The Balance Scorecard and the Effective Work Force
Application of the EWF equation and the consequent selection of indicators or measures are evident in the number of models evaluated in this study. One of these models that deserve special attention is the balance scorecard (BSC). The balance scorecard is important as it could serve as the initial platform to evaluate the degree of integration of health and the function an individual in an organisation’s operational and business strategies.
One important premise in a balance scorecard is what Mintzberg and Walters (1995) stated, that strategy development is not static but a dynamic process involving feedback loops at each stage, and it is in such a mindset or premise that the integration of health and function could be best understood and appreciated. 1. 2. Significance of the Study This study could provide organisations with a blueprint of an integrated strategy combining health and work performance factors in human capital management.
It is viewed that in the long term, such a strategy will result in a competitive advantage in the evolving market place. The importance of the study is that by researching different occupational groups, it allows for a diverse data pool in performance measures, work capacity, physical and psychosocial demands, as well
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This concept is based on the occupational demand continuum, founded on the strain hypotheses of the demand –control – support model which postulates a link between job demands, job control, and support at one end, and health factors and performance at the other end of the spectrum (Janssen et al, 2003). 1. 3. Statement of the Problem
The development of a health and productivity scorecard will improve or enhance the understanding of performance across disciplinary silos, implementation of value focused propositions, and institution of performance measures to monitor strategic progress and constantly challenge the organisation’s strategic direction. The balance scorecard remains as the most widely used management strategy in many organizations and which still has the best potential of improvement towards an integrated concept of an organisation.
The limitation, however, in many scorecards is that many of the measures and indicators selected at an operational level are not the correct ones. If the indicators are incorrect these will not align with the strategy of the organisation. This condition necessitates looking into the correct mix of health and productivity indicators. Thus, the main question that this study, would like to address is “How can the balance scorecard as a strategic performance measure be improved in order to integrate and align health and productivity factors in its overall strategy?
” To answer the main question, the study will seek the answers to the following sub-questions: 1. What physiological and psychosocial indicators should be included in the health and productivity management scorecard? 2. Does workforce fitness and health status maximize both the skill set and work knowledge of Imai’s (1994) model on effective workforce as represented by the equation, EWF = f(OS+OL) (BS+BL)? 3. What effect does health status have on operational performance and strategic level of organisations? 4.
How can the findings of this study be developed into a framework for a health and productivity management scorecard and strategy map? a. How will the theory on causality and balance scorecard perspectives be integrated with organisational dimensions? b. Could the effective workforce equation be expanded to include health factors? c. Consequently, what types of value focused activities or interventions should business leaders consider as part of their health and productivity management strategy and scorecard?
Addressing these issues will bridge the current knowledge gap that business leaders face on a daily basis in achieving a competitive advantage in the global market. 1. 4. Objectives of the Study: The main objective of the study is to build an effective balanced health and productivity scorecard and strategy map by aligning health and productivity factors. Specifically, the study also aims to: 1. Identify statistically significant indicators to be included in a balance health and productivity scorecard; 2.
Identify how health status affects the operational performance of selected levels of the organisation; 3. Discuss how functional level and health status maximise both the skill set and work knowledge of an effective work force; 4. Develop a strategy map that uses causality in developing a productivity balance scorecard which takes into consideration various organisational dimensions or imperatives; and 5. Expand the effective workforce equation to include health factors and functional level at both microeconomic and macroeconomic level.