General Approaches of HR

measures
3 factors of HR Measurements
Productivity and Efficiency of any HR functions can be measured by
Some combinations of
• Cost
• Time
• Quantity or
• Quality Indices
Approaches to HR Measures
• Stakeholder /Audit Approach
• Utility /Analytical Approach
• Business Consulting Approach
Stakeholder /Audit Approach

• Focus :
To determine the satisfaction of key users with HR Services

• Criteria of HR Effectiveness :
Employee Satisfaction Surveys
Absenteeism rate
Cost of HR as a percentage of Sales
Average no of days taken to hire an employee
Utility /Analytical Approach
•Focus:
Cost Benefit Analysis , and determine the financial utility of HR Services

•Criteria of HR Effectiveness:
Asset method= value of employee(cost of Training )=/total no.of employee
Expense Model= economic effect of employee behaviour like absenteeism=
Economic Profitability = Revenue earned per employee; employee`s contribution
in the firm`s performance .
Cost Benefit ratio= comparing benefits of Hr Practices to the cost ;ROI
Business Consulting Approach

•Focus:
HR Business as a strategic business unit and helps both internal and
external customers achieve maximum value from HR products and
services
•Criteria of HR Effectiveness:
HR viewed as profit center
• Quantitative Measures
• Qualitative Measures