Essay Title: 

human resource

April 2, 2016 | Author: | Posted in company analysis, mathematics and economics

Human Resources



In 1996 , Randall J . MacDonald , holding a position of HR Executive Vice President at the GTE Corporation was faced with the challenging situation forcing him to build an HR strategy that would support GTE ‘s workforce during the times of transformational process of business Besides , Charles R . Lee who occupied the position of GTE ‘s CEO wanted to be informed about what the company was actually getting back for the money spent on various HR related activities

The main problems for GTE and other American based [banner_entry_middle]

telecommunication companies were high employee and customer turnover rates and the declining quality of customer service . A tight labor market made it difficult to find qualified people . There was no system in place at GTE to measure employee ‘s performance and MacDonald realized that a quantitative model was needed , showing whether the HR department ‘s activities contributed to the company ‘s financial goals . Balanced Scorecard , a conceptual framework to measure a company ‘s performance utilizing financial and non-financial measures was selected as a method to quantify intangible realities ‘ at GTE

The Balanced Scorecard Perspectives

One of the main challenges for GTE ‘s Planning , Measurement and Analysis (PMA ) group , the project team responsible for the implementation of Balanced Scorecard , was defining the right measures to evaluate the performance of GTE ‘s human capital . Using feedback from the business presidents , the PMA group and the HR measurement core team defined 118 measures , organized into four Perspectives (i ) a strategic perspective (ii ) a customer perspective (iii ) an operations perspective and (iv ) a financial perspective

The Learning and Growth Perspective

The Four Perspectives ‘ implemented at GTE deviated from those defined by Kaplan and Norton4 . Instead of using the Learning and Growth Perspective , intended to create a climate that would support organizational change , innovation and growth , a Strategic Perspective ‘ was selected . GTE thought that Learning and Growth would be embedded in all of the four perspectives . Interestingly , GTE ‘s HR Balanced Scorecard and associated measures did not provide any indication that continuous learning and the creation of an environment that fosters growth and organizational change were actually embedded in any of the four perspectives . Moreover , the case provided no evidence that organizational or cultural change accompanied the implementation of Balanced Scorecard at GTE

The Four Perspectives ‘ defined by GTE HR should have encouraged Learning and Growth ‘ and the creation of a climate of action introducing the cultural shifts needed to motivate , empower and align the workforce behind GTE ‘s attempt to adapt to the changed business environment . The degree of readiness for a culture of Learning and Growth ‘ is reflected in the willingness of a company ‘s employees to improve and change the processes , followed to perform daily work routines . Measures to evaluate the workforce ‘s readiness should have been the number of proposals , submitted by GTE employees suggesting work flow improvements , and also the number of proposals actually implemented

The Customer Perspective

Kaplan and Norton defined the Customer Perspective ‘ as a strategy for creating… [banner_entry_footer]


This author has published 9453 articles so far. More info about the author is coming soon.
Did you like this essay sample?

You must be logged in to post a comment.