BU354 Lecture Notes - Lecture 12: Balanced Scorecard, Performance Appraisal, Human Capital
The Strategic Role of HR Management
Human Resources Management (HRM) – The management of people in
organizations to drive successful organizational performance and
achievement of the organization’s strategic goals
Human Capital – the knowledge, education, training, skills, and expertise of
an organization’s workforce
HRM involves formulating and implementing HRM systems (recruitment,
performance appraisal, and compensation) that are aligned with the
organization’s strategy in order to ensure that the workforce has the
competencies and behaviours that are required to achieve the organization’s
strategic objectives. It is crucial that the HR strategy be aligned with the
company’s strategic plan.
Human Resource Management Responsibilities
a) Operational – HR professionals hire and maintain employees and then
management employee interactions
b) Strategic – ensures that the organization is staffed with the most effective
human capital to achieve its strategic goals
Outsourcing – the practice of contracting with outside vendors to handle
specified functions of a permanent basis
Strategy – the company’s plan for how it will balance its internal strengths
and weaknesses with external opportunities and threats in order to maintain
a competitive advantage
Environmental Scanning – identifying and analyzing external opportunities
and threats that may be crucial to the organization’s success
HR professionals play an important role in lowering labour costs, particularly
in the service sector. Doing so may involve introducing strategies to reduce
turnover, absenteeism, and the rate of incidence of occupational illnesses
and injuries. It could also mean adopting more effective recruitment,
selection and training programs.
Metrics – statistics used to measure activities and results
Balanced Scorecard – a measurement system that translates an
organization’s strategy into a comprehensive set of performance measures
Productivity – the ratio of an organization’s outputs (goods and services) to
its inputs (people, capital, energy and materials)
Primary Sector – agriculture, fishing/trapping, forestry, and mining
Secondary Sector – manufacturing and construction
Tertiary or Service Sector – public administration, personal and business
services, finance, trade, public utilities, and transportation/communications
Contingent/Nonstandard Workers – workers who do not have regular full-
time employment status
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Document Summary
Human resources management (hrm) the management of people in organizations to drive successful organizational performance and achievement of the organization"s strategic goals. Human capital the knowledge, education, training, skills, and expertise of an organization"s workforce. It is crucial that the hr strategy be aligned with the company"s strategic plan. Human resource management responsibilities: operational hr professionals hire and maintain employees and then management employee interactions. B) strategic ensures that the organization is staffed with the most effective human capital to achieve its strategic goals. Outsourcing the practice of contracting with outside vendors to handle specified functions of a permanent basis. Strategy the company"s plan for how it will balance its internal strengths and weaknesses with external opportunities and threats in order to maintain a competitive advantage. Environmental scanning identifying and analyzing external opportunities and threats that may be crucial to the organization"s success. Hr professionals play an important role in lowering labour costs, particularly in the service sector.
