Evaluating HRM's contribution to Organisational Effectiveness
1. Table of Contents
1. Table of Contents 2
2. Introduction 3
3. Reasons for Measuring 3
4. Indicators of HRM 4
5. Measuring HRM 4
6. Conclusion 8
7. Bibliography 9
2. Introduction
Human Resource Management is a key component in the maintenance and utilization of an effective workforce. HRM includes myriad activities ranging from recruitment to training and even the development of compensation systems. HRM has evolved significantly since the early 1900s. The need to deal with labor unions and the human relations movement has increased the need for competent human resource professionals (Dessler, 2002).
3. Reasons for Measuring
Human resource managers are required to balance the requirements of management against those of the organization to ensure staffing requirements are consistent with the overall organizational objectives. There is always a focus on results and measurement, the benefits from such analyses are numerous. Some of the key reasons for measuring HRM are (Phillips, 1996)
1. To identify HRM's contribution to organizational effectiveness
2. To determine whether HRM is accomplishing its objectives
3. To identify the strengths and weaknesses of HRM processes
4. To calculate the return on investment in an HRM program
5. To determine if an HRM program or policy justifies investment of resources
6. To establish a database that can assist management in making decisions about HRM
4. Indicators of HRM
The main impacts of HRM to the organisation can be gauged from the following key indicators (Frost et al, 2001)
Figure 1: 4 Quadrants of HRM Indicators
5. Measuring HRM
The influences and impacts mentioned previously provide an indication of the relative success of HRM within the organisation. As is evident, there are a number of indicators and their measurements and applications are quite varied. Some of the more common ways of measuring HRM are
Surveys
There are myriad proforma surveys that are available to HRM Managers to review and
1. Table of Contents 2
2. Introduction 3
3. Reasons for Measuring 3
4. Indicators of HRM 4
5. Measuring HRM 4
6. Conclusion 8
7. Bibliography 9
2. Introduction
Human Resource Management is a key component in the maintenance and utilization of an effective workforce. HRM includes myriad activities ranging from recruitment to training and even the development of compensation systems. HRM has evolved significantly since the early 1900s. The need to deal with labor unions and the human relations movement has increased the need for competent human resource professionals (Dessler, 2002).
3. Reasons for Measuring
Human resource managers are required to balance the requirements of management against those of the organization to ensure staffing requirements are consistent with the overall organizational objectives. There is always a focus on results and measurement, the benefits from such analyses are numerous. Some of the key reasons for measuring HRM are (Phillips, 1996)
1. To identify HRM's contribution to organizational effectiveness
2. To determine whether HRM is accomplishing its objectives
3. To identify the strengths and weaknesses of HRM processes
4. To calculate the return on investment in an HRM program
5. To determine if an HRM program or policy justifies investment of resources
6. To establish a database that can assist management in making decisions about HRM
4. Indicators of HRM
The main impacts of HRM to the organisation can be gauged from the following key indicators (Frost et al, 2001)
Figure 1: 4 Quadrants of HRM Indicators
5. Measuring HRM
The influences and impacts mentioned previously provide an indication of the relative success of HRM within the organisation. As is evident, there are a number of indicators and their measurements and applications are quite varied. Some of the more common ways of measuring HRM are
Surveys
There are myriad proforma surveys that are available to HRM Managers to review and
Bibliography: Kaplan, R. S. & Norton, D. P. (2004) Strategy Maps: Converting Intangible Assets into Tangible Outcomes, Harvard Business School Press. Becker, E. B., Huselid, M. A. & Ulrich, D. (2001), The HR Scorecard: Linking People, Strategy and Performance, 1st Edition, Harvard Business School Press. Phillips, J. J., Stone, R. D. & Phillips, P. P. (2001) The Human Resources Scorecard, Butterworth-Heinemann. Albrecht, M. H. (2000) International HRM: Managing Diversity in the Workplace, Blackwell Publishers. Fitz-Enz, J, (2000) The ROI of Human Capital: Measuring the Economic Value of Employee Performance, American Management Association. Frost, P. J., Nord, W. R. & Krefting, L. A, (2001) HRM Reality, 2nd Edition, Pearson Education. Phillips, J. P. (1996), Accountability in Human Resource Management - Improving Human Performance Series, Gulf Professional Publishing. Dessler, G. (2002) Human Resource Management, 9th ed., Prentice Hall.