HR Audit (MU0004)

1. Discuss Balanced Score Card in the perspective of Business Process

and Consumer.

The HR Scorecard argues that HR measurement systems must be based on a

clear understanding of organizational strategy and the capabilities and behaviors
of the workforce required implementing that strategy. Thus, an HR Scorecard is
a mechanism for describing and measuring how people and people management
systems create value in organizations, as well as communicating key
organizational objectives to the workforce.

It is based on a strategy map - which is a visual depiction of “what causes what”

in an organization, beginning with people and ending with shareholder or other
stakeholder outcomes. The HR Scorecard is built around a series of examples
and a process that helps managers to do this work in their own firms - designing
an HR architecture that relentlessly emphasizes and reinforces the
implementation of the firm’s strategy.

The HR Scorecard has five key elements:

• The first element is what we called Workforce Success. It asks: Has the
workforce accomplished the key strategic objectives for the business?
• The second element is called Right HR Costs. It asks: Is our total
investment in the workforce (not just the HR function) appropriate (not
just minimized)?
• The third element we describe as Right Types of HR Alignment. It asks:
Are our HR practices aligned with the business strategy and
differentiated across positions, where appropriate?
• The fourth element is Right HR Practices. It asks: Have we designed and
implemented world class HR management policies and practices
throughout the business?
• The fifth element is Right HR Professionals. It asks: Do our HR
professionals have the skills they need to design and implement a world-
class HR management system?

There is increasing interest in measuring HR and initial efforts have made use
of a HR scorecard to provide a framework within which to measure. However,
experience of HR scorecard implementation has been mixed. In this article we
provide insights into the reasons why, and outline several key steps that must be
undertaken for HR measurement to be effective.
Traditionally, HR functions have struggled with appropriate and meaningful
measures to quantify their value, or that of the people engaged within the
business. The emergence of the HR scorecard concept has tried to address this
point, taking its core design from the established balanced scorecard
measurement framework applied in businesses. In short, the balanced scorecard
is essentially a framework that attempts to collate measures across four areas:
financial, internal process, customer and (people) learning, and growth rather
than just the traditional financial measures (hence the term ‘balanced’).

Balanced Scorecard

A new approach to strategic management was developed in the early 1990·s by

Drs. Robert Kaplan (Harvard Business School) and David Norton. They named
this system the ‘balanced scorecard’. Recognizing some of the weaknesses and
vagueness of previous management approaches, the balanced scorecard
approach provides a clear prescription as to what companies should measure in
order to ‘balance’ the financial perspective.

The balanced scorecard is a management system (not only a measurement

system) that enables organizations to clarify their vision and strategy and
translate them into action. It provides feedback around both the internal
business processes and external outcomes in order to continuously improve
strategic performance and results. When fully deployed, the balanced scorecard
transforms strategic planning from an academic exercise into the nerve center of
an enterprise.

Kaplan and Norton describe the innovation of the balanced scorecard as

follows:

“The balanced scorecard retains traditional financial measures. But financial

measures tell the story of past events, an adequate story for industrial age
companies for which investments in long-term capabilities and customer
relationships were not critical for success. These financial measures are
inadequate, however, for guiding and evaluating the journey that information
age companies must make to create future value through investment in
customers, suppliers, employees, processes, technology, and innovation”.

The balanced scorecard suggests that we view the organization from four
perspectives, and to develop metrics, collect data and analyze it relative to each
of these perspectives:

Learning Perspective:
This perspective includes employee training and corporate cultural attitudes
related to both individual and corporate self-improvement. In a knowledge-
worker organization, people - the only repository of knowledge - are the main
resource. In the current climate of rapid technological change, it is becoming
necessary for knowledge workers to be in a continuous learning mode.
Government agencies often find themselves unable to hire new technical
workers, and at the same time there is a decline in training of existing
employees. This is a leading indicator of ‘brain drain’ that must be reversed.
Metrics can be put into place to guide managers in focusing training funds
where they can help the most. In any case, learning and growth constitute the
essential foundation for success of any knowledge-worker organization.

Business Process Perspective:

This perspective refers to internal business processes. Metrics based on this

perspective allow the managers to know how well their business is running, and
whether its products and services conform to customer requirements (the
mission). These metrics have to be carefully designed by those who know these
processes most intimately; with our unique missions these are not something
that can be developed by outside consultants.

In addition to the strategic management process, two kinds of business

processes may be identified: a) mission-oriented processes, and b) support
processes. Mission-oriented processes are the special functions of government
offices, and many unique problems are encountered in these processes. The
support processes are more repetitive in nature and hence easier to measure and
benchmark using generic metrics.

Consumer Perspective:

Recent management philosophy has shown an increasing realization of the

importance of customer focus and customer satisfaction in any business. These
are leading indicators: if customers are not satisfied, they will eventually find
other suppliers that will meet their needs. Poor performance from this
perspective is thus a leading indicator of future decline, even though the current
financial picture may look good. In developing metrics for satisfaction,
customers should be analyzed in terms of kinds of customers and the kinds of
processes for which we are providing a product or service to those customer
groups.

The Balanced Scorecard and Measurement-Based Management

The balanced scorecard methodology builds on some key concepts of previous

management ideas such as Total Quality Management (TQM), including
customer-defined quality, continuous improvement, employee empowerment,
and primarily measurement-based management and feedback.

2. Write a note on The Employment Hand Book.

The Employment Hand Book

A handbook can be an effective vehicle for communicating company culture

and benefits as well as any expectations the company has of its employees ² in
other words, its policies. Written policies help ensure equal and consistent
treatment of employees by managers if used as a guide and can help avoid
employment lawsuits. However, the handbook must be reviewed and updated
regularly to reflect changes in employment law as well as in company
circumstances. An outdated handbook can cause serious problems and may be
worse than not having one. There are some cautions, however, as you include
information in the company handbook. You should avoid promising that all
employees will be treated in a certain way all of the time. Sometimes even
promising to use progressive discipline standards can backfire into wrongful
discharge if you terminate someone for egregious behavior without this process.
Avoid using a probationary period for new hires; do not imply “permanent”
employment following any initial trial period. This chips away at the at-will
employment doctrine and may be construed as an implied contractual
commitment. As a rule of thumb, avoid including policies that limit the
company’s ability to use its discretion in making employment decisions, and do
not “guarantee” in advance how all decisions will be made.

Be sure that your handbook makes all the legally mandated statements. These
statements are similar to the mandated postings and include policies related to
equal opportunity, no harassment and maternity, family, and medical leaves (if
applicable). The handbook is also a good place to describe the company’s
ownership of communication equipment, e.g., electronic forms in particular (e-
mail and Internet access). Be sure to clearly outline company expectations about
how such services are to be used. Legal counsel should review the handbook to
ensure that it is compliant with state and federal requirements. In general, if
there is a conflict between state and federal mandates, the federal mandate takes
precedence unless the state mandate is more stringent, i.e., more favorable to
employees. So, the better you treat your employees, the safer you are from a
legal compliance standpoint

Employee Handbooks are also often called Policy and Procedures Manuals.
The Handbook/Manual is a statement of the policies of the business and how
the business is to be conducted. The company employee handbook is one of the
most important communication tools between your company and your
employees. Not only does it set forth your expectations for your employees, but
it also describes what they can expect from the company. It is essential that your
company has one and that it be clear and as unambiguous as possible.
Misunderstandings or misstatements can create legal liabilities for your
business. In legal disputes courts have considered an employee handbook to be
a contractual obligation, so word it carefully.

The company employee handbook and related personnel policies should be one
of the first formal communications that you will have with an employee after
they are hired. Make sure the first impression is a good one. Similarly, in the
event of a dispute or poor performance review, this will be the first place that
the employee turns.

The handbook should contain enough detail to avoid confusion, but not so much
as to overwhelm. For instance, if there are other documents (i.e. group insurance
handbook, and retirement plan documents) which more appropriately provide
details, don't try to recreate the information in the handbook. Instead, offer a
brief summary and refer to the other document in the employee handbook.
Make sure that you are familiar with the myriad of laws and regulations for
employment. It is always wise to consult with a lawyer on any topics that you
don't understand.

3. Visit the following site to Identify your Big Five.

http://similarminds.com/big5.html .. EXPLAIN THE FIVE TRAITS IN
DETAIL , DISCUSSING THE FACETS RELATED TO EACH
PERSONALITY FACTOR AND MARK THE ONES YOU DOMINANT
IN YOUR PERSONALITY , AFTER CONDUCTING THE TEST.

Psychologists define personality as:

“The particular pattern of behavior and thinking that prevails across time
and contexts, and differentiates one person from another.”

In trying to understand these behavior patterns, psychologists attempt to

identify and measure individual personality characteristics, often called
personality traits.

A personality trait is assumed to be some enduring characteristic that is

relatively constant. This is opposed to the present temperament of that
person which is not necessarily a stable characteristic. Consequently, trait
 theories are specifically focused on explaining the more permanent
personality characteristics that differentiate one individual from another.
For example, things like being; dependable, trustworthy, friendly,
cheerful, etc. Modern personality theory is a relatively new field and
really began in the 1920s. There have been many attempts to define
personality traits and some psychologists have developed models with
hundreds of traits. Whilst others believe that there are as few as three. In
1990, the psychologists Costa & McCrae published details of a ‘5 trait’
model. This has received significant support from other research and is
now widely accepted among psychologists. These 5 aspects of
personality are referred to as the 5-factors or sometimes just ‘the Big 5’.

Each of these 5 personality traits describes, relative to other people, the

frequency or intensity of a person·s feelings, thoughts, or behaviors.
Everyone possesses all 5 of these traits to a greater or lesser degree. For
example, two individuals could be described as ‘agreeable’ (agreeable
people value getting along with others). But there could be significant
variation in the degree to which they are both agreeable.

These 5 traits/factors are:

• Extraversion -How ‘energetic’ one is:

People who score high on this factor like to work in cooperation with
others, are talkative, enthusiastic and seek excitement. People who score
low on this factor prefer to work alone, and can be perceived as cold,
difficult to understand, even a bit eccentric.

• Agreeableness - One’s level of orientation towards other people: Those

who score high on this factor are usually co-operative, can be submissive,
and are concerned with the well-being of others. People who score low on
this factor may be challenging, competitive, sometimes even
argumentative.

• Conscientiousness How “structured” one is:

People who score high on this factor are usually productive and disciplined and
“single tasking”. People who score low on this factor are often less structured,
less productive, but can be more flexible, inventive, and capable of
multitasking.

• Neuroticism - Tendency to worry:

People who score low on this factor are usually calm, relaxed and
rational. They may sometimes be perceived as lazy and incapable of
taking things seriously. People who score high on this factor are alert,
anxious, sometimes worried.

Openness to Experience - Tendency to be speculative and imaginative:

People who score high on this factor are neophile and curious and sometimes
unrealistic. People who score low on this factor are down-to-earth and practical
and sometimes obstructive of change.

All 5 personality traits exist on a continuum rather than as attributes that a

person does or does not have. Each of these 5 traits is made up 6 facets, which
can be measured independently.
When thinking about personality traits it is important to ignore the positive or
negative associations that these words have in everyday language. For example,
Agreeableness is obviously advantageous for achieving and maintaining
popularity. Agreeable people are better liked than disagreeable people. On the
other hand, agreeableness is not useful in situations that require tough or totally
objective decisions. Disagreeable people can make excellent scientists, critics,
or soldiers.

It is quite possible to come up with slightly different definitions of the big 5

traits and to attach more importance to some of the facets than to others. This is
an area that lends itself to endless debate and keeps many academic
psychologists in work. As well as providing lively academic argument, it also
enables companies in the personality testing field to differentiate their products
from those of their competitors.