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LS 222 (19)
Chapter 14

chapter 14: Importance of Evaluating HRM

4 Pages

Legal Studies
Course Code
LS 222
Jennifer Schulenberg

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Chapter 14: Evaluation of HR Programs and Policies Importance of Evaluating HRM • Until the HR managers can talk about the contribution and value of HR activities in the numbers and language of business,  the HR department and the HR profession will be vulnerable to destructive proposals • HR department is being treated like an operational unit and is subject to questions about its contribution to organizational  performance • Some HR managers resist measuring their work because outcomes such as employee attitudes or managerial productivity are  impossible to calibrate meaningfully Slow Growth in HR Measurement Measurement is fueled by: 1. Business improvement efforts 2. Positioning HR as a strategic partner 3. The need for objective indicators of success Reasons for Measuring HRM Effectiveness 1. Labour costs are most often a firm’s largest controllable cost. 1. The larger the staff number, the more the organization pays 2. Managers recognize that employees make the difference between success and failure and therefore good performance can be  rewarded objectively. 3. Organizations have legal responsibilities to ensure compliance with laws governing the employer­employee relationship. 4. Evaluations are needed to determine which HR practices are effective (and not fads). 5. Measuring and benchmarking HR activities will result in continuous improvements.  Performance gaps can be identified and  eliminated. 6. Audits will bring HR closer to the line functions of the organization 1. Auditing the processes because of legal implications 2. Helps to look whether to see if organization is on its right track and is being responsible for what they do 1. Are appraisals being done consistently? 7. Data will be available to support resource allocations. 8. Investors want this information. 9. HR managers are more likely to be welcomed at the boardroom table and to influence strategy if they use measures to  demonstrate the contribution of their function. • People may not be able to measure morale, but you can measure other elements that can contribute to the side effects o Turnover rates, etc. • When you take a look at HR, every person is dealing with HR issues on the regular basis o ¾ of people are up at night looking at their organizations 24/7 5C Model of HR Impact 1. Compliance 1. Ensure that organizational practices comply with the law in areas such as:   1. health & safety, 2. employment equity, 3. industrial relations, 4. employer­employee relationships 2. Becoming huge in HR because of the legislation 3. Are we following employment standards during overtime pay?  During vacations?  Any Health and safety  violations? 4. Forces us to comply to the law and measure how successful our programs are and whether or not we are doing it  properly 2. Client Satisfaction 1. We need to think of our staff as clients, but many times it’s hard to measure satisfaction 2. Organizations are tracking their success by measuring customer satisfaction 3. Managers are turning to client or stakeholder perceptions about the effectiveness of HR performance Chapter 14: Evaluation of HR Programs and Policies 4. Stakeholders (including external and internal clients) are those people who can influence and interact with the HR  department 5. “Keeping the clients happy” has important political reverberations for the HRM department because clients like the  CEO control the purse strings 6. Advantages 1. Measuring client satisfaction reminds the HR department that it provides a service to the clients and must  meet their expectations 2. Surveying clients about their unmet needs increases the credibility of the HR function 3. When change takes place, it is important to survey the stakeholders before, during and after a change  program 7. Methods  1. Information can be gathered from clients in several ways: 1. Informal Feedback 2. Surveys 3. Critical Incident Method 8. Problems with Measuring Client Satisfaction 1. High expectations of clients 2. Conflicting expectations 3. Professional affiliations 3. Culture Management 1. Culture ­ a set of important beliefs that members of a community share 2. Attitudes ­ perceptions or opinions about organizational characteristics 4. Cost Control 1. Three ways to reduce labour expenses by reducing the size of the labour force: 1. Technology 2. Outsourcing 3. Downsizing 2. Increasing Efficiency 1. Efficiency ­ results achieved compared to resource inputs 2. Measures of efficiency include:  1. Time – e.g., time to process a claim 2. Volume – e.g., number of people interviewed
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