The essence of HR is very strategic and when properly aligned, HR contributes to a successful strategy and the financial underline. The alignment between HR and the strategy of an organization starts with a strategy-focused professional. Secondly, the HR system has to be created in alignment with the organization’s strategy. HR needs to ensure that employees are strategically focused (Becker & Huselid, 2001). Every element of the HR function, from hiring, compensation, reviews, training, etc., needs to be developed in order to enlarge the human capital in the organization.…
Course Objectives: The object of this course is to introduce you to, help you learn, and learn to apply modern Human Resource Management (HRM) policies and practices. As such, we are interested in how HRM can be used to create and implement competitive advantages in different types of firms, and how and to what degree Human Resources can increase the effectiveness of the firm. Based on the best available theory, empirical research, and organizational practice we will work to develop a sound understanding of the capabilities (and limits) of leading edge Human Resource Management. The course is taught from the perspective of the general manager, rather than an HRM specialist. As such it focuses on the application and effects of Human Resource Management, and how the HR System can increase the effectiveness of the firm.…
Indicative Content: Understand key contemporary business issues affecting the HR function within private, public and third sector organisations. Types of organisation; the role of management within them; ways in which HR is delivered; the main functional areas of management; the search for sustained organisational performance, business profit and efficiency; analysing, evaluating and drawing conclusions from financial and non-financial data; balanced scorecard or similar performance measurement tools; managing the change agenda.…
One of the HR function’s main priorities are to track existing employee data. HR should focus on both business results and human capital improvement. In order for a company to potentially drive workflow, report accurately on the staff and sometimes even demonstrate the value of a team’s existence, HR has to have a good understanding of the data requirements, but also have a good system to capture and track this data. It is also important to understand how this data can support the business objectives.…
_____________________________________________________________________________________ - HR Metrics that Count: Aligning Human Capital Management to Business Results by David S. Weiss…
effectiveness of HR’s efforts and what metrics and analyses might be added to improve the…
Today Human Resources (HR) is at the centre of business performance. HR professionals have an important role to play in driving decisions that enable their organisations to thrive in both the short and the longer term. Where in the past the function delivered the fundamentals that underpinned the employee lifecycle (such as recruitment, induction and salary administration) supporting organisation performance is now the theme running through HR’s work.…
The new economic paradigm is characterised by speed, innovation, quality and customer satisfaction. The essence of the competitive advantage has shifted from tangible assets to intangible ones. The focus is now on human capital and its effective alignment with the overall strategy of organisations. This is a new age for Human Resources. The entire system of measuring HR’s contribution to the organisation’s success as well as the architecture of the HR system needs to change to reflect the demands of succeeding in the new economy. The HR scorecard is a measurement as well as an evaluation system for redefining the role of HR as a strategic partner. It is based on the Balanced Scorecard framework developed by Kaplan and Norton and is set to revolutionise the way business perceives HR. Based on various studies, it can be concluded that firms with more effective HR management systems consistently outperform the competition. However, evidence that HR can contribute to a firm’s success doesn’t mean it is now effectively contributing to success in business. It is a challenge for managers to make HR a strategic asset. The HR scorecard is a lever that…
Human resources departments face significant challenges as their roles become broader and more strategic in the early 21st century. HR is more than a basic function that involves hiring, training and retaining employees. It is a key element in developing a workforce that aligns with the mission and vision of a business. With increased relevance come increased obstacles.…
* Develop an HR Effectiveness Index/HR Scoreboard that measures HR performance on key factors that support your mission/key issues (productivity measures, quality measures (give examples), cost per person train, select, develop, etc, measures of training outcome effectiveness, selection standards, overall labor/compensation costs, morale measures (such as job satisfaction and/or turnover), number of grievances/lawsuits, etc.…
Since the primary focus of HR’s strategic role is value creation, thinking about HR architecture means taking broad view of HR’s value chain. Just as a corporate scorecard contains both leading and lagging indicators, the HR Scorecard must so the same. Of the four HR architecture elements that we recommend including in the Scorecard- High Performance Work System, HR system alignment, HR efficiency, and HR deliverables- the first two are leading indicators and the second two are lagging indicators of HR performance.…
Expanded Awareness: As the amount of HR data within an organization has grown, so too has the need to glean better information from that data. Problems that HR organizations assumed were just part of “the cost of doing business” are now identified, acted on, and in many cases, prevented. HR business indicators that were previously only hinted at by virtue of an anomaly here or a trend there are conclusively determined.…
With the use of the HR metrics, the purchase of a HRIS can be justified in the following ways: measuring turn over rate, absence rate, health cost per employee, cost per hire, training investment factor, workers' compensation incident rates and severity rates just to…
Pressures to meet customer and stakeholder requirements have made accurate measurement a necessity in order to demonstrate value. HRIS can do the basics brilliantly in terms of improving the efficiency of HR processes. But well implemented systems have the potential to drive business performance, as well as providing effective means of employee engagement and communication.…
To ensure growth and development of any organisation, the efficiency of people must be augmented in the right perspective. Without human resources, the other resources cannot be operationally effective. The efficient and effective utilization of inanimate resources depends largely on the quality, caliber, skills, perception, and character of the people, that is human resources working on it. Human resource accounting is the measurement of cost and value of people to the organization. It involves measuring costs incurred by the organization to recruit, select, hire, train and develop employees and judge their economic value to the organization. Regardless of the explanations above, there are still limitations attached to the implementation of effective human resource accounting, such as no specific procedure or guidelines for finding cost and value of human resources, dehumanizing issue, the heterogenity of human resources itself and many others. (MBA –H4020)…