The HR Scorecard: Linking People, Strategy, and Performance

FROM THE PUBLISHER

As human capital takes center stage in today's economy, the HR profession has been charged with shifting its emphasis from administrative cost center to active partner in helping firms to implement strategy. But beyond recruitment and compensation, what does HR actually do to help firms succeed?

Now, three experts in the field introduce a measurement system that convincingly showcases how HR impacts business performance. Drawing from the authors' ongoing study of nearly 3,000 firms, this book describes a seven-step process for embedding HR systems within the firm's overall strategy -- what the authors describe as an HR Scorecard -- and measuring its activities in terms that line managers and CEOs will find compelling.

Analyzing how each element of the HR system can be designed to enhance firm performance and maximize the overall quality of human capital, this important book heralds the emergence of HR as a strategic powerhouse in today's organizations.

SYNOPSIS

Providing the tools and systems required for leading a "measurement managed" HR architecture, this important book heralds the emergence of human resources as a strategic powerhouse in today's organizations.

Three experts in the field outline a powerful measurement system that highlights the indisputable role HR can play as both a prime source of sustainable competitive advantage and a key driver of value creation. They draw from an ongoing study of nearly 3,000 firms to outline a seven-step process they call an HR Scorecard, specifically designed to embed human resources systems within a firm's overall strategy and manage the HR architecture as a strategic asset. Building on the proven Balanced Scorecard model, they also show how to link HR's results to measures-such as profitability and shareholder value-that line managers and senior executives will understand and respect.

The authors argue that human resources's strategic role begins with designing an HR architecture-the HR function, the HR system, and strategic employee behaviors-that relentlessly emphasizes and reinforces the implementation of the firm's strategy. Using compelling examples from a variety of leading companies, they explain how to develop and implement an HR Scorecard in order to both manage the HR architecture as a strategic asset, as well as measure the contribution of that asset to firm performance.

FROM THE CRITICS

Booknews

An ongoing study of some 3,000 firms is the basis for this measurement system for evaluating the role and value of the human resource department. The system is designed to embed human resources within a firm's overall strategy and to manage the human resources architecture as a strategic asset. Examples from leading companies show how to develop and implement the system and how to link the human resources department's results to measures, such as profitability and shareholder value, that line managers and senior executives can understand. Becker is professor and chair of organizations and human resources at the State University of New York-Buffalo. Annotation c. Book News, Inc., Portland, OR (booknews.com)

Fatbrain

"A compelling way to define and measure HR's effect on the bottom line. The book constitutes a breakthrough in thinking for the HR function." --Paul McKinnon, Senior Vice President of HR, Dell Computer Corporation

"At the root of every business challenge or opportunity is a human issue. If you believe that, you must take seriously the challenge of strategically planning for, and measuring the results of, human resource work. The HR Scorecard will both challenge your thinking in this area and provide options that you can use today." --Ralph Christensen, Senior Vice President of Human Resources, Hallmark Cards, Inc.

"A must-read primer for human resources professionals who view HR as critical to the success of their companies." --Mike Tindall, Vice President of Strategic Measures, Prudential

"This fact-filled, thoughtful, well-researched book provides valuable insights on the most pressing issue facing organizations today: how to measure their human resource performance. In an economy increasingly based on knowledge and people, no executive can afford not to read this book." --Jeffrey Pfeffer, Thomas D. Dee II Professor of Organizational Behavior at the Stanford Business School and Author of The Human Equation

"The HR Scorecard provides a language for HR professionals and line managers working together to really nail the connection between HR interventions and the firm's success." --Susan Bowick, Vice President and Director of Human Resources, Hewlett-Packard

"The HR Scorecard demonstrates how improved measurements play a vital role in linking human resource initiatives to business strategies and to significant increases in shareholder value." --Robert Kaplan, Marvin Bower Professor of Leadership Development, Harvard Business School and Coauthor of The Balanced Scorecard and The Strategy-Focused Organization

"This book serves as a tremendous strategic tool for HR functions to showcase their impact on the business. If you want to succeed in the new economy as a high-performing HR strategic partner, I recommend you read this book." --Robyn Ewing, Senior Vice President of HR, Energy Services, Williams

"A must-read for all HR executives. Full of useful findings, methods, measures and examples." --Edward E. Lawler III, Author of Rewarding Excellence

"The HR Scorecard is the definitive guide for today's human resource professional. It provides perfect insight into a field that has been under much scrutiny and in great need of change." --Milano Reyna, Worldwide Human Interests Director, Saatchi & Saatchi

AUTHOR DESCRIPTION

Brian Becker is a Professor and Department Chair of Organizations and Human Resources at the State University of New York at Buffalo.

Mark Huselid is an Associate Professor of Human Resource Strategy at Rutgers University.