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Quesstion: Discuss about Strategic Human Resource Management Tools?

Answer:

Strategic Human Resource Management Tools, Managers use several tools to translate the company’s
strategic goals into human resource management policies and practices. These tools include the strategy
map, the HR scorecard, and the digital dashboard.

Strategy Map:
A strategic planning tool that shows the “big picture” of how each department’s performance contributes to
achieving the company’s overall strategic goals.

The strategy map summarizes how each department’s performance contributes to achieving the company’s
overall strategic goals. It helps the manager and each employee visualize and understand the role his or her
department plays in achieving the company’s strategic plan. Management gurus sometimes say that the
map clarifies employees’ “line of sight.” It does this by visually linking their efforts with the company’s
ultimate goals.

a strategy-map example for Southwest Airlines. The top level target is to achieve its profitability, costs,
and revenue goals. Then the strategy map shows the chain of activities that help Southwest Airlines
achieve these goals.
Like Walmart, Southwest has a low-cost-leader strategy.

So, for example, to boost revenues and profitability Southwest must fly fewer planes (to keep costs down),
maintain low prices, and maintain on-time flights. In turn (further down the strategy map), on-time flights
and low prices require fast turnaround. This, in turn, requires motivated ground and flight crews. The
resulting strategy map helps each department under stand what it needs to do to support Southwest’s low-
cost strategy.
a strategy-map example

For example, what steps must Southwest’s human resource team take to boost the motivation and
dedication of its ground crews?

The HR Scorecard:

is a process for assigning financial and non-financial goals or metrics to the human resource management–
related chain of activities required for achieving the company’s strategic aims and for monitoring results.

Many employers quantify and computerize the strategy map’s activities. The HR scorecard helps them to
do so. The HR scorecard is not a scorecard.

It refers to a process for assigning financial and non-financial goals or metrics to the human resource
management–related strategy-map chain of activities required for achieving the company’s strategic
aims.24 (Metrics for Southwest might include airplane turnaround time, percent of on-time flights, and
ground crew productivity.) The idea is to take the strategy map and to quantify it.
Managers use special scorecard software to facilitate this. The computerized scorecard process helps the
manager quantify the relationships between
(1) the HR activities (amount of testing, training, and so forth),
(2) the resulting employee behaviors (customer service, for instance), and
(3) the resulting firm-wide strategic outcomes and performance (such as customer satisfaction and
profitability).

The HR scorecard derives from the “balanced scorecard” planning approach, which aims to balance hard
data such as financial measures with soft data such as customer satisfaction in assessing a company’s
performance.

Digital Dashboard:
Presents the manager with desktop graphs and charts, and so a computerized picture of where the company
stands on all those metrics from the HR scorecard process.

The saying “a picture is worth a thousand words” explains the purpose of the digital dashboard. A digital
dashboard presents the manager with desktop graphs and charts, showing a computerized picture of how
the company
is doing on all the metrics from the HR scorecard process.

As in the accompanying illustration, a top Southwest Airlines manager’s dashboard might display real-
time
trends for various strategy-map activities, such as fast turnarounds and on-time flights. This enables the
manager to take corrective action. For example, if ground crews are turning planes around slower today,
financial results tomorrow may decline unless the manager takes action