What is the importance of evaluation HRM?
- HR manages must ensure that their functions help to facilitate the achievement of the organisation’s strategic business objectives by enabling strategic drivers
- HRM must be recognised as a strategic business partner
- Evaluation of HRM activities is integral to ensuring top management and line management support
How does HRM impact employees?
- Enacted HR Practices
- Lead to
- Employee Attitudes
- Lead to
- Employee Behaviours
What are the employee attitudes affected by enacted HR practices?
- Job Satisfaction
- Work Motivation
- Organisational Commitment
What are the employee behaviours affected by employee attitudes?
- Task Performance
- Discretionary Effort
- Membership Behaviour
- Organisation Citizenship Behaviours
What are the approaches to evaluating HRM?
- The HR Audit
* 2. More holistic approach
Broadly, what is the HR audit approach?
- HR as a business partner
- Quantitive indicators of HRM performance
- HR metrics
Broadly, what is the holistic approach?
- HR as a business partner and employee advocate
- Quantitative and qualitative indicators of HRM performance
- Recognise the other casual relationships
What is the empirical link between HRM and performance?
- A lot of empirical research examining the impact of HRM, and ‘bundles’ of HRM practices on firm performance outcomes
- Signinfncat associations between HR practices targeted at developing employee performance and motivation and ROA and market cap
- Research also suggests that organisations with HR professionals that make evidence-based decisions about HR practice have higher financial performance than those do that not
What does the HR audit approach involve?
- Involves a systematic analysis and evaluation of the HR function
- Uses HRIS data & HR indicators or metrics
What is the HR audit approach interested in?
- Interested in a) costing HR actives and b) broader quantitative HR metrics
- Interested in measuring the effects or outcomes of HR activities
- Interested in benchmarking to determine whether there have been improvements in HR activities
What is the purpose of the HR audit approach?
- To assess whether HR processes are effective in their own right and to identify areas where change or improvement is required
- To determine whether HR processes and practices are supporting and enabling business strategy and corporate values and mission
- TO make HR practices more efficient & cost effective
- To comply with laws and regulation
- To communicate to top management and line management the importance of HRM
How are HR programs costed in the HR audit approach?
- Staffing
- Advertising
- Administration costs
- Rewards
- Payroll costs
- Insurance premiums
- HRD
- Training expenses
- Training consultant’s fees
- Employee Relations
- Absenteeism
- Labour turnover
- Compensation and litigation costs
What is the more holistic approach?
- The evaluation of HRM needs to be goal orientated and holistic
- “a single minded pursuit of economic rationality to the exlucsion of other factors carrier seeds of its own destruction. Recognition of the relational rationality means that the social goals have to be considered, especially those concerning organisational justice and social legitimacy”
What are the key factors of the more holistic approach?
- Governance of the employment relationship HRM» Work-Related attitudes and behaiouvrs
- Task performance
- Membership
- Organisational citizenship
- Governance of the employment relationship HRM» Work-Related attitudes and behaiouvrs
- Alignment
- HRM»Firm performance (mediated relationship)
- Alignment
Broadly, what are indicators of HR performance?
- Broader/global indicators
- Alignment
- Governance and compliance
- Broader/global indicators
- Domain or process specific indicators
- Indicators can be either quantitate or qualitative
- Domain or process specific indicators
What are the broader/global indicators of HR performance?
- Quantitative indicators
- HR department cost per employee
- Human capital return on investment
- Labour costs as a percentage of revenue
- Voluntary seperation/turnover rates
- Absenteeism rates
What are the causes of absenteeism?
- Stress caused by WHS issues
- Job disatisfaction
- Poor attendance incentives
- Job boredom
- Poor interpersonal communication
- Poor management - employee relations
How is HRM aligned with organisational objectives?
- Identify strategy
- Identify strategic drivers
- Identify HR practices & processes to support & enable strategic drivers
What is the relationship between HRM and governance and compliance?
HR has a role to play in the governance of the employment relationship, by promoting ethical behaviour, and fair treatment of all employees and other stakeholders
What does governance encompass?
- Employment relations & compliance
- Diversity management & compliance
- Postive psycholgical climate
What are the characteristics of a positive psychological climate?
- Employee well being & WHS
- Relations between managers and employees
- Relations between employees
- Resourcing employees
- Resourcing managers
What are employee surveys?
A systematic method of determining what employees think about their job, supervision and the organisation
What do employee survey’s measure?
- If valid and reliable, can measure
- Employee engagement
- Attitudes towards HR processes
- Attitudes towards co-workers
- Organistional justice perceptions
When should employee survey’s be used?
- Should only be conducted if top management is thoroughly committed to:
- Informing employees of the results of the survey
- Implementing changes indicated by the survey results
