Eng Mgt 6113

Advanced Personnel Management

(Strategic Human Resource Management & Measurement)

Making HR Measurement Strategic

David G. Spurlock, Ph.D., Instructor
 Making HR Measurement Strategic

Decision Sciences & HR Measurement

Major theme is improving strategic decisions about
human capital & organizational effectiveness through
use of systematic measurement & analysis
Employees as investments not costs principle
implemented by most admired companies

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 Making HR Measurement Strategic

Decision Sciences & HR Measurement

Key idea: HR measurements ADDS VALUE by improving
vital decisions about talent and how it is organized
Consider chapter specific questions listed on pp. 3-4
Purpose of course is to help you see beyond nave, simple-
minded approaches often used by unsophisticated
management
I want to expose you to tools & ideas that can help free you
from being trapped in a Dilbert cartoon

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Making HR Measurement Strategic
Decision Sciences & HR Measurement
There are tools & techniques that comprise a decision
science for HR problems just as there are such
approaches for production, logistics, finance, accounting, &
marketing problems that youve encountered elsewhere in
your courses in the Eng Mgt curriculum
Many business leaders (even many in HR) just dont
know about these approaches, but you will after taking
this course
The key is to combine (1) valid, true, and adequately scoped
analytic frameworks (models) relating critical cause &
effect variables with (2) accurate & effective measurement
processes either of these two alone is not enough

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 Making HR Measurement Strategic

Decision Sciences & HR Measurement

Most of you will not work in any sort of primary HR capacity
in your careers
BUT- If you manage others in an organization, it may be
even more important for you to understand these
approaches than for HR specialists since non-HR
managers are usually the critical decision makers in the
selection, deployment, appraisal, and development of
talent
There are enormous scholarly literatures in many fields that
can inform the scientific practice of strategic HR dont be
ignorant of the potential answers to your problems

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 Making HR Measurement Strategic
Decision Sciences & HR Measurement
Three key concepts:
(1) Efficiency unit output or benefit achieved per unit
input of time, money, or other resources (e.g., some cost-
benefit metric)
(2) Effectiveness how successful an action or activity
is relative to (usually) predefined, relevant, & specific
goals (e.g., change in talent quality or organizational
characteristics)
(3) Impact how important some goal achievement is to
overall strategic organizational success

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 Making HR Measurement Strategic
Decision Sciences & HR Measurement
IMPORTANT to note that actions can be efficient without
being effective or can be effective without having much
of a strategic impact
Unfortunately many engineers & managers become overly
obsessed with efficiency and neglect the other two concepts
Current practices in most organizations are relatively
sophisticated about measurement of HR practices and
processes and even about measuring their efficiency largely
due to rapid advances in information technology in recent
decades
BUT widespread deficiencies exist in using HR measures
to drive strategic organizational change through better
decision making
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 Making HR Measurement Strategic
LAMP framework (fig. 1-3 on p. 10)
The right LOGIC (appropriate, causal logic models )
The right ANALYTICS (tools & techniques for making
VALID (rigorous) AND RELEVANT inferences from data:
proper use of statistics & other quantitative approaches);
NOTE that appropriately balancing rigor & relevance is
always important but sometimes difficult
The right MEASURES (precise, accurate, reliable, cost-
effective, BUT, most importantly, focused on what
MATTERS)
The right PROCESSES (socio-psychological & cultural
influence and communication processes can constrain the
usefulness of the other three elements so recognizing and
adapting the change management process is critical)
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END OF SLIDE SET

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