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Activities of HR

Activities of HR. 16-2. Transformational. Traditional. Transactional. Irwin/McGraw-Hill. Customer-Oriented Perspective of the HRM Function. 16-3. Customers Line managers Strategic partners employees. Technology Staffing Performance Management Rewards Training & Development.

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Activities of HR

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  1. Activities of HR 16-2 Transformational Traditional Transactional Irwin/McGraw-Hill

  2. Customer-Oriented Perspective of the HRM Function 16-3 • Customers • Line managers • Strategic partners • employees • Technology • Staffing • Performance Management • Rewards • Training & Development • Customer Needs • committed employees • competent employees HR Function Irwin/McGraw-Hill

  3. Measuring Human Resource Effectiveness: Why Do It? 16-4 • Market the function • Provides accountability Irwin/McGraw-Hill

  4. Evaluating Human Resource Practices: Approaches 16-5 • Audit approach • reviews outcomes of HR functions • Analytic approach • determines whether program had intended effect • estimates costs / benefits of program • human resource accounting • utility analysis Irwin/McGraw-Hill

  5. Auditing Examples of Key Indicators and Customer Satisfaction Measures for HRM Functions 16-6 Key Indicators Customer Satisfaction Measures Staffing - Average days to fill position - Ratio of acceptances to offers - Ratio of minority / women to representation in labor market - Treatment of applicants - Per capita recruitment costs - Average years of education per job family - Anticipation of personnel needs - Timeliness of referring qualified candidates to supervisors - Skill in handling terminations - Adaptability to changing labor market conditions Equal Employment Opportunity - Ratio of EEO grievances to employee population - Minority representation by EEO category - Minority turnover rate - Resolution of EEO grievances - Daily assistance provided by HR department in implementing AA - Aggressive recruitment to identify qualified women/minority applicants Irwin/McGraw-Hill

  6. Auditing Examples of Key Indicators and Customer Satisfaction Measures for HRM Functions 16-7 Key Indicators Customer Satisfaction Measures Compensation - Per capita merit increases - Ratio of reclassification to total employees - Competitiveness in labor market - Percentage of overtime hours to straight time - Ratio of average salary offers to other firms in community - Fairness of existing job evaluation systems in assigning grades & pay - Relationship between pay and performance - Employee satisfaction with pay Benefits - Average unemployment compen- sation payment - Average workers’ compensation payment - Benefit cost per payroll dollar - Promptness in handling claims - Fairness in application of policies - Communication of benefits - Assistance to line managers in controlling unnecessary claims Irwin/McGraw-Hill

  7. Auditing Examples of Key Indicators and Customer Satisfaction measures for HRM Functions 16-8 Key Indicators Customer Satisfaction Measures Training - % of employees participating per job family - % receiving tuition refunds - Training dollars per employee - How well programs meet needs of employees and company - Communication about available training opportunities - Quality of orientation program Employee Appraisal and Development - Distribution of appraisal info. - Appropriate dimensions on appraisal forms - Ratio of promotions to employees - Ratio of openings filled internally to externally - Assistance in identifying potential - Organizational development activities provided by department - Number of promotions from within - Counseling provided to employees in career planning Irwin/McGraw-Hill

  8. Example of Cost-Benefit Approach for a Selection Test 16-9 Cost-Benefit Information Test Information Current employment 4,404 Number separating 618 Number selected 618 Average tenure 9.69 years Number of applicants 1,236 Testing cost per applicant $10 Total test cost $12,360 Average test score .80 SD Test validity .76 SD (per year) $10,413 Computation Quantity = Average tenure x Applicants selected = 9.69 years x 618 applicants = 5,988 person-years Quality = Average test score x test validity x SDy = .80 x .76 x $10,413 = $5,331 per year Utility = ( Quantity x quality ) - costs = (5,988 person-year x $5,331 per year) - $12,360 = $37.9 million Irwin/McGraw-Hill

  9. Improving HRM Effectiveness 16-10 • Restructuring • Outsourcing • Process Redesign Irwin/McGraw-Hill

  10. The Reengineering Process 16-11 STEP 1 Identify the process to be reengineered Irwin/McGraw-Hill

  11. The Reengineering Process 16-12 STEP 1 STEP 2 Identify the process to be reengineered - can jobs be combined? - can employees have more autonomy? - are all the steps needed? - is there redundancy? - how many exceptions are there? - are steps in proper order? - what is the desired outcome? Understand the process Irwin/McGraw-Hill

  12. The Reengineering Process 16-13 STEP 1 STEP 2 STEP 3 Identify the process to be reengineered - develop models - test models - choose prototype - integrate prototype Understand the process Redesign the process Irwin/McGraw-Hill

  13. The Reengineering Process 16-14 STEP 1 STEP 2 STEP 3 Identify the process to be reengineered Understand the process STEP 4 Redesign the process Implement the new process Irwin/McGraw-Hill

  14. The Reengineering Process 16-15 STEP 1 STEP 2 STEP 3 Identify the process to be reengineered Understand the process STEP 4 Redesign the process Implement the new process feedback Irwin/McGraw-Hill

  15. Using New Technologies to Improve HRM Effectiveness 16-16 Interactive Voice Technology Internet Networks & Client-Server Architecture Relational Databases Imaging Expert Systems Groupware Irwin/McGraw-Hill

  16. Software Applications for HRM 16-17 • Staffing • applicant recruiting & tracking • EEO & AA reports • Developing a master employee database • Human Resource Planning • succession planning • forecasting • work-force profile analysis • work-force dynamics analysis • Performance Management • Training & Career Development • Compensation & Benefits • payroll • job evaluation • salary surveys & planning • international compensation • benefits management Irwin/McGraw-Hill

  17. Improving HRM Effectiveness Through E-HRM 16-18 • E-HRM technology has freed HRM functions from transactional activities to focus on more strategic actions. • Examples include: • Recruitment and selection • Compensation and rewards • Training and development

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