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Measurement in Human Resources Presentation (Group-1)

Bikeshwori Akoijam (6) Sneha Mandal (9) Gopika Mathur (12) Isha Sachar (21) Sharmishtha Choudhary (23) Stuti Bhatnagar (24) Aditi Sangwan (42)

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The Last Decade Story of Human Resource

No complaining about the resources or appreciation. No acceptance of second class citizenship. No strategic planning involved. HR was referred to as the difficult people of organization. HR were deeply involved in operations.

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The new force Outsourcing

Outsourcing grew as new force to make the working easy and cost effective. Most popular candidates for outsourcing Pay roll Benefit administration

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Three basic HR styles

1. 1950s Style 2. Reactors

3. Confidants

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1950s style

Traditional concept of HR. 30% to 50% companies followed this concept.

HR treated as expense Mainly owned by family owned and managed companies and small group of investors.

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Reactors

The early decades of 20th century accounts for 20% of such market share. Outsource , decentralize model with line managers came into picture. They have never seen a fully functional HR in this concept

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Confidants
It is the outsourced processed model with a few trusted , talented HR people playing role of advisor , consultant and broker of outside services.

HR helps in improving quality, productivity, and service; giving the company a competitive edge.

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Futuristic view of HR
Business focused HR . They view their work site as a place to learn, grow, make contribution and gain wealth. Human resource has been energized with a new wave of business oriented professionals.

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Trends in Human Resources

From Feudalism to Collaboration: Feudalism It is a set of legal and military customs in medieval Europe that flourished between the 9th and 10th century. It was a system for structuring society around relationships right from the holding of land in exchange for service or labor. Collaboration It is working together to achieve a goal, it is a recursive process with two or more people or organizations work together to realize shared goals.

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It is impossible challenge to work alone in todays Market. The same applies to human resource. It is the responsibility of Human Resource to bring collaboration among different department for the growth of organization. A broader view of its purpose, each Human Resource function can expand its contribution to other departments to achieve organization objectives.

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Human Resource Knowledge Exchange(KX)

It can be created by setting up a file that is segregated by function. Each person in HR puts in his experience o knowledge and a database is created.

Everyone has access to it.

It is an high-tech monitoring system.

Todays vision statement are shorter and focused. Example Strategic business partners", "Change managers

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Reviewing HRs Vision

HRs vision for the new millennium must be drawn from following ideas:
1. Human Resources exists in an organization because it adds tangible value by providing necessary services at a competitive cost. 2. Human Resources charter is to enhance the productivity and effectiveness of the organization from the people side: the talent, the human capital. 3. Human Resource should drive the organizations management in regard to people issues. 4. Human Resources is a professional function staffed by professionals dedicated to the development of the people in ways that are satisfying t the individual and beneficial to the organization.

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Management Experts on Performance Measurement

Management experts agree that quantitative measurements are necessary.
All departments use quantitative measures, so HR should also use it as a part of the organization. Measurement plays central role in a system. It helps management carry out important responsibilities, by provision of reference frame.

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What questions can be measured?

How to do it?
How to do it well?

What effect doing it well can have?

Previously HR measurement not taken seriously, but attitudes changing now and it is being accepted by more people everyday.

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Reference frame
1.
2.

Communicate performance expectations.

See, feel and understand outcomes

3.
4.

Compare to standards and/or benchmarks

Identify performance gaps

5.
6.

Support resource allocation decisions

Recognize and reward performance.

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Consequences to follow the Reference Frame

It helps to position HR as a value-adding partner of the organization. HR is able to relate to organization's ROI, quality, productivity, services, and profitability. Such an attitude helps HR link with the organization's internal clients.

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Designing a Measurement System That Works

Until the mid-1980s there was no standard language that discussed performance across HR programs.

In 1984, American Society for Personnel Administration (ASPA), now the Society for Human Resource Management (SHRM), supported the Saratoga Institute to assemble 15 HR professionals to develop the first set of formulas for measuring HR functions.
Over the years there have been changes in the initial set and by the turn of the century, this methodology has been adopted over in a dozen countries in every continent.
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After 15 years of inception, it is the worldwide standard for measuring and evaluating human capital performance. It started with 30 metrics and has grown to more than 75. With permutations and combinations, over 250 metrics are currently available. The global database includes data for approximately 1,000 organizations. Every business depends on its customers for survival, and thinking of HR as a business, the most important measure is managements satisfaction with HR. The problem occurs when the internal department customer is dissatisfied with HRs service. 18

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There is a significant trend toward outsourcing staff services because management it can control costs and relieve itself of a function that does not add tangible value. Measuring Customer Satisfaction: There is no shortage of customer satisfaction surveys on the market. The essential point is to use a consistent set of questions so that HR can track trends and progress. The Saratoga Institute has designed a survey that can be used for the staff and can be modified for external customers. Examples of the questions are as follows: i. What are your expectations of HR? ii. What do they do that you like? iii. What do they do that you dont like? iv. What really excites and pleases you?
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The human desire for social and business interaction has not changed. The golden rule is that everyone wants integrity, responsiveness, reliability, competence and empathy. If customers are treated with care, they will happy and satisfied.

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HRs Role in the value chain

4 points are linked components of the value chain:
Process Outcome Impact Value Added

Recruitm ent

Talent Acquisiti on

Higher Producti vity

More Profits

The objective is to develop ways to measure, evaluate HR processes, outcomes and their ultimate value. Difference between outcome improvement is the impact. and outcomes before the process

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The Objective is Results, Not Activity

Who are managers? A manager can be defined as a person who gets things done by directing other people, working with people to get results. Many companies has outsourced its HR function. There was lot of movement but no visible value added. The focus was on activity, whereas HR want to fix attention on results.

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One way to keep focused on results is to do a functional analysis.

A example of a functional analysis is staffing, one of the many HR

activities. There are many tasks and processes in acquiring a new hire.

The variable that ultimately makes or breaks the department is results or

outcome.

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Fig : Functional Analysis : The Staffing Function

Activities

General Recruitment

College Recruitment Contact placement Offices Schedule campus interviews Invite to visit company Refer Reject Make offers and profits

transfers Post jobs Screen Counsel Interview Etc.

Tasks/processes Write and place ads Contact agencies Post on job boards Promote employee referrals Schedule interviews

Impact on production

Results

Hires

Hires

Placement counseling

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What did the process cost? How much time did it take?

What was the quality of the process and the hires by source?
How many hires did we obtain from each source? How satisfied with the process and results were the applicants and the

hiring managers?
All these questions should be answerable in terms of how they compare with pervious periods.

The things we get paid to do well ; they are the objectives of our jobs.
When we prove that we achieved positive results in key areas, we will establish ourselves as valued members of the management team.

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Two Purposes of Hr Measurement

HR is two phase skill. First phase-it is necessary to develop data about our performance in form that is meaningful to our audience. 3audiences HR Department Various department and managers Senior management Second phase-if you want to tap into that power, we have to inform and persuade the people who hold it.

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Any object, issue, act, process or activity that can be described in terms of observable variables is subject to measurement. A phenomenon can be evaluated in terms of cost, time, quality, quantity or human reaction.

What is worth measuring??

Measurement will accept progress in lieu of perfection.

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Reporting
Report have two purposes They inform They persuade Characteristics of Report Report should tell the story Report should convince the audience. The audience should be able to grab and hold their attention. Audience should clearly and easily comprehend and appreciate the report.

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Remember: We can do great job, but if we cannot tell the story effectively, we will never get credit for our accomplishments.

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THANK YOU