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  • • Knowledge Management on HR Scorecard and Organizational Performance

Knowledge Management on HR Scorecard and Organizational Performance: A Web-Based Analysis

By Mohmad Yazam Sharif and Faridahwati Shamsudin.

Published by The International Journal of Knowledge, Culture and Change Management

Human capital management is the buzzword in Malaysia since His Honorable Datuk Seri Abdullah Ahmad Badawi, became the Prime Minister in 2003. But whether one calls it ‘human capital management’ or ‘human resource management’, one distinct problem with the people function is to convince senior management of organizations that the human resource (HR) department contributes to organizational performance. The measurement issue of the human resource function has been the dilemma of HR professionals since the 1980s. One measurement tool which has caught the attention of human resource practitioners and academics alike is the HR Scorecard. The concept was coined by Becker, Huselid & Ulrich (2001). This paper uses the qualitative research approach and and aims to show the results of a secondary and content data analysis on some selected web-based sources which provide their definitive meaning and the mechanics of the HR Scorecard. The paper also adopts the knowledge management perspective in viewing the process. The knowledge of managing the HR Scorecard function is assumed to be important to any organization (including the training or program providers). Six websites belonging to four consulting firms and two educational institutions were selected for the study based on the materials on the HR Scorecard available on their websites. These firms were program and training providers. From the analysis made, it was found that there was a consensus among the proponents of the HR Scorecard that it is a widely received method of measuring HR performance among their clients. The interest in the HR Scorecard as a strategic performance measurement tool was said to be growing among organizations. Their track records in implementing the HR Scorecard programs show that the consulting firms had an average of five years’ track record while the education firms had an average of three years’ track record. This ability to survive a certain cut-off point (for example two years) implies that the firms which were studied had somehow found a correct way of managing their knowledge of HR Scorecard (and organizational performance).

The International Journal of Knowledge, Culture and Change Management, Volume 7, Issue 9, pp.73-78. Article: Print (Spiral Bound). Article: Electronic (PDF File; 524.325KB).

Dr. Mohmad Yazam Sharif

Lecturer, Human Resource Management Department, Faculty of Human and Social Development, Universiti Utara Malaysia (UUM), Sintok, Kedah, Malaysia

Dr. Faridahwati Shamsudin

Lecturer, Human Resource Management Department, Faculty of Human and Social Development, Universiti Utara Malaysia (UUM), Sintok, Kedah, Malaysia