Balanced Scorecard
In 1992, Robert S. Kaplan and David Norton introduced the performance measurement balanced scorecard, a concept for measuring a company’s activities in terms of its vision and strategies, to give managers a comprehensive view of the performance of a business. The key new element is focusing not only on financial outcomes but also on the human issues that drive those outcomes, so that organizations focus on the future and act in their long-term best interest. The strategic management system forces managers to focus on the important performance metrics that drive success. It balances a financial perspective with customer, process, and employee perspectives. Measures are often indicators of future performance. The balanced scorecard provides executives with a comprehensive framework that translates a company’s vision and strategy into a coherent set of performance measures.
A Balanced Scorecard is made up of four components: mission, perspectives, objectives, and measures. Each of these components and how they build on each other is described below :
# Mission
The mission is the highest, guiding level of the scorecard. It answers the questions:
– What is our overall reason for being?
– What is our mission?
– Why do we exist as an organization?
# Perspectives
Perspectives represent the various areas that influence performance and overall achievement of the mission. There are typically four to five perspectives within a scorecard, however there can be more based on the needs of the organization. Perspectives answer the question “What are our key areas of focus in trying to achieve our mission?” According to (Kaplan and Norton, 1996), the balanced scorecard supplements traditional financial measures with criteria that measure performance from three additional perspectives – those of customers, internal business processes, and learning and growth:
a. Financial Perspective
Financial performance measures indicate whether a company’s strategy, implementation, and execution are contributing to bottom-line improvement. Financial objectives typically relate to profitability measured, for example: operating income, return on assets, cash flow, economic value added.
b. Customer Perspective
Managers identify the customer and market segments in which the business will compete and the measures of the business unit’s performance in these targeted segments. This perspective typically include several core or generic measures of the successful outcomes from well formulated and implemented strategy. The core outcome measures include: customer satisfaction, customer retention, customer acquisition, customer profitability, and market and account share in targeted segments.
c. Internal Business Perspective
The internal business process perspective, executive identify the critical internal processes in which the organization must excel. This process enable the business unit to deliver the value propositions that will attract and retain customers in targeted market segments and satisfy shareholder expectation of excellent financial returns.
d. Learning and Growth Perspective
This perspective identifies the infrastructure that the organization must build to create long term growth and improvement. The customer and internal business processes perspectives identify the factors most critical for current and future success.
The four perspectives of the scorecard permit a balance between short and long term objectives. The balanced scorecard fosters a balance among different strategic measures in an effort to achieve goal congruence, thus encouraging employees to act in the organization’s best interest. It is a tool that helps the company’s focus, improves communication, sets organizational objectives, and provides feedback on strategy.
# Objectives
Within each perspective, objectives identify what needs to be done in order to achieve the overall mission. They answer the questions:
– What must we do (from each perspective) to achieve the overall mission?
– What is most important (from each perspective) to achieving the overall mission?
# Measures
Measures provide a way to determine how an organization is doing in achieving the objectives within the perspectives and in turn the overall mission. They are the most “actionable” component in the scorecard. For each measure, a target is set so that progress toward the objective can be evaluated. Measures answer the question:
“How do we know how well we’re doing in achieving our objectives, and in turn our overall mission?”
How to develop Vision, Mission and Values for organization
How to develop Vision, Mission and Values for organization
When approaching Vision, Mission and Values (VMV), as a process to be undertaken in your organisation, it’s important that everyone involved understands the concept and its component parts.
Descriptive definitions are provided below but here are the basic meanings as an introduction:
• Vision: where we’re going in the long-term
• Mission: our purpose and reason for existing
• Values: who we are, what we stand for
The diagram shows the relationship of these terms in the context of an organisation’s lifetime.
We can see that they represent statements to direct and guide the organisation over a sustained period of time – it’s because of this that they’re so important.
Values
Read more…
Role of HRM
ROLE OF HRM
1. Advisory Role: HRM advises management on the solutions to any problems affecting people, personnel policies and procedures.
(a) Personnel Policies: Organization Structure, Social Responsibility, Employment Terms & Conditions, Compensation, Career & Promotion, Training & Development and Industrial Relations.
(b) Personnel Procedures: Relating to manpower planning procedures, recruitment and selection procedures, and employment procedures, training procedures, management development procedures, performance appraisal procedures, compensation procedures, industrial relations procedures and health and safety procedures.
2. Functional Role: The personnel function formulates personnel policies in accordance with the company’s doctrine and management guidelines. It provides guidance to managers to help them ensure that agreed policies are implemented.
3. Service Role: Personnel function provides personnel services. These services constitute the main activities carried out by personnel department, like payroll, disciplinary actions, etc, and involve the implementation of the policies and procedures described above.
ROLE OF HR MANAGERS
1. Humanitarian Role: Reminding moral and ethical obligations to employees.
2. Counsellor: Consultations to employees about marital, health, mental, physical and career problems.
3. Mediator: Playing the role of a peacemaker during disputes, conflicts between individuals and groups or management.
4. Spokesman: To represent the company in Media and other forums because he has better overall picture of his company’s operations.
5. Problem Solver: Solving problems of overall human resource management and long-term organizational planning.
6. Change Agent: Introducing and implementing institutional changes and installing organizational development programs
7. Management of Manpower Resources: Broadly concerned with leadership both in the group and individual relationships and labour-management relations.
MANAGERIAL FUNCTIONS OF HRM
1. Planning: Research and plan about wage trends, labour market conditions, union demands and other personnel benefits. Forecasting manpower needs etc.
2. Organizing: Organizing manpower for the achievement of organizational goals and objectives.
3. Staffing: Recruitment & Selection
4. Directing: Issuance of orders and instructions, providing guidance and motivation to managers and employees.
5. Controlling: Regulating personnel activities and policies according to plans. Observations and comparisons of deviations
OPERATIONAL FUNCTIONS OF HRM
1. Procurement: Planning, Recruitment and Selection, Induction and Placement
2. Development: Training, Development, Career planning and counselling.
3. Compensation: Wage and Salary determination and administration
4. Integration: Integration of human resources with organization.
5. Maintenance: Sustaining and improving working conditions, retentions, employee communication
6. Separations: Managing separations caused by resignations, terminations, lay offs, death, medical sickness etc.
Emotional Intelligence – High and Low
Emotional Intelligence greatly influences social effectiveness of the manager. People with higher intelligence reveal more strengths and positively contribute to the organizational climate and work efficiency:
- Low Emotional Intelligence
- Aggressive, demanding, egotistical bossy, confrontational
- Easily distracted, glib, selfish, poor listener, impulsive
- Resistant to change, passive, unresponsive, slow, stubborn
- Critical, picky, fussy, hard to please, perfectionistic
- High Emotional Intelligence
- Assertive, ambitious, driving, strong-willed, decisive
- Warm, enthusiastic, sociable, charming, persuasive
- Patient, stable, predictable, consistent, good listener
- Detailed, careful, meticulous, systematic, neat
Emotional Intelligence Test
The Emotional Quotient (EQ) Test is a scientifically validated psychometric test which is designed to measure and analyze the important aspects of personality and behavior that are instrumental in determining the emotional quotient of an individual. Upon completing the test you are provided with a comprehensive report on each trait, an overall summary report and a hiring recommendation report.
The personality traits that are measured and analyzed through the Emotional Quotient Test are:
- Intrapersonal EQ
- Interpersonal EQ
- Stress Management
- Adaptability
- General Mood
The Emotional Quotient Test is commonly used by companies and hiring managers for analyzing important aspects of emotional behavior. The Emotional Quotient Test is widely acknowledged to be an effective tool for building motivated and compatible teams, while helping to reduce employee attrition
Developing HR Strategies
Developing HR Strategies
STEPS TO BUILD UP HR STRATEGY
Step 1: Get the ‘big picture’
Understand your business strategy.
• Highlight the key driving forces of your business. What are they? e.g. technology, distribution, competition, the markets.
• What are the implications of the driving forces for the people side of your business?
• What is the fundamental people contribution to bottom line business performance?
Step 2: Develop a Mission Statement or Statement of Intent
That relates to the people side of the business.
Do not be put off by negative reactions to the words or references to idealistic statements – it is the actual process of thinking through the issues in a formal and explicit manner that is important.
• What do your people contribute?
Step 3: Conduct a SWOT analysis of the organization
Focus on the internal strengths and weaknesses of the people side of the business.
• Consider the current skill and capability issues.
Vigorously research the external business and market environment. High light the opportunities and threats relating to the people side of the business.
• What impact will/ might they have on business performance?
• Consider skill shortages?
• The impact of new technology on staffing levels?
From this analysis you then need to review the capability of your personnel department. Complete a SWOT analysis of the department – consider in detail the department’s current areas of operation, the service levels and competences of your personnel staff.
Step 4: Conduct a detailed human resources analysis
Concentrate on the organization’s COPS (culture, organization, people, HR systems)
• Consider: Where you are now? Where do you want to be?
• What gaps exists between the reality of where you are now and where you want to be?
Exhaust your analysis of the four dimensions.
Step 5: Determine critical people issues
Go back to the business strategy and examine it against your SWOT and COPS Analysis
• Identify the critical people issues namely those people issues that you must address. Those which have a key impact on the delivery of your business strategy.
• Prioritize the critical people issues. What will happen if you fail to address them?
Remember you are trying to identify where you should be focusing your efforts and resources.
Step 6: Develop consequences and solutions
For each critical issue highlight the options for managerial action generate, elaborate and create – don’t go for the obvious. This is an important step as frequently people jump for the known rather than challenge existing assumptions about the way things have been done in the past. Think about the consequences of taking various courses of action.
Consider the mix of HR systems needed to address the issues. Do you need to improve communications, training or pay?
What are the implications for the business and the personnel function?
Once you have worked through the process it should then be possible to translate the action plan into broad objectives. These will need to be broken down into the specialist HR Systems areas of:
• employee training and development
• management development
• organization development
• performance appraisal
• employee reward
• employee selection and recruitment
• manpower planning
• communication
Develop your action plan around the critical issues. Set targets and dates for the accomplishment of the key objectives.
Step 7: Implementation and evaluation of the action plans
The ultimate purpose of developing a human resource strategy is to ensure that the objectives set are mutually supportive so that the reward and payment systems are integrated with employee training and career development plans.
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Interview Guidelines, tips — Human Resources
Interview Types
Screening Interview
This type of interview is generally conducted by larger companies when there is a large applicant pool and is typically the first phase of selection. Screening interviews are used to ensure that the candidates meet minimum requirements and are often conducted by a computer or by an interviewer from the human resources department who is skilled at determining whether there is anything that might disqualify you from the position.
Tips:
• Highlight your qualifications and accomplishments using non-technical language – the HR professional is not necessarily an expert in your field.
• Answer questions clearly and succinctly – personality is not as important at this stage of the process.
• If asked about salary expectations, use a range – make sure you’ve done your homework in this area.
• If conducted by phone, have your resume beside you to refer to for dates and names.
Telephone Interview
Telephone interviews are often used to screen candidates in order to narrow the pool of applicants who will be invited for in-person interviews- and is a good way to minimize travel expenses! They can be challenging because you aren’t able to rely on nonverbal communication or body language. You should prepare for this type of interview just as you would for a regular interview so, if you are not given any warning and are not ready for an interview when called, politely request that the interviewer call back at another mutually convenient time. This will allow you to refresh your memory on the organization and be better prepared.
Tips:
• Have your resume, organization information, points that you want to highlight, and list of questions you may want to ask in front of you – and have a short list of your accomplishments prepared to discuss.
• Although you’re not required to dress up, you may find that it’s easier to get into the ‘interview mindset’ and feel more confident when dressed professionally.
• Have a pen and paper handy to keep notes or write down any questions that come up; keep a glass of water beside you.
• Close the door or ensure you are in a quiet setting to eliminate any potential distractions.
• Speak slowly, enunciate clearly, and vary your voice tone, tempo, and pitch to keep the interviewers attention.
• Provide short answers that make interchange easier on the phone; do not interrupt the interviewer.
• Restate the question if you have not fully heard or understood it.
• Smile – even on the phone it will project a positive image.
Video Conferencing
Video conferencing is typically used to conduct interviews using video technology from a distance. The same interview strategies you would use if you were meeting in person apply – clothing, body language, and dialogue are important.
Tips:
• Depending on the sophistication of the technology, you may experience short transmission delays so be sure to take that into account when you are interacting with the interviewer.
• Make eye contact with the camera, which, to the employer, appears as direct “eye contact.”
• Check the monitor periodically to observe the interviewer’s body language.
One-on-One Interview
The most common interview format is the one-on-one (or face-to-face). This interview is traditionally conducted by a direct supervisor and if often the last step in a series of interviews. The interviewer may or may not be experienced in conducting interviews and, depending on personality and experience, the interview may be directive following a clear agenda, or non-directive relying on you to lead the discussion as you answer open-ended questions.
Tips:
• You will likely be asked a variety of interview questions, so be familiar with all of the different types of questions so that you can adjust your answers appropriately.
• It is important to be thoroughly prepared – know the job and know yourself.
Panel Interview
A panel interview is conducted by two or more interviewers and is designed to reduce individual interviewer bias. It is very common for entrance into graduate and professional schools. One member of the panel may ask all of the questions or individual panel member may take turns.
Tips:
• Make eye contact with the person asking the questions, but also to give every member on the panel your attention, regardless of if they ask any questions at all – treat them all with equal importance.
• Be prepared to extend more energy in this setting, as you need to be alert and responding to more people
Group Interview
A group interview occurs when several candidates for a position are interviewed simultaneously. Group interviews offer employers a sense of your leadership potential and style, and provide a glimpse of what you may actually be like as an employee and how you would fit into the team. Candidates may also be asked to solve a problem together which allows interviewers to assess candidate’s skills in action (e.g. teamwork).
Tips:
• Be aware of the dynamics established by the interviewer, try to discover the “rules of the game”.
• Regardless of how you may feel about any member of the group, treat everyone with respect, and avoid power struggles which make you appear uncooperative.
• Give everyone a chance to speak and not monopolize the conversation.
• Be aware that all interactions are being observed; don’t let down your guard or lose your perspective.
General Group Interview/Information Session
This approach is intended to save time and ensure applicants understand the basics of the job and organization by providing large amounts of information. This process is usually followed by an individual interview.
Tip:
• To stand out in a group setting, a well-timed and intelligent question may help the employer remember you positively.
Sequential/Serial Interview
A sequential interview is conducted by two or more interviewers, separately or in sequence. The candidate either moves from one location to another or stays in one room and while different interviewers join them. Sequential interviews involve a number of ‘first impression’ opportunities so be aware of how you present yourself each time. At the end of the process, the interviewers meet to evaluate each applicant and make their decision.
Tip:
• If you have difficulties remembering what you have already said to one person – don’t be afraid to ask!
Stop stopping yourself
Stop stopping yourself. Stop holding yourself back.
Yes, the world throws all sorts of difficult challenges your Way. And you can find a way to transcend every one of them.
Yet you must choose to do so. You must make the commitment, Deep within yourself, to live with richness and purpose and Fulfillment.
Many events, people and situations will challenge you and impede your progress. However, the only limitations that can Stop you completely are the limitations you place on Yourself.
See that the doubts and limiting beliefs are of no use to
You. Choose to simply and effortlessly let them go, just
Like that.
Your dreams are calling to you right now, calling for you to Begin living them in this very moment. Stop holding yourself Back, and let yourself be all you know you can be.
How to Give Effective Performance Feedback
How to Give Effective Performance Feedback
Guidelines for Supervisors
Performance feedback is an essential element of the supervisor/subordinate relationship. The vast majority of people want to make a difference in their place of work. They want to be recognized for their accomplishments and learn how to become even better. They want to know where they stand. People crave feedback that is honest, positive, objective, and fair.
Surprisingly, something as simple and effective as performance feedback is often rare. Even in the United States Air Force, where formal feedback is a mandatory part of the evaluation system, as many as half of the workforce say they rarely get feedback from their supervisors.
I see three main obstacles to giving effective feedback in today’s leadership environment. First is the pace of operations; supervisors often say they are so busy they don’t have the time to devote to giving feedback properly. Second is the collegial atmosphere in many modern workplaces. The good news is that many supervisors have taken time to know their subordinates and their families. Their “door is always open.” The bad news is that this familiarity can make it hard to look someone in the eye and tell him or her they could be more effective.
The third obstacle might be the readiness of the subordinate to receive feedback. Subordinates might have trouble recognizing there are areas in which they can improve. They might be defensive or concerned for their jobs. There might be personality differences or other issues between the supervisor and subordinate that interfere with communication. An effective supervisor must be aware of all the dynamics of the relationship and make appropriate adjustments in the approach to feedback.
A formal feedback process has important advantages for supervisors. It motivates subordinates and helps them become more effective. By establishing a dialogue with subordinates, supervisors can better understand their individual wants and needs, and the climate of the organization. In organizations like the Air Force, where retaining quality people is a high priority, an effective performance feedback system is essential.
Principles for Giving Performance Feedback
Specific – Feedback must be based on observable behavior, not one’s feelings or the conclusions drawn from the behavior. For example, “Last Friday morning I saw you help Mary fix a problem on her computer. Your willingness to share your expertise is a great example of teamwork and makes this a more effective organization.” This specific example, tied to a positive organizational outcome, is more effective than saying “You are a helpful person,” since the subordinate can link the feedback to an actual event.
Timely – Feedback should be given in a timely enough manner so that both parties can recall the specific behavior involved.
Actionable – Feedback should be based on something over which a person has control. When necessary, the supervisor should identify ways to improve performance.
Measurable – Goals and objectives should be stated in terms so that both parties will know if the goals are achieved.
Achievable – Performance measures should be realistic and within the resources that are available to the subordinate.
Positive – Give both positive and critical feedback, but tip the balance in the positive direction. The Center for Creative Leadership suggests a 4:1 ratio of positive to critical feedback.
Non-evaluative – Opinions, perceptions, and reactions should be differentiated from facts. Don’t psychoanalyze; avoid inferences and interpretations. Avoid labels.
Establish a dialogue – The effective feedback session is not a one-way communication. The supervisor should ask the subordinate if he or she fully understands what is being said and then listen carefully to the response. The supervisor should ensure the subordinate understands his or her role in the organization and how that role contributes to the goals and mission of the organization.
Initial Feedback
The supervisor should meet with the subordinate soon after the arrival of the new member. In the Air Force, initial feedback is required within the first 60 days of arrival. The purpose of the initial feedback session is to help establish the relationship between the rater and ratee. It is also about setting expectations for the upcoming rating period. It is not necessary to negotiate objectives with the subordinate, but the supervisor should help the subordinate take ownership of the goals and internalize expectations. Both parties should leave the initial feedback session with a clear understanding of what is expected. The supervisor provides a written record of the feedback session. This written record is held in confidence between the rater and ratee.
Annual Feedback Versus Routine/Daily Feedback
The Air Force requires that supervisors conduct a follow-up feedback session mid-way through the evaluation period. This session should be conducted using the principles above, and should address the extent to which the expectations were met. As before, a confidential, written record is provided.
The annual performance appraisal system is not a substitute for good communication within the workplace or for timely routine feedback. For example, if the subordinate is consistently late for routine meetings, it makes no sense to wait until the annual appraisal cycle to make that person aware of the problem. In the same way, workers who consistently perform above standards should not have to wait months to know that their work is appreciated. Supervisors should not assume that, because certain behaviors are obvious to them, they are equally obvious to the subordinate. Daily or routine feedback needs to remain consistent with the principles above.
Finally, supervisors who routinely give feedback (both positive and corrective) to subordinates may want to follow up with a personal note or memo. It is possible that the feedback is so routine (or the subordinate so unreceptive) that the subordinate misses the message or doesn’t even realize that feedback has taken place.
Giving feedback is a key responsibility of a leader. Work climate surveys strongly suggest that job satisfaction, morale, and retention are closely related to the ability of a leader to provide feedback. Senior leaders must set the example for the organization by giving timely feedback and demanding that leaders at all levels do the same.
REASONS OF FAILURE AND SUCCESS OF PEOPLE
REASONS OF FAILURE
1. Lack of a specific purpose in life : – You can not hope to succeed in any field of your life if you don’t have a central purpose. If you don’t have a definite goal in your life then you will jump from one activity to another with no success. Almost 97% of people think and act this way. That’s why successful people, who have a clear goal in their life, are very few.
2. Lack of education :- Most of the successful people are “self educated” or “self made” as individuals. You can have five college degrees but if you don’t apply this knowledge it’s a waste. What counts is the applied knowledge with a plan of action and not just knowledge.
3. Lack of self discipline :- Discipline means self-control. You must control yourself and decrease your negative habits and qualities. If you don’t conquer yourself, it will conquer you.
4. Procrastination :- It is one of the major causes of failure. These kind of people are waiting for opportunities come to them instead of seeking for the opportunities. They think that some day the time will be right to act. That “right” time never comes.
5. Lack of persistence:- Most people are good starters but they stop in the run when the first obstacles come. Obstacles are a chance to become better. They are ways to use your mind and improve your self. Quitters can not hope to success of any kind.
6. Being negative :- If you are negative then your whole world is negative. Your subconscious mind tells you that you can’t do it. Your subconscious mind commands your conscious self that you “really” can’t do it.
7. No risk at all :- If you are extremely careful and take no risks then you can’t expect to make the difference .There are many opportunities out there for you to grab. Being over cautious limits you to mediocrity and leads you to failure.
8. Wrong selection of associates :- This is very critical. We can not do everything ourselves. The colleagues we work with are a capital for our business. Successful and intelligent partners are one of the keys for our own success.
9. Divide you actions :- This is a typical mistake. Spreading your energy and efforts on multiple causes and not concentrating on one cause. Sooner or later you will realize that you will not succeed to any of them.
10. Lack of honesty :- This is the master key of success. Without honesty your credibility will vanish in no time and you can not hope to expand and of course retain your business. People are not as stupid as you think. They can understand the fake, maybe not immediately but in the long turn run they will go away and spread around the world negative messages about you.
REASONS OF SUCCESS OF PEOPLE
1. They make decisions and take action :- Right or wrong action, they take it. Either way it’s always better than making no decisions and taking no action at all. As Franklin Roosevelt said:
“It is common sense to take a method and try it. If it fails, admit it frankly and try another. But above all, try something.”
2. They do things even when they don´t feel like it :- This is a pretty huge factor. A lot of us back down when we don´t want to do something, even though it may eventually bring us to a wonderful experience or goal. Successful people may not always like doing some of the things they have to do. But they do them anyway. And in the longer run that makes all the difference.
3. They do the most productive thing right now :- Instead of trapping themselves in doing productive but not so important tasks or projects they realise what’s most important and do that. And after they´re done with that they do what´s most important again. Instead of just doing a lot of things, they think and plan before they act and try to focus as much as possible of their thoughts and actions on those few very important things.
4. They do one thing at a time :- Many of them don´t seem to multi-task. Some reasons for avoiding that may be that it creates internal confusion, wastes time and spreads the multi-tasker too thinly. Instead, they do one thing and focus on that until it is done. Then they do the next thing until it is done. Focusing 100% on one task at a time will get it done quicker and better.
5. They have a positive attitude :- A negative attitude can be very damaging and limiting to one´s life. A positive one can open new doors every day. It can open your mind to new ideas and input and create or sustain great relationships. It helps you through the hard times as a successful person often sees an opportunity within what others would merely see as a problem.
6. They have redefined failure :- While a lot of people see failure as a way to rationalizing the feeling of wanting to giving up or as a sign that it´s actually time to do something else successful people tend to see it more as useful feedback. They may not like to fail, but they don´t fear it – or at least they have little fear of it – and they know that if they fail they´ve been there before and they can start over again and succeed. This is of course a very useful belief and keeps successful people going while the rest have already given up.
7. They don´t let fear hold them back :- They overcome fear and slay that dragon whenever they face it. Or they may have defined or redefined reality so that fear is substantially decreased or even gone in some areas of their life.
8. They have found a purpose in life :- They are internally driven rather than externally driven. They do what they have a burning desire to do rather than conforming to what others think they should do. Even if what the others think may be positive and successful stuff. The Michael Jordans, the Edisons and the Stephen Kings have figured out what they want to do in life and are doing it (or did it). The purpose, I think, is largely why they can keep on going and be motivated while others may tire or just go and do something else that they find more purposeful. The successes love their purpose and when they aligned with it then it seems to push them forward with enthusiasm and energy through life.
9. They don´t get distracted :- When others get too caught up in everyday life to do what they really want to do the successes don´t. They can really focus on actually doing what´s important and what needs to be done. Again, this seems to go back to having a purpose and more clear sense of direction in life.
10.They have got awesome communication-skills :- So very much of what we do in life has to do with other people. So it seems quite obvious that to be successful you´ll probably have to have good or great communication-skills (or hire someone that has such skills).
Human Resources Management 