Professional Documents
Culture Documents
and tools
Overview
Managing the HR function involves not only putting processes, procedures,
and tools into action, it also entails implementing a continuous improvement
process. This learning resource outlines methods and tools the HR manager
can use to evaluate the contribution of HR to organisational goals, and to
evaluate HR activities themselves.
Key terms
Audit
Audits are inspections and investigations. Audits can be conducted, for
example, to investigate whether HR standards are being met or to evaluate
the relationship between the HR function and its clients in the organisation.
Audits can be used as planned activities or randomly.
Benchmarking
A management and evaluation approach that allows you compare the state
of your own HR processes against those of other organisations. Often used
to measure the improvement gained from outsourcing.
Evaluation
An overall determination of the success of a program or a strategy.
Goal
A desired result, a goal should be measurable by quantity or quality, has a
timeframe for completion, and is achievable.
Objective
Often used to describe an action step within a broader goal, or a short-term
goal.
Performance criteria
The standards for judging how performance has been achieved; focus in on
the process not just the results.
Performance outcome
The outcome or result to be achieved from the performance.
Quantitative evaluation
The measurement of HR activities using numbers or quantities.
Qualitative evaluation
The measurement of HR activities using judgement or opinion.
What to evaluate
The broad areas where HR may be evaluated are:
• Do HR processes meet the business needs of the organisation
(whether these are measured by objectives, performance criteria or
performance indicators)?
• Do HR processes meet all legal requirements, Industrial Awards and
Workplace Agreements?
• Are HR processes are efficient?
• Are HR processes are cost effective?
Evaluation approaches
Evaluation approaches – and many of the associated tools – may be broadly
placed in two groups, quantitative or qualitative evaluation.
Qualitative evaluation
If you look at the example below of the evaluation of the IR plan to reduce
absenteeism, you'll see that it uses a mix of quantitative and qualitative
evaluation methods.
Tip
Notice the numeric ratings – they are quantitative measure. The open ended
questions are qualitative.
Benchmarking
Benchmarking is another evaluation approach that allows you compare the
state of your own HR processes against those of other organisations. This is
an activity that is often done prior to outsourcing in order to identify:
Read
The following example shows how objectives might be used to evaluate the
success of a recruitment strategy:
Goal: Achieved?
(yes/no)
Source applicants for the Store Manager position via the Interent
Objectives:
Let's see how you could evaluate this IR plan against these performance
criteria:
Research
Find out what reports can be generated from the HRMIS in your own
organisation. What HR service areas do they cover – recruitment,
Audits
Audits are inspections and investigations. Audits can be conducted, for
example, to investigate whether HR standards are being met or to evaluate
the relationship between the HR function and its clients in the organisation.
Audits can be used as planned activities or randomly.
We've provided a sample industrial relations audit tool with this resource –
you may download it from the 'Worksheet' section.
This IR audit tool shows that the audit may cover a number of different
aspects. It shows how an HR audit might be conducted for an organisation's
industrial relations & employee relations activities. Notice that this sample
audit combines quantitative and qualitative information to build up an
accurate picture of the state of industrial relations & employee relations in
this organisation.
Diagnostic checklists
You can use this checklist to evaluate the processes that your organisation
has in place and the results will point you to any changes that need to be
made. This list isn't comprehensive, but it covers many of the criteria
necessary to evaluate the effectiveness of your processes and tools.
Table 3: Features and criteria to evaluate current HR processes and tools (4 cols)
At that meeting, one benefit, the child-care facility, was approved. Although
it was the most expensive by far, the Board felt that it best reflected their
appreciation and would be the most valued by staff-members.
An old house directly opposite Cottontrees car park was acquired, renovated
and fitted out under the watchful eye of local council inspectors and opened
for business almost 6 months ago. The centre accommodates up to 25
children, between the ages of 2 years to 5 years. It is well staffed by trained
child care staff. Employees pay a nominal fee, $8.00 per day, for their
children to attend, up to a maximum of three days per week. The centre is
fully-subscribed, and has a waiting list.
After reading the case study above, consider what you would do:
1. What kinds of quantitative and qualitative indicators might you
establish to monitor the performance of a childcare centre?
2. What criteria would you use to determine whether the benefit was
(a) valued by staff, (b) worthwhile to the organisation.
3. What kind of systems might you put in place to monitor the impact
of the centre upon staff morale.
Hint
As you think about your response to each of these questions, go back over
this worksheet. How would you implement the evaluation methods and
tools we have covered?