"If there be any truer measure of a man than by what he does, it must be by what he gives."
This is where systems like a balanced scorecard (BSC) and KRA (key result area) come into play. Of the two, let’s first take a look at the balanced scorecard:
Developed by Doctors Robert Kaplan and David Norton, a balanced scorecard is a tool for performance evaluation. It is the most widely implemented strategy by fortune 500 companies and large corporate worldwide. It seeks to achieve a balance between an organization or an employee’s skills, strengths and the goals to be achieved by the organization.
It combines several factors for an accurate and comprehensive measure of performance. Through the implementation of this scorecard, organizations get a clear and precise view of organizational, departmental and even individual performance.
The major factors that make up a balanced scorecard can vary according to an organization’s core business areas. It takes into account all those variables that are crucial for its financial success and progress. Ideally it is believed that a balanced scorecard should not include more than 4 major areas which need to be focused and worked upon in a well defined manner by everyone.
The other measure for performance is the KRA. Variably known as key result areas or key responsibility areas, it is a similar tool- though it focuses more on the individual employee. In accordance with the job description and employee profile, the KRA defines the employee’s responsibilities, and sets targets to be achieved. Depending upon the job profile of each employee, the KRA can take into account factors such as attendance, discipline, initiative, targets achieved, sales done or profits earned.
The responsibility of drawing up accurate, challenging yet achievable scorecard or KRA lies with the HR department and managers. The HR department is in charge of making sure that the individual and the organization continue to work with each other for the mutual benefit of each.
HR policies and manuals are designed in such a way that the employee stands to gain considerable financial and growth benefits for delivering consistent results with their balanced scorecards or KRAs. The main aim is to make sure that each employee stands to make the most of his or her key skills and thus help achieve individual, departmental and organizational targets. The critical areas of focus can be changed or adjusted to achieve the desired results and meet the profit predictions of organizations.
HR Balanced Scorecard
In the highly competitive and unstable corporate world, the above line says everything about what is expected of the employees. The true measure of a man in any large business organization today is defined by performance and results. The organization expects employees to understand and help achieve the organizations visions and goals in terms of profits, growth and expansion. With such complex and huge targets to achieve, a clear and indisputable strategy needs to be in place to make sure each one is doing his or her best every time. At the same time, it is important that each individual’s performance be measured and assessed through a set of parameters applicable to their area of expertise. The HR department and the respective managers of each department have to devise a strategy to efficiently and impartially evaluate the performances of the employees.This is where systems like a balanced scorecard (BSC) and KRA (key result area) come into play. Of the two, let’s first take a look at the balanced scorecard:
Developed by Doctors Robert Kaplan and David Norton, a balanced scorecard is a tool for performance evaluation. It is the most widely implemented strategy by fortune 500 companies and large corporate worldwide. It seeks to achieve a balance between an organization or an employee’s skills, strengths and the goals to be achieved by the organization.
It combines several factors for an accurate and comprehensive measure of performance. Through the implementation of this scorecard, organizations get a clear and precise view of organizational, departmental and even individual performance.
The major factors that make up a balanced scorecard can vary according to an organization’s core business areas. It takes into account all those variables that are crucial for its financial success and progress. Ideally it is believed that a balanced scorecard should not include more than 4 major areas which need to be focused and worked upon in a well defined manner by everyone.
The other measure for performance is the KRA. Variably known as key result areas or key responsibility areas, it is a similar tool- though it focuses more on the individual employee. In accordance with the job description and employee profile, the KRA defines the employee’s responsibilities, and sets targets to be achieved. Depending upon the job profile of each employee, the KRA can take into account factors such as attendance, discipline, initiative, targets achieved, sales done or profits earned.
The responsibility of drawing up accurate, challenging yet achievable scorecard or KRA lies with the HR department and managers. The HR department is in charge of making sure that the individual and the organization continue to work with each other for the mutual benefit of each.
HR policies and manuals are designed in such a way that the employee stands to gain considerable financial and growth benefits for delivering consistent results with their balanced scorecards or KRAs. The main aim is to make sure that each employee stands to make the most of his or her key skills and thus help achieve individual, departmental and organizational targets. The critical areas of focus can be changed or adjusted to achieve the desired results and meet the profit predictions of organizations.