A STUDY OF US HUMAN RESOURCE POLICIES
article examines the strategic role of HR and its main practices, describes the outcomes of the respective category of HR practices, explains the critical reasons for measuring HR’s efforts……
TEAM MEMBERS: DEEPAK. J HARSHA. S RAGHAVENDRA SREERAMA RAVI PRAKASH TANVEER AHMED. N
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INTRODUCTION UNDERSTANDING THE STRATEGIC ROLE OF HR H R ’ S A C T I V I T I E S & O UT C O M E S STRATEGIC PLANNING ACQUISITION OF EMPLOYEES TRAINING AND DEVELOPMENT ORGANIZATION CHANGE AND DEVELOPMENT PERFORMANCE MANAGEMENT REWARDS SYSTEM ORGANIZATIONAL BEHAVIOUR & THEORY SUMMARY OF FRAMEWORK FOR ASSESSING HR IN
TODAY’S GLOBAL ECONOMY • CONCLUSION
This article examines the strategic role of HR and its main practices, describes the outcomes of the respective category of HR practices, explains the critical reasons for measuring HR’s efforts, and proposes a framework for assessing HR. Ultimately, organizations determine business how would be able HR to utilize the information with to
expansions, and reductions; justify budget allocations; and be more accountable for each dollar spent within the organization. The framework proposed does not merely explain the cost for each of the major HR activity, but demonstrates the value of the activity and hence, the opportunity to determine if it is a
worthwhile investment and strategy for creating a competitive advantage. What value does the human resources (HR) function contribute to the bottom line of the organization? Over the years, there has been tremendous emphasis placed on HR practitioners becoming strategic business partners and being a value-added source
within organizations. Traditionally, HR professionals could talk generally and conceptually about employee morale, turnover, and employee commitment being outcomes of HR efforts.
Furthermore, the HR function is often viewed as an expensegenerator and an administrative function and not as a valueadded partner. Ulrich reiterated that to fulfil the business partner role of HR, concepts need to be replaced with evidence, ideas with results, and perceptions with assessments. This article
justify budget allocations. and proposes a framework for assessing HR. but demonstrates the value of the activity and hence. economic.
investments. and be more accountable for each dollar spent within the organization. the opportunity to determine if it is a
worthwhile investment and strategy for creating a competitive advantage The framework has proven its effectiveness at many companies information showing collected how to HR creates value. and used as a critical resource in the strategic business planning and budget allocation.examines describes practices.
strategic outcomes the
practices. Ultimately. The companies include Fortune 500 and smaller
companies from retail. and reductions. Political. and financial industries
UNDERSTANDING THE STRATEGIC ROLE OF HR
environment. transportation. in utilized specific the HR
strategies and eliminating ineffective investments. The framework proposed does not merely explain the cost for each of the major HR activity.
expansions. organizations determine business how would be able HR to utilize the information with to
results. and even psychological
. of HR HR’s
respective reasons for
constantly evaluating their internal and external environment for challenges and opportunities to remain competitive and to sustain growth. social.
HR’s roles in building a competitive organization include management of strategic human
. globalization. HR professionals must begin not by focusing on the work activities or work of HR but by defining the deliverables of that work. how ready are we as
an organization to react in order to remain competitive? Many factors are driving changes in organizations today including the use of technology. and changes in workforce
demographics. source of
provides creating the
competitive advantage for the organization. and balancing work-family issues. Understanding the potential organization’s resources the impetus for resources given HR being and of optimizing the output of an such
the the key
Globalization Technology Economic and political instability Diverse Workforce Organisational structure Work/family balance
*HR’s role on managing performance
To create value and deliver results. Given any significant change or event. eliminating the bureaucracies in organizational structures.changes
Innovators. according to Ulrich & Beatty. Players. they deliver results and they do things to make a difference.resources.
change. contribute to the profitability of the organization. Although these roles are valid and have proven to be value-added in recent years. change the organization.
. Playing by the rules.
Another perspective on the role of HRM suggests that in leadingedge companies. Collaborators.
management of firm infrastructure and management of employee contribution. Creating followers. construct. Facilitators. HR professionals play four key roles:
Strategic business partners. there is now the critical need to move beyond the strategic business partner role to
players in the business.
The roles of players are to
support. financial. and readiness for planned changes designed to support the business strategies.As
partner. As facilitators. and other aspects necessary to be part of an effective team managing an organization. HR
professionals will also serve as collaborators with senior leaders and all employees to implement business strategies forming the strategic link throughout the organization. HR professionals function as the change agent providing rationale. HR professionals are challenged to continuously search for
strategies that will create value for the organization and not merely function in a reactionary mode. A recent survey of 54 companies in the Midwest. and how HR is impacted. quality of work life and profits through effective management of people. there is frequently little evidence to demonstrate such belief. The fundamental role of HRM is
essentially to maximize profitability. Given this
premise. operational. Functioning as an innovator. USA conducted by the author revealed that 51 of the 54 companies conducted little or no assessment of their HR department’s any efforts and therefore of could not to have the
understand the nature of the business from strategic. it can be easily inferred that HR’s role is to help create value to the organization. The Importance of Measuring HR’s Activities
Even though HR professionals are convinced that their efforts add value to the organizations bottom-line. Furthermore. and Figure 1 illustrates some of the their
impact on the organization.
There is now the imperative need to justify each dollar invested. Pepitone reiterated that HR leaders should know how to prove the value-added of their services because to give management evidence of is increasingly worth. accounting. In requiring addition. Many organizations have been forced and are continuing to determine ways of being more cost-effective.
Sorensen stated that the best way for HR to gain credibility so that it can make meaningful changes is for practitioners to
measure the cost and effectiveness of what they do. and to decide on where to invest especially as companies scramble to survive after the September 11 tragedy. qualitative and direct and to quantitative profitability. and marketing are able to show a return on investment for their respective practices. a study conducted by Becker. compare strategies to determine maximum worth. The new HR is a transformed role comparing itself to any other function. And they must put that into language that senior executives understand: financial results. The
simple option of showing HR’s value or becoming extinct as a
.organization. efforts. it is so given the for increased to be emphasis able to on HR its
effectiveness in creating value for the organization. In addition. but through outcomes. Huselid. Measurement in most HR departments is usually restricted to processes measuring costs and not showing value added. measurements. Many of the other functions including finance. HR managers need to measure the
cost and effectiveness of their activities far more closely than they have in the past. not only through espoused value creation strategies. and Ulrich indicated that less than 10% of the 968 firms that participated in their study had a formal estimation procedure to measure HRM.
Organizational behaviour & theory. outcomes of the respective activities. Even though these studies exist. rewards system. over the years There to has the as been substantial between by. The framework describes clusters within
the HR function and encompasses:
strategic planning. there is no choice than for HR professionals to be able to quantitatively and qualitatively explain its strategic role in the organization. US Department of Labor (1993). and Ostroff (1995). yet practical enough for practitioners to use that shows the major HR activities. Pfeffer (1994). performance management.department presents itself to HR professionals and given the strong belief of HR as a source of added value in organizations. organization development and change. Arthur (1994). and how they can be measured.
. there still lacks a framework that is grounded in theory. selection. Huselid (1995). training & development. Some evidence HR of and the
studies include MacDuffie and Krafcic (1992).
The author examines each of the clusters and provides a description of each. Today’s economy dictates that organizations continually assess the external and internal environment and make relevant changes in order to remain competitive. the author uses seven groups of activities seen as being most strategic and influential in realizing the strategic business objectives of the organization.HR’S ACTIVITIES & OUTCOMES
Even though there are several classifications or groupings of HR activities. its importance in achieving the business strategy.
STRATEGIC PLANNING AQUISITION OF EMPLOYEES TRAINING AND DEVELPOMENT ORGANISATIONAL CHANGE AND DEVELOPMENT PERFORMANCE MANAGEMENT REWARDS SYSTEM ORGANISATIONAL THEORY AND BEHAVIOUR
. and how it can be measured to determine its effectiveness.
Being a business partner. Why is it important for HR to be involved in the strategic planning process? In
developing strategies in today’s complex and dynamic business environment.STRATEGIC PLANNING
The role of the HR function has changed tremendously over the past 10 years where HR functions have previously been viewed as not being an integral core of the business and merely viewed as an administrative function to today’s economy where HR
practitioners are more frequently considered business partners. Business strategy can also be defined as the “process by which the basic mission and objectives of the organization are set and the process by which the organization uses its resources to achieve the objectives”. where and how can the organization acquire the necessary skills? Another critical area is to identify what skills are needed to be developed
. there is the critical need for business leaders to continually appropriate assess their talent to pool to determine the if the
strategies is available within the organization. the ideal situation would be the
inclusion of the HR leader in the strategic business planning (SBP). how many to make available. “In the most fundamental sense. competition how are the products as and part services of the differ from the
process. SBP involves choosing how an organization will compete”. where should the product be sold. The questions of what product to produce. If not.
The integration of human resource function into the organizational strategy provides the basis to enable the human resource function to support and implement the strategic plan to achieve a competitive advantage. C. Moreover. By addressing these issues at the
strategic planning stage with HR included. Strategic planning seeks to identify those organizational decisions and actions.internally for current employees to perform at the level necessary for the organization to be competitive. which yield the greatest advantage under various assumptions about the organization and its environment.
environments. This strategy provides for the maximization of human capital.
. crises resulting from not having skilled and not employees having and the to right carry fit out particular employees. and eventually maximizing profitability.
describing the roots of competitive advantage stated that the real sources of competitive advantage are to be found in
management’s ability to consolidate corporate wide technologies and production skills into competencies that empower individual businesses to adapt quickly to changing opportunities. Typically. Does the organization need to change any of its current policies and practices in order to derive the intended behaviours of employees? How should performance be measured and what types of rewards should be given for the intended behaviours? These are all fundamental areas of effectively managing an organization and imperative to be addressed at the strategic planning stage. the HR function has the most experience and knowledge in addressing these critical issues.K tasks corporate in
strategies. reduction of wasted and inefficient labour and other financial investment. massive layoffs. there is the higher likelihood of more efficiently reaching the business outcomes and avoiding chaos.
ACQUISITION OF EMPLOYEES
. Clearly. and developing strategies to increase employees’ performance.Tichy et al reiterated that there are three core elements for organizations to function effectively and include mission and strategy. the HR function plays a pivotal role in determining the business strategy through the assessment of the organization’s capabilities to successfully compete through a particular strategy. Created a sense of social responsibility?
In essence. positioning to create advantages
for the short-term and long-term. Has the planning resulted in?
the attainment of the organization’s goals and objectives. determining appropriate organization structures. the question arises as to how an organization would be able to of assess a the effectiveness crafted of its strategic plan plan. and human resource
management. determining the appropriate rewards system.
creating advantages that are sustainable over a long period of time. Given the definition of strategic planning as how an organization will compete. organization structure. this process determines the decisions and actions an organization will undertake to create and sustain competitive advantages.
these are critical metrics in deciding the cost in acquiring employees. Indeed. advertising and recruitment sources. source cost per hire.”
Fitz-enz described ways of measuring the cost per hire. and interviewing cost. one has to examine the effectiveness of the planning process. The economic challenges due to the consequences of the 9/11 terrorist’s attacks on the United States also continue to affect organizations’ financial position and subsequently on recruitment and selection strategies. Nevertheless. but the performance in the short-term and long-term. organizations are continuously evaluating their strategies to ensure that they have the expertise needed to help achieve the mission of the organization. to fully understand the value and effectiveness of the selection process. one has to analyze the impact of the employee’s contribution to the organization not only from a cost factor. effectiveness of the interviewers in selecting the right candidate.In the era of increasing globalization and the struggle to create sustainable competitive advantages. change in the pool of qualified candidates.
. and performance of the incumbent on the job. Has the employee been able to contribute to the successful implementation of the business strategy? In examining the efforts that are part of the acquisition. Gatewood & Feild define selection as a “process of collecting and evaluating information about an individual in order to extend an offer of employment.
Another aspect of the acquisition process involves the advertising and recruitment sources. With the economy still struggling to improve after 9/11 terrorists attacks. In assessing the effectiveness of recruitment and advertisement sources an organization uses to recruit its
. In addition.HR Planning involves the process that specifies the activities that a firm must use in order to develop its human resources to improve its overall practices. organizations have been forced to layoff even thousands of employees in some cases in order to survive. Given the high costs of advertising in newspapers. there is a definite need for HR professionals and other senior leaders to be aware of the effectiveness of the respective sources being used to advertise and recruit their candidates. The real challenge for HR in the upcoming months and even years would be to predict the demand for their products and services and then to determine the need for labour. The process entails determining how many employees the organizations needs to be performing at its optimum and where the employees should be working in the organization given the external and internal challenges and opportunities. Nevertheless. journals. and direct and indirect costs associated with advertising. employment agencies. internet websites. one still has to be able to reasonably predict labour demands and determine if employees have to be laid off or how many employees have to be recruited within a specific period. HR Planning should involve the skills and competencies currently available within the organization and what other intellectual capital would be needed in the future to adequately meet the needs of the stakeholders.
employees. number of years of work experience. In determining their efficiency as a team. Another means of determining the effectiveness of the recruitment function is a measure to show the change in the number of qualified candidates that is available for selection. This could be a significant cost reduction strategy given that advertising costs can reduced if there are qualified candidates available for future openings and other jobs currently available.
Fitz-enz described the need to ensure that the recruitment function to be efficient and further stated that it is better to measure recruiters as a team than as individuals whenever applicable. absenteeism. GPA. number of interviews needed to make a quality hire. the average length of interviews for the respective job groups. Some of the factors that should be included in this evaluation are historical employee turnover data.
TRAINING AND DEVELOPMENT
. and ability to advance in one’s career. education major. Given the collection and analysis of this data. HR is much more likely to invest their advertising and recruitment budget to where real value is created for the organization. it is imperative to relate the actual performance of the incumbent to the advertising and recruitment. and other such factors with one’s performance. Fitz-enz stated that the measurements should focus on the productivity of their interviewing techniques. There may also be a high level of correlation with specific school. actual performance on the job.
What is the forecasted financial benefit resulting from the
What is the actual financial benefit resulting from the HRD
What is the approximate financial benefit resulting from the
. Swanson defined employee training and development as the process for of systematically purpose of developing expertise in The
performance. it is reasonable for one to ask about the benefits of such investments. of which T & D is a major category. Swanson listed three questions that provide the variations on the assessment of HRD. Developing a framework for assessing the financial benefits of T &D. frameworks there and still is the
argument for being aware of the actual benefits provided by this intervention. Given this significant
investment. it can be a source of competitive a critical advantage. especially since more companies are seeing a need for lifelong learning and are integrating technology in their strategies.
argument as to whether T & D helps to create a competitive advantage has shown that conceptually. need to develop Nevertheless.The American Society for Training & Development estimates that US organizations are spending more than $60 billion annually on employee training and development.
and can a relationship be demonstrated with the training and the organization’s
Fitz-enz suggested that in addressing the results of the training process. performance the of department. In understanding the impact of the training. It may also mean the inability of the measurement to show a financial benefit. strengthening the culture and maintaining the tradition of the organization. The positive benefits are those indicators that show the benefits exceeding the costs. were they rewarded for improvements made as a result of attending the training. but demonstrates the benefit of for example.
Furthermore. the investment made in supporting the
business strategy of the organization.The
benefits including positive benefits. and the were overall there
organization. The assessment of the training should focus on the difference of the performance of the employee. and return on investment. it is imperative to determine what difference. the following questions are answered:
adequate opportunities for the employee to practice what they learned in the classroom. the the process. Return on investment (ROI) is a ratio that
expresses the relationship of every dollar of performance value to every dollar expended to achieve that value. relative benefits. if any. The key issue in this perspective is to determine that the benefits at least equal the costs.
This total cost would then have to be compared with the intended benefits and actual benefits
immediately after the training and at different intervals after the intervention based on its nature. ROI. measuring the impact of a training initiative regardless of the scope. one has to consider the direct costs of developing and implementing the intervention. and number of employees
involved. size of investment.
How well did the employee learn? How effectively did the employee apply the learning from a
business standpoint? What difference did it make to the business perspectives?
In sum. To determine the benefit. in addition to the indirect and opportunity costs. there is the imperative need to determine the purpose of doing the training and if the goals have been met at various intervals after the intervention had been completed. or whatever terminologies we choose to
describe the outcome. It is therefore imperative to address the following questions given the critical need to
understand the impact of the intervention:
Has the employee’s attitude changed since the training? Did the employee acquire knowledge and expertise in an
area that would enable him/her to perform more effectively on the
Has the employee’s performance changed after the training?
ORGANIZATION CHANGE AND DEVELOPMENT
Given the continuing changes in the global economy. therefore. economic. With answers to these questions. it is a
necessary component of the HR strategy to ensure that the organization is adapting to the external and internal variables it current faces and would likely face in the future in order to meet its stakeholders’ expectations. is his or her ability to plan and implement the necessary changes for the purpose of improving performance. Swanson defined organization
development (OD) as the process of developing and implementing planned changes in organizations for the purpose of improving
. The pace of global.
Has the employee’s performance changed after the training?
How has the change in the employee’s performance affected the business strategy and performance of the organization?
These are all areas to be integrated in assessing the impact of training and development in today’s economy. and technological development makes change an inevitable feature of organizational life. A growing importance and competency
expected from the HR professional. preferences and values of employees. it is relatively simple to determine if the training investment was worthwhile and to articulate how training and development supports the business strategy and contributes to the bottom-line of the organization. demands of customers.
Some of the key measurements can be derived from the following questions:
What is the quality of the output and does it meet the
. development. are OD practitioners able to justify their worth to the organization?
In answering these questions. department. quality. the outputs should be an improvement organizational in performance levels. The challenge arises again as to what value do the change efforts really have on the bottom-line of the organization. The opportunity for HR through its organization development interventions is to create organizational
effectiveness at the individual. service. that process. OD can and be
measured through productivity. should be part of the process of making changes in organizations.
Many OD practitioners may argue that OD is not a measurable effort. In many instances. at the individual. How efficiently are products and
services delivered to the customer? These factors are indeed critical in assessing the effectiveness of OD’s efforts and
therefore. and survival.performance. Should OD be excluded from quantitative measurement? Given a downturn in the economy and the need to reduce labour cost. responsiveness. and organizational levels. function. it is necessary to examine the outputs of OD. at least quantitatively. process.
resolving any internal or external challenges?
Are the values and ethics of each employee and work unit
representative of the overall culture of the organization and supportive of the business strategy?
organization provide the basic measurements in assessing the readiness and effectiveness of the organization to function
effectively in its current and anticipated internal and external environments. As pointed out by. and implement planned changes to improve performance at all levels. HR professionals too often want to measure their success by their activity rather than the actual business results.
. of and
information. By having concrete answers to these questions. the opportunity exists for HR to conduct an analysis and develop. Should the responses indicate less than optimal performance at the individual. process. and organization levels.
the service offered by
organization provide a
competitive advantage as compared to its competitors? How effectively does the system respond to changes in the
external environment? Does the organization each allow for maximum and work sharing unit. there will be appropriate responses in answering the role of OD in achieving the business strategy of the organization.
How would one determine the effectiveness of the performance management
system in creating competitive advantages for the organization? In answering this key question. The thinking of HR practitioners and other business leaders that an annual performance appraisal is performance management must become obsolete.
Performance management systems are geared to ensure that each employee within the organization. Effective performance
management entails a process where each employee is fully aware of his or her role in the organization.
performance appraisal viewed as an annual ritual and primarily the responsibility of the HR function. the
following areas should be addressed:
Ensuring that job descriptions are developed through timely
and effective job analyses. based on previously
conducted job analyses is performing the tasks intended at the expected level to support the strategic business objectives of the organization. what type of output is expected. et al grouped performance management into three categories of defining performance.Performance management systems make clear to employees what is expected of them and assure line managers and strategic planners that employee Many behaviours will be in line rely with on the the
goals. and how the output will be measured. and the feedback aspect of performance.
performance. In today’s economy and the utmost of managing performance to create a competitive
The process and the system must be viewed as credible.
There must be congruency and consistency in performance across the entire organization and performance
standards should always be measured consistently. Feedback is shared continuously among all stakeholders Every employee is fully aware of his or her role in the which can easily be accomplished in the
fair. valid. A survey with numerical ratings can be used by employees
and supervisors to assess if one’s role and responsibilities are fully aligned with the goals of the organization.
There are measurable
outcomes assigned to every task
reflecting the role of the position and incumbent in achieving the goals and objectives of the organization.
Job descriptions are updated on a regular basis to reflect to
changing business environment.
One of the critical strategies in performance management is to understand the fundamental role of each employee in achieving the mission of the organization. satisfaction with the actual process of the the and satisfaction with the supervisor’s process. one
. By mapping a process through the identification of the purpose and role of each incumbent.
performance planning phase of the process. An the in
management aggregate of
assessment of effectiveness
improving individual and organizational performance. and reliable.
the fundamental intent of rewards in organizations is to provide incentives to achieve individual and organizational behaviours that would enable the organization to create competitive advantages and maximize the value of the shareholder’s investment. A
Given such premise. Lawler.
As inferred from these studies. 1964. numerous studies including (Vroom.
indicated by Lawler (1990). the question arises as to how one can determine that the actual rewards provided to the workforce is fostering behaviors from individuals and the organization in
general enabling the organization to maximize its profitability. 1975) have shown that effective rewards systems can significantly increase the motivation of individuals to increase their performance. By understanding where the organization is positioning itself for various intervals in the future. an organization could design the reward system to provide incentives specifically designed to foster behaviours. and Kerr.
The starting point for any reward system design process needs to be the strategic agenda of the organization. attitudes. identify the strengths of each
individual and to maximize each employee’s potential and hence their contribution to the financial contribution to the bottom-line of the organization. correlate and with outcomes the among the workforce of the that directly As
organization. 1971.is easily able to identify where the deficiencies may exist and to develop corrective actions.
measuring the effectiveness of the rewards system. Schuster also concluded that organizations using strategically designed pay systems perform better than the traditional pay counterparts based on financial objectives such as
. the following factors should be considered:
Does the current rewards system represent and provide that reward behaviours to support the business
Are new employees accepting offers with the organization
based in part to the rewards system? How does the rewards system reflect the employees’
personal values and the overall culture of the organization? What percentage of employees and role within the
organization does the reward system assist in retaining? What is the overall satisfaction level of the workforce with
the rewards they are offered? Is the rewards system flexible enough to be changed if there
are external challenges and opportunities that would create a need for changing the system?
What is the overall cost of the rewards system as compared
to its overall benefits?
strategy to a great extent have higher returns than those with less of a linkage.core outcome of an effective rewards system is the role in assisting in attracting and retaining critical employees.
for the attainment of the organization’s business
With an increase in organizational turbulence. Today.earnings per share. and
predict their behaviours given any specific conditions. The importance of focusing on organizational behaviour is to assess if the way people are thinking. return on assets. it is much more difficult to predict how organization will behave in specific
. and behaving correspond to the strategic intent of the organization and produce the outcomes necessary goals. profit per employee. be able to influence their behaviours. The outputs. and cash flow. feeling. of an effective rewards system are centred on the financial profitability of the organization and to create competitive advantages for the organization. McShane & Von Glinow defined organizational behaviour as the study of what people think. the HR function may not view this as part of their core responsibility. therefore.
ORGANIZATIONAL BEHAVIOUR & THEORY
A key aspect of successful leadership is the ability to understand one’s workforce. and do in and around organizations. feel. but in reality it is definitely their responsibility to understand the needs of their workforce and how any given policy or practice may affect the behaviours of the employees.
restructuring of organizations after the September 11 terrorist attacks. Nevertheless. it is imperative for the leaders to be fully aware of what of is transpiring in other organizations across the world. Being able to reasonable to understand and predict the behaviours of employees provides a definite competitive
advantage in making relevant changes to capitalize on current and future opportunities.
organization the predict
behaviour of HR and other
would leaders to
ability and plan
accordingly for the future based on historical data and current environments.
. benchmarking other departments and organizations. effect on and one’s
organization. organizations can be much more
successful if HR and other leaders are able to analyze historical data. political changes and and economic the developments. It is also crucial for HR and other leaders to understand the theories that are relevant to managing employees within specific contexts and what strategies may be more
effective in improving performance among the workforce. and even using simulations in planning and implementing future
interventions. In addition.
HR FUNCTION STRATEGIC PLANNING
O UT C O M E S
Analysis. The following summary lists and briefly describes the respective HR cluster.
strategies be used to enhance the profession in creating higher levels of value for organizations. and action need to create and sustain competitive advantage
• • Financial profitability Social responsibility – viewed by society as ethical. moral and a choice employer Integrated all areas
.SUMMARY OF FRAMEWORK FOR ASSESSING HR IN TODAY’S GLOBAL ECONOMY
business strategy and understanding the how to determine the level of HR’s of effectiveness the in contributing it is to the financial these
organization. its outcomes. and possible measurement to determine its effectiveness in creating value.
process and the organisation
Ability of the organisation to effectively compete in the current internal and external environments The quality of output with respect to customer’s expectation Does the service provided by the organisation competitive enough
.• • New employees effectively contribute to the implementation of the business strategies The planning process. advertising and recruitment sources support the business strategies Interviewers are effective in selecting the right candidates Positive change in attitude of participants Increased expertise in area’s applicable to one’s job Opportunities to practice newly acquired skills on the job Support from peers. supervisors and others in utilizing knowledge gained in training Higher levels of productivity. quality of product and services Positive change in responsiveness in meeting the customer’s needs Organisation culture reflects the organisation and supports the business strategies Fluid organisation • • • • • •
AQUISITION OF EMPLOYEES
of the organisation Efficiently utilized available resources Adequate number of qualified incumbents Relatively short period of time to hire qualified candidate Reduced cost per hire Increased applicant pool Reduced employee turnover ratio Higher performance output from incumbents
EMPLOYEE TRAINING AND DEVELOPMENT
Improvement in the performance of individual.
leveraging each employee and resolving any external or internal challenges Job descriptions are developed through timely and effective job analysis Feedback is shared continuously among the stake holders Every employee is fully aware of his/her role in the organisation Measurable outcomes are identified and measured at each for each position The process and system are viewed as credible. valid and reliable New employees accepts offers with organisation in part to the reward system Reward system reflect the employees personal value and overall culture of the organisation Outcomes of the reward system are cost effective
Each position and the task performed by the incumbents adequately supports the strategic business objectives of the organisation The process is effective in maximising employee performance
Reward system viewed as motivating for employees to increase their performance Provide incentives to achieve individuals and organisational behaviours aligned with business strategies
The ability of the system to effectively respond to the changes in the external environment The organisation allows for the maximum sharing of information.
predict.ORGANISATION BEHAVIOUR AND THEORY
Understand. and influence employee’s behaviour
The ability of HR and other leaders to reasonably predict and plan accordingly for the future based on the historical data and current environments
but should be an integral part of an HR department’s efforts. There will be practitioners that would naturally resist this important aspect of HR. training. It is only through measuring of HRM that one can really articulate the benefits of HR strategies in achieving the organization’s business strategy and in the process enhance the credibility of the HR profession. but through
coaching. it is imperative for HR and other leaders to understand the critical nature and utmost importance of understanding the effectiveness of all HR activities in creating value for the organization.
. It is only through such efforts that HR can validate its claims that it is a strategic business partner and a value-added department within the organization.
The HR profession is at a juncture where measuring HR’s efforts is not just a nice thing to do.Does HR contribute to the bottom-lime of an organization? Given that several large-scale studies have proven that HRM is a
critical driver in an organization’s financial performance. expertise will be developed and ultimately improving their performance and the effectiveness of the HR function. and practice.