The balanced scorecard has great benefits on business performance and can provide analysis and quantifiable data at an organizational level. However, that does not mean that the Balanced Scorecard should only be used as an overall performance tool. For best results, it can be applied to individual areas of the business, and the Human Resources department is one of the most important business sectors that the BSC analysis can benefit.
Let us start with the basics.
The Role of the HR Department for the Business
The Human Resources department is the glue that keeps the organization together, a fundamental part of the entire business process. Metaphorically, the HR department could be viewed as a bridge that connects the executive team and shareholders with the workforce.
This connection is mostly important in terms of clear communication of strategies and how well these are implemented. Although the shareholders may be the investors and the executive teams the strategic decision makers, the rest of the employees are the implementers, the ones that make things happen.
- Learn more in eTraining: How to use Balanced Scorecard in Human Resource.
If a client receives bad customer service, the shareholders or executive teams have little power over it. The employees are the ones that can make the difference and truly drive the success.
This is why over the past couple of years the business environment has been shifting HR from a transactional department to a strategic one, where most companies deem HR as their strategic partner.