Bhatnagar, J. Puri, R. and Jha, H. M. South Asian Journal of Management, 2004, 11(4), 92-110.

1. Managing Innovative Strategic HRM: The Balanced Scorecard Performance Management System at ITC Hotels Bhatnagar, J. Puri, R. and Jha, H. M. South Asian Journal of Management, 2004, 11(4), 92-110.

2. Outline(1) • Abstract • Introduction • Innovative strategic HRM Adoption in Indian Organizations • Integration of Strategy Formulation and Implementation Through Innovation Performance Management System: The Balanced Scorecard Approach • Research Lacunae: Role of HR and Innovation

3. Outline (2) • Research Design • Research Site • The Performance Management Architecture: Old vs. New • An Illustration of the Customized balanced Scorecard and Career Review Form • Effectiveness of Innovation: The Supportive Culture • Implications: Institutionalizing the Changing HR Role

4. Abstract • This study attempts to explore the use of SHRM, as a lever for innovation, specifically through the implementation of a balanced scorecard approach, as an innovative performance management tool.

5. Introduction(1) Four kinds of innovation: • Product innovation; • Innovations in Product Technology; • Production Processes; and • Work Organization and HRM Practices. Two main patterns of innovation: • Products and technological systems; • Job design, work organization and HRM practices

6. Introduction(2) A resource-based view on innovation： • Organizational innovative capabilities rest in the organizing principles and social relationships that exist between people. • Focus on HR strategies and identify the promotion of a creative environment as a key to innovation. Thus, exemplifying that an innovative intervention needs, a strategic HRM focus as well as a supportive culture.

7. Innovative Strategic HRM Adoption in Indian Organizations(1) Free market economy…… • Multinational organizations • Globalization and internationalization of domestic businesses • Unbridled imports

8. Innovative Strategic HRM Adoption in Indian Organizations(2) Concerns…… • Total quality management • Incentives to export • Demographic changes in the employee profile • Retaining and redeployment of workforce • Focus on performance appraisal and performance based incentive systems • rightsizing

9. Innovative Strategic HRM Adoption in Indian Organizations(3) • The typology of managerial innovation has not diffused too many developing countries and their organizations. • Lesser research has been conducted in the filed of SHRM and its innovative practices in India.

10. The Balanced Scorecard Approach(1) • Quality management • Customer retention • Research and development • Innovation • There are not limited to only, measurement-based concepts like the balanced scorecard or shareholder value, but include concepts like KM and e-business.

11. The Balanced Scorecard Approach(2) • Human Capital Appraisal • People Capability Maturity Model • Balanced scorecard • Ties business strategy to HR strategy • Performance management system serves as the lever for change within the organization, besides aligning strategy with HRM goals and objectives.

12. Research Lacunae: Role of HR and Innovation(1) The change process can take one of three routes: • The maintenance of current competencies, • The recombination of new ones with old ones which requires a focus on learning and innovation; or • The building of completely different ones which requires a great deal of experimentation.

13. Research Lacunae: Role of HR and Innovation(2) • The case study examines the role of HR, and the culture that supports this role and the implementation of an innovative performance management intervention.

14. Research Lacunae: Role of HR and Innovation(3) • In Ulrich’s model (1997) • two strategic roles of HR: • Strategic Partner • Change Agent • Two tactical roles of HR: • Administrative Expert • Employee Champion

15. Research Design • Based on the interaction with 45 multiple stakeholder of the organization. • The Vice President, HR, also provided insights into the system. • Secondary data sources and evidence form organization. • Based on an open-ended interview with 20 employees, including top, middle and lower managerial levels.

16. Research Site • ITC Maurya Sheraton is a 27 year old hotel, situated at Delhi. • It employee 1300 people and is known for its leadership position in this sector.

17. The Performance Management Architecture: Old vs. New(1) • Fixed package with very little variable component • “take home” earning • A balanced scorecard approach customized to the needs of the organizaiton

18. The Performance Management Architecture: Old vs. New(2) • Phase 1: Planning the measurement architecture-the balanced scorecard • Customer perspective • Financial perspective • Internal perspective • Employees perspective • Social perspective • Phase 2: the design issues • Phase 3: Implementation and Review

19. An illustration of the customized balanced scorecard and career review form(1) • Customer Perspective • Internal Process • Financial Perspective • Employee Perspective • Societal Perspective

20. An illustration of the customized balanced scorecard and career review form(2) • The Career Review Form • Career Enhancement • Remuneration Scheme: through value index performance pay scheme (PPS)

21. Effectiveness of Innovation: The Supportive Culture(1) • Hard and soft interventions must go together • The case has brought forth the innovator role of HR along with the top management and line functions commitment and learning, that has made this performance management intervention innovative and successful.

22. Effectiveness of Innovation: The Supportive Culture(2) • People Oriented Culture • Role Culture • Defensive Culture • Evolving Cultures

23. Implication: Institutionalizing the Changing HR Role(1) • Automating the Balanced Scorecard • About half of large US firms have already adopted the BSC. • BSC requires IT support and numerous software vendors • Thus it is important that the vendor which customizes the automated balanced scorecard to the unique needs of ITC, should be selected with further reearch.

24. Implication: Institutionalizing the Changing HR Role(2) • The role of HR • Strategic partner • Innovator • Enabler • Monitor, and • Change agent