Presentation On Evaluation of Strategic Human Resource Management

Made by Kanika singhal Saloni mahajan

Human Resource Evaluation: Definition

To evaluate means to determine the value of. HR Evaluation refers to determining the value of HR for achieving organizational goals. Bratton defined HRM Evaluation as the procedures and processes that measure, evaluate, and communicate the value added of human resource management practices to the organization.

Benefits of HR Evaluation
The promotion of change by identifying strengths and weaknesses; An assessment of the performance of HR function; A demonstration of the bottomline contribution of the HR function through, for example, reduced turnover; and A demonstration of the functions role in the achievement of organizational

Essential to answer questions such as

What should be evaluated- the overall HR effectiveness of the HR function? What should be evaluated- HR activities and practices , or the impact of HR policies on the organization and employees? What should be evaluated- HR practices, the HR departments, or HR professionals? What should be the level of analysis in HRM evaluation within the organizational structure?

Scope of evaluation
1. Overall HR effectiveness - which includes turnover, workers compensation claims, employee satisfaction, etc. It is influenced by performance of line managers of the firm. 2. Narrow evaluation of HR effectiveness affected only by performance of HR staff or personnel which may be misleading and suggest that HRM is sole responsibility of HR department.

Focus
HR department HR professional HR practices

Strategic linkage
HRM function changed from having a reactive approach to having a proactive approach. This change is accompanied with a change in the focus of HRM evaluation.

Level of analysis
Strategic level objective is to determine consistency between HR policies and company strength. Management level focus is on control Operational level focus is on quality of HR services and programmer.

Evaluation criteria
Outcomes end results or products of work. Processes behaviors or activities performed to reach the outcomes. For eg; turnover rate, productivity ratio of firm etc.

Linkage between HRM and Firms performance

HR practices Training Performance appraisal Communication Rewards HR climate Proactive Openness Risk taking

 HR outcomes Teamwork Commitment Job satisfaction

Organizational effectiveness Higher productivity More profits Cost reduction

Factors influencing organizational effectiveness are Environment Technology Resource availability

Model of Linkage between HRM and Firm performance

HRM practices, programmes, policies, systems HR/Employee performance measures Individual Groups Organizational Performance Measures

Operating performance Financial performance Other factors Economy Technology industry

Measurement problems in determining HR-Firm performance relationship

Firms performance are quantitative and financial. Disconnect between what is measured and what is important. inaccuracy of measurement of variables. Difficult to demonstrate a causal link. Influence of extraneous variables. For example exchange rates

Rationale for HR Evaluation

Competition Bench marking Employment contract