The explanation is made by Juan Salazar (Consultant in the Human Resources area of the Consultant William M. Mercer).
The first thing is to define this tool: it is a “human resources function diagnosis” tool that will allow, once completed, to prepare a Scorecard that can be adapted to each of the organizations and that can also be adapted to business demands. It is a model of the consulting firm William M. Mercer.
The purpose of this tool is to link the Human Resources function to the company's strategy, using the following elements that I will comment on below:
As can be seen in the graph, if we want to align the human resources function to the company's strategy, as we established previously, the first thing we must act on is the key business factors that could be identified with the competencies and capacities of the organization that they must be present to achieve the organization's strategy, they will help to design the human resources function for its alignment with the strategy. “The key to the Human Resources function will be to support the strategy to achieve its objectives through people. The paradigm goes from measuring what Human Resources does to what it contributes to the strategy ”.
These are the three elements that Juan Salazar considers should be used to configure the diagnosis of the Human Resources function.
Positioning of the function
It is necessary to position the Human Resources function within the organization, let's take an example: normally at the beginning of the activities of companies a business plan is started in which the Human Resources department is not so involved, that is, in the At the beginning of the activity of a company, Human Resources is usually in charge of hiring and training, which is what runs the fastest since there is no time for strategic approaches, it is later when the company is more established when questions are raised about how to You are doing the work or how you can increase efficiency, where the Human Resources department really begins to acquire a greater participation.
Now it is said that Human Resources should be the <> of the organization.
These considerations from Salazar's point of view make it necessary to position his function, the task corresponds to the Director of Human Resources thanks to the “key business factors”, he must clarify who should do what within his department to achieve the strategy. “This will make it possible to align the Human Resources culture and systems with the key objectives of the business and of the people, while at the same time positioning the Human Resources function in a way that provides the optimal systems and services for the development of the culture of the company and the people that comprise it ”.
This positioning would be expressed in the previous graph taking into consideration two dimensions: alignment with the business and excellence of the function.
Some people like Dave Ulrich consider an additional dimension to the previous two, differentiating how the function can be centralized in people or in processes. It would be representable in a matrix that represents the Human Resources situation plus another in which the desired situation arises, determining the differences or gaps.
Where are we and where do we want to be?
Management systems:
Reference is made to selection, training and development, remuneration, career planning, succession planning, knowledge management… It is useful in this phase to ask oneself about the relevance of each one of them. "It is about forcing the human resources management to make an approach deeply linked to the organizational strategy."
The phases of this process should be as follows:
and Establish an order of criticality.
and Identify the criteria that will allow us to establish the performance measurement indicators. These will be the criteria:
~ Cost
~ Time
~ Number of units generated
~ Quality of output
~ Resources consumed
~ Internal customer satisfaction
The choice of one or the other criterion will depend on the subsequent convenience in establishing measurement indicators, these are final elements that will allow monitoring of the efficiency of the department's work. Salazar proposes an example regarding selection measurement indicators:
~ Cost: average cost per employee and source
~ Time: average duration to fill a position
~ Quantity: number of candidates generated per advertisement
~ Quality: average qualifications of those recruited at the end of the first year
~ Resources consumed: hours allocated to the selection
~ Customer satisfaction: average of the final evaluation of the users
For outsourcing issues, such analysis will be very useful.
Persons
Three focuses susceptible to study:
- Competencies, understood as skills, personality traits, knowledge and motivation. The results The potential
The Human Resources department must integrate the values obtained by the rest of the employees that make up the organization. Salazar proposes as a tool for this integration the so-called DCI Maps (Development, Career and Incentive).
This tool will allow us to compare the previous factors obtaining:
1. The map of training and development of competences against potential.
2. The Career / Succession Planning Map: Results vs. Potential.
3. The economic incentive map: results against competition.
The scorecard would result from the consideration of the three previous elements: positioning, systems and people.
As for why this tool is useful in human capital management, the justification would be as follows:
Because it allows us to know the added value that the Human Resources function brings to the organization.
Analyze the strengths and weaknesses of the department, improving management.
Establish focused action plans.
Quantify the improvements that occur in the management of Human Resources.
Align the people in the department with clear business objectives.
Achieve an adequate dimensioning of the department itself.
