In this step, the important thing is to be specific. It is not enough to
say, "We need new training programs, or disciplinary processes."
Instead, the manager must now ask, "exactly what sorts of new
training program to do we need, to produce the sorts of employee
competencies and behaviors that we seek?" How and to what end
should we change the disciplinary process? In this step, the HR
manager must therefore become precise about the actual form and
design of the firm's HR system. For example, all high-performing
companies tend to use incentive pay. However, what precise form
should the incentive plan take in this company? What specific
behaviors do we want to encourage? Who will decide if the person
gets the incentive pay? What percent of total pay should we base
on incentives? In other words, to achieve improved organizational
performance, HR management needs to align the HR system-the
firm's HR policies and practices with the company's specific
strategic needs.Step 6: Design the HR Scorecard Measurement System: After choosing
strategically required organizational outcomes, and employee
competencies and behaviors, and specific HR system policies and
activities, the question is, how shall we measure them all? For
example, if we decide to "improve the disciplinary system," how
precisely will the company measure such improvement? Perhaps
in terms of number of grievances. If "higher morale" is one
employee competency / behavior we want to improve, how will we
measure higher morale? Perhaps with surveys that measure
attitudes regarding satisfaction with supervision, and with pay.
Deciding on the proper measures or metrics requires considerable
thought.In one recent study, 86% of HR professionals who responded said
they expected measurement of the HR function to increase over
the next two years, 62% said they already used metrics to assess