Chapter 4: HR metrics and measurements

Question 1

Kaplan and Norton 
Balanced scorecard (BSC) 4 dimensions

Answer 1

1. Innovation and learning perspectuve: Can we continue to improve and create value
2. The customer perspective: How do customers see us?
3. The internal business perspective: What must we excel at?
4. The financial perspective: How do we look to our shareholders? ** considered as the most important

Question 2

KPIs

Answer 2

key performance indicators

Question 3

hard outcome measures

Answer 3

labor productiviry, efficieny ratios, labor costs, sales volumes, net profits

Question 4

soft outcome measures

Answer 4

employee satisfaction

Question 5

which outcome measures lack reliability and costruct validity

Answer 5

soft

Question 6

strategic balance theory (SBT)

Answer 6

high performing orgs show above average HR, org and financial outcomes

Question 7

Paauwe’s notion about unbalanced orgs

Answer 7

a - high on employee interests and low on employer interests or

b - low on employee interests and high on employer interests - can restore balance

Question 8

HR accounting (HRA)

now called HR metrics / HCValuation

Answer 8

popular technique to measure and rate employees

+ : improves the quality of info with regard to human capital ; personnel costs are interpreted as investments, provides info to stakeholders, optimize decision-making processes

-:not ethical, numerous measurement complications, humans cant be treated as assets

Question 9

HR scorecard

Answer 9

framework for mapping all assets that are directly linked to the employement relationship in an org reflecting human, social and org capital

Question 10

early HR scorecards

Answer 10

main focus on the HR function perspective;

1. HR roles and competences
2. HR systems in place
3. HR practices in place

Question 11

Becker et al. 5 key elements of their scorecard

Answer 11

1. Workforce success
2. Right HR costs
3. The right types of HR alignment
4. The right HR practices
5. The right HR professionals

Question 12

Phillips et al scorecard

Answer 12

emphasizing evaluation planning, data
collection, data analysis, and the calculation of the return on investment (ROI), the intangible
benefits and the general programme costs. They identify 3 potential user groups: HR
professionals, senior managers and consultants (or evaluation researchers). There is no clear
linkage between HRM and strategy in this HR scorecard.

Question 13

4 dimensions of workforce scorecard

Answer 13

(1) the mind-set and culture of the workforce;

(2) workforce behaviour with specific attention paid to
the leadership team;

(3) the competences of the workforce, in particular for the core employees;
(4) the workforce success in achieving strategic goals.

Question 14

Paauwe 4logic HRM scorecard

Answer 14

• A professional logic - expectations of the line managers, employees, etc.
• A strategic logic - expectations of the board directors, CEOs, shareholders, financiers
• A societal logic - exp of WC, TU, government
• A delivery logic - cost-effectiveness of HR departments, line management, teams

Question 15

Starovic and Mar define intellectual capital in terms of

Answer 15

1 - human capital
2 - relational capital
3 - org capital

Question 16

Dyer and Reeves 3 types of outcome

Answer 16

1 financial
2 org
3 hr-related

Question 17

org citizenship behavior

Answer 17

When employees are willing to go the extra mile (willingness to put extra effort into their job without
additional rewards or payments)