Introduction
This paper will give a critical analysis of the article ‘Designing and implementation of HR scorecard’, as written by Garrett Walker and J. Randall Macdonald, and published in the Human Resource Management Journal (Vol. 40 Issue No. 4, p365-377) during the winter of 2001. This article shows the importance of the HR scorecard in measuring performance in a business situation as an important step towards improving the business in terms of cost and value.
Discussion
The authors of the article have the proper credentials that make them eligible for writing this article on how to improve a business towards a market-focused approach. The authors have used the HR scorecard from Kaplan and Norton (1996) to argue out their ideas. Unfortunately, this is their only source of supporting material and is not enough because it is limited to this HR scorecard.
The authors have not used comparison studies, which are very important in supporting the use of the HR scorecard. The bias in using the scorecard is justified by the rational that it recognizes valuations of a business’ intellectual and intangible assets.
This article helps the reader to realize that human resource is not solely concerned with training and rewarding clients, rather it also entails the monitoring of employees’ performance to foresee business success and positive financial results.
Conclusion
The HR scorecard in an ideal tool that is used to assess the value of HR services in relation to business results. The article is successful in convincing the reader on the use of the HR balanced scorecard.
The article is very important to human resource management as it gives insight into the effective use of the HR scorecard in assessing HR performance. The assessment results are important in determining people’s requirements and business drivers, all of which are part of human resource management.