ae ying do is you wel ois but toe componente Yar Figure 28 Strstegy May Competecy Sil talent Foss yom 8 gether iment wel a how the HR aan ‘ign with hac soprs) fe eer ments he ems vale an {ere pnnen). These enceps of trl and exter aignnett soe closely related. Speciale alignent is neesary tut oft nel for eter align to sar For exam, {he 1980, IBM war characterized by high level of nal HR lig tet. Led by oe of he args ad ost competent eae of aan Fesoace profesional in bsines his, the company designed & ‘easly cobesive HR management tem and then inked 4 py hi compete segs. Te HR sytem was soctbesive at wen {BM changed its sae. any eablsedhuan esoarce STACI gy ml fait ot peril ested 5 95 lipn with the rs ges (dole chging) snes ae, Yet al Se nests int aly ied HR sty in onero shine thiol ele. ‘Musignnen between to HR tem cd te see ilemenaon some can sctlly destroy valve, ar or experience wth ge mney ‘Soler demented ike mary ether baka ent he rm ‘pestion switchod fom fale to prime fot eer ose ‘ll cos, In many of is Jon, he company oaoured ene ‘es of tl aden eed he employes back roma conc Inter the bask eda shag of candids forthe head teller andj in lan ofc postions, No od ke organ deme the ‘ling and develpment opps tt hd Neral’ repre tellers for pomation, bts shit parse eaploynent tad rte workers who were’ pric steetd i flsime po ons elas soe indus who were ot eee “promoubl: ‘Aran nna cansaqunce fh shi ward paresis employe, reeiting and compenston cts tp for postin ot tree ‘katovetiocaty levetellr psdons The bak wasnow fered hie fromthe oie, butt longed te eeston and ring syste ace do in he fog epee crs tos erected Sinitcnty, incding comtenble tine lout and discotet among ‘her emplyees. Te son tha te measurement sem aoe by {ef (eorsenm pra! con) evenly farmed the business eral perfomance and bal exactly the opposite let of what the Problem aes ended, [UNINTENDED CONSEQUENCES AT GTE ] The syste ing eure yale” pearance mere et model bast bye epee CTE re Seep ‘Beat tc Soe, GTE TR dca nr song ree ye | memocreed oc ey pe went eae | ‘eed peal chive ey bw teatig eos. Howeve Oe CTE ‘eae and ling ane sence lee | ea men vent te | fein on iene iene i ie Tey ed ‘om ol of paduing Suen nd expend fens oe ny geen ak apices, pe a ing ‘tee sae ps The es ms gb ee | Nero nya esis le mayo ond lo sas ot peter nna br der pet he mpi ssn ene by Ge RS | cud sited ba mor compte ndesneg ose seni sen | ‘ip There aren pnt per cet ei ‘Step 6 Design he Strategic Hit tcasarement System ‘Sep 1 ough 5 pide the development ofthe HR acid ny ‘he proud woek necessary to meste the HR im pefomance elton ‘ip. Sip 6, you actly design that HR mene sysem. This ‘epics ol ely ss peeve on mean HR prfomane, bt tothe resolu of sme tecnica ates tat many HR potas ‘may note air wih "To mean the HR fem pecomsoce retnhp wih recon, you sedto devel vad measures of HR erates Ti ak has ‘Sous Fist you tae to be couferhatyou ne sea be met HR peered nul. Tis ous at you ly compen {he cal chu for etc staley ile a yur rian Secu, you be chee he cect meses or hse eertes FoE ‘arp in gue 27 be HR delnenble er a epee iy, ot he ae sere was is one coi be mean. Developing he seal mess Wool ei tt you peel ine who cosines he ‘eo tr xan deve wih ew es ear fpf espe tiene) wt you many empymen sty. Does eater ined ovr xj any? Deeindeindiul who hate be p> ed to mga pie? Pal you ae esse se ‘athe scr. TInowrexperinc, moet fis go thongh seve wage ines sephisicaion when they cevelop an HR Seatac Figure 29 is ‘es the measurement ccs fac HR professionals, Mos HR meas ‘emt ytems fal inte Taon cep Stage 1. Tes ica beeen Stags | and 2 te agra symbolizes the susan die ecwenn e satgcally and operonly foowed MR messrenent gure 29 ‘The Creat of Enplyee strate Fcts Treg Increasing MeasirenontSopststin = fosesiig® | fc aN aaTeraeat a ee \ nthe second sage, HR measures hve be sr of steeper, tot tey doe to Yale HR's oe a a sae Fs my ‘hcl evel “people” mesures, sch a enpoye ston, havig siti vlan the eis mig evem tether yao the rena stem in vomefehion, In auc cats, there a “ace Tenn ial (S$) scat (NP) messes bu thee 90 onsen aboot How hese ables eve to plement stg. Tete Is there nostic lope linking thse esses together. Sach fms have skipped tes 2 gh Sin a mde ‘Sage in gue 29s ey tao ot Their nes no San eases (among them HR ese) ins Hes peor ‘mance measurement te In atin ists each ese witha {Srtey mip For he tine, haan enue messes a Intl wag HR's conan ff perforce. InStage 4, HR mesures systems et th fm estimate the ipa 1 plies on fim proach ims wl chain i sb ‘tsa Seah company cn ge the a pa of Ron vel er formance Tneaoons wih more complex vale cai, ein of FHS intoence may be mia o spent within be cna, ast ease ya ca tcapte he fl inpat of Hon Emperors, tht est ‘ea ht You stale’ mare part of inp. Fr exp ca Sider he example ofan maginry company ald Peto Piptin - tue 20. Tas desces a ery sal orton of rer steey map

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