Constructing an HR Scorecard, Essay Example

Effectiveness of Value Creation at Walmart

Walmart stores have aligned the organizational objectives with the human resource objectives. This has enabled the creation of intellectual and physical capital for the Walmart organization. The competitive advantage which has been manifested by the strategic application of human resource assets has endowed the Walmart organization with a competitive advantage. This aspect has become a deterrent to new entrants in the marketplace (Becker et al., 2001, Beatty et al., 2003; Kaplan & Norton, 2001; Paauwe & Boselle, 2003).

The innovation which has been exercised by the Walmart organization has enabled the creation of physical and intellectual capital. This is manifest in Walmart’s expansion into other retail segments (i.e., Sam’s Club and online retailing). The physical assets and the intellectual assets which have been created in the value adding process of human resources management has enabled Walmart with the global capacity of sustaining a well trained staff (Becker et al., 2001; Beatty et al., 2003; Kaplan & Norton, 2001; Paauwe & Boselle, 2003).

The alignment between the organizational objectives of Walmart and the human resource objectives have enabled the human resources management division to become an integral element in the value adding process of the organization. Walmart has gained a competitive market advantage. This competitive advantage has been able to deter new entrants into Walmart’s core market segments by maintaining alignment with the human resource management and the organizational management’s objectives (Becker et al., 2001; Beatty et al., 2003, Kaplan & Norton, 2001; Paauwe & Boselle, 2003).

References

Beatty, R.W., Huselid, M.A., Schneier, C.E. (2003). New HR Metrics: Scoring on the Business Scorecard. Organizational Dynamics, 32(2): 107- 121.

Becker, B., Huselid, M., & Ulrich, D. (2001). The HR scorecard: Linking people, strategy, and performance. Boston, MA: Harvard Business School Press.

Kaplan, R. S. & Norton, D. P. (2001) Transferring the balanced scorecard from performance management to strategic management: Part 1. Accounting Horizons, 15(1): 87- 104.

Paauwe, J. & Boselle, P. (2003). Challenging ‘strategic HRM’ and the relevance of the institutional setting. Human Resource Management Journal, 13(3): 56- 70.