Summary of Brian E. Becker, David Ulrich & Mark A. Huselid's The HR Scorecard

By IRB Media

Please note: This is a companion version & not the original book. Book Preview:

#1 The human resources architecture of a company is the sum of the HR function, the broader HR system, and the resulting employee behaviors. It is difficult to measure the influence of HR on a company’s performance, because HR’s strategic assets are difficult to copy.

#2 The problem with HR is that its impact on firm strategy is difficult to see. However, this is also what makes it a prime source of sustainable competitive potential. Human resource managers must understand the firm’s strategy and the implications of that strategy for HR.

#3 The most effective way for HR managers to contribute to the firm’s strategy is to develop a measurement system that demonstrates the impact of HR on business performance.

#4 Strategic partnering with the HR department is not just a way for HR practitioners to justify their existence, but also a way for them to add value. If the HR function can’t show that it adds value, it risks being outsourced.

• Language: English
• Publisher: IRB Media
• Release date: May 12, 2022
• ISBN: 9798822513174

IRB Media

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Insights on Brian E. Becker and David Ulrich & Mark A. Huselid's The HR Scorecard

Contents

Insights from Chapter 1

Insights from Chapter 2

Insights from Chapter 3

Insights from Chapter 4

Insights from Chapter 5

Insights from Chapter 6

Insights from Chapter 7

Insights from Chapter 8

Insights from Chapter 1

#1

The human resources architecture of a company is the sum of the HR function, the broader HR system, and the resulting employee behaviors. It is difficult to measure the influence of HR on a company’s performance, because HR’s strategic assets are difficult to copy.

#2

The problem with HR is that its impact on firm strategy is difficult to see. However, this is also what makes it a prime source of sustainable competitive potential. Human resource managers must understand the firm’s strategy and the implications of that strategy for HR.

#3

The most effective way for HR managers to contribute to the firm’s strategy is to develop a measurement system that demonstrates the impact of HR on business performance.

#4

Strategic partnering with the HR department is not just a way for HR practitioners to justify their existence, but also a way for them to add value. If the HR function can’t show that it adds value, it risks being outsourced.

#5

The team at Sears developed objective measures for each of the three compellings: support for ideas and innovation, being a fun place to shop, and being a compelling place to work. They then used these measures to design a measurement system that reflected their vision in all its richness.

#6

The Coca-Cola Company’s experience demonstrates the importance of intangible assets and intellectual capital. The company’s $150 billion market value derives largely from its brand and management systems.

#7

The increasing importance of organizational capabilities and intangible assets is reflected in the stock market. The market value of a firm is now typically greater than its book value, which indicates that shareholders believe the company’s value is increasing.

#8

The ability to implement strategy is the most important intangible cited by financial analysts. The most important intangible for managers is the quality of nonfinancial information, but they place little value on this information.

#9

The importance of intangibles in today’s economy is clear. However, managing these intangibles is difficult, because the accounting systems in use today evolved during a time when tangible capital was the primary source of profits.

#10

The focus of corporate strategy is