Table of Contents
Metrics, measures, and tools used for evaluating the HRM’s effectiveness
Previously, the HR professionals were not able to assess the effectiveness of their strategies, robustly. However with time, things changed and various new tools rolled out for assisting the HR professional to do the same. For instance, different IT tools are utilised nowadays, for supporting the decision-making process. In fact, one of the most popular tools for evaluating the business performances is the balanced scorecard. There are four main perspectives that are addressed by the balanced scorecard; these perspectives include internal business, financial, learning and innovation, and customers (Levenson, 2014). Most importantly, the balanced scorecard can be used for several purposes such as a single project or an entire organisation. Apart from all these things, the HR managers can also witness how their intense efforts are reflected within the organisations via the scorecards.
Questions that the HR leaders and associates can answer from their own performances in respect of HRM’s effectiveness
There are many questions which the HR professionals might encounter and solve while utilising the tools mentioned above. For example, they can interrogate the aspects required for improving the HRM’s impact regarding the leadership and organisational contexts. On the other hand, there is also opportunity to ask about the usage of various business performance-measurement tools. On the contrary, these questions are answerable only when human capital management concept comes to the forefront. It is also known as HCM (Coe and Letza, 2014). Alternatively, according to many experts, it is nothing but an effective substitute for traditional HRM. As a result, the HCM is more strategic than its former counterpart.
Types of information available pertaining to the business performance and effectiveness of HRM
The organisation hardly provides reliable information for analysing each employee’s performances within it (Rousseau and Barends, 2011). Moreover, the promotion and selection decisions are interlinked with the competency level of the employees. For example, if the best and talented employees are hired by the HR of an organisation they are bound to provide maximum results regarding the company.
It is not possible to improve management practices without having enough information about the managerial structure, work processes, people, decision-making, rewards, and several other familiar aspects. For example, if there is no data regarding the monetary as well as non-monetary rewards within an organisation, it is not possible to improve the same at any instance. Even one must know about the employee discretion, span of control, and other structures related to management for improving the same.
Certain other types of information such as new data access can help in HR strategy implementation within a company (Kim, 2010). For instance, to what extent the employees can maintain their work-life balance can be better understood from their social media network profiles as well. Knowledge management is an integral concept that can be largely applied in the field of human resource management. The user-driven information exchange including the cultural, geographical, and functional boundaries can be witnessed in an employee’s LinkedIn or other similar profiles.
On the contrary, the management practices can be boosted only if the three contributors of high-performances can be brought together, for example, capability, job design, and attitudes (Armstrong and Taylor, 2014). The two aspects such as attitudes and capabilities can be witnessed from the employees’ end while job design must be done judiciously by an organisation’s HR team.
- Armstrong, M. and Taylor, S., 2014. Armstrong’s handbook of human resource management practice. London: Kogan Page Publishers.
- Coe, N. and Letza, S., 2014. Two decades of the balanced scorecard: A review of developments. The Poznan University of Economics Review, 14(1), pp.63-69.
- Kim, Y., 2010. Measuring the value of succession planning and management: A qualitative study of multinational companies. Performance Improvement Quarterly, 23(2), pp.5-31.
- Levenson, A. 2014. The promise of big data for HR. HR People & Strategy, 36(4), pp. 23-30.
- Rousseau, D.M. and Barends, E.G., 2011. Becoming an evidence‐based HR practitioner. Human Resource Management Journal, 21(3), pp.221-235.