Analysis of Performance Measurement Approaches in HRM - Essay

This essay delves into the crucial aspects of Human Resource Management (HRM) performance measurement. It begins by outlining four key criteria for evaluating performance measurement approaches: balance score card, productive measurement and evaluation system, quality measure performance and 360-degree approach, and then argues for the importance of the balance scorecard, highlighting its ability to encompass financial, customer, internal operations, and learning capability aspects. The essay then proceeds to critically evaluate the balance scorecard approach, discussing its benefits such as improved strategic alignment and effective communication, as well as its limitations, including implementation challenges and rigidity. The essay references various academic sources to support its arguments and provides a comprehensive analysis of performance measurement in the context of HRM.

Running Head: HUMAN RESOURCE MANAGEMENT
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Human resource management
Essay
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HUMAN RESOURCE MANAGEMENT 1
Four criteria for performance measurement
There are various type of criteria used in the business world to measure performance in order to
understand the gap between reality and expectation. The four criteria which are actually used in
the business environment to measure the performance are balance score card, productive
measurement and evaluation system, quality measure performance and 360-degree approach.
Balance scorecard is mainly linked with overall performance of the person. Productive
measurement and evaluation system is linked with employee motivation (Groen, Wouters and
Wilderom, 2017). Quality measure performance is linked with customer satisfaction and 360
degree is linked with measurement on the base of manager, peers, colleagues, and customers.
Among all of the four criteria, balance scorecard is considered as one of the most important
criteria to measure the performance because it helps in covering all the important aspects such as
financial, customer, internal operations, learning capability which is essential for the completion
of the task. In financial aspect, person is judged on the base of revenue generation. In customer
aspect, person is judged on the base of customer satisfaction and feedback (Bello‐Pintado, 2015).
In internal operation aspect, person is judged on the base of attitude and behaviour. In learning
capability, person is judged on the base of their ability to learn quickly and implement those
learning on the practical background. While other measuring criteria which is being used for
measuring performance are not often used in the organization because these performance
measuring criteria are focused on one or two aspects and therefore is not able to judge the person
on the base of competency which is essential for the growth and development of person as well
as the individual which is involved in this process (Shen, Chen and Wang, 2016).
Benefits and limitation of balance scorecard
Balanced scorecard help in improving the present strategy of the organization on the number of
aspects. It actually offers a strategic map to the management which they can use in understanding
the positive and negative relationships. In addition to this, it also offers a more positive form of
effective communication with the employee by eliminating the possibility of errors. It also offers
an opportunity to the management of the organization to develop a better objective which can
link with both individuals as well as organization purpose (Kopecka, 2015). It also helps in
closing the gap between reality and expectation from both employees as well as organization
point of view.
One of the biggest limitations of these performance measurement criteria is that it cannot be
implemented exactly on the practical ground. Another limitation linked with this balance
scorecard is that it needs robust leadership in order to succeed. In addition to this, it will not be
easy to judge every individual on this same platform. Another limitation of these performance
measurement criteria is that it seems to be rigid for all the individuals present in the organization
because every individual is not the same.

HUMAN RESOURCE MANAGEMENT 2
References
Bello‐Pintado, A. (2015) Bundles of HRM practices and performance: empirical evidence from a
L atin A merican context. Human Resource Management Journal, 25(3), pp.311-330.
Groen, B.A., Wouters, M.J. and Wilderom, C.P. (2017) Employee participation, performance
metrics, and job performance: A survey study based on self-determination theory. Management
Accounting Research, 36, pp.51-66.
Kopecka, N. (2015) The balanced scorecard implementation, integrated approach and the quality
of its measurement. Procedia Economics and Finance, 25, pp.59-69.
Shen, Y.C., Chen, P.S. and Wang, C.H. (2016) A study of enterprise resource planning (ERP)
system performance measurement using the quantitative balanced scorecard
approach. Computers in Industry, 75, pp.127-139.