A Study Of Construction Of HR Scorecard To China's Middle And Small Enterprise

While China's marketability advances unceasingly, middle and small enterprises haveto face with higher competition pressure. It has been a very important problem thathow to obtain oneself core competitive power, or how to success in unpredictableenvironment. According to Resource-Based view, human resource can add values tocompetitive advantage of firms. And the correlation between human resourcemanagement(HRM)and company performance has been supported by lots ofempirical studies. At present, HRM of China's middle and small enterprises quite fallbehind in selection, training, development, reward, construction of organization andso on;because that their management is not mature yet. Thus, human resourcemanagement effectiveness plays an important role in modern business operation.Although some scholars (Huselid, 1997;Zhang Minghui, 2000;Ma Siyu, 2001) havedeveloped an inventory by which effectiveness of HRM can be measured, and evensome ones (Xie Weipin, 2001;Huang Shizhen, 2001) have made available a set ofaccepted standards by which execution of HRM can be measured, it has been notfound that a set of appraisal model or system according to realistic situation ofChina's middle and small enterprises. It is for these reasons that the proposed studywill design a model of HR scorecard based on high performance work systems,suitable for use by middle and small enterprises in China, through researchingrelevant literature on the subject and an opinions consultation of the experts, scholarsand practitioners in HRM and organizational behavior in China. Then this researchwill calculate the weight of dimensions, objectives and items, and at last, explain theusing of this tool.This research set up an HR scorecard system which contains 4 dimensions, 13objectives and 36 items. It is found that, in view of practitioners' perception in HRM,the most important dimension is Customer, next is Supporting, and then is Drive andFinancial. The importance of engagement is the top of the whole system. The next isorganizational communication and coordination, and then performance based culture.The order of importance can provide a very good principle for policy-maker.