Evaluating Balanced HR Scorecard Implementation at Starbucks

This report examines the application of a balanced HR scorecard within Starbucks, evaluating its potential benefits and challenges. It begins with an introduction to the HR scorecard, defining its purpose as a strategic performance management tool. The discussion section details the advantages of scorecard implementation, including improved financial performance, consumer and employee satisfaction, and enhanced productivity. The report highlights the competitive advantages that stem from prioritizing intangible assets like employee skills and company-consumer relationships. It also addresses potential challenges, such as data collection issues and internal focus, and proposes solutions like automated systems and SWOT analysis. The report further explores the objectives of the HR scorecard across four dimensions: HR deliverables, high-performance work systems, HR system alignment, and HR efficiency measures. The conclusion emphasizes the critical role of a balanced HR scorecard in maintaining and enhancing Starbucks' brand equity, ultimately aiding in cost control and employee retention. References to relevant academic sources are also provided.

Running head: HUMAN RESOUCE MATRIX
Human Resource Matrix
Name of the Student
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Executive Summary
The purpose of this report is to evaluate the usefulness of implementing Balanced HR Scorecard
approach in organizations like Starbucks. This report contains detailed analysis of the benefits of
the HR scorecard implementation in Starbucks along with its competitive advantages. The report
also contains the challenges that may be faced while implementing the BSC approach in
Starbucks and effective measures to deal with the challenges. Finally it has been concluded that
HR scorecard approach can play a major role in maintaining the enhancing the brand equity of
Starbucks.

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Table of Contents
Introduction:....................................................................................................................................3
Discussion........................................................................................................................................3
1. HR Scorecard benefits for organizational performance measurement....................................3
2. Explanation of the competitive advantages due to usage of an HR Scorecard.......................4
3. Challenges faced while implementing a score card.................................................................4
4. Measures to solve the challenges faced...................................................................................4
5. Objectives of HR Score card in regards to the following four dimensions:............................5
Conclusion:......................................................................................................................................6
Reference List:.................................................................................................................................7

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Introduction:
A balanced HR scorecard can be defined as a strategy performance management tool that
is used by HR managers to monitor managerial activities which eventually results in prosperity
of the organization. In this report, a balanced critique of the benifits of the scorecard in Starbucks
has been discussed.
Discussion
1. HR Scorecard benefits for organizational performance measurement
Considering the fact the chief performance indicator for HR includes consumer
satisfaction, financial results, career development and process improvement, a balanced HR
scorecard helps the managers of an organization to identify the improvement and agree with the
strategic approach. The major benefits of implementing a HR scorecard are listed below:
 Financial performance: A score card approach will help Starbucks to obtain financial
stability in adverse conditions. An effective HR scorecard can spot trends and calculate
the amount of return on investment.
 Consumer satisfaction: With the help of a balanced HR scorecard, the HR managers of
Starbucks will be able to measure the potential of the current initiatives taken by the
company to satisfy consumers. This approach will help the managers to decide the future
initiatives for the prosperity of the company (Becker, Huselid & Ulrich, 2001).
 Employee satisfaction: An effective HR scorecard reports the results of employee
training processes, employee motivation and employee surveys. This method of tracking
and monitoring will help Starbucks to deal with employee dissatisfaction.

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 Improvement in Productivity: A balanced HR scorecard approach will helps the HR
Managers of Starbucks to correlate HR programs like building employee competency,
developing leadership skills and improving reward system with their impact on the
business. This, in turn helps the organization to attain strategic goals (Kehoe & Wright,
2013).
2. Explanation of the competitive advantages due to usage of an HR Scorecard
An effective balanced HR Scorecard approach, apart from focusing on efficient usage of
fixed capital, gives priority to intangible assets like employee skills, intellectual properties,
knowledge and abilities of both the managers and employees and effective company consumer
relationship (Phillips, Stone & Phillips, 2012). These factors are considered to crucial sources of
competitive advantages and have immense contribution to the long-term economic success of the
companies. For example, Starbucks maintain its brand equity by providing quality experience
and identical taste of its gourmet coffee in all of its global stores.
3. Challenges faced while implementing a score card
Some of the challenges that may be faced during developing an effective balanced
scorecard for Starbucks include lack of effective data collection and reporting, lack of review
structure, poorly defined matrices and excessive internal focus. For example the implementation
of balanced score card at Kenyatta national hospital has faced challenges like lack of resources,
functional equipments, communication and leadership (Northcott & Ma'amora Taulapapa, 2012).
4. Measures to solve the challenges faced
While for efficient data collection and reporting, companies like Starbucks should invest on
automated systems that will help the company with data collection and subsequent reporting, for

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best performance of the score card, they should be reviewed frequently. Matrices require to be
collected at ideal frequency and defining in a way that they can be used even if the targets differ.
Apart from that, SWOT analysis should be done in order to avoid too much internal focus
(Jääskeläinen & Sillanpää, 2013).
5. Objectives of HR Score card in regards to the following four dimensions:
HR deliverables- The crucial HR deliverables that needs to be implemented in HR
scorecard of Starbucks are recruiting, training, compensation and performance structure
and reward structure to encourage and identify employee innovations and ideas. The
effective HR deliverables of Sears Company have made it a desirable place to work.
High-performance work system- This criteria, being the key to maximize employee’s
performance, should include recruitment of highly skilled workers, creating validate
model for hiring, managing, developing and rewording employees and implementing
effecting training for employees
HR system alignment- This factor includes focusing on specific elements of the HR
system that are crucial to produce an effective HR deliverable. Competency-based
recruitment will allow Starbucks to monitor the efficiency of its HR system of recruiting
employees based on their competency model. Besides that the HR department should also
provide benefits to its skilled employees for employee retention.
HR efficiency measures- This step includes identifying the particular task that the HR
must be able to perform in order to achieve the company goals. Starbucks needs to
identify cost per hire as a strategic measure.

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Conclusion:
From the above report it can be concluded that in this era of highly competitive
market, it is really crucial for companies like Starbucks to implement an effective
balanced HR scorecard approach to maintain and enhance its brand equity. The HR
scorecard will not only help the company to control its costs and creating a value of its
own, it will also help with employee retention.

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Reference List:
Becker, B., Huselid, M. A., & Ulrich, D. (2001). The HR scorecard: Linking people, strategy,
and performance. Boston, MA: Harvard Business School Press.
Jääskeläinen, A., & Sillanpää, V. (2013). Overcoming challenges in the implementation of
performance measurement: case studies in public welfare services. International Journal
of Public Sector Management, 26(6), 440-454.
Kehoe, R. R., & Wright, P. M. (2013). The impact of high-performance human resource
practices on employees’ attitudes and behaviors. Journal of management, 39(2), 366-391.
Northcott, D., & Ma'amora Taulapapa, T. (2012). Using the balanced scorecard to manage
performance in public sector organizations: Issues and challenges. International Journal
of Public Sector Management, 25(3), 166-191.
Phillips, J. J., Stone, R., & Phillips, P. (2012). The human resources scorecard. Routledge.