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Evaluating HRM Effectiveness
Creating and implementing a high-performance work system strategy can help contribute to organizational profits. However, human resource management (HRM) practices must support the high-performance work system. Evaluations of the effectiveness of HRM practices provide evidence that the function is meeting its objectives and delivering economic value to the organization.
Read the section “Effectiveness of Human Resource Management” about the different ways to measure the effectiveness of HRM. An HRM audit is a formal review of the outcomes of HRM functions, such as staffing, compensation, benefits, training, and performance management, against specific performance indicators. Another way to measure HRM effectiveness is to analyze specific programs or activities. The analysis can measure a program’s success in terms of whether it achieved its objectives and whether it delivered value in an economic sense.
Read the case below and answer the questions that follow.
Robert Soolah is director of HR for a fictional company that creates information technology products and solutions. Recently, the company acquired a mid-sized software manufacturer. After the acquisition, Robert realized that the culture within his organization was changing due to the competition among the “old” and “new” employees. Robert decided to implement a series of HR initiatives aimed at increasing the collaboration among all employees and creating a culture of team-building and respect. He designed an interpersonal skills training course that focused on positive communication and collaboration. He created an internal website where employees could voice their concerns about the acquisition and ask questions about future roles and the direction of the organization. He produced a 360-degree performance feedback system that gave both old and new employees an opportunity to evaluate their colleagues. Finally, he added a team-based incentive to the compensation program to reward employees based on meeting group goals. Six months after initiating these practices, he wants to evaluate and report on their effectiveness.
What type of data should be collected for this evaluation?
The costs associated with each of the programs
Salary info from competitors
Surveys of top executives
What should be the focus of the evaluation?
Reviewing key indicators of success
Evaluating staffing procedures
The cost of the new programs
Whether the revised practices can be implemented
How should you analyze the information provided by the evaluation?
Share results with professional colleagues
Ask executives for recommendations
Review employee comments and suggestions
Hire an HR consultant to evaluate the data
Use detailed statistics and finances to look for trends
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