| Home -> Management Resources -> HR Articles -> The Balanced Scorecard Approach at Tata Engineering |
|
THE BALANCED SCORECARD APPROACH AT TATA ENGINEERING DEVELOPING THE HR BALANCED
SCORECARD |
Contributed
by Amita
Ahuja and Ajay Oberoi , Corporate HR. |
| Through the
different phases of industrialization, business focus moved from product quality to
product & process quality to wooing the customer by selling and marketing to cost
management to customer focus through value for Money and finally to wooing the best talent
to meet the above challenges. Thus, we see the emergence of four clear business
perspectives –Capital Management, Customer Management, Product & Process
management and Talent Management. However baring world class companies, the rest focused
on one or the other business perspective as their competitive advantage / core strategy. With
the simultaneous Globalization of world market and the liberalization of the Indian
market, it has become imperative for survival of Business to look at all the four
perspectives collectively and comprehensively. Balanced
Scorecard is a tool for simultaneously aligning all four perspectives to
achieve the Business objective. It brings about a greater harmony of the Business
perspectives at Locational, Functional and Divisional levels. Hence each and every
perspective should be evaluated on the returns generated. An
HR practitioner’s perspective of Balanced Scorecard is that of a tool that integrates
the HR activities with the Business perspectives leading to the achievement of the
end-objectives. A comprehensive HR Balanced Scorecard to help HR practitioners to deliver
visible and measurable HR contribution to the Business. It will also help in bringing
about changes in the workplace by fostering a climate of innovation and
intrapreneurship.It will lead to a smooth transition of HR into the 21st
century by building a strong and credible HR system and is a proactive step towards
Human Resource Capital Management At Tata Engineering, the Balanced Scorecard
initiative was undertaken at the Business Unit level and a comprehensive roadmap was drawn
up addressing the four perspectives: Financial, Customer, Business Processes and Learning
& Growth. The Balanced Scorecard initiative also integrates the TBEM process of
internal assessment, which has been institutionalized to nurture an environment of high
performance and organization wide learning and sharing. The Business
Unit Balanced Scorecard served as the guiding force for drawing up the
scorecards for different Lines of Business and the support functions. HR role on the four perspectives is addressed as:
The intent is to ensure that HR would deliver
on clear and quantifiable measures and thus lead by being a role model. An attempt has
been made to quantify HR by specifying the expected outcome and defining the corresponding
quantifiable measure for it. The
Corporate HR Scorecard defines overall strategic priorities and context which will guide
the HR activities .The Corporate HR BSC drawn up is consistent with the Business Unit
strategic agenda on the four perspectives. Quantifiable
and objective measures are identified for all HR activities, on which targets are taken.
For these measures, a strategic initiative plan is drawn up to spell out the specific
action plan, the process owner and milestones indicating completion of a phase. Resource
and Budget allocations are then deployed to bridge the gap between the current performance
and the target. |
Home -> Management Resources -> HR Articles -> The Balanced Scorecard Approach at Tata Engineering |