HRM Evaluation

Evaluation
HRM evaluation refers to the procedures and process that measure , evaluate
and analyze the value added of HRM practices of the organization.

 HRM evaluation refers to the systematic assessment of HRM practices to determine

their effectiveness and impact on organizational performance (Nankervis et al., 2016).
 Purpose of HRM Evaluation

 Improve HR processes
 Stop doing what isn’t effective
 By evaluating HRM practices, organizations can identify strengths, weaknesses, and
areas for improvement.
 Highlighting key HR practices. • Gauging the performance of HR function. •
Demonstrating the function’s role in the accomplishment of firm’s goals.
 The demonstration of accountability in utilization of resources.
 Approaches to HRM

There are several methods or approaches to human resource management . The most
prominent are:
1. Analytical Approach
2. Quantitative
3. Qualitative
4. Audit
5. Balance score card
6. Benchmarking
7. HR Dash board
 Approaches to HRM
 Analytical Approach
The analytical approach relies on cost-benefit analysis , also called the
utility analysis.
Qualitative indices
Qualitative parameters are highly useful for evaluation. Employee
loyalty, organizational commitment, attitudes, morale and similar other soft indices help
gauge HRM effectiveness .

Quantitative indices
A number of quantitative indices or metrics are available to
determine effectiveness of HRM. For example, one can calculate cost of turnover,
absenteeism cost, cost per hire and training costs.
 Approaches to HRM
 Audit Approach
HRM audit is a process of evaluating the effectiveness of the HR
function. It includes five practices for the purpose of evaluation.

1. comparative 2 Outside Authority

3. Statistical 4 compliance

5. Management By Objectives (MBO).

 Approaches to HRM
 Balance score card
Developed by Kaplan and Norton, balanced score card helps evaluate
HRM effectiveness . The balanced score card contains four dimensions:
 Approaches to HRM
 Benchmarking
Benchmarking involves employees learning and adopting the so-called
“best practices” by comparing their HRM practices with those of other (more successful)
organizations.

 Benchmarking enables managers to learn from other firms and adopt effective HR
strategies.

 In addition, benchmarking can help create and initiate the need for change because it
identifies what an organization needs to do to improve relative to the HR strategy in
excellent companies.
 Approaches to HRM
 HR Dash Board
HR Dash Board is an appealing visual display of HR metrics.

 The HR Dash Board serves as a ‘dip stick’ that reveals the HR health of the
firm.