HRM EVALUATION

HR EVALUATIONUNDERSTANDING THE IMPACT OF
HRM ON BUSINESS PERFORMANCE

NEED
• to justify HRM existence and value of HR function • to demonstrate HR contribution to organizational performance as a strategic partner • To provide insight into the difficulties of measurement • To speak in terms of deliverables

Definition-HR evaluation
• ‘to determine the value of HR towards organizational goals,
• BRATTON‘the procedures and processes that measure, evaluate and communicate the value added of HRM practices to the organization’ Benefits
• Assessment of the HR impact on performance /organizational goals
• Identify the bottom line contribution
• Strength and weaknesses of HR function

HR Value Chain

Measuring the impact on business performance •
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What should be evaluated?
How should be evaluated?
At what level it should be evaluated?
What are the criteria of evaluation?

Overview of HR Evaluation
Overall effectiveness
SCOPE

narrow department FOCUS

professionals practices HR EVALUATION

STRATEGIC
LINKAGE
LEVEL
OF
ANALYSIS

Reactive or proactive strategic management operational EVALUATION
CRITERIA

outcomes processes How to be evaluated? ( HR audit)
HR dept.

Effectiveness of functionability activity Practices offered by HR dept Customer value

Cost/benefit research Professionals4 clusters of competencies

Knowledge of business
Knowledge of HR

Personal credibility
Knowledge of change process

HRM and performance
• Do HRM practices make a difference to business results?
Investment on HRM reflect with a result of economic return
• When?
If organizations take an investment perspective of HR

Investment-Oriented
Organization
• Sees people as central to mission & strategy
• Mission statement & strategic objectives espouse value of human assets in achieving goals
• Management philosophy encouraging development & retention of human assets
• Does not treat human assets in same ways as physical assets • WHAT ARE THE FACTORS THAT
DETERMINE INVESTMENT