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eHR
Evaluating HR Effectiveness
Chapter 29
The e-HR
Lecture Overview
•Nature of e-HRM
•Implication of e-HRM
•e-Recruitment
•e-Selection
•e-Performance Management
•e-Compensation
•e-Learning
Nature of e-HR•Use of internet and related technology to perform HR functions is called e-HR
•e-HR can provide more accurate and timely data for decision making in recruitment, promotion, training and development, performance appraisal, compensation management, termination, and administrative matters
HRM Practices Implications of e-HR
Job analysis and work design
Employees in geographically dispersed locations can work together in virtual teams using video, email, and internet
Recruiting Post job opening online, candidate can apply for jobs online
Selection Online simulations, including test, videos, and email, can measure candidates’ abilities to deal with real life business challenges
Training Online learning can bring training to employees anywhere anytime
Compensation and benefits
Employees can review salary and bonus details and seek information about and enroll in benefit plans
Source: Aswathappa. Human Resource Management, Text and Cases, 2008, p. 691p. 333
e-HR Activities
e-Recruitment
•Also called online recruiting
•Benefits of e-recruitment are reduced cost, wide reach, decreased cycle time, and less burden on administrative work
•Few disadvantages of e-recruitment are misuse of confidential data by companies, potential candidate may be unwilling to apply due to privacy issues, candidate does not have internet access
e-HR Activities
e-Recruitment
•Guidelines for e-recruitment
1.Company with good reputation can attract more candidates
2.Should not be used as only source
3.Website should be user-friendly
4.Develop online screening system
5.Provide adequate information about company and job
6.Protect privacy of data
7.Take care of language and legal requirements
e-HR Activities
e-Selection
Web based testing, interview and job offering
e-selection process flowchart
Candidate (C) enter resume
(C) Reads instructions and takes test
TA give disqualified result to (C)
Recruiter (R) screen resumes
(R) calls/emails (C) and schedules test
Test administrator (TA) conduct test
(C) Takes second round of test
TA give (C) result feedback and inform (R). (R) then call (C) for interview
(R) Schedule interview with hiring manager
Fail
Fail
Pass
PassHiring manager conduct interview
(R) give job offer to (C)
(R) informs (C) that did not qualify
Fail
Pass
Source: Aswathappa. Human Resource Management, Text and Cases, 2008, p.2. 333
e-HR Activities
e-Performance Management
•Technology facilitates measuring performance of employees
•Make easy writing performance evaluation report and giving performance feedback
•Softwares are available that make task of performance appraisal more easy, spot poor performers, identify competency gaps, and determine pay related to performance
•e-Compensation•Use of internet and stand alone software to gather, store, analyze and distribute compensation information
e-HR Activities
e-Learning
•Use of internet and intranet for training
•Large number of employees can be given training irrespective of geographical location and at anywhere any time
e-learning advantages e-learning disadvantages
Trainee can proceed on their own time
Not all trainees may be ready for e-learning
Allow consistency in the delivery of training
Not all trainees have expertise and access to internet/computer
Incorporated built in guidance and help for trainee to use when require
Not appropriate for all types of training (for example leadership and cultural change)
Relatively easy for trainer to update contents
Requires cost and time to build e-learning system
Can be used to enhances instructor led training
No evidence for greater learning
Summary
Nature of e-HRM
Implication of e-HRM
e-Recruitment
e-Selection
e-Performance Management
e-Compensation
e-Learning
Chapter 26
Evaluating HRM Effectiveness
Lecture Overview
•Nature of HR evaluation
•Need for HR evaluation
•HR evaluation framework
•Approaches to Evaluation
Nature of HR Evaluation
It is procedure to calculate value addition of HR practices to the organization
Reasons to evaluate HR practices
•Promotion of HR functions through bottom line impact on cost cutting measures and turnover
•Promoting change
•Highlighting key HR practices
•Evaluating performance of HR functions
•Contribution of HR department in realizing organizational objectives
Evaluation Framework
Individual employee performance
indicators•Absenteeism•Accidents•Separation•Motivation•Commitment•Morale
Group performance indicators
•Interpersonal relations•processes
Organizational performance
indicators
•Costs•Quality•Productivity•Market share•Profits•ROI
HRM
•Policies•Principles•Practices•Systems
Adopted from: Aswathappa. Human Resource Management, Text and Cases, 2008, p. 626. 333
Approaches to HR Evaluation
Benchmarking
Balanced scorecard
HRM evaluation approaches
Qualitative
Audit
Analytical
Adopted from: Aswathappa. Human Resource Management, Text and Cases, 2008, p. 627. 333
Approaches to HR Evaluation
1) Audit Approach
HR audit evaluate overall effectiveness of HR functions like financial audit
Benefits of HR audit
•Provide verifiable data on HR functions
•Clarifies HR functions responsibilities and duties
•Identifies HR problems
•Reduce HR costs
•Review and improve HRIS
•Improve status of HR functions
Approaches to HR Evaluation
1) Audit Approach
Human Resource Functions
Managerial compliance
Employee satisfaction
Corporate strategy
Comparison
Outside authority
statistical
MBO
compliance
Human Resource Research
Evaluation Report
Adopted from: Aswathappa. Human Resource Management, Text and Cases, 2008, p. 628 333
Common areas of HR research•Wage survey•Effectiveness of recruitment sources•Effectiveness of training efforts•Survey of supervisor effectiveness•Job analysis•Job satisfaction survey•Survey of employee needs•Attitude survey toward reward•Accident frequency
Approaches to HR Evaluation
2) Analytical Approach•It focus on cost benefit analysis therefore also called utility analysis
•Evaluation is more focus on economic terms and quantification of results
•It is difficult to conduct
3) Qualitative Indices
•Behavioral indicators like employee loyalty, interpersonal skills, teamwork, organizational commitment, attitudes, and morale assist to evaluate HR effectiveness
Approaches to HR Evaluation
4) Balance Score Card
•Developed by Kaplan and Norton in 1993
•Tool to evaluate strategies and control
•The name originate with the efforts to balance financial measures/objectives with non financial measures/objectives
•BSC contains four dimensions financial performance, customer service, internal business processes, and ability to learn and grow
•HR evaluation focus on all four dimensions to measure and evaluate the performance of HR department/manager not only HR aspect like employee satisfaction and performance
Approaches to HR Evaluation5) Benchmarking•Following “best practices” or standards in industry
•Benchmarking help managers to learn from best practices of successful organization
•It also identify the gaps where HR need to focus or put more emphasizes
•Xerox learn from L.L. Bean order fulfillment process and reduce warehouse cost by 10 percent. GE adopted best management practices
Identify HR practices for benchmark
Establish core team
Select benchmarking partners
Collect the data
Analyze the data
Prepare report Implement action plans
Benchmark process
Adopted from: Aswathappa. Human Resource Management, Text and Cases, 2008, p. 631 333
Summary
Nature of HR evaluation
Need for HR evaluation
HR evaluation framework
Approaches to Evaluation
Thank You