Which of the following best measures how HR practices support the full scope of an organization's customer retention strategy?

The balanced scorecard integrates financial, customer, internal-process, and learning-and-growth metrics, allowing HR to link staffing, development, and retention practices with customer-retention outcomes. By cascading objectives and measures across perspectives, it evaluates whether HR initiatives (e.g., service training, incentive plans) contribute to the organization’s overall customer-retention strategy, thus capturing the “full scope” connection that single-dimension tools cannot.

A. Cost-benefit analysis compares monetary inputs and outputs but does not map multiple strategic dimensions.

C. Customer satisfaction surveys gauge customer perceptions only; they ignore internal HR practice metrics.

D. Benchmarking shows relative performance against others but not direct alignment of HR practices with strategy.

1. Kaplan, R., & Norton, D. “Using the Balanced Scorecard as a Strategic Management System,” Harvard Business Review, Jan–Feb 1996, pp. 76-77.

2. Becker, B., & Huselid, M. “High Performance Work Systems and the Balanced Scorecard,” CAHRS Working Paper #01-04, Cornell University ILR School, 2001, pp. 10-12.

3. Huselid, M. et al. “The HR Scorecard: Linking People, Strategy, and Performance,” Harvard Business School Press, 2001, ch. 2, pp. 29-31.