Evaluating HRM's contribution to Organisational Effectiveness

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1. Table of Contents 1. Table of Contents 2 2. Introduction 3 3. Reasons for Measuring 3 4. Indicators of HRM 4 5. Measuring HRM 4 6. Conclusion 8 7. Bibliography 9 2. Introduction Human Resource Management is a key component in the maintenance and utilization of an effective workforce. HRM includes myriad activities ranging from recruitment to training and even the development of compensation systems. HRM has evolved significantly since the early 1900s. The need to deal with labor unions and the human relations movement has increased the need for competent human resource professionals (Dessler, 2002). 3. Reasons for Measuring Human resource managers are required to balance the requirements of management against those of the…show more content…
Benchmarking "Benchmarking is a systematic process of measuring an organization's products, services, and practices against those of a like organization that is a recognized leader in the studied area" (Phillips et al, 2001). Organisations across industries and geographical boundaries are using this practice to discover ways of improving service and increasing business efficiency and profitability. Strategic Analysis Balanced Scorecard/Balanced Measures The Balanced Scorecard is a strategic measurement approach that provides a method of aligning business activities with the organization's strategic plan and monitoring performance of strategic goals over time. A set of balanced measures is used, rather than focusing on the single, traditional bottom line. The original scorecard developed by Kaplan and Norton (2004) was divided into five perspectives (or measurement areas): 1. Financial: Demonstrates how our initiatives, activities, and actions contribute to the organization's bottom line, or how they provide value for the money spent. Cost and revenue are the main measures for this perspective. Labour costs expressed as a fraction of revenues is a common financial measure. 2. Customer: Tells us what we must do to meet the needs of our internal and external customers. Time, quality, performance and cost are the main areas in which customers are
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