Mechanism to Measure the Overall Effectiveness of People Management Practices of an Organization
2 Measure the effectiveness of your organization HR practices
3 How do you show HR 's contribution or value made to overall organizational outputs?
“Measurement is the first step that leads to control and eventually to improvement. If you can 't measure something, you can 't understand it. If you can 't understand it, you can 't control it. If you can 't control it, you can 't improve it.” H. James Harrington.
Peter Drucker was also quoted as saying that, “If you can’t measure it, you can’t manage it”
The fact remains that you need to know your current state of performance before you can look at means to improve it. Measurement provides you with information on the status of any performance. It represents a feedback mechanism, indicating what’s working well and what isn’t. But the trick lies in figuring out exactly what it is you need to measure. You don’t want to be measuring the wrong thing. Taking in too many indicators could result in losing sight of the objective of measurement. What if you’re using the same measurement to evaluate performance across many levels – surely, the measurement needs to be varied.
There are many tools available, from the Balanced Scorecard to the tools to measure Return on Investment (ROI), etc., nevertheless no single tool fits all organisations and may vary depending on whether you’re considering the private or public sector / type of industry / and type of business. While similar concepts of measurement may apply, the indicators are sure to vary, sometimes requiring customisation and some degree of alignment to the enterprise-level performance.
It becomes a requirement for every modern HR department to show the organizational value of money and time spent on human resources management training and activities. For human resources to be effective, they must be the accurate metric and aligned
References: How to Measure Human Resource Management(2002) by Jac Fitz-enz Kavanagh, M.J Lawler III, E.E., Levenson, A., & Boudreau, J.W. (2004). HR Metrics and Analytics: Use and Impact. Human Resource Planning, 27(3): 27-35. Lawler III, E.E., Levenson, A., & Boudreau, J.W Kavanagh, M.J. & Thite, M. (2009). Human Resource Information Systems: Basics, Applications, and Future Directions. Thousand Oaks: Saga Publications, Inc. Kavanagh, M.J Lockwood, N. (2006). Maximizing Human Capital: Demonstrating HR Value With Key Performance Indicator . HR Magazine, 51(9): 1-10. Lockwood, N Lockwood, N. (2006). Maximizing Human Capital: Demonstrating HR Value With Key Performance Indicator . HR Magazine, 51(9): 1-10. Lockwood, N