ahrm note
TRANSCRIPT
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BALANCED SCORECARD
The balanced scorecard is a strategic planning and management system thatis used extensively in business and industry, government, and nonprofitorganizations worldwide to align business activities to the vision and strategy
of the organization, improve internal and external communications, andmonitor organization performance against strategic goals. It was originatedby Drs. Robert Kaplan (Harvard Business School) and David Norton as aperformance measurement framework that added strategic non-financialperformance measures to traditional financial metrics to give managers andexecutives a more 'balanced' view of organizational performance. While thephrase balanced scorecard was coined in the early 1990s, the roots of thethis type of approach are deep, and include the pioneering work of GeneralElectric on performance measurement reporting in the 1950s and the workof French process engineers (who created the Tableau de Bord literally, a"dashboard" of performance measures) in the early part of the 20th century.
The balanced scorecard has evolved from its early use as a simpleperformance measurement framework to a full strategic planning andmanagement system. The new balanced scorecard transforms anorganizations strategic plan from an attractive but passive document intothe "marching orders" for the organization on a daily basis. It provides aframework that not only provides performance measurements, but helpsplanners identify what should be done and measured. It enables executivesto truly execute their strategies.
This new approach to strategic management was first detailed in a series of
articles and books by Drs. Kaplan and Norton. Recognizing some of theweaknesses and vagueness of previous management approaches, thebalanced scorecard approach provides a clear prescription as to whatcompanies should measure in order to 'balance' the financial perspective.The balanced scorecard is a management system (not only a measurementsystem) that enables organizations to clarify their vision and strategy andtranslate them into action. It provides feedback around both the internalbusiness processes and external outcomes in order to continuously improvestrategic performance and results. When fully deployed, the balancedscorecard transforms strategic planning from an academic exercise into thenerve center of an enterprise.
Kaplan and Norton describe the innovation of the balanced scorecard asfollows:
"The balanced scorecard retains traditional financial measures. But financialmeasures tell the story of past events, an adequate story for industrial agecompanies for which investments in long-term capabilities and customerrelationships were not critical for success. These financial measures are
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inadequate, however, for guiding and evaluating the journey that informationage companies must make to create future value through investment incustomers, suppliers, employees, processes, technology, and innovation."
Adapted from Robert S. Kaplan and David P. Norton, Using the BalancedScorecard as a Strategic Management System, Harvard Business Review(January-February 1996): 76.
Perspectives
The balanced scorecard suggests that we view the organization from fourperspectives, and to develop metrics, collect data and analyze it relative toeach of these perspectives:
The Learning & Growth Perspective
This perspective includes employee training and corporate cultural attitudesrelated to both individual and corporate self-improvement. In a knowledge-worker organization, people -- the only repository of knowledge -- are themain resource. In the current climate of rapid technological change, it isbecoming necessary for knowledge workers to be in a continuous learningmode. Metrics can be put into place to guide managers in focusing training
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funds where they can help the most. In any case, learning and growthconstitute the essential foundation for success of any knowledge-workerorganization.
Kaplan and Norton emphasize that 'learning' is more than 'training'; it also
includes things like mentors and tutors within the organization, as well asthat ease of communication among workers that allows them to readily gethelp on a problem when it is needed. It also includes technological tools;what the Baldrige criteria call "high performance work systems."
The Business Process Perspective
This perspective refers to internal business processes. Metrics based on this
perspective allow the managers to know how well their business is running,and whether its products and services conform to customer requirements(the mission). These metrics have to be carefully designed by those whoknow these processes most intimately; with our unique missions these arenot something that can be developed by outside consultants.
The Customer Perspective
Recent management philosophy has shown an increasing realization of theimportance of customer focus and customer satisfaction in any business.
These are leading indicators: if customers are not satisfied, they willeventually find other suppliers that will meet their needs. Poor performancefrom this perspective is thus a leading indicator of future decline, eventhough the current financial picture may look good.
In developing metrics for satisfaction, customers should be analyzed in termsof kinds of customers and the kinds of processes for which we are providinga product or service to those customer groups.
The Financial Perspective
Kaplan and Norton do not disregard the traditional need for financial data.Timely and accurate funding data will always be a priority, and managers willdo whatever necessary to provide it. In fact, often there is more than enoughhandling and processing of financial data. With the implementation of acorporate database, it is hoped that more of the processing can becentralized and automated. But the point is that the current emphasis onfinancials leads to the "unbalanced" situation with regard to other
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perspectives. There is perhaps a need to include additional financial-relateddata, such as risk assessment and cost-benefit data, in this category.
Strategy Mapping
Strategy maps are communication tools used to tell a story of how value iscreated for the organization. They show a logical, step-by-step connectionbetween strategic objectives (shown as ovals on the map) in the form of acause-and-effect chain. Generally speaking, improving performance in theobjectives found in the Learning & Growth perspective (the bottom row)enables the organization to improve its Internal Process perspectiveObjectives (the next row up), which in turn enables the organization tocreate desirable results in the Customer and Financial perspectives (the toptwo rows).
Balanced Scorecard Software
The balanced scorecard is not a piece of software. Unfortunately, manypeople believe that implementing software amounts to implementing abalanced scorecard. Once a scorecard has been developed andimplemented, however, performance management software can be used toget the right performance information to the right people at the right time.Automation adds structure and discipline to implementing the BalancedScorecard system, helps transform disparate corporate data into informationand knowledge, and helps communicate performance information. TheBalanced Scorecard Institute formally recommends the QuickScorePerformance Information System developed by Spider Strategies and co-
marketed by the Institute.
ERGONOMICS
Ergonomics is a term thrown around by health professionals and marketing
mavens with a cavalier attitude. For some it has a very specific meaning. For
others it covers everything under the sun. With all this different verbiage
flying at you, you are probably starting to wonder, What is Ergonomics?
Definition of Ergonomics
Ergonomics derives from two Greek words: ergon, meaning work, and nomoi,
meaning natural laws, to create a word that means the science of work and a
persons relationship to that work.
The International Ergonomics Association has adopted this technical
definition: ergonomics (orhuman factors) is the scientific discipline
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concerned with the understanding of interactions among humans and other
elements of a system, and the profession that applies theory, principles, data
and methods to design in order to optimize human well-being and overall
system performance.
That is not the most efficient definition of what ergonomics is. Let us keep
things simple. Ergonomics is the science of making things comfy. It also
makes things efficient. And when you think about it, comfy just another way
of making things efficient. However for simplicity, ergonomics makes things
comfortable and efficient.
What is Ergonomics?
At its simplest definition ergonomics literally means the science of work. So
ergonomists, i.e. the practitioners of ergonomics, study work, how work is
done and how to work better.
It is the attempt to make work better that ergonomics becomes so useful.
And that is also where making things comfortable and efficient comes into
play.
Ergonomics is commonly thought of in terms of products. But it can be
equally useful in the design of services or processes.
It is used in design in many complex ways. However, what you, or the user,
is most concerned with is, How can I use the product or service, will it meet
my needs, and will I like using it? Ergonomics helps define how it is used,
how it meets you needs, and most importantly if you like it. It makes things
comfy and efficient.
What is Comfort?
Comfort is much more than a soft handle. Comfort is one of the greatest
aspects of a designs effectiveness. Comfort in the human-machine
interface and the mental aspects of the product or service is a primary
ergonomic design concern. Comfort in the human-machine interface is
usually noticed first. Physical comfort in how an item feels is pleasing to the
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user. If you do not like to touch it you won't. If you do not touch it you will
not operate it. If you do not operate it, then it is useless.
The utility of an item is the only true measure of the quality of its design. The
job of any designer is to find innovative ways to increase the utility of a
product. Making an item intuitive and comfortable to use will ensure its
success in the marketplace. Physical comfort while using an item increases
its utility.
The mental aspect of comfort in the human-machine interface is found in
feedback. You have preconceived notions of certain things. A quality product
should feel like it is made out of quality materials. If it is light weight and
flimsy you will not feel that comfortable using it.
The look, feel, use and durability of a product help you make a mentaldetermination about a product or service. Basically it lets you evaluate the
quality of the item and compare that to the cost. Better ergonomics mean
better quality which means you will be more comfortable with the value of
the item.
What is Efficiency?
Efficiency is quite simply making something easier to do. Efficiency comes inmany forms however.
Reducing the strength required makes a process more physically
efficient.
Reducing the number of steps in a task makes it quicker (i.e. efficient)
to complete.
Reducing the number of parts makes repairs more efficient.
Reducing the amount of training needed, i.e. making it more intuitive,
gives you a larger number of people who are qualified to perform the
task. Imagine how in-efficient trash disposal would be if your teenagechild wasn't capable of taking out the garbage. What? They're not?
Have you tried an ergonomic trash bag?
Efficiency can be found almost everywhere. If something is easier to do you
are more likely to do it. If you do it more, then it is more useful. Again, utility
is the only true measure of the quality of a design.
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And if you willingly do something more often you have a greater chance of
liking it. If you like doing it you will be more comfortable doing it.
So the next time you hear the term ergonomics you will know what it means
to you. And I hope that is a comforting thought.
More on Ergonomic Basics
The Benefits of Ergonomics: Time Savings
The Benefits of Ergonomics: Improving Communication
What is Usability
Using Ergonomics to Improve Your Life
Organization Through Ergonomics
The Essentials of Habits
Ergonomic Organization
GLASS CEILING CONCEPT
In economics, the glass ceiling is "the unseen, yet unbreachable barrier
that keeps minorities and women from rising to the upper rungs of the
corporate ladder, regardless of their qualifications or achievements. Initially,
the metaphor applied to barriers in the careers of women but was quickly
extended to refer to obstacles hindering the advancement of minority men,
as well as women.
Definition
David Cotter et al. defined four distinctive characteristics that must be met
to conclude that a glass ceiling exists. A glass ceiling inequality represents:
1. "A gender or racial difference that is not explained by other job-
relevant characteristics of the employee."
2. "A gender or racial difference that is greater at higher levels of an
outcome than at lower levels of an outcome.
3. "A gender or racial inequality in the chances of advancement into
higher levels, not merely the proportions of each gender or race
currently at those higher levels."
4. "A gender or racial inequality that increases over the course of a
career."
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Cotter and his colleagues found that glass ceilings are a
distinctively gender phenomenon. Both white and African-American women
face a glass ceiling in the course of their careers. In contrast, the researchers
did not find evidence of a glass ceiling for African-American men.
The glass ceiling metaphor has often been used to describe invisible barriers("glass") through which women can see elite positions but cannot reach
them ("ceiling"). These barriers prevent large numbers of women and ethnic
minorities from obtaining and securing the most powerful, prestigious, and
highest-grossing jobs in the workforce. Moreover, this barrier can make
many women feel as they are not worthy enough to have these high-ranking
positions, but also they feel as if their bosses do not take them seriously or
actually see them as potential candidates.
The glass ceiling continues to exist although there are no explicit obstacles
keeping women and minorities from acquiring advanced job positions thereare no advertisements that specifically say "no minorities hired at this
establishment", nor are there any formal orders that say "minorities are not
qualified" (equal employment opportunity laws forbid this kind of
discrimination) but they do lie beneath the surface. When a company
exercises this type of discrimination they typically look for the most plausible
explanation they can find to justify their decision. Most often this is done by
citing qualities that are highly subjective or by retrospectively
emphasizing/de-emphasizing specific criteria that gives the chosen
candidate the edge. Mainly this invisible barrier seems to exist in more of the
developing countries, in whose businesses this effect is highly "visible".
Levels and types of glass ceiling barriers
Societal barriers
The Federal Glass Ceiling Commission of the United States Department of Laboridentified two
major societal barriers that cause and reinforce a glass ceiling. One societal barrier is with
reference to the quantity barrier and the other is with reference to the difference barrier.
Internal business barriers
The following business-based barriers were identified:
Outreach and recruitment practices that fail to seek out or recruit women and minorities
Prevailing culture of many businesses is a white male culture and such corporate
climates alienate and isolate minorities and women
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Initial placement and clustering in staff jobs or in highly technical and professional jobs
that are not on the career track to the top
Initial placement and clustering in entry position and under-representation in higher
responsibility positions
Lack of mentoring and management training
Lack of opportunities for career development, tailored training, and rotational job
assignments that are on the revenue-producing side of the business
Little or no access to critical developmental assignments such as memberships on highly
visible task forces and committees
Special or different standards for performance evaluation
Biased rating and testing systems
Little or no access to informal networks of communication
Counterproductive behavior and harassment by colleagues
The Federal Glass Ceiling Commission suggest that the underlying cause of the glass ceiling is
the perception of many white males that as a group they are losing control of their advancement
opportunities.
Governmental barriersThe Federal Glass Ceiling Commission pinpointed three governmental barriers to the
elimination of the glass ceiling. They are:
Lack of vigorous and consistent monitoring and law enforcement
Weaknesses in the collection of employment-related data which makes it difficult to
ascertain the status of groups at the managerial level and to disaggregate the data
Inadequate reporting and dissemination of information relevant to glass ceiling issues
Other barriers
Different pay for comparable work.
Sexual, ethnic, racial, religious discrimination or harassment in the workplace
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Lack of family-friendly workplace policies (or, on the flipside, policies that discriminate
against gay people, non-parents, or single parents)
Exclusion from informal networks; Stereotyping and preconceptions of women's roles
and abilities; Failure of senior leadership to assume accountability for women's
advancement; Lack of role models; Lack of mentoring [19]
Requiring long hours for advancement, sometimes called the hour-glass ceiling.
The glass ceiling and disclosure of sexual orientation
In order to excel in the workplace it is important that people are familiar with a worker's strong
attributes. This may present obstacles for the LGBT community because their sexual orientation
may be a large factor that plays in to how they identify themselves. In a study done by Ragins in2004, disclosure of sexual orientation has been found to have some positive, some negative,
and nonsignificant effects on work attitudes, psychological strain, and compensation. Ragins,
Singh and Cornwell in 2007, found that in some cases disclosure of sexual orientation has been
found to result in reports of verbal harassment, job termination, and even physical assault.
(D'Augelli & Grossman, 2001; Friskopp & Silverstein, 1996).
In their study, Ragins, Singh and Cornwell examined fear of disclosure only among LGBT
employees who had not disclosed, or had not fully disclosed their sexual identity at work.
Promotion rate and compensation were used to measure career outcomes. Promotions were
defined as involving two or more of the following criteria that may occur within or betweenorganizations: significant increases in salary; significant increases in scope of responsibility;
changes in job level or rank; or becoming eligible for bonuses, incentives, and stock plans.
Given this definition, respondents were asked how many promotions they had received over the
past 10 years. Respondents also reported their current annual compensation, which included
salary, bonuses, commissions, stock options, and profit sharing. The findings showed that those
who feared more negative consequences to disclosure reported less job satisfaction,
organizational commitment, satisfaction with opportunities for promotion, career commitment,
and organization-based self-esteem and greater turnover intentions than those who feared less
negative consequences.
The glass ceiling in developing countries
The glass ceiling phenomenon is one not specific to the U.S.; other women also experience
barriers similar to the glass ceiling. In many developing countries improving the number of
educated women has decreased the number of hours a woman works in a household. In
countries such as Mexico, India, and South Africa, women work substantially more hours than
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men. On average women work one hour and nine minutes more. With this gap women would be
able to provide more money than the men if they were in paid positions. However, because
women's wages are roughly twenty percent lower than that of men, it is more difficult for them to
make a substantial contribution even if they did work outside the household. Statistics also show
that 90% of people countries surveyed in East Africa, the Pacific, Latin America,sub-Saharan
Africa, and othertransition economies thought that both husbands and wives should contribute
to the household income. The glass ceiling comes into play when these women do want to go
out to find work and support their family but are stopped because of lack of experience. The
glass ceiling affects women and the workplace in countries all around the world.
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