O bjectives Afterreading this chapter,you should be able to: C hapter 1. D escribe the rolesthatH R playsin firm stoday and the categoriesofH R activities. 2. D iscusshow the H R function can define itsm ission and m arket. 3. Explain the approachesto evaluating the effectivenessof H R practices. 4. D escribe the new structure for the H R function. 5. R elate how process reengineering isused to review and redesign H R practices. 6. D iscussthe typesofnew technologiesthatcan im prove the efficiency and effectiveness ofH R . 7. D escribe how outsourcing H R activitiescan im prove service delivery efficiency and effectiveness. Strategically M anaging the H R Function 16
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. - PowerPoint PPT Presentation
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- 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
Auditing Examples of Key Indicators and Customer Satisfaction Measures for
HRM Functions
16-7
Irwin/McGraw-Hill
Key Indicators Customer Satisfaction MeasuresCompensation- 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
Auditing Examples of Key Indicators and Customer Satisfaction measures for HRM
Functions
16-8
Irwin/McGraw-Hill
Key Indicators Customer Satisfaction MeasuresTraining- % 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 Appraisaland 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
Example of Cost-Benefit Approach for a Selection Test
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Irwin/McGraw-Hill
Cost-Benefit Information Test Information Current employment 4,404Number separating 618Number selected 618Average tenure 9.69 years
Number of applicants 1,236 Testing cost per applicant $10Total test cost $12,360Average test score .80 SDTest validity .76SD (per year) $10,413
ComputationQuantity = Average tenure x Applicants selected = 9.69 years x 618 applicants = 5,988 person-yearsQuality = Average test score x test validity x SDy = .80 x .76 x $10,413 = $5,331 per yearUtility = ( Quantity x quality ) - costs = (5,988 person-year x $5,331 per year) - $12,360 = $37.9 million
- 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?