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

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