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Activities of HR. 16-2. Transformational. Traditional. Transactional. Irwin/McGraw-Hill. Customer-Oriented Perspective of the HRM Function. 16-3. Customers Line managers Strategic partners employees. Technology Staffing Performance Management Rewards Training & Development.

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Activities of hr
Activities of HR

16-2

Transformational

Traditional

Transactional

Irwin/McGraw-Hill


Customer oriented perspective of the hrm function
Customer-Oriented Perspective of the HRM Function

16-3

  • Customers

  • Line managers

  • Strategic partners

  • employees

  • Technology

  • Staffing

  • Performance Management

  • Rewards

  • Training & Development

  • Customer Needs

  • committed employees

  • competent employees

HR Function

Irwin/McGraw-Hill


Measuring human resource effectiveness why do it
Measuring Human Resource Effectiveness: Why Do It?

16-4

  • Market the function

  • Provides accountability

Irwin/McGraw-Hill


Evaluating human resource practices approaches
Evaluating Human Resource Practices: Approaches

16-5

  • Audit approach

    • reviews outcomes of HR functions

  • Analytic approach

    • determines whether program had intended effect

    • estimates costs / benefits of program

      • human resource accounting

      • utility analysis

Irwin/McGraw-Hill


Auditing examples of key indicators and customer satisfaction measures for hrm functions
Auditing Examples of Key Indicators and Customer Satisfaction Measures for HRM Functions

16-6

Key Indicators

Customer Satisfaction Measures

Staffing

- Average days to fill position

- Ratio of acceptances to offers

- Ratio of minority / women to

representation in labor market

- Treatment of applicants

- Per capita recruitment costs

- Average years of education

per job family

- Anticipation of personnel needs

- Timeliness of referring qualified

candidates to supervisors

- Skill in handling terminations

- Adaptability to changing labor

market conditions

Equal Employment Opportunity

- Ratio of EEO grievances to

employee population

- Minority representation by

EEO category

- Minority turnover rate

- Resolution of EEO grievances

- Daily assistance provided by HR

department in implementing AA

- Aggressive recruitment to identify

qualified women/minority applicants

Irwin/McGraw-Hill


Auditing examples of key indicators and customer satisfaction measures for hrm functions1
Auditing Examples of Key Indicators and Customer Satisfaction Measures for HRM Functions

16-7

Key Indicators

Customer Satisfaction Measures

Compensation

- Per capita merit increases

- Ratio of reclassification to total

employees

- Competitiveness in labor market

- Percentage of overtime hours to

straight time

- Ratio of average salary offers to

other firms in community

- Fairness of existing job evaluation

systems in assigning grades & pay

- Relationship between pay and

performance

- Employee satisfaction with pay

Benefits

- Average unemployment compen-

sation payment

- Average workers’ compensation

payment

- Benefit cost per payroll dollar

- Promptness in handling claims

- Fairness in application of policies

- Communication of benefits

- Assistance to line managers in

controlling unnecessary claims

Irwin/McGraw-Hill


Auditing examples of key indicators and customer satisfaction measures for hrm functions2
Auditing Examples of Key Indicators and Customer Satisfaction measures for HRM Functions

16-8

Key Indicators

Customer Satisfaction Measures

Training

- % of employees participating

per job family

- % receiving tuition refunds

- Training dollars per employee

- How well programs meet needs of

employees and company

- Communication about available

training opportunities

- Quality of orientation program

Employee Appraisal

and Development

- Distribution of appraisal info.

- Appropriate dimensions on

appraisal forms

- Ratio of promotions to employees

- Ratio of openings filled internally

to externally

- Assistance in identifying potential

- Organizational development activities

provided by department

- Number of promotions from within

- Counseling provided to employees

in career planning

Irwin/McGraw-Hill


Example of cost benefit approach for a selection test
Example of Cost-Benefit Approach for a Selection Test Satisfaction measures for HRM Functions

16-9

Cost-Benefit Information

Test Information

Current employment 4,404

Number separating 618

Number selected 618

Average tenure 9.69 years

Number of applicants 1,236

Testing cost per applicant $10

Total test cost $12,360

Average test score .80 SD

Test validity .76

SD (per year) $10,413

Computation

Quantity = Average tenure x Applicants selected

= 9.69 years x 618 applicants

= 5,988 person-years

Quality = Average test score x test validity x SDy

= .80 x .76 x $10,413

= $5,331 per year

Utility = ( Quantity x quality ) - costs

= (5,988 person-year x $5,331 per year) - $12,360

= $37.9 million

Irwin/McGraw-Hill


Improving hrm effectiveness
Improving HRM Effectiveness Satisfaction measures for HRM Functions

16-10

  • Restructuring

  • Outsourcing

  • Process Redesign

Irwin/McGraw-Hill


The reengineering process
The Reengineering Process Satisfaction measures for HRM Functions

16-11

STEP 1

Identify

the

process to be reengineered

Irwin/McGraw-Hill


The reengineering process1
The Reengineering Process Satisfaction measures for HRM Functions

16-12

STEP 1

STEP 2

Identify

the process

to be

reengineered

- can jobs be combined?

- can employees have more autonomy?

- are all the steps needed?

- is there redundancy?

- how many exceptions are there?

- are steps in proper order?

- what is the desired outcome?

Understand

the process

Irwin/McGraw-Hill


The reengineering process2
The Reengineering Process Satisfaction measures for HRM Functions

16-13

STEP 1

STEP 2

STEP 3

Identify

the process

to be

reengineered

- develop models

- test models

- choose prototype

- integrate prototype

Understand

the process

Redesign

the

process

Irwin/McGraw-Hill


The reengineering process3
The Reengineering Process Satisfaction measures for HRM Functions

16-14

STEP 1

STEP 2

STEP 3

Identify

the process

to be

reengineered

Understand

the process

STEP 4

Redesign

the

process

Implement

the

new process

Irwin/McGraw-Hill


The reengineering process4
The Reengineering Process Satisfaction measures for HRM Functions

16-15

STEP 1

STEP 2

STEP 3

Identify

the process

to be

reengineered

Understand

the process

STEP 4

Redesign

the

process

Implement

the

new process

feedback

Irwin/McGraw-Hill


Using new technologies to improve hrm effectiveness
Using New Technologies to Improve HRM Effectiveness Satisfaction measures for HRM Functions

16-16

Interactive Voice Technology

Internet

Networks & Client-Server Architecture

Relational Databases

Imaging

Expert Systems

Groupware

Irwin/McGraw-Hill


Software applications for hrm
Software Applications for HRM Satisfaction measures for HRM Functions

16-17

  • Staffing

    • applicant recruiting & tracking

    • EEO & AA reports

    • Developing a master employee database

  • Human Resource Planning

    • succession planning

    • forecasting

    • work-force profile analysis

    • work-force dynamics analysis

  • Performance Management

  • Training & Career Development

  • Compensation & Benefits

    • payroll

    • job evaluation

    • salary surveys & planning

    • international compensation

    • benefits management

Irwin/McGraw-Hill


Improving hrm effectiveness through e hrm
Improving HRM Effectiveness Through E-HRM Satisfaction measures for HRM Functions

16-18

  • E-HRM technology has freed HRM functions from transactional activities to focus on more strategic actions.

  • Examples include:

    • Recruitment and selection

    • Compensation and rewards

    • Training and development


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