Title: Managing Innovative Strategic HRM: The Balanced Scorecard Performance Management System at ITC Hotels
1Managing Innovative Strategic HRM The Balanced
Scorecard Performance Management System at ITC
Hotels
- Bhatnagar, J. Puri, R. and Jha, H. M. South Asian
Journal of Management, 2004, 11(4), 92-110.
2Outline(1)
- Abstract
- Introduction
- Innovative strategic HRM Adoption in Indian
Organizations - Integration of Strategy Formulation and
Implementation Through Innovation Performance
Management System The Balanced Scorecard
Approach - Research Lacunae Role of HR and Innovation
3Outline (2)
- Research Design
- Research Site
- The Performance Management Architecture Old vs.
New - An Illustration of the Customized balanced
Scorecard and Career Review Form - Effectiveness of Innovation The Supportive
Culture - Implications Institutionalizing the Changing HR
Role
4Abstract
- This study attempts to explore the use of SHRM,
as a lever for innovation, specifically through
the implementation of a balanced scorecard
approach, as an innovative performance management
tool.
5Introduction(1)
- Four kinds of innovation
- Product innovation
- Innovations in Product Technology
- Production Processes and
- Work Organization and HRM Practices.
- Two main patterns of innovation
- Products and technological systems
- Job design, work organization and HRM practices
6Introduction(2)
- A resource-based view on innovation
- Organizational innovative capabilities rest in
the organizing principles and social
relationships that exist between people. - Focus on HR strategies and identify the promotion
of a creative environment as a key to innovation. - Thus, exemplifying that an innovative
intervention needs, a strategic HRM focus as well
as a supportive culture.
7Innovative Strategic HRM Adoption in Indian
Organizations(1)
- Free market economy
- Multinational organizations
- Globalization and internationalization of
domestic businesses - Unbridled imports
8Innovative Strategic HRM Adoption in Indian
Organizations(2)
- Concerns
- Total quality management
- Incentives to export
- Demographic changes in the employee profile
- Retaining and redeployment of workforce
- Focus on performance appraisal and performance
based incentive systems - rightsizing
9Innovative Strategic HRM Adoption in Indian
Organizations(3)
- The typology of managerial innovation has not
diffused too many developing countries and their
organizations. - Lesser research has been conducted in the filed
of SHRM and its innovative practices in India.
10The Balanced Scorecard Approach(1)
- Quality management
- Customer retention
- Research and development
- Innovation
- There are not limited to only, measurement-based
concepts like the balanced scorecard or
shareholder value, but include concepts like KM
and e-business.
11The Balanced Scorecard Approach(2)
- Human Capital Appraisal
- People Capability Maturity Model
- Balanced scorecard
- Ties business strategy to HR strategy
- Performance management system serves as the lever
for change within the organization, besides
aligning strategy with HRM goals and objectives.
12Research Lacunae Role of HR and Innovation(1)
- The change process can take one of three routes
- The maintenance of current competencies,
- The recombination of new ones with old ones which
requires a focus on learning and innovation or - The building of completely different ones which
requires a great deal of experimentation.
13Research Lacunae Role of HR and Innovation(2)
- The case study examines the role of HR, and the
culture that supports this role and the
implementation of an innovative performance
management intervention.
14Research Lacunae Role of HR and Innovation(3)
- In Ulrichs model (1997)
- two strategic roles of HR
- Strategic Partner
- Change Agent
- Two tactical roles of HR
- Administrative Expert
- Employee Champion
15Research Design
- Based on the interaction with 45 multiple
stakeholder of the organization. - The Vice President, HR, also provided insights
into the system. - Secondary data sources and evidence form
organization. - Based on an open-ended interview with 20
employees, including top, middle and lower
managerial levels.
16Research Site
- ITC Maurya Sheraton is a 27 year old hotel,
situated at Delhi. - It employee 1300 people and is known for its
leadership position in this sector.
17The Performance Management Architecture Old vs.
New(1)
- Fixed package with very little variable component
- take home earning
- A balanced scorecard approach customized to the
needs of the organizaiton
18The Performance Management Architecture Old vs.
New(2)
- Phase 1 Planning the measurement
architecture-the balanced scorecard - Customer perspective
- Financial perspective
- Internal perspective
- Employees perspective
- Social perspective
- Phase 2 the design issues
- Phase 3 Implementation and Review
19An illustration of the customized balanced
scorecard and career review form(1)
- Customer Perspective
- Internal Process
- Financial Perspective
- Employee Perspective
- Societal Perspective
20An illustration of the customized balanced
scorecard and career review form(2)
- The Career Review Form
- Career Enhancement
- Remuneration Scheme through value index
performance pay scheme (PPS)
21Effectiveness of Innovation The Supportive
Culture(1)
- Hard and soft interventions must go together
- The case has brought forth the innovator role of
HR along with the top management and line
functions commitment and learning, that has made
this performance management intervention
innovative and successful.
22Effectiveness of Innovation The Supportive
Culture(2)
- People Oriented Culture
- Role Culture
- Defensive Culture
- Evolving Cultures
23Implication Institutionalizing the Changing HR
Role(1)
- Automating the Balanced Scorecard
- About half of large US firms have already adopted
the BSC. - BSC requires IT support and numerous software
vendors - Thus it is important that the vendor which
customizes the automated balanced scorecard to
the unique needs of ITC, should be selected with
further reearch.
24Implication Institutionalizing the Changing HR
Role(2)
- The role of HR
- Strategic partner
- Innovator
- Enabler
- Monitor, and
- Change agent