March 22, 2013
Question #1: Identify and explain five metrics used to evaluate HR performance.
Today employers expect their human resource managers to contribute to the success of the organization and create value. The human resource professional must create a strategy focused HR system. There are many different metrics used to evaluate the effectiveness of the human resource department such as the HR scorecard which, is a measurement system used to quantify human resource activities and measure employee behaviors resulting from these activities, and to measure the strategic relevancy.
There are three pieces of information that the manager needs to create an HR Scorecard. First, the manager must know the company’s strategic plan and/or organizational goals. Second, the manager needs to understand the relationship or link between the employee’s behavior, the overall organization performance and how it all relates to the HR activities. Third, the manager needs a concise tool he or she can use to measure all the activity and results.
The Essay on Human Activities and the Loss of Natural Resources
Natural resources including soil, water, forest, mineral and biodiversity have been repeatedly destroyed around the world by humans. “Since 1970, over 600,000 square kilometers (232,000 square miles) of Amazon rainforest have been destroyed” (Butler, 2011). The FAO (Food and Agriculture Organization) estimated that “soil erosion carries away a volume of soil equivalent to one metre deep over ...
The first step in the HR Scorecard process is to evaluate HR performance and to define the organization’s strategic [i]plan, which, is “the company’s plan for how it will match its internal strengths and weaknesses with external opportunities and threats in order to maintain a competitive advantage.”
The second step is to outline the Company’s Value Chain by engaging in strategic activities. Value chain analysis is useful and can help recognize the primary
activities that create value for the customer by identifying, visualizing, isolating and evaluating the most important activities; the manager will better understand what drives results and performance within their company.
Another step would be to identify the required HR system policies and activities by asking what behaviors and competencies must the employees’ exhibit to produce the desired outcome. For example, the manager might create a new training program for new leaders that develop interview techniques.
Developing the HR Scorecard itself is an important step, which can be done internally or by using a consulting firm with experience in this area. If done internally the HR Scorecard can be as simple as drafting a map that correlates with the strategic plan. Summarizing the scorecards measurements by using a digital dashboard is very effective because it visualizing the data as a colorful graph or chart at-a-glance is quick and easy.
These are just a few examples of how to evaluate the human resource department’s performance and it is also important to conduct regular meetings to review progress. By reviewing, monitoring and evaluating the scorecard on a regular basis, HR professionals ensure their results align with the company’s strategic goals. When deficiencies do occur, HR managers can identify the performance gaps and provide training to employees to increase their competency in specific areas.
———————–
[i] Gary Dessler. Human Resource Management. 11th ed; Pearson Prentice Hall 2008
