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Performance measurement of human resource by design a human resource

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DOI: 10.1016/j.matpr.2021.06.203

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 Materials Today: Proceedings xxx (xxxx) xxx

Contents lists available at ScienceDirect

Materials Today: Proceedings

journal homepage: www.elsevier.com/locate/matpr

Performance measurement of human resource by design a human

resource scorecard
Sarika Lohana a,⇑, Nazia Abbas Abidi b, Niranjan Sahoo c, M. Sameer Babu d, Harikumar Pallathadka e,
Uma Sanjay Singh f
a
State Bank Institute of Leadership, Kolkata, India
b
Institute of Management Studies, Ranchi University, Ranchi, Jharkhand, India
c
Xavier Institute of Social Services, Ranchi, India
d
Education, University of Kerala, India
e
Manipur International University, Manipur 795140, India
f
ARSD College, University of Delhi, Delhi 110021, India

a r t i c l e i n f o a b s t r a c t

Article history: This research aims to design and evaluate an organization’s performance Use the human resource score-
Received 16 April 2021 card method to establish the priority weight of strategic objectives and important network analysis plan
Received in revised form 10 June 2021 performance indicators. This analysis resulted in 16 strategic objectives and 20 key indicators and 17
Accepted 13 June 2021
delays hands. The role of performance assessment in a business is discussed in this report, as it is used
Available online xxxx
to determine its progress. Focusing on the organizational perspectives, the priorities show that the com-
pany focuses more on the administrative, strategic, and consumer perspectives than on the financial per-
Keywords:
spective. A human resources scorecard design strategy was developed based on the design and measuring
Human resource scorecard
Performance Measurement
results obtained from this study and used by the organization.
Key performance indicator Ó 2021 Elsevier Ltd. All rights reserved.
Strategy map Selection and peer-review under responsibility of the scientific committee of the 1st International Con-
Analytical network process ference on Computations in Materials and Applied Engineering – 2021.

1. Introduction to provide an overview of the process of value-adding in compa-

Each organization must always strive to develop its business to
achieve the greatest possible benefits. With the right approach, an
undertaking will achieve optimum investment results. In facilitat-
ing the company’s plan to achieve its goals, the Department of
Human Resources plays a key role.
The department concentrates on solving the human factors
problems in the business. The success of an organization is the
human factor that affects it. The performance assessment is very
important for the company because it can be used to determine
the company’s progress. The performance assessment method,
called Human Resource Scorecard. This measurement is the
Balanced Scorecard growth [1]. The human resources scorecard
focuses on the processes that connect individuals, strategy, and
results for human resources evaluation. A strategy map will be
developed to illustrate in every perspective of the scorecard how
strategic goals interact with their KPIs (Key Performance Indicator)
⇑ Corresponding author.
E-mail address: drslohana@gmail.com (S. Lohana).
nies [2].
The study aims to develop and evaluate the petroleum and gas
business’s human resource output by prioritizing its strategic goals
and KPIs through the analysis network process on the strategic
map. The study process starts with a human resources scorecard
designed by the organization, then measures priorities for each
aspect, strategic goals, and company KPIs.
2. Research Methodology Human Resource Scorecard
According to ‘‘Becker et al. (2001),” is a framework that assesses
how human resources contribute to value generation in the busi-
ness. This helps to optimize the human resource commitment to
the corporate objectives and thus generate value for shareholders,
so the partnership’s evaluation must be understood before its
impacts are reviewed at a later date. Human Resource Scorecard
describes something intangible and real (laugh/effect). Scorecard
represents something supernatural [3].
Human Resource Scorecard is a human resources success
assessment tool to enhance organization. This measurement model

https://doi.org/10.1016/j.matpr.2021.06.203
2214-7853/Ó 2021 Elsevier Ltd. All rights reserved.
Selection and peer-review under responsibility of the scientific committee of the 1st International Conference on Computations in Materials and Applied Engineering – 2021.

Please cite this article as: S. Lohana, Nazia Abbas Abidi, N. Sahoo et al., Performance measurement of human resource by design a human resource score-
card, Materials Today: Proceedings, https://doi.org/10.1016/j.matpr.2021.06.203
S. Lohana, Nazia Abbas Abidi, N. Sahoo et al. Materials Today: Proceedings xxx (xxxx) xxx

is extremely valuable in terms of the difference in human Table 1

resources components with HR components (human resources Mapping of Company.

productivity that does not impact the strategy of the company) ‘‘Perspective” Company Vision
for human resource management (human resources performance Strategic ‘‘Competitive industry”
that affects the implementation of company strategy). Fig. 1 illus- Operational ‘‘A good business strategy”
trates how staff can contribute their contributions to the imple- Customer –
mentation of the company strategy. ‘‘Financial” –

2.1. Analytical network process

Table 2
Mapping of Company Strategy.
Analytical Network Process (ANP) is a multicriteria evaluation
approach to structuring and analyzing the decisions capable of Perspective Company Strategy

selecting the sub-criteria level of measuring accuracy and versatil-
ity of judgment. In the ANP, the decision must begin by comparing
a priority among the two pairs of elements relating to using ques-
tionnaires that involve the respondent’s experts, who know the
business and understand its goals and objectives, when weighted
priorities are compared in parity in assessment. In determining
the values or weights of these elements, this ratio is further uti-
Strategic Improve the implementation of personnel development
Continuously improve the work environment
Improve training matrix
Manage the required technical training correctly Reduce the
identified competency gaps
Optimize personnel in line with the company’s work program
Complete business processes and ensure that the KPIs are
placed correctly”

lized as the basis [4].

Table 3
3. Results and discussion results Grouping of Strategic Objectives in Strategic Perspective.

Company Strategy Strategic Objective

3.1. Mapping of the company vision, mission, and strategy
Improve the implementation of personnel Finding the right candidate
development
Research starts with the vision, mission and strategy of a com-
Continuously improve the work environment Work environment
pany and advances to the four aspects of the Scorecard for Human Improve training matrix
Resources. This helps to consider the company’s current condition, Manage the required technical training Training
simplifies its execution and makes human resources available to correctly
carry out the strategy. The vision of the company is shown in Reduce the identified competency gaps
Optimize personnel in line with the company’s Employee performance
(Tables 1 and 2). work program management
Develop new HR application system Organizational integration
3.2. Formulate strategic objectives

Strategic goals are based on the Human Resources Plan of the Table 4
organization’s Scorecard customized to the human resources Grouping of Strategic Objectives in Operational Perspective.
department’s work. As a result, the Human Resource Scorecard Company Strategy Strategic Objective
achieves 16 strategic goals. It depends on its capacity to organize
Monitor the implementation of HR activities to ‘‘Align HR program with
activities strategically in order to enable the Human Resources be in line with the company s objective business strategy”
Department to accomplish its tasks on organizational, customer ‘‘Ensure effectivity and efficiency of HR ‘‘Ensure an effective and
and financial objectives. The strategic objectives combined in the Organization within the company” efficient”
strategic framework are shown in Table 3 [5–7]. ‘‘HR organization in the
company”
The organizational viewpoint is intended to develop human
‘‘Establish competency matrices by defining the ‘‘Competency mapping”
resource practices that contribute to the objective of the financial competencies profile in the form of a model”
issues and also to the satisfaction of the needs of customers. Table 4 Develop new HR application system Develop HR application
shows grouping strategic goals from the organizational point of system”
view.

Fig. 1. Example of Human Resource Strategy Map.

2
S. Lohana, Nazia Abbas Abidi, N. Sahoo et al. Materials Today: Proceedings xxx (xxxx) xxx

The Human Resource Scorecard describes what employees in
the organization expect from the Human Resources Department
to operate in terms of the customer’s strategic goals. It also covers
how the major client segments view the Department of Human
Resources. Table 5 shows the combination of strategic targets from
the consumer viewpoint.
The economic participation at the department of human
resources activities is a priority for strategic financial outlook
objectives. This view illustrates how the Human Resources Depart-
ment offers the business a measurable financial advantage in terms
of money and human resources.
3.4. Identify key indicators of performance
KPI is developed to implement the organization’s vision and
mission based on the selected strategy. To analyze progress in
achieving the strategic objectives, there are two measures to be
calculated [9,10]
1. ‘‘Outcome metrics or lagging indicators used for measuring the
performance of strategic targets.”
2. ‘‘Performance driver measurement or leading indicators that
indicate the results to be achieved.”

‘‘KPI in the form of a leading and lagging indicator for each

3.3. Human resource strategy map strategic goal is shown in Table 6.”

The human resources strategy map identified the strategic goals

of the organization and the causality between strategic objectives
before the result was achieved. Fig. 2 shows the Human Resource
Strategy Map [8].
Table 5
Grouping of Strategic Objectives in Customer Perspective.
3.5. Calculating priority weight
A closed questionnaire is used to determine priorities. In order
to assess the success of the organization on the basis of the Human
Resource Scorecard, the respondents are required to do a survey by
completing the pairs of comparisons. The findings of survey com-
parisons can be determined in pairs [11]:

‘‘Company Strategy” Strategic Objective 1. Weight of all network parameters 1.

‘‘Develop and improve a robust information ‘‘Workforce productivity
system” through HRIS” Compared to another view, this weight reflects the priority of a
‘‘Perform studies related to appreciation, ‘‘Appreciation and
motivation, and retention program” motivation program”
perspective.
‘‘Integrate ‘‘Rencana Penggunaan Tenaga Kerja” ‘‘Integrated RPTK”
(RPTK)” 2. Weight of all network sub-criteria
‘‘Perform customer and entity survey and to ‘‘Simplicity for an
support a more effective operation” effective operation””
This weight demonstrates the priority of a strategic objective
that is also in the same perspective as another strategic objective.

Fig. 2. Company’s Human Resource Strategy Map.

3
S. Lohana, Nazia Abbas Abidi, N. Sahoo et al. Materials Today: Proceedings xxx (xxxx) xxx

Table 6
Key Performance Indicator of Strategic Perspective.

Strategic Objective Key Performance Indicator

Leading Indicator Lagging Indicator
Finding the right candidate Cost per hire Number of candidates with appropriate competencies
Work environment Employee climate survey Employee satisfaction scores for work” environment
‘‘Training Number of training program days held per year Training cost per employee
Employee performance % Of employees involved in training The level of increase in the value of employee performance per time
management % Of employee performance assessment completed on unit
time
Organizational integration Employee index performance appraisal of colleagues Response time
Accuracy of data Availability of data

Table 7
Grouping of Strategic Objectives in Financial Perspective.
‘‘Company Strategy Strategic Objective
Main goal of the company Improve return on
investment
Improve the elaboration of work programs and its HR budgeting
budgets
Continue to optimize the integrity and utilization of Human resources
plants and means utilization
3. Each leading indicator’s weight 3.
This weight demonstrates the priority of an indicator leading or
lagging with a hand still with the same strategic goal (Tables 7 and
8).
4. Discussion
The strategy map on human resources focuses on the vision,
goal and strategy of the organization. The key strategic objective
of the inner process producing value and intangible resources
was found in the strategic map. This study. Four points of view
from the Human Resources Scorecard describe the root cause of
this strategy. These incidental analogies are shown in Fig. 2 from
the four viewpoints.
The Human Resources Strategy Map arrows show only strategic
objectives that impact other strategic objectives from the same or
different perspectives. Each strategic plan contributes to support-
ing strategic objectives.
Moreover, the research shows that the corporation concentrates
on quality of service operations, ensuring financial success, strate-
gic achievement, and ultimately consumer prospects. The first pur-
pose is to establish an organizational perspective able to confront
the challenges of business, which is the knowledge of staff.
In the financial sense, improving return on investments is a pri-
ority. Training is the strategic goal with the greatest strategic
value. The goal of the customer’s vision is to further improve busi-
ness efficiency
5. Conclusion
Determine the performance assessment approach of the Organi-
zation with the Human Resource Scorecard to detect the human
resources performance, evaluate it and track it to demonstrate
how human resources can add value to the company’s targets. This
study brings five strategic outcomes, four strategic outlook goals,
four strategic outlook targets, four strategic outlook goals, four
strategic outlook targets, four strategic outlook goals and three
strategic outlook targets into the field of human resources.
Some suggestions may be considered to enhance future studies,
namely:
1. The management of human resources in each department of the
organization can vary depending on its activity. Every depart-
ment of the organization, in addition to recognition, evaluation
and reporting, may need the performance appraisal approach in
order to improve human resources management
2. The approach to the Human Resources Scorecard is consistent
and covers all aspects of the human resources of the organiza-
tion, and has a profound effect on the whole enterprise. The cre-
ation of a Human Resource Scorecard should also include all
elements of the organization, starting with the management
firm.
In accordance with the agreed terms, the period for applying the
Human Resources Scorecard should be specified to make sure that
it operates correctly.
CRediT authorship contribution statement
Sarika Lohana: Investigation, Writing - original draft. Nazia
Abbas Abidi: Conceptualization, Writing - review & editing, Super-
vision. Niranjan Sahoo: Formal analysis, Data curation. M. Sameer

Table 8
Key Performance Indicator of Strategic Perspective.

‘‘Strategic Objective Key Performance Indicator

Leading Indicator Lagging Indicator
Finding the right candidate Cost per hire Number of candidates with appropriate competencies
Work environment Employee climate survey Employee satisfaction scores for work environment
‘‘Training Number of training program days held per year Training cost per employee
Employee performance % Of employees involved in training The level of increase in the value of employee performance per time
management % Of employee performance assessment completed on unit
time
Organizational integration Employee index performance appraisal of colleagues Response time
Accuracy of data Availability of data

4
S. Lohana, Nazia Abbas Abidi, N. Sahoo et al.
Babu: Conceptualization. Harikumar Pallathadka: Writing -
review & editing. Uma Sanjay Singh: Formal analysis, Data
curation.
Declaration of Competing Interest
The authors declare that they have no known competing finan-
cial interests or personal relationships that could have appeared
to influence the work reported in this paper.
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