Hrm Activities In Balance Scorecard Approach Management Essay
I have adapted more empirical view for the final finding which is correlated with my research aims and objectives. The data I used is in combination with the literature review to find same similarities with the other different author’s works. For this purpose I have collected and analysed the secondary data or previous studies. My research area is mainly related to Human resource management activities in balance scorecard approach. It is sociological in nature and can be best fit and suitable for both quantitative and qualitative analysis.
Details of research theory and research approach:
The research method used must be able to give reasonable answer to the research objectives. The two most common methods of the research are deductive and inductive. i.e deductive approach and inductive approach. In this study I will use inductive approach which includes collecting of data, developing and then analyse it for the research. Inductive approach covers qualitative data analysis and it is not as rigid as deductive approach.(Saunders et al.,2007). In this research work I have analysed Balance scorecard and how it affects to HR. For this I have to check effects of balance scorecard in organisation and evaluate it. How Human capital of organisation does helps to implement Balance scorecard in organisation. Evaluate contribution of Balance scorecard in repositioning of Human resource department. I need to identify the factors that affecting Balance scorecard and HRM (Human resource management), and then devise it in the proposed organisations. As an alternative I can also use deductive approach or combination of both which would be helpful to get over from the research limitations. The reason not using only deductive approach is because it is very rigid and its flow from generalised study focuses only. (Esterby-Smith et al.,2002). The more suitable research strategy will be empirical study which focuses on small appropriate data rather than large sample and philosophy of phenomenal issues. Research methodology will focus on observing effectiveness of Human resource through performance measurement and by using balance scorecard and how it participated to HR.
3.2 RESEARCH METHODS
A case study approach method has chosen to explore and to review the effect of Balance scorecard approach of Performance management. For that I have decided to do it with Lloyds bank where in it has been successfully implemented and given good results of usage of it. This method will give significant result when it shows the results of contextual studies. In this reference Ryan et al.(1992) stated that case study approach is particularly important to understand the business practices in their own business, Yin (1994) also emphasised the need for having no control over effects. To explain more about the quantitative method the following table gives more idea.
Table 3.2: List of advantages and disadvantages of questionnaires
(Source:Denscombe, 2003; P.161)
In case study approach there is different multiple methods for data collection in order to get detailed knowledge and based on critical analysis of the study. To overcome of limitations from quantitative approach as mentioned above and to get more substantial result, I did both questionnaires to employees and interviews. Interviews will be semi-structured.
3.3 QUESTIONNAIRE SURVEY
Quantitative data analysis carried out by questionnaire survey more than 30 employees. Questionnaire filled out on voluntary basis as they have given to them 2-3 days of time to fill it. It is totally anonymous and confidential so that each employee feels free for that I have given a questionnaire form with seal cover for each employee. So after filling up the questionnaire they will put it in the seal cover which is given to me in hand. Needless to mention that there is no name or identity is asked in the questionnaire forms.
It supported by the covering latter states the reason behind the research and objectives of the research. It also mention that all the data and details of the questionnaire will be exceptionally confidential and strictly following all the principles of ethical issues relating to it. It also mention about the researcher who is conducting research and objectives of the research. It also states that in any situation where in if they find any difficulty to understand the questionnaire they can contact the researcher via e-mail or mobile. E-mail address and mobile phone no. is also provided in it.
It also point out that if respondent are interested to know about the research they can ask for the research work to view, even though if respondent decided not to participate in the research work. A copy of covering latter attached in appendix.
Keeping in mind that the questions are analysed in statistical data analysis I have specifically drafted the questionnaire in such a way that it can easily put in to analysis. Attached figure shows the different stages of the data analysis.
(Source : Miles and Huberman 1994, P.12)
3.4 PILOT RUN
For the questionnaire I have also conducted the pilot before actually conducting the questionnaire in the branches of the Llyods. My pilot I conducted was amongst the employees who are friends and colleagues, some of my friends working for the same organisation. It helps to improve the mistakes and remove or add the data in questionnaire before actual data collection it is also advocated by Bell (2005) saying that it highlight the researcher that whether the questionnaires are clear and unambiguous and enable the researcher to remove the item which do not yield required result. Following table also shows the importance of the questionnaire in research methodology.
3.5 SAMPLING AND DATA COLLECTION
Total 50 questionnaires were printed and distributed in different branch of Lloyds TSB. I have given them time for two to three days to fill it. Although some respondents have given me back the questionnaire after one day only. The response rate was as expected and I could manage to get the all questionnaire mostly filled properly within the deadline of it. I have calculated the overall response rate and the rate for the responds. For this I used following formula taken from (Bryman & Bell 2007)
Response rate = Number of usable questionnaire x 100
Total sample – unsuitable or un-contactable member of the sample
Response rate = 26 x 100
50 – 0
Total Response rate = 52%
I have decided to use SPSS for its powerful process ability to present data but unfortunately I could not use it due to unfavourable situations therefore I have decided to use excel in best way to put my data in statistical and graphical formats. I have tried to change format to put best way the data and get the best presentation from it. This data would be presented in statistical and graphical way in best way to highlight the key point. All graphs and charts will be in colour format using patterns instead of black and white format, to keep in mind that the print out will be produced in black and white papers for the rest.
The information and data collected from the interview would transcribe and presented in the appendices, and the main key notes has highlighted there.
To give more authentic result I have decided to do some interviews also. The interviews would be semi-structured and it will check another view point of analysis from which I got from the questionnaire. The question would be based on mostly related to HR activities and HR policies of the organisation, and how does it affect the performance management system especially in Balance scorecard approach. Due to time constraints and non-availability of the respective staff I could only conduct two interviews. At my access point of the small branches most of the staff is technical staff and for my subject I would like to gather information on HR. For that and to throw some more light on the research I have decided to take interview of HR executives of the firm. With this focus I have decided to take interview of manager or senior officer of the Lloyds. The interview was scheduled at outside the organisations as per the convenience of the interviewee. And it was after his working hours to avoid the normal disruption of the task during working time. However the interview would have take place during working days. It is with the due consent and convenience of the interviewee as interviewee feels more comfortable to give answers when he is not loaded with work.
3.7 SECONDARY DATA
Secondary Data help:
While doing literature review for the thesis, I have put the some past case study analysis on this particular subject who is important for the study and analysing it with the due comparison with the data collection of interviews from Lloyds.
3.8 RELIABLITY AND VALIDITY
3.8.1 Details of reliability and validity of research :
According to Roberts (2006) reliability and credibility illustrate scrupulous information about the trustworthiness of research and research process and findings. The consistency and measure of concept can be check by reliability of research. According to the Saunders et al. (1997) it helps to identify whether the research instruments are neutral and would obtain the same result when applied to the same subject. To increase the reliability the researcher has taken all measures to get standard result. All the questionnaire has been given in envelope and has special care has taken that it will open by only the researcher as data collected by her only. Further more to make research more reliable all the details of data collection notes taken down to keep track on the other related activities of research which includes transferring the data into technical format and transcribing it in required computer operation.
Validity shows that how far the research has taken right measures and to verify the quality of the test and used instruments (Easterby, Smith et al. 2002, P.134). This research mainly takes internal focus of the organisation therefore the researcher has keenly investigate that the required respondent knows about the subject matter and researcher also tried to explain the importance and reasons behind the data collection.
Conversely in recent study it shows it is more complex concept, researchers would be reluctant to measure further once internal research process produces the results. Notably if the result found by the way of experiment or survey test then it can be considered invalid. However the researcher has taken special measures to attain validity of the research and follows the recommendations given by Denscombe (2003, P.274). They are as follows:
With the reference to the research the aims and objectives should be carefully chosen on explicit and reasonable ground.
The researcher’s behaviour influence the research however it would not cause biased or affected by his behaviour for one sided reporting.
The conclusions should justice the complexity of the phenomenon issues of the research and while offering internal consistency it should avoid oversimplifications.
The author also takes other measures to examine validity and reliability during the research. The researcher took pilot run of the questionnaire also brainstorming with other concerned people and with colleagues and with the fellow students.
3.11.2 Research Ethics
There will be always ethical issues attached with the any research work and for that I had taken due diligent importance to my research by following protocol of ethical codes. Require care and diligence was there to comply all ethical issues while research. Some of ethical issues rose during research are as follows:
The participants for the interview briefed about the purpose of the research, protection of data and confidentiality issues to get their consensus in advance. The precise awareness of subject matter to them boost them to give their free view to get the objective research.
The interviewees informed the respondent about their participation that it was absolutely free in nature and they would withdraw partially or fully at any point of time.
Avoidance of any harm to participants during data collection or any stress or discomfort will be highly prioritized and special care will be taken during the research.
Safeguard of participants highly regarded for that names of the interviewees will not be disclosed unless they have given their consent for it. Information given by them regarding concerned organisation will be kept confidential.
Intellectual and copy right would be highly prioritised while data collection. Researcher has obeyed the entire ethical manner with honesty and sincerity through the research with due care of any misrepresentation and plagiarism. All the documentary and statistical material and publication will be quoted and referred systematically.
A proper care should be taken throughout my research work that it will be bias free and neutral without any undue influence. The research result will be used ethically and benefit for academic and business organisation with complete confidentiality and learned consensus from respective authorities.
Chapter 4 FINDINGS
4.1 ANALYSIS OF QUESTIONNAIRE DATA
This chapter shows comments and reports of the conducted interviews and questionnaires. This research basically includes the internal effects of BSC and its implications over HRM and its role while developing the BSC approach in the organisation. So it doesn’t count any external factors affecting this in the organisation for the questionnaire and interviews both. This chapter also includes the findings of the questionnaire and interviews followed by recommendations based on the analysis of the data given in questionnaires and interviews. General attributes of the employees in this case study: Most of the employees who participated in questionnaires are working in the organisation since long time. This includes manager and senior executive officers.
4.2 PROFILE OF RESPONDENTS
20 – 29
30 – 39
40 – 49
50 – 59
The above mentioned chart shows the profile of the respondents from the organisation. The participated respondents are from both the genders so males and females participants equally contributed the survey questionnaire. Out of total participants 53% of females and 47% are male participants. So the mostly equal participation also shows that there will not be any bias or influence of gender on the research. The researcher also tried to find out the effect of part time employment and fulltime employment over the research. In which most of the respondents are of fulltime employees, only 7% of them were part time. Some of the employees are working more than 15 years with the organisation and their ratio is 15% amongst all. Most of them are with the organisation more than six years gaining the highest ratio of 26%.
a) Below 3 years
b) 4-5 years
c) 6-10 years
d) 11-15 years
e) 16-20 years
f) over 20 years
4.3 ATTITUDE TOWARDS BSC SYSTEM
Figure: 4.3 Attitude towards BSC system:
In this diagram we can see that 75% people agreed with the usefulness of BSC in the organisation and agreed for the importance of it. Out of them only few of them said about their non-significance and it was also highly recommended by some of the employees.
It shows in the survey questionnaire that most of the employee found it necessary to implement BSC as a measurement system in the organisation. Most of them are agreed its usage as motivating factor by providing constant feedback. BSC is a continuous process for the performance measurement so there will be constant review of performance which is important element for the employee motivation. It is also evident from the secondary data that BSC helps to gain the clear direction of the goals and objectives of the organisation to the employee and it also helps to link between organisational and individual objectives and goals. For that 61% has given positive response that it helps to gains clarity of objectives. However out of them 19% of them were indecisive about its usefulness for this. Although it seems from the analysis that very rarely employee disagree with its usage to gain knowledge and participate to gain organisational objectives and goals.
4.4 BSC PARTICIPATION
Figure: 4.4 BSC Participation
The above chart shows the BSC participation and contribution towards organisational performance. With the effect of BSC implementation 84% employee agreed with the Managers active participation for the planning and takes interest to attain the targets. With the constant participation of managers and other department it has been agreed response on the targets given were mostly realistic and practically achievable. However some of the employees do find disagreement on that. The individual objectives are correlated and reflect the expectations of the team, which is totally agreed by the all the employees and it shows that while developing BSC it has been always keep in mind to keep pace with individual objectives with the departmental objectives. With the comparison of their achievement towards their attainment of the targets it would be easy to find out their participation with the organisation goals and objectives. In the report it shows out of that 15% of the employees are disregarded it conversely the some are denied to comment on it with the same ratio of 15%. It is important to note that with the view point of the secondary data BSC is providing linkage between organisational goals to individual goals.
4.5 PERCEIVED USEFULNESS OF HRM
Figure: 4.5 Perceived usefulness of HRM
The above figure shows the importance of HRM while developing and implementing BSC in the organisation. with the given questionnaire researcher have tried to find out the significant usage of HRM for the BSC approach in which author have tried to show the response of people according to the answers in the above figure. According to given data 52% employee believes that HRM turn up as linkages between other departments. While developing BSC it is the HRM who contribute most with the other departments and its constant and sustained participation makes it possible to get the success. The other important functional role of HRM which supports BSC is providing feedback and timely reporting. More than 50% employee given their positive response against it, they agreed that HRM provides regular reports and feedback while implementing BSC, only 15% of employees not so positive about it. It is significant to note that 65% of employee clearly agreed that incentive and compensation system working fine, as the individual and team performance is well recognised by the HR department and rewarded timely, which is the base of the BSC implementation. Without the contribution of HRM effective implementation of BSC would not be possible. HRM is the important link between management and BSC; it helps to create formal performance agreement between management and staff while taking into consideration of individual objectives, requirements and their expected improvements at work and personal front. For which remarkably 57% employees agreed on this, only 15% were not so decisive about it.
4.6 EASE OF USE
Figure: 4.6 Ease of Use
With the HRM support BSC carved its way for effective implementation and further development in the organisation. For the efficient BSC the strategies and goals are defined and then it is important to check whether the required and expected goals are achieved or not and measurement of it is very crucial aspect. HRM plays very significant role by providing effective reward system not only links the employees with the management but also by providing important data to the management for the further development of the BSC. With this HRM participation made easier to implement BSC in the organisation. Surprisingly most of the employees about 88% have given affirmative response regarding HRM reward system which is based on their performance, competence and their contribution. To my amazement majority of my respondents agreed on the effective HRM working system within the BSC.
For implementation of any new system in the organisation it is very important that the organisation communication channel works effectively between department to department between individual to department and towards the organisation as a whole. It is also important for the successful BSC implementation alignment of the strategies and goal of the organisation are crucial. Keeping in this view with this reference in my survey questions astonishingly again 88% were agreed on the effective mechanism adopted by HRM which will provide effective communication to the senior management and employees. In which 15% were agreed on that while 65% were highly agreed on the effective communication and alignment system of the HRM. For that it is important to know the individual and departmental performance and regular reports to the management are playing key role in developing BSC.
4.7 PERCEPTION OF EMPLOYEES REGARDING BSC AND HRM
Figure: 4.7 Perception of Employee regarding BSC and HRM
The above stated figure shows the employees behaviour that what extent they believe that the HRM and BSC correlated with each other. However it has clear from the above mentioned data analysis that HRM contribution in BSC is very significant and undoubtedly it helps BSC in many ways. To enhance it this data provides clearer picture of it. Majority of the employee agreed that the organisation is currently practicing very regular and effective incentive and compensation system. It does help them to notify about their performance and view their progress report within required objectives. The main essence of the BSC performance measurement system is the time to time review of performance is not to blame of mistake of employees but to rectify it and improve it for future better performance. HRM takes charge of over all success of the strategy implementation by providing constant reports and feedback to the management and then providing effective training to the employees to improve and enhance their skills and knowledge. By providing all this facility and other mechanism HR linking the individual and department’s gap and it would not be extreme to say that HRM playing strategic partner while developing BSC in the organisation. Significantly 63% employees agreed to positive participation of HRM while developing BSC in the organisation.
Chapter 5 Interviews
5.1 KEY NOTES FROM THE INTERVIEWS
I have choose to do semi structured interview but I could get only two respondents for the interview as most of them are sceptical about the research and I have very less time to visit more branches. Fortunately I could manage to take two interviews one with the manager and other with the senior administrative officer of the branch. The interviewer more emphasised on HR implications and role of HR in BSC to get more data for the research. However the interviewee were not from HR department so they could not given information on technical aspects of it. However their vast experience with the organisation they did have intense knowledge about the whole process. It was more cleared after the interview that HR plays pivotal role while implementing BSC and with the integrated HR policies with the BSC the organisation could achieve favourable results.
5.2 RESEARCH FROM THE SECONDARY DATA SOURCE
No clear evident was carried out during the analysis of the secondary data however in many studies it has found that the BSC is science based management concept in which the performance management is there with the function of planning and motivation with the effect of integration system. With the usage of wide range of modern indicators in BSC enclosed the overall strategy with the highest implication on HR process. Human resource management becomes business partner in the organisation with the support of BSC and its parallel adoption of HPWS and long term hr strategies puts organization at more advanced stage.
Chapter 6: Conclusions and recommendations
The BSC and its implications in high-performance-work-systems
From the all empirical study the secondary data proves that BSC accomplish all the functions of HPWS. High performance work system popularly known as HPWS indicate that with the help of all hr activities it stimulates and enhances the value of human capital within the organisation. As we have seen from our secondary data analysis from the literature review and primary data analysis also gives clearer picture that within the BSC the management participation with employees has increased, also effective incentive and compensation system helps for the motivation to the employee, performance feedback reports helps for further training and development and acquiring required skills and knowledge. Within the BSC by adopting this effective reward system helps to give them job satisfaction and security of work. Thus implementing BSC HPWS system is incorporated within its learning and growth perspective.
Impact and implications of the BSC on HR-policies
The theoretical promises from the secondary data and with the examinations of the primary data it is evident that implementation of BSC with adoption of HRM strategies and policies can easily operative and gives good result to the organisation. During BSC implementation and development with the effect of efficient compensation and incentive system HRM provides employees training to increase their skills and knowledge. Thus in the presence of BSC, HRM plays key role to increase profitability of the organisation. Conversely the already practicing compensation and incentive system will provide good platform to simplify the BSC implementation in organisation. Thus altogether BSC and its impact on HRM and HR policies support to emerge new conditions to facilitate profitability and pioneer the path for the HPWS. With the empirical analysis and source of secondary data confirm that with the usage of BSC, HRM policies will escort more high performance oriented strategies and in long term it gives success and profitability.
To conclude we can say that with higher usage of BSC and overwhelming welcome by global market increase the criticism of the other performance measurement system mainly focusing on financial measures. With the effective use of its four perspectives and inclusion of significant usage of human capital the incorporation of BSC not only reviews the financial past performance but also complements the future non-financial measures. During the BSC implementation HRM gets significant importance with its sustained interference within the process. While developing BSC evaluation of employee competence, training and development, effective compensation and incentive based reward system are central strategies in the organisation. For this reason the effective implementation of BSC needs strong support of HRM. The HRM gets extra importance in BSC because of its support for contribution to business strategy. Wherefore the BSC highly depends on the quality and efficient foundation of HRM.
In this case study we found that the effective integration of HRM and BSC the organisation could get the success and profitability on that basis the author has generated and would like to point out some minute but important recommendations.
a) For the effective and efficient implementation of BSC it is important that it should involve all the staff and to ensure that enough and proper training has been given. It will help to get awareness about it amongst the staff and popularity of the new system would help them to gain more understanding about it.
b) While developing BSC in the organisation the management must emphasise over the fact that it does not necessarily supply the business needs but also fit within the organisation culture and ensure that the employees are adaptable to it.
c) BSC does provide platform for business performance but focusing on only financial measure would not help in long term success, so its integration with HRM and focusing on strategies with linking people and alignment will fetch long term sustain success.
d) The process of BSC would be very complex but with the interference of HRM by which provides awareness amongst the staff and notably it is important to get consensus from the employees for approving and implementing strategies in BSC which again taken care by HRM.
e) HRM links the employee and management it helps to get them understand about ‘why’ and not simply directing ‘what’ actions would be helpful for organisation to achieve goals. Thus the HRM should be well informed about the concurrent and latest strategies
f) Effective communication channel, motivational and target based system are essential elements in BSC and needless to mention that with the efficient HRM system it would be easier to establish those factors in BSC.
g) It has been empirically verified that the BSC with the long term HRM policies will fetch profitability and improved business performance in the organisations. Therefore the HRM should be considered as a profit making centre rather than cost cutting factor. The implementation of the BSC fosters incorporation of HPWS also signify the HRM process and HRM policies.
6.3 AREA FOR FURTHER RESEARCH AND FINDIGS
Despite of sheer hard work and efforts to get the best result in research there are some gear which affected the research and in their absence the author would have got better results. That if the author would have given enough time to collect more data for the analysis, it will bring more accurate and stronger result to the research. If the researcher would able to get more interviews with the HR manager and other departmental manager of the organisation, it will throw some more light on the disguised issues related to the topic.
An interesting topic for the further research could be in this reference is to introduce HR scorecard concept in the organisation and evaluate the implications of it on over all organisational performance. The other important issue came across while working on the thesis is to evaluate the human capital management and importance of HR scorecard. For both the subject quantitative and qualitative approach would be suitable to get results.
The other important issue rise in during the research that the further research can be made on the same topic emphasising on different market environment. There will be different approach when the organisation has to face very high competitive environment or when the organisation has strong brand image in the market.
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