Chick-Fil A HR Scorecard
For this Discussion, you will provide a balanced critique of the usefulness of an HR Scorecard. Using the organization you previously identified, answer the following as if you were developing HR-driven metrics. For this Discussion, you will use an HR Scorecard approach.
With these thoughts in mind:
Post a cohesive and scholarly response based on your readings and research this week that addresses the following:
Discuss the benefits of using an HR Scorecard for organizational performance measurement.
Review the competitive advantages that might result from using an HR Scorecard.
Discuss at least two challenges you may encounter when implementing an HR Scorecard.
Based on the challenges you have identified, propose a strategy for minimizing these challenges.
Explain what might be included in your HR Scorecard objectives in regards to the following four dimensions: HR deliverables, high-performance work system, HR system alignment, and HR efficiency measures.
Be specific, and provide examples with references to the literature.
Chick-Fil-A HR Scorecard
Every company’s success depends on the input of each employee. For the Chick-Fil-A’s employees to be productive, there is a need for HR management to focus on the needs and development of the employees. The human resource department has been known to be a key player in strategic decision making that leads to the success of a company. However, it might difficult to assess the impact of HR on Chick-Fil-A’s strategic goals unless there are appropriate measurement tools. HR scorecard as one of the ways to play and achieve their roles and goals (Schneider, 2006). Becker et al. (2001) define the HR scorecard as a measurement system that helps the HR department showcase its value to a company.
Benefits of using HR Scorecard for Chick-Fil-A Performance Measurement
Some organizations have too many indicators to measure and may end up losing a balance between leading and lagging indicators (Schneider, 2006). Therefore, the right combination of outcome and performance drive is inevitable for Chick-Fil-A. The most critical HR metrics are those that reflect on strategy as they will help Chick-Fil-A to avoid losing focus by considering many measurements as put forward by (Kaplan, 2010). HR scorecard ensures the organization identifies and focusses on the most critical indicators. Keeping an HR scorecard should be a top priority for Chick-Fil-A. With HR Scorecard, the HR department will share its strategies with other organizational departments to ensure they are all focused on the common goal. By using HR Scorecard, Chick-Fil-A will gain a lot benefits, including creating value and control costs such as HR training costs.
Competitive Advantage of using HR Scorecard
According to Porter (1985), competitive advantage is the company’s ability to perform efficiently on the goals to attain a lower cost than its competitors and uniquely execute the goals to generate value to buyers. As per the research done by Kaplan & Norton (1996), balance scorecard assists in translating an organizations’ mission and strategy into well-defined performance measures that lead to strategic measurement and management systems using both financial and non-financial performance measures.
Challenges Encountered in Implementing HR Scorecard
HR scorecard targets on establishing a link between HR and the company’s goals by strengthening the employer-employee relationship. However, in the process of achieving this goal, the scorecard faces some challenges. Measuring intangibles, such as employees’ related concerns, is challenging. Moreover, getting accurate data through interviewing employees is difficult as the employees may provide distorted information to please the HR staff or their supervisor. This leads to a clear disadvantage of a scorecard where it cannot be 100% accurate.
One of the roles of HR is to interpret HR scorecards results. If the data contained in the HR scorecard is produced by an external consultant, it can lead to complex or inaccurate interpretations. However, the HR scorecard is more effective and useful when done internally by HR staff who are in a position to understand the company’s goal from an inside point of view.Another challenge encountered by the HR scorecard is that its effectiveness can be limited by the HR staff of the company’s management. This is because the HR scorecard does not only contain data related to the HR department but should also be in line with the company’s goal. Therefore, this can lead to a contradicting position of the HR scorecard goal with that of the management at large.
Strategies for Minimizing Challenges Encountered
By conducting effective training on all the organization employees, the employees can be informed on the importance of giving accurate information on interviews done when collecting information to use the HR scorecard. Training on the HR staff on how to work and formulate an HR scorecard together with its importance, will minimize the need to outsource from external HR consultants. There is also the need to involve the top leadership of the entire organization to ensure and strategy formulated in the HR scorecard is in line with the organization’s vision and goal. This will avoid conflict between the HR department and the top leadership while implementing the HR scorecard.
HR Scorecard Objectives
- HR deliverables objectives for Chick-Fil-A will be enhancing the customer dining experience, developing staff courtesy and helpfulness traits, and targeting the average of 9 out 2o customer ratings.
- A high-performance work objective will be to develop HR practices that support sales strategic goals and creates a balance between leading and lagging performance measurement metrics.
- HR system alignment aims to develop an HR system that supports strategic sales behaviors.
- HR efficiency measures seek to reduce HR training costs and enhance staff service delivery skills.
References
Becker, B. E., Huselid, M. A. & Ulrich, D. (2001). The HR scorecard: linking people, strategy, and performance. Boston: Harvard Business School Press.
Kaplan, R. S. (2010). Conceptual Foundations of the Balanced Scorecard. Harvard Business School, 1-37. Retrieved from https://www.hbs.edu/faculty/publication%20files/10-074_0bf3c151-f82b-4592-b885-cdde7f5d97a6.pdf
Kaplan, R. S., & Norton, D. P. (1996). Balanced scorecard. Strategy and Leadership, 24(5), 18-24. https://doi.org/10.1108/eb054566
Porter, M. (1985). The Competitive Advantage: Creating and Sustaining Superior Performance. New York: Free Press.
Schneider, C. (2006). The New Human-Capital Metrics. CFO Human Capital, 23-27.
Ulrich, D. (1997). Measuring human resources: an overview of practice and a prescription for results. Human Resource Management, 26(4), 303-320.