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1. What type of costs can be estimated but not easily measured by financial expenditures?
  a.  direct b.  indirect
  c.  tangible d.  intangible
ANSWER:   b

2. Why do some managers resist the need to measure the effectiveness of their performance?
  a.  because it is impossible to calibrate meaningful measures
  b.  because they know that they are underperforming in their jobs
  c.  because they do not control the information that is produced
  d.  because the time to gather information exceeds the benefits
ANSWER:   a

3. In the book titled Retooling HR, author Boudreau stated that HR evolution is challenged by the presence of
too much information. What solution did the author suggest?
  a.  reducing the volume of information
  b.  developing measures to summarize information
  c.  focusing on relevant HR information
  d.  creating frameworks to interpret the information
ANSWER:   d

4. What are two types of evidence that Enbridge Gas Distribution measures to determine overall customer
satisfaction?
  a.  employee turnover and “presenteeism”
  b.  employee commitment and engagement
  c.  employee innovation and advocacy
  d.  employee satisfaction and work–life balance
ANSWER:   a

5. Which of the following is NOT related to the Sarbanes-Oxley requirements?

  a.  executive compensation b.  pension plans
  c.  employee benefits d.  whistleblower protection
ANSWER:   c

6. Typically, what is an organization’s largest controllable cost?

  a.  technological costs b.  capital costs
  c.  labour costs d.  benefits costs
ANSWER:   c

7. What are the three stages of a fad’s lifecycle?

  a.  introduction, growth, decline b.  ascendency, maturity, decline
  c.  introduction, growth, maturity d.  ascendency, growth, maturity

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ANSWER:   b

8. Which of the following is NOT part of the 5C model of HRM impact?

  a.  contribution b.  cost control
  c.  compliance d.  commitment
ANSWER:   d

9. What methods are typically used to measure client satisfaction?

  a.  informal feedback and surveys
  b.  Delphi technique and focus groups
  c.  questionnaires and nominal group technique
  d.  critical incident method and breakout groups
ANSWER:   a

10. If an organization measures a decline in employee morale, approximately how long will it take to realize a
drop in customer satisfaction?
  a.  2 months b.  4 months
  c.  6 months d.  8 months
ANSWER:   c

11. What is the underlying assumption of the culture management model that is used to determine the
effectiveness of HRM?
  a. HR professionals are employed 20 to 30 percent of the time to ensure compliance with laws and
legislation.
  b. Organizational effectiveness is directly correlated to the size of the human resources budget.
  c. HR practices can have a positive influence on employee attitudes, which in turn influence employee
performance.
  d. Highly committed employees will make personal sacrifices for the job and will not leave the
organization for personal gain.
ANSWER:   c

12. What are three of the main employee attitudes that are measured in HRM effectiveness surveys?
  a.  motivation, commitment, and work–life balance
  b.  satisfaction empowerment, and engagement
  c.  empowerment, commitment, and advocacy
  d.  engagement, satisfaction, and motivation
ANSWER:   d

13. What is one way that an HR department can reduce expenses associated with employees without reducing
the headcount?
  a.  increase employees’ efficiencies
  b.  eliminate the costs associated with absenteeism
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  c.  purchase technology that improves productivity
  d.  initiate a hiring freeze and a wage freeze
ANSWER:   a

14. Which of the following is NOT a measure of efficiency?

  a.  time b.  quality
  c.  volume d.  cost
ANSWER:   b

15. According to a recent study, what percentage increase in customer satisfaction did Sears stores realize with
every five percent increase in improved employee attitudes?
  a.  0.8 percent b.  1.3 percent
  c.  1.8 percent d.  2.3 percent
ANSWER:   b

16. What organizational costs would be affected by a smoking cessation program?

  a.  pension costs b.  vacation costs
  c.  presenteeism costs d.  productivity costs
ANSWER:   d

17. If an organization wishes to monitor the costs of turnover, which two costs should it measure?
  a.  lost revenue and productivity b.  absenteeism and termination
  c.  replacement and training d.  learning time and recruitment
ANSWER:   a

18. If HRM is effective, it can cause numerous effects on employee behaviour. What is one such effect?
  a.  improving customer satisfaction b.  enhancing employee attrition
  c.  reducing employee shirking d.  eliminating high-potentials
ANSWER:   c

19. What is considered a zero-sum index when measuring HRM effectiveness?

  a.  growth b.  survival
  c.  maturity d.  stability
ANSWER:   b

20. Why are measures of managerial perceptions necessary when evaluating HRM effectiveness?
  a.  because other measures are time-consuming and meaningless
  b.  because management has a unique, comprehensive perspective
  c.  because management can give rich, qualitative information
  d.  because financial measures can be neither available nor appropriate
ANSWER:   d

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21. What costs did National Steel track over four years to determine the effectiveness of its safety programs?
  a.  safety incentive payouts and needs assessment costs
  b.  injuries on the job, and safety orientation and training
  c.  cost of accidents and motivation for safe behaviour
  d.  drug and alcohol addiction, and lost-time accidents
ANSWER:   a

22. Which of the following is NOT an approach to measuring HRM practices?

  a.  activity-based measures b.  costing measures
  c.  client satisfaction d.  balanced scorecard
ANSWER:   d

23. Which of the following is NOT a hurdle to the development of HR metrics?

  a.  applying HR measures consistently and over time
  b.  gaining acceptance of HR measures by stakeholders
  c.  training managers to believe in the usefulness of HR measures
  d.  identifying HR measures that are grounded in research and theory and are practical
ANSWER:   c

24. What are some of the necessary costs for human resources accounting?
  a.  training, development, executive salaries, and benefits
  b.  recruiting, selecting, training, and retaining
  c.  technology, outsourcing, selecting, and orientation
  d.  downsizing, training, recruiting, and development
ANSWER:   b

25. What is one benefit of benchmarking?

  a.  It motivates employees to take performance to a higher standard.
  b.  It stimulates a subjective review of processes, practices, and systems.
  c.  It provides subjective comparative data with best-in-class organizations.
  d.  It raises questions and stimulates discussion about better ways of strategizing.
ANSWER:   a

26. Which of the following is one of the four basic questions used in the balanced HR scorecard?
  a.  How do employees see us? b.  Can we continue to remain profitable?
  c.  How do we look to shareholders? d.  Which areas need improvement?
ANSWER:   c

27. Which of the following is NOT a type of mimicry that organizations use to adopt HR practices?
  a.  outcome-based mimicry b.  frequency-based mimicry
  c.  trait-based mimicry d.  knowledge-based mimicry
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ANSWER:   d

28. What is a leading indicator in HRM evaluation?

  a.  an indicator that anticipates management action
  b.  an indicator that predicts or affects the future
  c.  an indicator that explains changes or events
  d.  an indicator that represents current HR trends
ANSWER:   b

29. What is the perennial problem in measuring the impact of HRM practices?

  a.  separating cause and effect
  b.  finding financial resources
  c.  overcoming the conservative nature of HRM
  d.  attracting individuals with knowledge
ANSWER:   a

30. What percentage is typically added to an HR budget in order to regularly evaluate HR practices?

  a.  5 percent b.  10 percent
  c.  15 percent d.  20 percent
ANSWER:   a

31. What are two main ways of measuring HR contributions to organizational performance?

  a.  financial measures and managerial perceptions of effectiveness
  b.  organizational efficiency and productivity
  c.  worker productivity and efficiency
  d.  managerial perceptions of effectiveness and worker productivity
ANSWER:   a

32. What are three ways to reduce labour expenses by reducing the size of the labour force?
  a.  technology, job design, and outsourcing b.  technology, outsourcing, and downsizing
  c.  layoffs, downsizing, and restructuring d.  outsourcing, layoffs, and downsizing
ANSWER:   b

33. The number of people interviewed to fill a job is an example of what kind of efficiency measurement?
  a.  time b.  labour
  c.  volume d.  cost
ANSWER:   c

34. Why is there interest in measuring HR?

  a.  the need for competitive measurements
  b.  the need to measure human resource productivity

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  c.  the need to measure change initiatives
  d.  the need for objective indicators of success to accompany the analysis of HR activities
ANSWER:   d

35. What type of costs can be measured by financial expenditures?

  a.  direct b.  indirect
  c.  tangible d.  intangible
ANSWER:   a

36. Which of the following is a part of the 5C model of HRM impact?

  a.  change management b.  commitment
  c.  compliance d.  communication
ANSWER:   c

37. What is a problem with measuring client satisfaction?

  a.  low expectations of clients b.  conflicting expectations
  c.  use of broad techniques d.  use of critical incident methods
ANSWER:   b

38. What are two of the main employee attitudes that are measured in HRM effectiveness surveys?
  a.  initiative and satisfaction b.  satisfaction and collaboration
  c.  empowerment and commitment d.  engagement and motivation
ANSWER:   d

39. What is a typical way of measuring HR activities?

  a.  efficiency measures b.  activity-based measures
  c.  productivity measures d.  health measures
ANSWER:   b

40. There are a number of approaches to measuring the impact of HRM policies and practices. Measuring the
cost per hire is an example of what type of measure?
  a.  activity-based measures b.  hiring measures
  c.  costing measures d.  staffing measures
ANSWER:   c

41. What are two types of evidence that Enbridge Gas Distribution measures to determine overall customer
satisfaction?
  a.  employee commitment and productivity
  b.  employee satisfaction and engagement
  c.  employee innovation and advocacy
  d.  employee satisfaction and work–life balance
ANSWER:   b
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42. Which of the following is the beginning of the strategic HR planning process?

  a.  assessing and implementing HRM policies and practices
  b.  defining, interpreting, and communicating HRM policies and practices
  c.  aligning HRM programs and policies with organizational goals
  d.  reviewing and evaluating how HRM programs and policies are performing
ANSWER:   c

43. What term best defines the collection and analysis of facts and statistics for reference or analysis?
  a.  performance metric b.  analytics
  c.  data d.  hr analytics
ANSWER:   c

44. What are two types of evidence that Enbridge Gas Distribution measures to determine overall customer
satisfaction?
  a.  employee commitment and high levels of productivity
  b.  employee creativity and high levels of innovation
  c.  employee leadership succession and high levels of alignment to company goals
  d.  employee satisfaction and high levels of employee efficiency
ANSWER:   c

45. What term best defines the process of measuring an organization’s behaviour, activities, and performance?
  a.  performance metrics b.  analytics
  c.  workforce analytics d.  HR analytics
ANSWER:   a

46. What is an evidence-based approach for making better decisions about employees and HR policies, using a
variety of tools to report HR metrics and to predict outcomes of HR programs?
  a.  performance analytics b.  HR analytics
  c.  data analytics d.  workforce analytics
ANSWER:   b

47. There is growing interest in measuring HR. What is this interest fuelled by?
  a.  the need for competitive measurements
  b.  business improvement efforts across organizations
  c.  the need to measure human resource productivity
  d.  the need for subjective and objective indicators of HR activities
ANSWER:   b

48. What term best defines how HR metrics, such as turnover and employee engagement, are used to describe
the workforce?
  a.  workforce analytics b.  HR analytics
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  c.  analytics d.  performance metric
ANSWER:   a

49. There is growing interest in measuring HR. What is this interest fuelled by?
  a.  attempts to measure competitive advantage
  b.  attempts to position HR as a strategic partner
  c.  attempts to measure change initiatives
  d.  attempts to evaluate HR activities
ANSWER:   d

50. What are three ways to reduce labour expenses by reducing the size of the labour force?
  a.  restructuring, outsourcing, and downsizing
  b.  technology, rightsizing, and downsizing
  c.  technology, layoffs, and downsizing
  d.  technology, outsourcing, and downsizing
ANSWER:   d

51. Which of the following is a cost-efficiency measure?

  a.  time to process compensation and benefits
  b.  ratio of compensation expense to total operating expense
  c.  number of training days and number of employees trained
  d.  number of interviews per selection
ANSWER:   b

52. What term best defines the discovery, interpretation, and communication of meaningful patterns in data?
  a.  performance metric b.  analytics
  c.  workforce analytics d.  HR analytics
ANSWER:   b

53. Which of the following is a volume efficiency measure?

  a.  benefit cost per employee covered
  b.  ratio of benefits expense to total operating expense
  c.  ratio of filled positions to authorized positions
  d.  cost per trainee per program
ANSWER:   c

54. What are two main employee attitudes that are measured in HRM effectiveness surveys?
  a.  engagement, advocacy, and motivation
  b.  satisfaction, empowerment, and engagement
  c.  empowerment, commitment, and advocacy
  d.  motivation, commitment, and work–life balance
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ANSWER:   a

55. Which of the following is a passive measure of employee contentment with little relationship to
performance?
  a.  satisfaction b.  motivation
  c.  fulfillment d.  engagement
ANSWER:   a

56. Which of the following is a measure that probes whether employees feel stimulated in their role and are
driven to meet work and organizational goals?
  a.  empowerment b.  commitment
  c.  engagement d.  motivation
ANSWER:   d

57. Which of the following is a response time efficiency measure?

  a.  time between requisition and filling of position
  b.  processing costs per benefit claim
  c.  administration costs per benefit claim
  d.  cost per training day
ANSWER:   a

58. Which of the following is an employee attitude measure of their alignment with the strategy, objectives, and
values of the organization?
  a.  commitment b.  engagement
  c.  empowerment d.  satisfaction
ANSWER:   a

59. Which of the following is a measure of high employee motivation, commitment, and advocacy?
  a.  empowerment b.  engagement
  c.  motivation d.  satisfaction
ANSWER:   b

60. Counting the number of employees completing training is an example of what type of measure?
  a.  activity-based measure b.  costing measure
  c.  client satisfaction measure d.  employee satisfaction measure
ANSWER:   a

61. Many HR departments were originally set up because of the need to comply with employment legislation
and standards.
  a.  True
  b.  False
ANSWER:   True
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62. HR professionals are resistant to measuring their work because they have limited knowledge of
measurement models and limited skills of measurement ratios.
  a.  True
  b.  False
ANSWER:   False

63. Indirect costs are the hard costs that can be measured by expenditures.
  a.  True
  b.  False
ANSWER:   False

64. Kim has to move to another city. Kim has decided to compare and contrast different moving companies in
terms of their charges and the times that they are available. Kim is conducting an informal utility analysis.
  a.  True
  b.  False
ANSWER:   True

65. By focusing on the alignment of HR practices with organizational strategy, a company will achieve greater
performance and fit than by focusing on best practices and benchmarking.
  a.  True
  b.  False
ANSWER:   True

66. An audit is a measurement method that assesses progress against plan.

  a.  True
  b.  False
ANSWER:   True

67. Corporate scorekeeping allows organizations to make a plan that fits organizational strategy.
  a.  True
  b.  False
ANSWER:   False

68. Direct costs are harder to measure than indirect costs.

  a.  True
  b.  False
ANSWER:   False

69. With respect to the HR scorecard, deliverables should be linked to strategy.

  a.  True
  b.  False
ANSWER:   True

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70. Most organizations do undertake the evaluation of HRM effectiveness because the problems of measurement
are difficult to resolve.
  a.  True
  b.  False
ANSWER:   True

71. There are three ways to reduce labour expenses by reducing the size of the labour force: technology,
outsourcing, and mergers.
  a.  True
  b.  False
ANSWER:   False

72. HR can affect the probability of survival of a new venture by as much as 32 percent.
  a.  True
  b.  False
ANSWER:   False

73. Return on investment is a key financial ratio computed by an organization to determine its relative success in
achieving its goals.
  a.  True
  b.  False
ANSWER:   True

74. There are three typical measures for efficiency: time, quality, and cost.
  a.  True
  b.  False
ANSWER:   False

75. Organizational survival is the first measure of effectiveness and is considered a “life-or-death” index.
  a.  True
  b.  False
ANSWER:   True

76. Benchmarking enhances organizational performance by establishing standards against which processes,

products, and performance can be compared and improved.
  a.  True
  b.  False
ANSWER:   True

77. There are four sources of benchmarking partners: internal, competitive, sector, and external.
  a.  True
  b.  False
ANSWER:   False

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78. Efficiency is defined as the results achieved compared to resource inputs.
  a.  True
  b.  False
ANSWER:   True

79. Sarbanes-Oxley requirements force HR to provide information about executive compensation, pension

plans, and employee benefits.
  a.  True
  b.  False
ANSWER:   False

80. Measuring and benchmarking HR activities will result in the fulfillment of management-by-objectives.

  a.  True
  b.  False
ANSWER:   False

81. The HR profession is like the accounting profession because they both rely on generic measures and
principles.
  a.  True
  b.  False
ANSWER:   False

82. The costs of turnover include termination, replacement, reduced customer satisfaction, and time for a new
employee to become productive.
  a.  True
  b.  False
ANSWER:   False

83. The 5C model of HRM impact includes five areas for evaluating HRM: compliance, client satisfaction,
culture management, cost control, and commitment.
  a.  True
  b.  False
ANSWER:   False

84. A balanced scorecard is a measure that can enhance organizational performance by establishing standards
against which processes, products, and performance can be compared and improved
  a.  True
  b.  False
ANSWER:   False

85. HR analytics is an evidence-based approach for making better decisions about employees and HR policies,
using a variety of tools to report HR metrics and to predict outcomes of HR programs.
  a.  True
  b.  False
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ANSWER:   True

86. The goal of surveying clients is to identify gaps between their expectations and their satisfaction.
  a.  True
  b.  False
ANSWER:   True

87. Attitudes in an organizational context can be defined as perceptions or opinions about organizational

characteristics.
  a.  True
  b.  False
ANSWER:   True

88. Workforce analytics is an evidence-based approach for making better decisions about employees and HR
policies, using a variety of tools to report HR metrics and to predict outcomes of HR programs.
  a.  True
  b.  False
ANSWER:   False

89. If employee morale drops, management can expect to see customer satisfaction levels drop in about six
months.
  a.  True
  b.  False
ANSWER:   True

90. Attitudes, in an organizational context, can be defined as perceptions or opinions about organizational

characteristics.
  a.  True
  b.  False
ANSWER:   True

91. There are two ways of measuring contribution: financial measures and measures of managerial perceptions
of effectiveness.
  a.  True
  b.  False
ANSWER:   True

92. An example of a costing measure is the number of employees hired.

  a.  True
  b.  False
ANSWER:   False

93. An example of an activity-based measure is the cost of the training program.

  a.  True
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  b.  False
ANSWER:   False

94. Identify and describe three different approaches to measuring HRM practices.

ANSWER:   ∙ Cost–Benefit Analysis: examines the relationship between the costs of the program and its benefits.
Direct costs are those that are used to implement the program, such as the cost of selection tests or
training materials. Indirect costs are those that the organization absorbs, such as the employee’s
time away from work to attend training.
∙ Utility Analysis: a method of determining the gain or loss that results from different approaches. It
calculates, in dollar terms, the costs and probable outcomes of decisions that assist HR managers to
make decisions between programs.
∙ Benchmarking or Auditing: an audit is a measurement method that assesses progress against a
plan. Benchmarking is an organized method for collecting data that can be used to improve
organizational operations, through the comparison with other operations.

95. The Society for Human Resource Management identifies nine major reasons why it is important to measure
HRM programs and practices. Briefly state five of these reasons.
ANSWER:   ∙ Labour costs are most often a firm’s largest controllable cost.
∙ Managers recognize that employees make the difference between success and failure and so good
performance can be rewarded objectively.
∙ Organizations have legal responsibilities to ensure compliance with laws governing the employer–
employee relationship.
∙ Evaluations are needed to determine which HR practices are effective (and not fads).
∙ Measuring and benchmarking HR activities will result in continuous improvements. Performance
gaps can be identified and eliminated.
∙ Audits will bring HR closer to the line functions of the organization.
∙ Data will be available to support resource allocations.
∙ Investors want this information.
∙ HR managers are more likely to be welcomed at the boardroom table and to influence strategy if
they use measures to demonstrate the contribution of their function.

96. Identify and briefly describe the 5C model of HRM impact.

ANSWER:   ∙ Compliance: HR expertise is needed to ensure that organizational practices comply with laws such
as employment standards, health and safety, employment equity, etc.
∙ Client Satisfaction: Many organizations are tracking their success by measuring client satisfaction.
Stakeholders, including internal and external clients, are those people who can influence, or must
interact with, the HR department.
∙ Culture Management: Organizations seek to influence employee attitudes through the
development of an appropriate culture that will support optimum performance. Evaluation methods
include attitude surveys of job satisfaction and commitment.
∙ Cost Control: Costs of employees consist of pay, benefits, absenteeism, and turnover. Reducing
the workforce and attempting to maintain productivity through technology can reduce labour costs.
Other ways to decrease costs are to increase efficiency and reduce behaviours such as absenteeism,
turnover, etc.
∙ Contribution: HRM practices shape the behaviour of employees in the organization and help the

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organization achieve its goals. Research has shown that HR practices can affect organizational
performance in measurable ways.

97. Briefly describe three methods used to measure client satisfaction.

ANSWER:   1. Informal Feedback: People can simply be asked if they are satisfied with the service. Informal
feedback has limited use due to the reluctance of people to give negative feedback.
2. Surveys: Surveys can be used to solicit feedback formally, confidentially, anonymously, and with
a larger number of stakeholders.
3. Critical Incident Method: Clients are asked to describe a situation in which the HR department
provided assistance that was particularly useful. In addition, they are asked to provide an example
of when the assistance was not useful.

98. When evaluating the effectiveness of HRM practices, organizations have the choice of using two
approaches: fit or best practice. Briefly describe the difference between the two approaches.
ANSWER:   See Figure 14.3 – Two Approaches: Fit or Best Practice on page 389.
Fit Approach: is an evaluation approach that focuses on the alignment of HR practices with
organizational strategy. If they are in good alignment, then there should be corresponding effects
seen in the HR outcomes such as employee satisfaction, motivation, productivity, and also the
financial criteria such as profitability, added-value for shareholders, growth, etc. It is important also
to note that environment scanning is an important first step in the fit approach.
Best Practice: is an evaluation approach that mimics or copies the best practices and benchmarks of
other organizations that may or may not be similar to the evaluating organization. From there, these
best practices and benchmarks will be factored into the business and HR strategies. Although this is
a more generic approach that would be useful if the evaluating organization did not have the
expertise to grow its own approach, the relevance to the evaluating organization may not be as
useful as the customized fit approach. Using the best practices of one’s competitors might not
necessarily support the goals and objectives of the organization.

99. Discuss the three ways HR practices can reduce labour expenses by reducing the size of the labour force.
ANSWER:   ∙ Technology: One of the most frequently used ways to cut labour costs is to increase the use of
technology. Technology to process benefits claims and pursue e-learning has replaced HR staff,
resulting in cost savings of about 30 percent.
∙ Outsourcing: Firms are also outsourcing major activities in order to manage the costs of labour.
However, there are detrimental effects of cutting costs in this way. Core talent may be lost and the
capacity for innovation diminished. See Chapter 13 for a more detailed discussion of outsourcing.
∙ Downsizing: Chapter 10 provides an analysis of the processes for restructuring.

100. Identify an organization you are familiar with (such as from your work experience or from your textbook).
Discuss one measure that the organization uses to measure the efficiency of their HR practices. Provide a
concrete example. Ensure you define efficiency.
ANSWER:   Efficiency is expressed in terms of the results achieved (outputs) in comparison to the resource
inputs. Measures of efficiency include the following:
∙ Time (e.g., average time to fill an opening, process a benefits claim)
∙ Volume (e.g., number of people interviewed to fill a job, number of requests processed per
employee)
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∙ Cost (e.g., cost per training hour or per test).
Cost:
∙ ratio of compensation expense to total operating expense
∙ benefit cost per employee covered
∙ ratio of benefits expense to total operating expense
∙ processing costs per benefit claim
∙ administration costs per benefit claim
∙ cost per training day
∙ cost per trainee per program
Volume:
∙ number of training days
∙ number of interviews per selection
∙ ratio of filled positions to authorized positions
∙ percentage of employees with formal performance evaluations
∙ percentage of designated employees
Response Time:
∙ time between requisition and filling of position
∙ time to process benefits
∙ time from identifying a training need to program implementation
∙ time to respond to requests by category

101. What does added value mean when measuring the impact of HRM practices?
ANSWER:   The following examples help explain the concept of value added:
∙ An activity measure for an HR professional would be the number of people trained.
∙ A performance measure for an HR professional would be the number of trainees who passed the
training test or rated the training courses as above average.
∙ An added-value measure for an HR professional would be the increase in profits, sales, or
customer satisfaction, or decrease in complaints, errors, or defects, as a result of the skills learned in
the training course.

102. Organizations may use different terms when measuring employee attitudes. Discuss attitude and 2 terms
(behaviours) which can be measured through HR culture surveys
ANSWER:  
Attitudes, in an organizational context, can be defined as perceptions or opinions about
organizational characteristics.
Organizations use different terms in measuring employee attitudes:
• Satisfaction: This is a passive measure of employee contentment with little relationship to
performance.
• Motivation: This measure probes whether employees feel stimulated in their role and are driven to
meet work and organizational goals. Motivation is strongly related to productivity measures.
• Commitment: A measure of the alignment between the strategy, objectives, and values of the
organization, commitment is strongly linked to employee loyalty and customer service excellence.
• Advocacy: This is a measure of whether employees will speak highly of the organization as an
employer, and as an organization with products and service. Advocacy is strongly linked to sales
growth and employee attraction.
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Chapter 14 - HR Assessment and Analytics

• Engagement: If an employee scores highly on motivation, commitment, and advocacy, then she
would be classified as engaged. Engaged employees are more productive, deliver higher customer
satisfaction levels, deliver the brand promise more effectively, create stronger growth, and generate
higher profits.

103. Hewitt Associates describes the attitudes of an engaged employee in three simple ways. Describe these
three ways.
ANSWER:  
• Say: Consistently speaks about the organization to co-workers, potential employees, and
customers
• Stay: Has an intense desire to be a member of the organization
• Strive: Exerts extra effort and engages in behaviours that contribute to organizational success.

104. Discuss the future of HR analytics and its importance to HRM.

ANSWER:   It is apparent that the numbers that the HR department used to generate (such as number of people
trained) now seem as if they come from the Stone Age. Currently, HR professionals are generating
data establishing the effectiveness and efficiency of the HR programs. What is trending now is the
establishment of units where HR data is tightly linked to operational data, and the data is used to
drive programs to meet organizational objectives. The number and type of data sources will rise and
will be used to predict employee behaviour and fully integrated into operational decision making.
Refer to Table 14.2 for a summary of the current state and the “desired future” state of HR
analytics.
With analytical skills, HR professionals will contribute significantly to the success of organizations.

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