Final answer:
An HR Scorecard is used to manage employee performance and to align all employees with a firm's strategic goals. It serves as a mechanism to measure the impact of human resource practices on a company's strategic objectives alongside other appraisal systems like 360-degree feedback.
Step-by-step explanation:
Managing Employee Performance for Strategic Goals
To manage employee performance effectively and to align all employees with key objectives a firm requires to achieve its strategic goals, an HR Scorecard is used. This tool connects human resource policies and practices with the firm's strategic objectives. It measures human resource functions' contributions to a company's profits or desired outcomes, akin to a financial scorecard giving an indication of the company's financial performance. Another method mentioned in the material is the 360-degree feedback appraisal, whereby various sources including supervisors, peers, customers, and the employees themselves provide feedback on the employee's performance. This offers a well-rounded view and is often used for both personal development and organizational performance management, though it is a distinct concept from the HR Scorecard, which has a broader strategic alignment purpose.
Performance appraisals are crucial in not only assessing employee performance but also in identifying training needs and aligning employee goals with organizational objectives. These appraisals can take several forms and can be influenced by a variety of organizational factors, including culture and systems already in place. Different approaches to performance appraisals may serve different purposes, but the primary function remains the alignment of employee performance with the strategic goals of the organization.