Designing the human resource performance measurement of a State Owned Company Syarifa Hanoum, Shobah Hidayatul Ilmi, Arman Hakim Nasution
Department of Business Management, Institut Teknologi Sepuluh Nopember, Surabaya, Indonesia
Abstract
This article presents the development of human resources (HR) performance measurement of a state-owned enterprise (SOE) in Indonesia. Whilst the SOE has faced a fluctuated financial performance in recent years, the HR experts are believed to play a crucial role as a whistle blower in observing enterprise culture and behaviour, which may require corrections either on upper or lower levels. Unfortunately in the SOE under study, how effective the HR division has played every HR function has not been evaluated yet. This study aims to formulate an integrated HR Scorecard by cascading the SOEs strategy and SOE-s Balanced Scorecard. Besides, stakeholder expectations of the HR division are also taken into account in the scorecard. As a result, ten HR strategic objectives are defined and categorised into the four perspectives of the Balanced Scorecard approach. Once the new HR scorecard is put in place, we run the first trial by assessing the performance of HR Division in 2018 by using traffic light system. The assessment reveals there are five out of ten HR key performance indicators have not been able to reach the target (fall into the red zone). An action plan is formulated for each underperformed key performance indicator to increase its performance in the next period.
Keywords: Human resources, Scorecard, Performance measurement, State-owned Enterprise
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