Measuring and

Benchmarking
Human Resource
Management
▶ This chapter addresses performance measurement in public human
resource management and identifies many of the common
measures being reported. It also examines the practice of
benchmarking HR performance as a means of assessing the
adequacy of human capital management in a given organization.
What do we mean by
measurement?
▶ Definition: Performance measurement

the ongoing monitoring and reporting of program

accomplishments, particularly progress toward pre- established goals.
 Behn 2003

▶ The collection and reporting of performance measures by public

sector agencies has become so common that one prominent has
written, only half-jokingly. “ Everyone is measuring performance”.
Even if this declaration overstates the universality of performance
measurement, it is indeed that the practice is widespread.
Measurement for Accountability
and Performance Improvement

Many government compile performance measures for

external as well as internal reporting. These government report
performance measures to legislative bodies and citizen as a means of
accountability. Their measures provided a record of what the
government has done and, ideally, report the quality and efficiency of
services and the extent to which a given program is a achieving its
objectives.
 Government engaged in performance management go
beyond reporting their performance measures; they also use their
measures to influence the strategic direction and operating decisions
of the government—they use performance measures to manage
results.
Status of Performance
measurement in Public Human
Resource Management
▶ A recent Pew Center report (2009) identified five (5) aspects of human
resource management that are especially important to public sector
success:
1. Human capital planning
2. Hiring skilled employee
3. Retaining a competent workforce
4. Training and developing the workforce
5. Managing employee performance
Many of the most common performance measures collected by HR
agencies correspond to these vital functions. Especially common, according
to a survey of the International Public Management Association for Human
Resources (IPMA-HR 2010), are measures reflecting these Basic HR statistics:
▶ Many of the most common performance measures collected by HR agencies
correspond to these vital functions. Especially common, according to a survey of the
International Public Management Association for Human Resources (IPMA-HR 2010), are
measures reflecting these Basic HR statistics:
-Employee headcounts
-Length of service
-Cost of benefits
-Turnover Rate
-Time to Fill Vacancies
-Service Awards
-Wellness program participation
-Absenteeism
-Wellness Program Costs
-Number of employees per HR professional
What is benchmarking?

▶ Benchmarking is the process of improving performance by

continuously identifying, understanding, and adapting outstanding
practices found inside and outside the organization.
▶ Benchmarking is the process of comparing one’s business processes
and performance metrics to industry bests and/or best practices
from other industries.
1. Why are others better?
2. How are others better?
3. What can we learn?
4. How can we catch up?
5. How can we become the best in our sector?
Why Benchmarking?

▶ Benchmarking gives us the chance of gaining

▶ Better awareness of Ourselves (Us)
▶ Better Awareness of the Best (Them)
Why Benchmarking?

▶ Benchmarking provides opportunities for staff to learn skills and be

involved in the transformation process from the outset.
▶ It is an effective ‘wake-up call’ and helps to make a strong case for
change.
Benchmarking Performance

Focuses on assessing competitive positions through

comparing the products and services of other competitors. When
dealing performance benchmarking, organizations want to look at
where their product or services are in relation to competitors on the
basis of things such as reliability, quality, speed and other product or
service characteristics.
Assessing relatively level of performance in key areas or
activities in comparison with others in the same sector and finding ways
of closing gaps in performance.
Nobel Laureate Herbert Simon
(1937)

Offered a preamble to modern benchmarking efforts.

Simon called for comparative statistics that would reveal differences
among governments in the efficiency and effectiveness of their
services. He hoped that these statistics would allow governments to
identify conditions and practices associated with greater efficiency
and effectiveness.
Human Resource Management
Benchmarks
organizations focused on performance excellence and the
achievement of desired results are rarely content with internal
comparisons alone—for instance, comparison the track improvement
overtime or reveal performance disparities among different offices or
different neighborhoods. Such organizations wish to compare their
performance with that of other service producers as a means of
gauging performance adequacy in a broader context. They desire
performance benchmark.
THE END