2. Evaluation of HR – Why evaluate?

3. What is meant by evaluation?
“A set of planned, information gathering, and analytical activities undertaken to provide those responsible for the management of change with a satisfactory assessment of the effects and/ or progress of the change effort” (Beckhard, R., & Harris R.T. 1977)

4. Why Evaluate HR? Determine future investments in HR
Improve HR processes
Identify alignment of HR with business strategies
Build intellectual capital within the organisation
Stop doing what isn’t effective
Be accountable to stakeholders and ensure employee and management accountability
Reflect on and improve the overall climate and health of the organisation
Avoid fads and ‘flavours of the month’
Lead the organisation in keeping employees motivated and productive
Improve HR’s image within the organisation

5. HR Metrics
A study by Benabou (1996)identified that many HR measures are activity based rather than performance based. Even when the measures used are performance based, there’s virtually no way to show that the outcome measures result from something that HR has done

6. Metrics currently used in HR departments
Employee attitudes
Employee turnover
Satisfaction with HR service
HR transactions processed
Training utilisation
Training programme effectiveness
Promotions
Employee skills levels
HR consulting services utilisation

7. Is there a perfect solution?
There will never be a perfect solution to the complex question of HR evaluation. No matter what approach is chosen there will always be problems. However there are strengths and weaknesses to some common approaches which can be utilised

8. Kirkpatrick’s four levels of Evaluation (50’s, 60’s, last updated 1998
1. Reactions (usually measured by a short survey, though focus groups are sometimes used)
2. Learning (usually measured with a written test or demonstration of performance)
3. Behaviour (based on observations of supervisor, a third party, or self-report)
4. Organisational Impact (bottom-line measures)

9. benefits
There are many reasons why Kirkpatrick’s model has proven to be so capable of withstanding decades of use and review. Perhaps the two most common are that it is simple and easy to understand
The levels are well understood, providing the profession with a common vocabulary
There is also the implication of a systems perspective because the system is multivariate and explores a variety of outcomes that one might expect from an HR intervention, in particular (Strategic HR Review 2005)

10. Weaknesses
• Lack of research validation • The term “level” is inappropriate; one level doesn’t necessarily lead to the next • No help in identifying how to do level four, by far the most important and most difficult of the four levels • Simplistic; a taxonomy (contents) rather than a model • Designed primarily for evaluating training and may not fit other HR functions very well

11. Discuss the strengths and weaknesses of the following
Service level agreements
Key performance indicators
Benchmarking
Balanced score card
Staff surveys
Line manager/employee feedback
Risk management
Data gathering

12. HR’s strategic imperatives
There are advantages and disadvantages to each approach to evaluation. There are areas which have been identified which can help HR to be the most effective in performing its functions

13. What does hr need to do?
Tie every HR activity to the company’s strategy
Know what management expects from HR and deliver it
Work strategically with partners in the company
Measure what is important to management
Share the outcomes of effective HR widely within the organisation

14. Conclusion
HR specialists know how important HR are to an organisation; as HR professionals, they have the obligation to ensure that management also knows how important HR are
HR must use what they know, provide effective evaluation and avoid fads and traditions that don’t work well
HR that isn’t business driven will not survive – that is not good for the organisation, for it’s people or for HR professionals!