1. Evaluating HR Effectiveness
eHR
Evaluating HR Effectiveness

2. Chapter 29
The e-HR

3. Lecture Overview Nature of e-HRM Implication of e-HRM e-Recruitment
e-Selection
e-Performance Management
e-Compensation
e-Learning

4. 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, , and internet
Recruiting
Post job opening online, candidate can apply for jobs online
Selection
Online simulations, including test, videos, and , 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

5. 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

6. e-HR Activities e-Recruitment Guidelines for e-recruitment
Company with good reputation can attract more candidates
Should not be used as only source
Website should be user-friendly
Develop online screening system
Provide adequate information about company and job
Protect privacy of data
Take care of language and legal requirements

7. e-selection process flowchart
e-HR Activities
e-Selection
Web based testing, interview and job offering
e-selection process flowchart
(R) informs (C) that did not qualify
Fail
Candidate (C) enter resume
(C) Reads instructions and takes test
TA give disqualified result to (C)
Fail
Pass
Recruiter (R) screen resumes
(C) Takes second round of test
Pass
Fail
Hiring manager conduct interview
TA give (C) result feedback and inform (R). (R) then call (C) for interview
(R) calls/ s (C) and schedules test
Test administrator (TA) conduct test
Pass
(R) Schedule interview with hiring manager
(R) give job offer to (C)
Source: Aswathappa. Human Resource Management, Text and Cases, 2008, p

8. 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

9. 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

10. Summary Nature of e-HRM Implication of e-HRM e-Recruitment e-Selection
e-Performance Management
e-Compensation
e-Learning

11. Evaluating HRM Effectiveness
Chapter 26
Evaluating HRM Effectiveness

12. Lecture Overview Nature of HR evaluation Need for HR evaluation
HR evaluation framework
Approaches to Evaluation

13. 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

14. Evaluation Framework Individual employee performance indicators
Absenteeism
Accidents
Separation
Motivation
Commitment
Morale
Organizational performance indicators
Costs
Quality
Productivity
Market share
Profits
ROI
HRM
Policies
Principles
Practices
Systems
Group performance indicators
Interpersonal relations
processes
Adopted from: Aswathappa. Human Resource Management, Text and Cases, 2008, p

15. Approaches to HR Evaluation
Audit
Benchmarking
HRM evaluation approaches
Analytical
Balanced scorecard
Qualitative
Adopted from: Aswathappa. Human Resource Management, Text and Cases, 2008, p

16. 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

17. Approaches to HR Evaluation
1) Audit Approach
Human Resource Functions
Comparison
Outside authority
Managerial compliance
Human Resource Research
Evaluation Report
statistical
Employee satisfaction
compliance
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
MBO
Corporate strategy
Adopted from: Aswathappa. Human Resource Management, Text and Cases, 2008, p

18. 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

19. 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

20. Approaches to HR Evaluation
5) 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
Implement action plans
Identify HR practices for benchmark
Prepare report
Establish core team
Analyze the data
Select benchmarking partners
Collect the data
Benchmark process
Adopted from: Aswathappa. Human Resource Management, Text and Cases, 2008, p

21. Summary Nature of HR evaluation Need for HR evaluation
HR evaluation framework
Approaches to Evaluation

22. Thank You