File - Human Resource Information Systems

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HR Administration and HRIS
Module 06
Module 5 Objectives






Understand the basic role of job analysis in human resources, and explain the role of HRIS in supporting
job analysis.
Discuss the complexity of HR administration and the advantages of an HRIS over a “paper-and-pencil”
HR operation.
Discuss the advantages of service-oriented architecture (SOA) of the HRIS.
Discuss the advantages and disadvantages of each of the four structural approaches to HR
administration.
Understand how legal compliance with government mandates is an important part of HIRS functionality.
Understand employee and manager self service systems.
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
2
CHAPTER 10
HR Administration and HRIS
TRANSACTIONAL HR ACTIVITIES
Transactional Activities Make Up 65-75% Of All
HR Activities.
Examples Of HR Administration Include:

Benefits Administration

Record Keeping

Employee Services.
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
4
INTRODUCTION TO HR ADMINISTRATION
AND THE HRIS ENVIRONMENT

HRIS Employee Database (BEIM) Must Be
Carefully Constructed



Record And Repository For All Relevant Employee
Information
Must Be Created Prior To Other Modules For Programs
The Role Of HRIS Is To Enhance


Efficiency - Reducing Costs)
Effectiveness - Adding Value For ‘Internal’ Customer
Satisfaction
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
5
JOB ANALYSIS

Job Analysis


The Process Of Systematically Obtaining Information About
Jobs By Determining The Duties, Tasks, Or Activities Of
Jobs,.
Job Descriptions



Define The Working Contract Between The Employee And
The Organization
The “Heart” Of The HRM System
Critically Important That They Be Accurate And Timely
HR Department Should Capture And Store The Results Of
The Job Analysis And Job Descriptions Within The HRIS
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
6
STEPS IN JOB ANALYSIS
1.
Indentify Sources Of Information About The Job
2.
Identify The Type Of Job Information Or Data
3.
Determine The Methods Of Collecting The Job Data

Use Standardized Techniques To Do Job Analysis (e.g.
Functional Job Analysis, The Position Analysis Questionnaire
System, The Task Inventory Analysis, And The Critical
Incident Method
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
7
HRIS APPLICATIONS IN JOB ANALYSIS



The Utilization Of Technology Has Dramatically Increased The
Availability Of Information Supporting Job Analysis And The
Convenience Of Conducting Job Analysis.
 O*Net Database
 hr-guide.com
 Vendors Offer Stand-alone Products Or Components Of A
Larger Product Offering.
Completing Job Analysis And Deriving Job Descriptions Can Be
Accomplished Through Online Survey Techniques.
Maintaining Accurate Job Descriptions Can Also Be Aided By An
HRIS.
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
8
HR ADMINISTRATION & HRIS

Can Improve Efficiency Of HR Administration:

Can Improve Data Accuracy

Can Speed The Process Of Building Reports

Can Support Differences In Reporting Mandated By Global
Governmental Jurisdictions

Can Support Secure Global Distribution Of Data
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
9
ENABLING ARCHITECTURE
Service Oriented
Architecture (SOA)

Collection Of Internal And
External Services That Can
Communicate With Each Other
Extensible Markup
Language (XML)


Allows Data Sharing Across
Different Information Systems
Across The Internet
Improves Interface Technology
Through Platform
Independence And Protocols
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
10
SOA BUSINESS MODELING PROCESS
Figure 10.1
SOURCE: Marks and Bell (2006, chap. 3).
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
11
ADVANTAGES OF XML-ENHANCED SOA

Improved Security

Enhanced Performance

Added Auditing & Change Capabilities

Enables Alternate Delivery Models
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
12
TYPICAL HRM ADMINISTRATION
SERVICE DELIVERY ALTERNATIVES
Figure 10.2
Self-service portal
Shared
service center
Outsourcing Offshoring
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
13
THEORY AND HR ADMINISTRATION
Resource-Based Theory



Physical, Organizational & Human
Capital
Innovative Combinations Of
Technology, Systems &
Intellectual Capital Generate
Competitive Advantage
Eg. Wal Mart’s Just-in-time
Supply Chain Management
Transaction Cost Theory


Choose To Purchase Goods
And Services They Need In
The Competitive Marketplace
Or Make Those Goods And
Services Internally
Make Or Buy. Eg., Full-time Vs
Temp Employees
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
14
SELF SERVICEC PORTALS AND HRIS

Employee Self-Service (ESS) HR Portals


Provide An Electronic Means For A Company’s Employees To
Access Its HR Services And Information.
Manager Self-Service (MSS) Portals

Specialized ESS Portal Designed To Allow Managers To View
Extensive Information About Their Subordinates And
Perform Many Of Their Administrative Tasks Electronically.
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
15
COMMON SELF SERVICE
APPLICATIONS

Employee Self-Service


Manager Self-Service


Distribution Of Pay Advice; Administration Of Leave; Update
Personal Details; Administer Training; Employee Surveys;
Distribute Reports; Timesheet Entry
Complete Job Requisitions; View Resumes Of Prospective
Applicants; Performance Appraisals, View And Prepare Merit
Increases, Viewing Subordinate Salary, Performance, And
Training Histories
Non-Employee Self-Service

Job Postings And Applications
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
16
SAMPLE EMPLOYEE SELF-SERVICE
(ESS) FUNCTIONALITY Table 10.1
Benefits Services
Personal Data
Development
Review company
communications
Research and view plan
rules and requirements
Update emergency contact,
address, telephone
information
Enroll in training
courses
Access company
policies or procedures
Enroll in cafeteria-style
programs (medical, dental,
insurance)
Correct errors in personal
data (degree, graduation
date)
View completed
training
Access HR policy
manuals and e-mail
inquiry/help request
Add and/or delete
dependents
Change W-4 withholding
forms
Access e-learning
internal/external
courses
Complete employee
surveys or 360o feedback
data
Model retirement and/or
access 401K savings
investment records
View previous/current pay
and performance
information
View/apply for
internal job
vacancies
View/respond to
personal information
requests from HR
Model health plan
alternatives’ costs (e.g.,
HMO, PPO)
Enter time reports,
vacation/sick days, and
travel expense reports
Complete
employment tests
for new jobs
Communications
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource
Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE
Publications, Inc.
17
EVALUATION OF SELF SERVICE PORTALS

Advantages



Improved Speed & Quality Of Service
Reduced Enquiry Transactions & Dependency On
HR Which Reduce Costs
Disadvantages



Security Breaches & Identity Theft
Data Privacy
Admin Staff Pushing Admin Work To Others
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
18
SHARED SERVICE CENTERS (SSCs)

Shared Services



A Collaborative Strategy where Staff Functions Are
Concentrated In A Semi-autonomous Organization And
Managed Like A Business Unit To Promote Greater
Efficiency, Value Generation And Improved Service For
Internal Customers. (Goh et al. 2007, p. 252)
Flexibility Over Control
Services Covered: Finance, HR, IT,
Purchasing, Real Estate Mgt., Legal, General
Admin, Talent Mgt., Fleet Mgt.
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
19
SHARED SERVICE CENTERS

To Demonstrate Its Value To The
Organization, SSCs Should Establish
Measures/ Metrics That Demonstrate:

Customer Satisfaction Levels

Productivity

Cost Controls

Quality
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
20
FUNCTIONS IN SHARED SERVICES
Figure 10.3
SOURCE: Powell (2004).
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
21
SHARED HR SERVICES

Internal HR Dept. As A Strategic Business Unit
(SBU) Competes With Outside Providers For
Providing These Services To Other Internal
Departments

Costs

Quality

Value
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
22
EVALUATION OF SHARED SERVICES

Advantages:


Focus On Delivering Timely, High Quality
Transactions; Focus On Customer Satisfaction;
Encourage Efficiency And Standardization;
Facilitate Development Of Measures Of Efficiency,
Quality, And Customer Responsiveness
Disadvantages:

Costs Overriding Long Term Quality; Lack Of
Synergy; Power Shifts Between Depts;
Depersonalization (Technology Replacing People
Touch)
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
23
OUTSOURCING AND HRIS


Practice Of Contracting With Vendors To
Perform HR Services And Activities
Focus On Core Competencies – Core & Noncore Functions/ Processes
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
24
HR PROCESSES OUTSOURCED
Figure 10.4.
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
SOURCE: EquaTerra (2007, p. 4).
25
TYPES OF HR OUTSOURCING

Discrete/ Selective Outsourcing


Multi-process/ Blended Outsourcing


Outsourcing Only Particular Function (Eg.,
Recruitment) Or Part Of A Function (Eg., Executive
Recruitment)
Outsourcing All Of One Or More Related HR
Functions (E.G., Recruitment And Selection;
Defined And 401K Retirement Plan Administration)
Total Outsourcing

Having All, Or Nearly All, HR Functions Handled By
One Or More External Vendors
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
26
SELECTIVE VERSUS
COMPREHENSIVE OUTSOURCING
Figure 10.5
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
SOURCE: EquaTerra (2007, p. 4).
27
EVALUATION OF OUTSOURCING
Advantages
Disadvantages

Cost Savings

Loss Of Control

Performance

Strategic Benefits Realized By
Very Few

Loss Of Knowledge or Internal
Expertise

Loss Of Jobs – Insecurity

Managing Costs

Costs Of Mismanagement
Improvements


Flexibility
Focus On Core Activities
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
28
OUTSOURCING

Backsourcing


Bringing HR functionality back “in-house” after
originally outsourcing
Offshoring

HR Outsourcing with Vendors Outside The Country

Enabled By Broadband & Internet Technologies

Primarily Utilized To Reduce Costs And Increase
Profits
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
29
MOTIVATIONS FOR OFFSHORING
Figure 10.6.
SOURCE: Hatch (2004, p. 14).
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
30
TYPES OF HR OFFSHORING
Offshore Ownership

Opening A Subsidiary

Joint Venture

Purchasing An Existing
Offshore Outsourcing

Traditional Contractual
Relationship With An
Existing Firm
Firm.
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
31
OFFSHORING

HR Managers Reported That Most
Common Offshoring Includes:





Manufacturing (43%)
IT (29%)
Computer Programming (22%),
Customer Call Centers (29%),
HR Functions (16%).
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
Esen, 2004
32
CONSIDERING OFFSHORE OWNERSHIP?


Higher Risk Associated With Offshore
Ownership
Important to Consider





Availability Of Employee Knowledge, Skills, And Abilities
Information And Communication Systems Compatibility With
HRIS
Government Regulations And Legal Employment Regulations
Political Stability Of The Country And Employee Security
Cultural Differences
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
33
LEGAL COMPLIANCE


U.S. Employment Laws Underpin The General Principles
Used In The Practice Of HRM.
Compliance With Local, National, International Labor
Laws


HRIS Assists In:




EEO, AA, Employment Awards/ Agreements, Health & Safety
Increasing Efficiency, Quality, And Cost Reduction In Fulfilling
Reporting Requirements
Accurate, Timely Recordkeeping And Reporting
Better Tools: Self Reporting; Electronic Report Submission
Enhancing Data Privacy & Security: ‘Need To Know’
Basis
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
34
HR ADMINISTRATION AND EQUAL
EMPLOYMENT OPPORTUNITY

U.S. Civil Rights Act Of 1964, Title VII


Additional Requirements for Federal Contractors (with
over $50K in business)




Provides EEO Requirements
Affirmative Action Plan (AAP)
Age Discrimination In Employment Act (ADEA)
Americans With Disabilities Act (ADA
Equal Employment Opportunity Commission (EEOC)



Gathering Data
Investigating Alleged Violations
Bringing Legal Charges Against Employers Who Fail To
Comply
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
35
EEO/AFFIRMATIVE ACTION PLAN
(AAP) ADMINISTRATIVE FUNCTIONS
Figure 10.7
EEO recordkeeping
and reports
AA planning and
program monitoring
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
EEO/AAP legal
support
36
EEO-1 REPORT

Employers With 15 Or More Employees Must Keep
Records Regarding Compliance With




(Standard Form 100)
Law Based Category (Professional, Technical, Managerial,
Craft)
Sex
Race/Ethnicity
Revised Reporting Instructions Include



Designated Racial/Ethnic Categories
Columns For Reporting Individuals Who Specify More Than
One Race/Ethnicity
Employees “Self-identify” Rather Than Relying On The
Employer’s Visual Categorization (EEOC, 2006)
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
37
EEO-1 CHANGES AND HRIS

Recent Changes to EEO-1 Reporting may cause
organizations to need to update their systems

Track Race Separately From Ethnicity

Separate Codes For Asian And Native Hawaiian Or Other Pacific
Islander

Modify Limitations On Reporting to Allow Reporting of More
than One Race

Insure Queries Can Identify All Individuals In A Particular
Category (E.G., American Indian), Even When Individuals Selfidentify As Two Or More Race Categories
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
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EEO-1 REPORT
Figure 10.8
SOURCE: U.S. EEOC (2006).
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems:
Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
39
OCCUPATIONAL SAFETY AND HEALTH
ACT (OSHA) RECORD KEEPING


Developed To Establish That Employers Must Provide A
Workplace Free Of Known Hazards Likely To Cause
Death Or Serious Injury
Requirements



For Businesses With 11 Or More Employees, OSHA Compliance
Officers Are Required To Arrive Unannounced For An OSHA
Inspection
Required To Notify OSHA Within 8 Hours Of Any Accident
Involving Fatality Or In-patient Hospitalization Of Three Or
More Covered Employees
Complete An Annual OSHA Form 300
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
40
OCCUPATIONAL HEALTH AND SAFETY
ADMINISTRATIVE FUNCTIONS Figure 10.9.
Accident reporting
and recordkeeping
Safety and Health
training records
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
Workers’
Compensation
Claims
41
OSHA Form 300
SOURCE: U.S. Department of Labor (2004).
Figure 10.10

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42
IMPROVED GOVERNMENTAL
REPORTING WITH TECHNOLOGY




HRIS Records Can Be Established at time of
Employee Application
Simple Queries Can Secure Required Employee Data
Required Reporting Information Can Be Sent Quickly
Reduced Disruption of Operations



HR Employees Can Handle The Complete Reporting Function
Changes In Mandated Reporting Requirements can be
Handled Mechanically By HR
Electronic Reporting Ensures Timely Receipt Of
Reports
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
43
PRIVACY AND SECURITY IN HRIS

The Underlying Principle For Database Security And
Individual Privacy Is The ‘Need To Know’ Rule.

Privacy Act 1974

Fair Credit Reporting Act 1970

Family Education Rights and Privacy Act 1974

Electronic Communications Privacy Act 1986
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
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44
HRM AND THE BALANCED
SCORECARD

Balanced Scorecard



Both a Management And Measurement System
“Enables Organizations To Clarify Their Vision And Strategy
And Translate Them Into Action, . . . [Providing] Feedback
Around Both The Internal Business Processes And External
Outcomes To Continuously Improve Strategic Performance
And Results” (Arveson, 1998).
Measures Reflect The Value-added Nature Of HRM In
Leveraging Human Capital and are Linked To The
Strategic Goals Reflected In A Firm’s Balanced
Scorecard.
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
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Figure 10.11. Balanced Scorecard Components
Figure 9.11. Balanced Scorecard Components
SOURCE: Arveson (1998).
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
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46
SAMPLE HR-BALANCED SCORECARD
LINKAGE Figure 10.12
FINANCIAL:
Return on Assets (Human Capital)
CUSTOMER
On-time delivery
Customer satisfaction
INTERNAL PROCESSES:
Improved productivity
LEARNING & GROWTH:
HR Training to develop new employee skills
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ALIGNING THE HR SCORECARD &
ORGANIZATION BALANCED SCORECARD
1.
2.
3.
4.
5.
6.
Specify The Business Strategy To Be Supported (E.G., Customer
Retention)
Identify Leading (E.G., On-time Order Delivery) And Lagging (E.G.,
Customer Satisfaction Levels) Indicators
Identify Associated Internal Processes (E.G., Worker Productivity,
Product Quality)
Identify HR Linkages (E.G., Training, Rewards)
Specify The HR Strategy (E.G., Offer Enhanced Productivity Training
For Workers To Reduce Product Time-to-market And Insure On-time
Order Delivery)
Measure: Worker Productivity Increase, On-time Deliveries,
Customer Complaints To Demonstrate The Strategic Value Of HR
Training in the “Learning” And “Growth” Balanced Scorecard
Categories
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48
SAMPLE HR SCORECARD MEASURES
LINKED TO FIRM BALANCED SCORECARD
Figure 10.13
HR Functions To Support
Learning & Growth Category
(E.G., Employee
Development)
HR Internal Efficiency
Measures To Support
Financial Category
Backup Talent Ratio—value Creation
Competency Development Expense Per
Employee—cost Control
No. Of “Special Projects” For Employee
Development—value Creation
No. Of Employees With Development
Plans—cost Control

HR Departmental Expense/$ Of Sales
Revenue—cost Control
HR Sales Training Expense/$ Of Sales
Revenue—value Creation
HR Recruitment Expense/R&D Hires—cost
Control
No. Of Patents Per R&D Hires—value
Creation

Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information
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