Kpi's

Human Resources Key Performance Indicators
Gabčanová Iveta
Abstract The article brings out a proposed strategy map and respective key performance indicators (KPIs) in human resources (HR). The article provides an overview of how HR activities are supported in order to reach the partial goals of HR as defined in the strategic map. Overall the aim of the paper is to show the possibilities ofusing the modern Balanced Scorecard method in human capital.
Key words: key performance indicators, entrepreneurial sector, HR scorecard, performance, Balanced Scorecard

1. INTRODUCTION
Many companies have implemented tools for measuring their performance in order to stay in business and come in contact with tough competition. Organizations must face not only to more demanding conditions but inthe current period to the world financial crisis as well. Due to these reasons, the organizations are forced to measure performance of the organization and contribute to the stability of the organization in today´s competitive environment. Organizations try to measure performance according to the financial drivers but in the recent period top leaders attempted to find new performance indicatorswhich would take the “wind from sail” to their rivals in the market. One of these competitive advantages is human capital. As the Tootell et al. (2009) stated “since 1980s there has been an increasing emphasis on the importance of HR measurement.” Yeung and Berman (1997) declared that “HR measures should be impact rather than activity orientated, forward looking than backward looking, and shouldfocus on the entire HR system not just on individual practices.” Toulson and Dawe (2004) identified three obstacles in measuring HR: lack of HR experience and precision and difficulties in measurement. There were defined tools by various authors for measuring the HR capital. Srimannarayana (2010) brought brief overview of invented methods to evaluate HR capital:  multiple constituency approachsuggested by Tsui,  human resources accounting system proposed by Flamholtz,  McConnel identified 16 categories to be measured in HR,  return of investment methodology investigated by Fitz-Enz,  Ulrich has showed how HR practices relate to BSC through productivity, people and process indicators,  methodology of behavioral costing to measure the financial impact to HR activities proposed by Cascioand Boundrenau,  BSC in which strategic goals i.e. operational objectives are transfer into 4 perspectives.
Journal of Competitiveness Vol. 4, Issue 1, pp. 117-128, March 2012 ISSN 1804-171X (Print), ISSN 1804-1728 (On-line), DOI: 10.7441/joc.2012.01.09 11

Based upon the model of BSC introduced by Kaplan and Norton (2007) and consequently its application in the area of the human resources, anew tool HR Scorecard for the management and measurement of the human capital was established. Becker, Huselid and Ulrich (2001) who have outlined HR Scorecard, added that it does two important things:  manage HR as a strategic asset,  demonstrate HR´s contribution to firm´s financial success. Also Ulrich and Brockbank (2005) appended that strategic contribution accounts for almost half of HR´stotal influence on business performance. Norton (2009) made a key point about what differentiates the scorecard from other business performance measurement frameworks in the marketplace: “Many people will build a list of measurements that are non-financial and think that they have a balanced scorecard, but in our view the scorecard has to tell the story of company´s strateg y. The biggest mistakeorganizations make is that they think that scorecard is just about measurement.” Huselid, Becker and Beatty (2005) also confirmed that the HR Scorecard is designed to guide management of the HR function. The essential part of the HR scorecard is the strategy map. Kaplan and Norton (1996) called the strategy map to represent the firm´s value chain. These are diagrams of the value chain, such as...