Managing and Co-ordinating the Human Resources

Function (5MHR)

Cohort: Waterloo

Tutor: Michelle Maunder

Learning Outcomes

1.Be able to explain the purpose and key objectives of the HR function in contemporary organisations.

2.Understand how HR objectives are delivered in different organisations.

3.Understand how the HR function can be evaluated in terms of value added and contribution to sustained organisation performance.

4.Understand the HR function's contribution to effective change management.

5.Be able to explain the role of ethics and professionalism in HR management and development

6.Understand the relationship between organisational performance and effective HR management and development.

Learning Outcome 3

LO3: Understand how the HR function can be evaluated in terms of value added and contribution

to sustained organisation performance

3.1 Describe the major criteria used to evaluate the contribution of the HR function and of HR policies and

practices

3.2 Assess the major methods used to evaluate the contribution made by HR

Human Capital Management

You cannot manage unless

you measure

But the measuresmust be

meaningful

And they must lead to action

This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice, 11th edition, as part of their course. For more academic resources and other FREE material, please visit www.koganpage.com/resources and then click on Academic Resources.

Measurements

Service level agreements (SLA’s)Key Performance Indicators (KPI’s)

Delivery of strategic objectives Use of HR metrics

Data gatheringBenchmarking

Balanced score cardStaff surveys

Risk managementLine manager & Employee feedback.

Key Performance Indicators (KPIs)

Performance measures for organisations. HR indicators could include:

• Reduce absence by 10% by 2014• Reduce the recruitment budget by 10% in 12 months

• ???

Human Capital Management

Retention & utilisation of skills (Human Capital)

Intellectual: flow of knowledgeSocial: knowledge from networks

Organisational: institutionalised knowledge

Human Capital Management

Factors impacting on measurement

Type of organization; business goals/driversExisting KPIs

Use of balanced scorecardThe availability of data

Financial perspectiveHow do we appear to

our shareholders?

Customer perspectiveHow do customers see us?

Innovation and learning (people) perspective

Can we continue to improve and add value?

Internal perspectiveWhat must we excel at?

Balanced Scorecard

Human Capital Management

Human capital index - Watson

Wyatt

•Total rewards•Flexible workforce•Recruitment/

retention•Communication

Organisational performance

model - Mercer HR Consulting

• People• Work processes• Information• Knowledge• Decision making• Rewards

The human capital monitor -

Andrew Mayo

• Capability • Potential to grow• Performance• Contribution• Leadership• Motivation• Learning

Evaluating Success

Resourcing – advertising costs, recruitment success rates, selection process in relation to future performance, induction resulting in higher

retention

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