INTRODUCTION: The new economic paradigm is characterized by speed, innovation, quality and customer satisfaction. The essence of the competitive advantage has shifted from tangible assets to intangible ones. The focus is now on human capital and its effective alignment with the overall strategy of organisations. This is a new age for Human Resources. The entire system of measuring HR’s contribution to the organisation’s success as well as the architecture of the HR system needs to change to reflect the demands of succeeding in the new economy. The HR scorecard is a measurement as well as an evaluation system for redefining the role of HR as a strategic partner. It is based on the Balanced Scorecard framework developed by Kaplan and Norton and is set to revolutionise the way business perceives HR.
Based on various studies, it can be concluded that firms with more effective HR management systems consistently outperform the competition. However, evidence that HR can contribute to a firm’s success doesn’t mean it is now effectively contributing to success in business. It is a challenge for managers to make HR a strategic asset. The HR scorecard is a lever that enables them to do so. Implementing effective measurement systems for intangible assets is a very difficult task and demands the existence of a unified framework to guide the HR managers. It is this difficulty that has been the prime reason why managers tend to avoid dealing with intangible assets as far as possible. In the process firms under-invest in their people and at times invest in the wrong ways. Another difficulty is, managers cannot foresee the consequences of their investments in intangible human assets in a well-defined measurable manner and they are not willing to take the risk. Thus, the most effective way to change this mindset is obvious – to build a framework just like the balanced scorecard, which has sound measurement strategies and is able to link HR functions, activity and investment with the overall business strategy. The HR scorecard framework was specifically designed for these purposes.
1. To highlight the importance of Balanced Scorecard as a measurement tool.
2. To find out the need of Balanced Scorecard in today’s competitive environment.
3. To find out how Balanced Scorecard is useful for developing the Human Resource as a strategic partner.
4. To find out how Balanced Scorecard can be implemented to Human Resource.
Type of Research- Exploratory Research
Data sources: The research is based on secondary data and the data is collected from various websites, Journals, Magazines, Articles and Research Paper.
Data Analysis: The research is divided into the six sections. The First section deals with the overall introduction of the research and the Second section highlights the Human Resource as a strategic partner and the traditional human resource and the human resource in present and the future of the human resource. Third section explains in detail the HR Architecture as a strategic asset which contains the hr function, hr system and the employee behavior. Fourth section explains the background and the concept of balanced scorecard, need of the balanced scorecard in today’s competitive environment, and defines the balanced scorecard as a measurement tool. Fifth section explains how balanced scorecard can be implemented into the human resource to develop the HR as a strategic partner. Sixth section contains the case study of Verizon and explains how Verizon has implemented the balanced scorecard to human resource to generate the value through the intangible asset.