Integrative approach to the performance evaluation of organizations by the human resource
Score card evaluation brings out an integrative approach to the performance evaluation of organizations by the human resource managers. Human resource department, just as any other business branch or business unit, have to be well incorporated into the corporation assembly of the organization in provisions of strategy, mission and values. Therefore, just as any form of business piece human resource management has also to go through some frequent evaluation so as to assess HR efficiency of the business and consistency of human resource management with the company strategy. This form of evaluation are very important as it is a commonly viewed that HR goals and procedures have not anything to do with the company strategy. Chairman of HR department may sometimes interpret strategic goals of the organization using his own way while regular employees may have also their own concepts of company strategy. Therefore, the Balanced Scorecard can bring into line human resource policy by means of a strategy of the company, additionally to communicating strategic and operational management, thus positioning strategy into action.
Purpose of the study
The main motivation to this study is to understand the basis of the BSC in evaluating human resource management, and how it is linked to the organization management, this will help in to understand how BSC is being applied as part of the strategic management of this organizations in the Saudi, this will bring out the competences that the human resource managements require in order to be operational.
This study will investigate the BSC evaluation on the human resource management in Saudi. In this study, the aim is to understand if the balanced scorecard is said to be strategic planning system as well as management system that can be used at length in business and organizations internationally so as to ally business actions to the vision and strategy of the organization, enhance internal as well as external communications, and supervise organization performance in opposition to strategic goals.
This study objective is to examine the use of BSC in evaluation of the human resource management, in organizations in Saudi Arabia country. The questions that guide this inquiry are; (A) how is the balanced scorecard applicable to private-sector companies? (B)What are the benefits that come with the balanced scorecard approach? (C) Is balanced scorecards very challenging when trying to develop and deploy it? (D) Should the recruitment of the new employee by the human resource managers be done using BSC? (E) Can BSC be used to measure education and training indicators for the human resource? (F) Can BSC also be used in the evaluation of reward and retention indicators to the employee? (G) Are personal development and discipline indicators also measured using BSC?
Aims and objectives
The main aim and objective of the study will be to apply the balance scorecard to evaluate HR manager in Saudi organizations. Additionally, specific aims and objectives of the study shall be to:
Distribution target by equal balance
It will give a real result for HR manager
To show the strength and weaknesses for employees
To help HR manager to make decision and strategies
In a article that was written by Kaplan and Norton (1992),they discussed the BSC that can drive the performance of an organization, in their article they liken BSC as a dials in a cockpit of an airplane in which the managers gets complex information at a glance. They also stated that BSC links performance measures in four main perspectives: Namely; customer perspective, internal perspective, innovation and learning perspective and financial perspective kiplang and Norton (1996) further retaliates that BSC introduces four other management processes that links the long term strategic objectives with short term actions, they include: translation of the vision, communicating and linking, the business planning and finally the feedback and learning.
Many of the greatest organizations in the world views the balance scorecard techniques as it can give them and edge in objectively quantifying and measure in business performance (2000). According to Kiplang and Norton (1996), balance score card is not just another business management tools (Amaratunga and Sarshar, 2001). Such consideration as organization climate and, employee satisfaction, also loyalty to the organization and scores of others can not be represented with financial indicators (Atkinson, Young, 2004).Effectiveness of the BSC for organizations are numerous, with mixed findings (Earnst & Young 1998). The studies done by ittner and larcker (2003), Evans and Jack (2003) and Davuis and Albright (2004), they found out that proper usage of BSC can lead to improved financial performance (Figg, 2000). On the other hand studies done by Dumond (1994), and Forza and Slavador (2000) noted the usage of the BSC as promoting positive effects to the employee satisfaction and understanding of the business. Moreover, theoretical analysis of Noreklit (2000) as well as that of Marr and Adams (2004) questioned the main principle s behind BSC. According to Kaplan and Norton (1992), most of the variations that appers in the BSC appears to be part of its evolution on its concepts, in response to the dissatisfaction with traditional, a number of performance systems have recently been developed (Fisher; 1992; Hronec, 1993).
The authors Sharma & Haque (2001) conducted a case study on the implementation of Balanced Scorecard (BSC) in the government housing authority of Fiji to provide affordable shelter and mortgage financing for middle-income earners and found that BSC was essential to the implementation of the new for profit-orientation of the Fiji Housing Authority (HA). Hilton Corporation implemented balanced scorecard during 1995-1998 and achieved the following results (Fisher, 1992). Evaluation of human resource performance is an excellent way to establish captivating the corporation to innovative level so as to stand resilient competition in the market and acquire competitive advantage (Harris and McCaffer 1995) .it should by no means be forgotten that businesses and organizations are managed by people, and consequently human factor is a favored success factor (Vitale, Mavrinac, & Hauser, 1994).
There are two methodologies for carrying out research; qualitative and quantitative methodologies. In this case, the researcher will utilize the quantitative methodology (Porter, 1986). The researcher will also utilize both primary and secondary methods of data collection. First, the primary methods will be based on information gathered from several business organizations using survey where questionnaires will be utilized (Morrow, 1992). Their responses will be collected and fully incorporated throughout the research process .Questionnaires are going to play a significant role in ensuring that those vital individuals, who could not be reached easily, are able to participate in the research endeavor (Hiromto ,1991). Postage of questionnaires will be postpaid to ensure more respondents. The research questions to be used will be based on an in-depth evaluation of the research objectives and targeted group whereby random sampling method will be greatly employed owing to its effectiveness in eliminating biasness and that it offers a better representation of the population (Sharma, Jahirul, 2001). The researcher will utilize secondary data like journals, books, written articles and magazines in the process of collecting data as secondary sources (Kaplan and Norton, 1993).
The following procedure will be utilized when carrying out research: First, Collection of data both from primary and secondary sources. Stage two will deal with analyzing the collected data which is expected to take much longer time. In stage three researches commences after which the researcher will recommend and conclude the research (Bromwich and Bhimani, 1991).
The research questions to be used will be based on an in-depth evaluation of the research objectives and targeted organizations. Whereby random sampling method will be greatly employed owing to its effectiveness in eliminating biasness and that it offers a better representation of the population. In this effect, the questionnaires sent to employees and customers will be distributed to them randomly. To further supplement these questionnaires, the researcher will utilize other online journals, books, written articles and magazines in the process of collecting data (Fisher and Hronec, 1993). The choice of this method will be based on the fact that through it the researcher will be able to link theoretical perspectives with research purposes, and that the data to be collected will elicit the findings of the analysis (Fisher and Hronec, 1993).
Both open ended and closed ended questionnaire questions were used in the collection of data from the research sample. Questionnaires drafting was done with a clear understanding of the diversity of the people in Saudi. In addition, the target goals of the research process (Maloney 2006). The questions used had different sets of questions that targeted the respondents in different formats (Jick, 1979). The open-ended questions used target some of the respondents such as chief information officers, chief executive officers and employees of several organizations. The closed-ended questions used enabled the participants in the organizations, to answer from the numerous given number of options (Jick, 1979).
Limitations of the study
The scope of this study shall be on the global all sectors of the human resource management, even though the respondents shall come from within the Saudi Arabia region. This therefore, shall imply that the information obtained shall be limited to only those interviewed. However, the researcher shall attempt to find resourceful information from oversee organizations through the use of technology such as telephone calls and emailed questionnaires (Hiromto,
1991). However, this approach shall be limited because one can never know whether the responses are genuine or false. Another limitation is on time. The all sector is a vast area in terms of research study. Therefore, the research shall only be limited due the limited time available. Another limitation shall be on the quality of the responses given (Fisher, Hronec, 1993). A great deal of employees has expressed worries over the information that they can give, and the surety of confidentiality. This is likely to affect respondents in deciding the kind of information they could be willing to give. In general, limitations shall be experienced in terms of time, money, and scope of study (Fisher and Hronec, 1993).
The research has been estimated to follow the following timeline: stage one represents data collection; stage two, data analysis; stage three, initiation of research writing process.
Jan 25-feb 27 ,2011
Jan 28-feb 28 ,2011
Feb 1-feb 28 ,2011
The researcher in the due course of the research has estimated the following costs:
Data Collection costs ( questionnaire printing and posting )
Interview costs (scheduling, travelling, telephone)
Books, internet, and journal costs