Content

1. Introduction

2. HRM functions

3. Company performance

4. Effects of HRM on company performance

5. How HRM functions create company advantages

Discussion questions
For the content below, please search for the information about definition, formula, evaluation, real-
life example to answer the discussion questions.

HRM functions – Remind of previous lectures

 What are the HRM functions?

 What are the HRM aims?

Company performance

Company performance criteria can be divided by 2 groups: Financial and Non-financial

 Financial performance
o What are the ratios that we learned from Finance classes that measure the company's
financial performance? How to calculate these ratios?
o Where to find the data to calculate these ratios?
 Non-financial performance
o What are internal and external criteria to measure the company performance?
o How to measure/calculate these criteria?

Effects of HRM on company performance

From the criteria in Company performance section, we will discuss the following points:

 How does HRM functions we discussed affect these criteria?

 Real life example for these effects

My examples are the financial performance, productivity, employee turnover rate, customer
satisfaction. The real-life cases are in the end of this document. You can read the same cases with
me or you can find other examples to support for the ideas.

How HRM functions create company advantages

From the effects we discussed above, we'll discuss the question: How the HRM functions create the
company advantages?
Reference for real-life cases:

Intracop company

Intracorp, a real estate developer, had less than one hundred employees. The disperse teams were,
however, siloed, causing communication problems that led to mistakes, misunderstandings, and
missed deadlines.

Intracorp wanted to train their teams and leaders within the flow of their workday. They did this by
selecting the highest priority development areas. These areas were diagnosing and processes were
tracked, which created visibility in how team members and leaders performed. This enabled them to
measure a decreased cost of lost productivity.

Using this measurement system, productivity improved by 10%. For every $1 spent on training,
$3.20 would be recovered in lost productivity.

In addition, 60-minute live, virtual content sessions once a week lead to an increase of information
sharing and an increase of retention by 128%. This was already visible in the coffee room after the
session: people would talk about it, share their learnings and aha moments. 1-1 leadership coaching
was even more effective in increasing retention, and meeting inefficiencies were reduced by 50%
within 30 days.

This example shows that training on specific goals, together with smart tracking of these goals can
proof to be highly effective.

[https://www.aihr.com/blog/hr-analytics-case-studies/]

Clarks company

In a second people analytics case study, Clarks applied compensation and benefits analysis to
optimize rewards packages for employees.

According to the report, “by asking which benefits employees might be prepared to trade off, it built
a much more granular view of what people truly valued, and adjusted the package accordingly.”

Satisfaction could be improved by up to 15 percentage points by giving people a small amount of

money to invest in their own development. Employees also wanted to be able to sell their holiday
days – which actually saved the company money.

[https://www.aihr.com/blog/hr-analytics-case-studies/]

A restaurant chain

[https://www.aihr.com/blog/people-analytics-case-study-how-hr-made-customers-happy/]

Credit Suisse company

[https://www.wsj.com/articles/the-algorithm-that-tells-the-boss-who-might-quit-1426287935]