activities of hr
DESCRIPTION
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 PresentationTRANSCRIPT
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
ObjectivesAfter reading this chapter, you should be able to:
Chapter
1. Describe the roles that HR plays in firms today and the categories of HR activities.
2. Discuss how the HR function can define its mission and market.
3. Explain the approaches to evaluating the effectiveness of HR practices.
4. Describe the new structure for the HR function.
5. Relate how process reengineering is used to review and redesign HR practices.
6. Discuss the types of new technologies that can improve the efficiency and effectiveness of HR.
7. Describe how outsourcing HR activities can improve service delivery efficiency and effectiveness.
Strategically Managing the HR Function
16
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Activities of HR16-2
Irwin/McGraw-Hill
Transactional
Traditional
Transformational
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Customer-Oriented Perspective of the HRM Function
16-3
Irwin/McGraw-Hill
Customers•Line managers•Strategic partners•employees
HR Function
Technology
•Staffing
•Performance Management
•Rewards
•Training & Development
Customer Needs
• committed employees
•competent employees
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Measuring Human Resource Effectiveness: Why Do It?
16-4
Irwin/McGraw-Hill
Market the function Provides accountability
Market the function Provides accountability
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Evaluating Human Resource Practices: Approaches
16-5
Irwin/McGraw-Hill
Audit approachreviews outcomes of HR functions
Analytic approachdetermines whether program had
intended effectestimates costs / benefits of program
� human resource accounting� utility analysis
Audit approachreviews outcomes of HR functions
Analytic approachdetermines whether program had
intended effectestimates costs / benefits of program
� human resource accounting� utility analysis
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Auditing Examples of Key Indicators and Customer Satisfaction Measures for
HRM Functions
16-6
Irwin/McGraw-Hill
Key IndicatorsCustomer Satisfaction MeasuresStaffing
- 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
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
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
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
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
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Example of Cost-Benefit Approach for a Selection Test
16-9
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
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Improving HRM Effectiveness16-10
Irwin/McGraw-Hill
RestructuringOutsourcingProcess Redesign
RestructuringOutsourcingProcess Redesign
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
The Reengineering Process16-11
Irwin/McGraw-Hill
Identifythe
process to be reengineered
STEP 1
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
The Reengineering Process16-12
Irwin/McGraw-Hill
Understand the process
STEP 1
STEP 2
- 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?
Identifythe process
to bereengineered
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
The Reengineering Process16-13
Irwin/McGraw-Hill
Identifythe process
to bereengineered
Understandthe process
Redesignthe
process
STEP 1
STEP 2
STEP 3
- develop models- test models- choose prototype- integrate prototype
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
The Reengineering Process16-14
Irwin/McGraw-Hill
Identifythe process
to bereengineered
Understandthe process
Redesignthe
process
STEP 1
STEP 2
STEP 3
STEP 4
Implementthe
new process
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
The Reengineering Process16-15
Irwin/McGraw-Hill
Identifythe process
to bereengineered
Understandthe process
Redesignthe
process
STEP 1
STEP 2
STEP 3
STEP 4
Implementthe
new process
feedback
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Using New Technologies to Improve HRM Effectiveness
16-16
Irwin/McGraw-Hill
Interactive Voice TechnologyInternetNetworks & Client-Server ArchitectureRelational DatabasesImagingExpert SystemsGroupware
Interactive Voice TechnologyInternetNetworks & Client-Server ArchitectureRelational DatabasesImagingExpert SystemsGroupware
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Software Applications for HRM16-17
Irwin/McGraw-Hill
Staffingapplicant recruiting & trackingEEO & AA reportsDeveloping a master employee database
Human Resource Planningsuccession planningforecastingwork-force profile analysiswork-force dynamics analysis
Performance ManagementTraining & Career DevelopmentCompensation & Benefits
payrolljob evaluationsalary surveys & planninginternational compensationbenefits management
Staffingapplicant recruiting & trackingEEO & AA reportsDeveloping a master employee database
Human Resource Planningsuccession planningforecastingwork-force profile analysiswork-force dynamics analysis
Performance ManagementTraining & Career DevelopmentCompensation & Benefits
payrolljob evaluationsalary surveys & planninginternational compensationbenefits management
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Improving HRM Effectiveness Through E-HRM
E-HRM technology has freed HRM functions from transactional activities to focus on more strategic actions.
Examples include:Recruitment and selectionCompensation and rewardsTraining and development
16-18