Determining Outcomes of HRM Practices

Presenting Sustainable HRM Model Based on Balanced Scorecard in Knowledge-based ICT Companies (The Case of Iran)

“…It is worth noting that value creation perspective is chosen instead of financial perspective of BSC as ascribing the contribution of human resources to strategic benefits in a monetary value is not that much possible because of the intangible characteristics of HR measures (Becker et al, 2015). Moreover, sustainability perspective considers the ecological, economic, and social resources of a system not merely the financial bottom line (Wilkinson et al, 2001), thus, it can be inferred that focusing on monetary targets is not enough.…”

“…HRM contribution to value creation seems to be widely accepted (Becker et al, 2015), however, since HR has rather intangible nature, determining a real quantitative value expressed in monetary units is not that straightforward. In this regard, BSC seems to be a tool to deal with intangible features of human resources as it can help deal with these intangible factors and expressing their contribution in business success or in value creation.…”

“…The Balanced Scorecard is applied by many companies to improve their strategic management capabilities (Rhodes et al, 2008). It is an integrative instrument showing cause-effect relationship and providing adequate indicators for the value realized by any measures implemented (Alter, 2011 cited by Becker et al, 2015). Thus, it can be helpful in explaining the logic behind the generation of added value created by HR measures concerning sustainability strategy.…”

“…However, to supplement the traditional BSC shareholder focus on financial performance, the interests, rights, and needs of different stakeholders of an organization need to be considered for realization of desirable sustainability outcomes within value-creating processes (Rae & Sands, 2013) as sustainability has wider perspective than merely financial outcomes for shareholders. Furthermore, the customer perspective should be expanded to include other relevant stakeholders as in the long run, shareholders' value can only be maximized if all stakeholders' interests are taken into consideration (Becker et al, 2015). Satisfaction of different interests leads to various types of monetary and non-monetary benefits for organization.…”

“…Satisfaction of different interests leads to various types of monetary and non-monetary benefits for organization. Hence, it can be argued that if organization's business model actually delivers benefits in sufficient quantities to its various stakeholders, it will endure in the long term (Becker et al, 2015).…”