Balanced Scorecard as a Strategic HR Tool: A Study of its Relevance and Impact on Organizational Performance
Keywords:
Balanced Scorecard, HR Scorecard, Human Resource Metrics, Organizational Performance, Performance Measurement, Strategic Alignment, Strategic HRM.Abstract
The Balanced Score Card (BSC), originally developed by Kaplan and Norton, has evolved beyond a performance measurement system into a comprehensive strategic management tool. While traditionally applied in finance and operations, its adoption in Human Resource Management (HRM) has gained the traction as organizations strive to align human capital with strategic goals. This research investigates the relevance and impact of the BSC when applied as a strategic HR tool, focusing on its influence on the organizational performance. Through a mixed-methods approach involving surveys and interviews with HR professionals across the industries, the study reveals how BSC enhances goal alignment, accountability, and performance monitoring. Findings highlight that organizations employing BSC within HR functions report improved employee engagement, better strategic alignment, and measurable performance outcomes. However, the challenges such as limited HR-specific KPIs and integration barriers are noted. This study provides insights into tailoring BSC for HR effectiveness and offers practical recommendations for its implementation.
