Chapter 7 - Answers to review questions in textbook, page 164
1. Why has the role of HR changed so dramatically over the past few
years?
Discuss briefly.
Answer: (Introduction)
The impact that knowledge workers have had on the changing role of HR
is tremendous. Observers, both internally and externally to the
organisation, have come to view a company's workforce as far more
valuable than ever before. This situation has placed the HR function
directly in the spotlight. Thus, HR can no longer be an observer, that can
be removed or outsourced by the company, but must become a player on
the field, in the game, with the ability to score. The ability to score
(according to Beatty, Huselid and Schneier), necessitates a new
understanding of the rules of the game, a new perspective on what HR is
to contribute, how its systems enable it to contribute, and how its ultimate
deliverables can be measured.
2. Briefly discuss the four perspectives of the Balanced Scorecard.
Answer: (Section 7.1)
To activate the Balanced scorecard, managers must translate the
company goals relating to the four perspectives (these are normally
generic issues which form part of any mission statement) into specific
measures that reflect the factors that really matter.
● A customer perspective
The question that can be asked pertaining to customer perspective is: how
do customers see us? The answer to this question can be obtained by
measuring lead times (for example lead time can be measured from the
time the company receives an order to the time it actually delivers the
product or service to the customers), quality (the defect level),
performance, service and cost. To do this, companies must articulate
goals for the components of time, quality, performance, service and cost.
These goals must then be translated into specific measures (ECI’s
Balanced Business Scorecard). Goals for customer performance for
example can include:
- to get standard products to the market sooner
- to improve customers' time to the market
- to become the customers' supplier of choice through partnerships
with them
- to develop innovative products tailored to the customers needs
1
, In order to track the performance on any of these goals, the company can
either obtain the information internally or externally from customers.
● An internal perspective
The question that can be asked pertaining to the issue of an internal
perspective is: what must we excel at? Thus, what must the company do
internally to meet its customers' expectations? The answer to this question
can be obtained by determining the processes and competencies that are
most critical for it, and specifying measures for components such as cycle
times, quality, employee skills and productivity. As was the case with the
previous component, companies must also here articulate goals for the
following: cycle times, quality, employee skills and productivity. These
goals must then be translated into specific measures for each (ECI’s
balanced Business Scorecard). Goals for this component can for example
include:
- to obtain a submicron technology capability
- to obtain manufacturing excellence
- to obtain design productivity
- to introduce new products
As much of the activity to achieve these goals takes place at the lower
levels of the organisation, the company must ensure that the measures for
these goals are brought to the attention of the employees at these levels.
By doing this, the employees at these levels will have clear targets for
actions, decisions and improvement activities that will enable the company
to obtain its overall mission. The availability of information systems within
an organisation can play an important role in monitoring progress in this
regard.
● An innovation and learning perspective
The question that can be asked pertaining to the innovation and learning
perspective is: can we continue to improve and create value? The answer
to this question can be obtained by monitoring the company's ability to
launch new products, create more value for customers and improve
operating efficiencies. The previous two components of the Scorecard
identified the parameters that the company should consider most
important for competitive success. However, in this ever changing world
continual improvements will need to be made to existing products and
processes and companies will have to have the ability to introduce entirely
new products. One of a company's measures in this area can for example
be the percentage of sales from new products (ECI’s Balanced Business
Scorecard). If sales go down, the company can establish whether it is due
to the design of the product. Please note that some organisations have
2
1. Why has the role of HR changed so dramatically over the past few
years?
Discuss briefly.
Answer: (Introduction)
The impact that knowledge workers have had on the changing role of HR
is tremendous. Observers, both internally and externally to the
organisation, have come to view a company's workforce as far more
valuable than ever before. This situation has placed the HR function
directly in the spotlight. Thus, HR can no longer be an observer, that can
be removed or outsourced by the company, but must become a player on
the field, in the game, with the ability to score. The ability to score
(according to Beatty, Huselid and Schneier), necessitates a new
understanding of the rules of the game, a new perspective on what HR is
to contribute, how its systems enable it to contribute, and how its ultimate
deliverables can be measured.
2. Briefly discuss the four perspectives of the Balanced Scorecard.
Answer: (Section 7.1)
To activate the Balanced scorecard, managers must translate the
company goals relating to the four perspectives (these are normally
generic issues which form part of any mission statement) into specific
measures that reflect the factors that really matter.
● A customer perspective
The question that can be asked pertaining to customer perspective is: how
do customers see us? The answer to this question can be obtained by
measuring lead times (for example lead time can be measured from the
time the company receives an order to the time it actually delivers the
product or service to the customers), quality (the defect level),
performance, service and cost. To do this, companies must articulate
goals for the components of time, quality, performance, service and cost.
These goals must then be translated into specific measures (ECI’s
Balanced Business Scorecard). Goals for customer performance for
example can include:
- to get standard products to the market sooner
- to improve customers' time to the market
- to become the customers' supplier of choice through partnerships
with them
- to develop innovative products tailored to the customers needs
1
, In order to track the performance on any of these goals, the company can
either obtain the information internally or externally from customers.
● An internal perspective
The question that can be asked pertaining to the issue of an internal
perspective is: what must we excel at? Thus, what must the company do
internally to meet its customers' expectations? The answer to this question
can be obtained by determining the processes and competencies that are
most critical for it, and specifying measures for components such as cycle
times, quality, employee skills and productivity. As was the case with the
previous component, companies must also here articulate goals for the
following: cycle times, quality, employee skills and productivity. These
goals must then be translated into specific measures for each (ECI’s
balanced Business Scorecard). Goals for this component can for example
include:
- to obtain a submicron technology capability
- to obtain manufacturing excellence
- to obtain design productivity
- to introduce new products
As much of the activity to achieve these goals takes place at the lower
levels of the organisation, the company must ensure that the measures for
these goals are brought to the attention of the employees at these levels.
By doing this, the employees at these levels will have clear targets for
actions, decisions and improvement activities that will enable the company
to obtain its overall mission. The availability of information systems within
an organisation can play an important role in monitoring progress in this
regard.
● An innovation and learning perspective
The question that can be asked pertaining to the innovation and learning
perspective is: can we continue to improve and create value? The answer
to this question can be obtained by monitoring the company's ability to
launch new products, create more value for customers and improve
operating efficiencies. The previous two components of the Scorecard
identified the parameters that the company should consider most
important for competitive success. However, in this ever changing world
continual improvements will need to be made to existing products and
processes and companies will have to have the ability to introduce entirely
new products. One of a company's measures in this area can for example
be the percentage of sales from new products (ECI’s Balanced Business
Scorecard). If sales go down, the company can establish whether it is due
to the design of the product. Please note that some organisations have
2
