Evaluating the HR function



Introduction 


The performance of the HR function must be tested to ensure that it is successful at both the strategic and service delivery and support levels. The ability to operate purposefully and the capability to innovate are the primary factors for evaluating the function's work. HR must be active, explaining why it exists and what services it provides, offers and is simple to reach. 


Two aspects of HR effectiveness have been stated by Huselid et al (1997) as follows, 


  • 🔑Strategic HRM - the provision of services in a way that promotes the putting the firm's plan into practice. 


  • 🔑Technical HRM -the provision of HR fundamentals such as recruiting, salary, and incentives. 


“Human Resource isn't a thing we do. 

It's the thing 

that runs our business.” 

Steve Wynne 


How to evaluate dimensions of HR effectiveness? 


Below criteria are used to evaluate above dimensions regarding HR effectiveness. Each method have their own methods. 


Quantitative criteria 

Consists of two major categories, 


🔑Organizational- 

  •  Added value for each employee 
  •  Productivity per employee, 
  • Sales value per employee 
  • Employee costs
  • Added value per one currency unit of employment costs. 

 

🔑Employee behavior-  

  • Retention and turnover rates 
  • Absenteeism 
  • Sickness 
  • Accident rates 
  • Grievances 
  • Disputes 
  • References to employment tribunals 
  • Successful suggestion scheme outcomes 
  • Levels of service and outcome to fill open positions 
  • Time to react to applications 
  • Acceptance-to-offer ratio 
  • Cost of responding to marketing 
  • Training days per employee  
  • Time to respond to and resolve complaints 
  • Verifiable improvements in 
  • HR policies' effect on business success 
  • HR expenditures as a percentage of overall costs 
  • HR staff-to-employee ratio and attainment of specified targets 

 

User reactions 



HR internal users of HR services can offer critical feedback on HR efficiency by expressing genuine ideas for some questions like, 


  • Analyze the business plan and behave in ways that help it succeed. 
  • Predict business requirements and develop constructive ideas for how HR might assist. to encounter with them. 
  • Demonstrate their ability to achieve performance goals and timelines for. 
  • HR activities and projects must be completed. 
  • Provide practical, clear, and effective advice. 
  • In terms of response and delivery timeframes, provide high quality services.
  • In general, they demonstrate their awareness and skill. 

Service level agreements 


It outlines the type of the service supplied, the quantity and quality of the service to be delivered, and their response times after receiving requests for assistance. The agreement serves as the foundation for monitoring and assessing the level of service. 


Measure Employee Satisfaction  


Attitude surveys could be used to measure how they are handled, their perspectives on the organization and their management, and how well they are informed on their educational and career development possibilities, as well as their workplace environment and amenities. 


HR scorecard 

The four titles of the HR scorecard are, 


1. HR competencies 

2. HR practices 

3. HR systems 

4. HR deliverables  


All these are affected by the elements that define the organization's strategic success.

(Beatty et al 2003) 




Selection of evaluation method 

There are no standards to select such criteria, but the organization may build its own set of methods. 


“Value is defi ned by the receivers of HR work – the investors, customers, line managers and employees – more than by the givers. HR is successful when its stakeholders perceive that it produces value. Delivering what matters most to stakeholders focuses on the deliverables (outcomes of HR) rather than on the doable.” 

(Valuing HR, Ulrich and Brockbank 2005 a) 

 


 

References 


Huselid, M A, Jackson, S E and Schuler, R S (1997) Technical and strategic human resource management effectiveness as determinants of fi rm performance, Academy of Management Journal, 40 (1), pp 171–88 


Beatty, R W, Huselid, M A and Schneier, C E (2003) Scoring on the business scorecard, Organizational Dynamics, 32 (2), pp 107–21 


Ulrich, D and Brockbank, W (2005 a) The HR Value Proposition, Harvard Press, Cambridge, MA 

Comments

  1. shayanika83December 10, 2022 at 3:46 AM

    People and talent are crucial to every company's success, and HR plays a key role in discovering, acquiring, and retaining talent. How can you be sure the HR department is meeting needs efficiently? This article has given many information and thank you for sharing.

    ReplyDelete
  2. Chamara RanasingheDecember 10, 2022 at 4:04 AM

    interesting article to read. Most make the error of considering human resources (HR) only as a cost center or just as a means of managing payroll and benefits. This article gives understanding of what the organization will need from HR today and what it will need moving forward.

    ReplyDelete
  3. EVON HERATH - MBA - SL - 00163912December 10, 2022 at 7:24 AM

    You have excellently studied and presented how attitudinal surveys can be used to measure how employees are treated in an organization, their perspectives on the organization and management of an organization, and the educational and professional development capabilities of professionals, as well as whether employees are informed about their workplace environment and facilities.

    ReplyDelete

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