Human Resource Management  Stimulate among the HR managers the courage

to enhance the different HR functions through

effective evaluation measurements.
Chapter 1.
EVALUATING THE HRM FUNCTIONS
Introduction
Approaches to Evaluating the HRD Functions
 Human resource management has already
 The overall approach to evaluating the HR
proven its importance in every organization. It
functions should distinguish between process
has moved away from the transactional, paper
and output or the difference between
pushing, hiring/firing support function it has
efficiency and effectiveness.
been and is becoming a bottom-line decision
maker.  When companies measure the Efficiency of the
human resource function, they rely on a series
 The terminology transformed from Personnel
of quantities measurements ( e.g. cost, response
Department to Human Resource Department
time and output relative to inputs) and relate
(HRD).
results to short-term human resource activities.
 HRD reflects the expanding role and an
• This method relies on the
increasing awareness that human resource are
accumulation of various types
the key to a successful organization.
of numerical data and the
 Evaluation should be taken into consideration in calculation of certain ratios
order for the firm to really say that they are from them. Numerical data are
successful in every move that they make. useful primarily as an indicator
or activity levels and trends.
• Evaluation of HRM functions, define as
a systematic, formal experience  Effectiveness is primarily measured through
designed to measure the cost and qualitative information and relate result to the
benefits of the total HRM program to resolution of critical issues and implementation
compare its efficiency and effectiveness of strategies.
with the organizations past
• Organization rate the
performance.
effectiveness of the HR
• Through evaluation, the organization functions in terms of perception
will know if the department is still (of managers and employees)
working in congruence with the but few measures the
company’s goal and objective and give a effectiveness in relation to
good picture of the improvement of the implementing HR strategy and
department. achieving specific objectives.

Objective EVALUATION BY CHECKLIST

Learning the Evaluation for Human Resource  The checklist approach to evaluating HRD
Management Functions aims to: functions is the most simple and close-to-
informal approach of evaluation.
 Let the member of every organization
understand the importance of assessing every  Activities are grouped by HRM activity area.
organizational activity; Usually, two columns for yes or no answers are
provided beside every items for the analyst to
 Develop among organizational members critical check if they are properly done.
thinking on how to further evaluate the
different function of HRD;
  It is better that follow-up questions that discussion with managers that developmental and
may stimulate discussion be included so enhances the culture of organization.
as to qualitatively evaluate every item.
The organization enumerated three elements to
 This method concerned with determining evaluating HRM functions
whether they are being performed. Essentially,
 HR Audit Manager Interview – this comprises a
the checklist is an evaluation in term of what
series of structure interviews with the managers
should be done and the extent to which it is
at a several levels of the firm. It is a flowing
being done.
discussion that allows the managers to describe
 Examples of HR checklist questions by Mondy their knowledge and opinions in a natural way.
and Noe (1996)
 Andrewartha Correl HR Evaluation Survey- this
 Are all legally mandated reports survey provides a clear indication of how HRM
submitted to requiring agencies on is viewed by the employees of the organization
time? who are primary internal customer together
with some specific indicators of where
 Have formalized procedures and
employees believe it is not functioning.
methods been developed for
conducting job analysis?  HR Benchmarking Data- this registers that the
actual cost and benefits of the function is clearly
 Are Human Resource requirements
quantifiable and has financially demonstrative
forecast made at least annually?
terms.
STATISTICAL APPROACH EVALUATUION
It is mean by which the analyst identify and collect data
 Statistical approach is the quantitative method relating to six key areas of HR functions namely
in evaluating the HR functions. organization effectiveness, HR effectiveness, absence
and turnover, recruitment, training and development
 This approach can be more sophisticated than and occupational health, safety and welfare.
checklist but quantitative data alone never
explain the whole picture of situation. SURVEY METHOD

 Statistics indicate only where to begin to look  Survey method is the method used to know the
for evaluation problems. feedback of the HRD from the employees.

 Ratios and data describe the status of the  The essential element for survey is the
functions being evaluated. respondents. They could be the employees
presently employed in the company or the
 Data gathered through statistic will be used for separated employees through the exit
comparison with the data gathered during the interview.
past auditors with that of the other firm’s data.
With the comparison, the analyst will be able to  One may include this as one of the separation
asses condition of the department. procedures before claiming employee’s
clearance. They are qualified respondents with
 Some statistical data used in evaluating HR this approach since they are direct clients of the
functions include absenteeism rates, department.
percentage of grievances resolved without
arbitration and ratio of internal and external  Examples of Employees Survey Questions
hires.
 How satisfied are you with HRM as an
ANDREWARTHA EVALUATION PROCESS employee?

Mc Phee Andrewartha, an organization of HR specialist,  How satisfied are you with the
states that HR audit process is more than information compensation/pay in relation to HRM
gathering and analysis process. It is a skillfully managed as a place to work?
  How satisfied are you with employee CASES
benefits in relation to HRM as a place to
 The HRD is responsible for giving necessary
work?
sanctions or disciplinary action for the
 How satisfied are you with employees who have violated the company’s
opportunities for advancement in rules and regulations.
relation to HRM as a place to work?
 Typically, an employee initiates a complaint
 Rate the quality of labor management with his or immediate supervisor. However, if
relation. the complaint involves the supervisor, the
individual is permitted to bypass the immediate
THE HRM MANAGERS
supervisor and proceed to the employee-
 To be able to accurately assess the effectiveness relation specialist or the manager at the next
of the HRD, it is necessary that the head of the level. The grievance ultimately may be taken to
group be appraised as well. The HR managers is the organization’s top executives for a final
the key person for whatever actions the decision.
department is going. He keeps to expedite the
 Evaluation of cases starts with presentation of
HRM plans, policies and programs.
the case background and testimonies, gathered
 Effective HR managers is a diagnostician . He information through investigations with
should be able to actively relate structure, goal thorough analysis, the findings will summarized.
and culture of the organization with the Lastly, analysis of the case os done and
different activities of HRD according to recommendations are enumerated.
Ivancevich (1998).
 The top executives, together with the HR
 Human resource management are usually manager give the final decision for the case.
evaluated through survey and questionnaires.
EMPLOYEE PLANNING
Their efficiency and effectiveness as HR are
measured through the feedbacks of the  Employee planning is an integrated view of the
employees because they are the direct clients of personnel system of the organization. It
the department. involves career development of the employees
of the organization. This encompasses career
 Examples of the checklist evaluation of HR
planning, the process through which individual
managers
employees identify and implement the steps to
• Does the human resource department attain career goals; and career management,
able to give the employers useful the process through which organizations select,
policies that elevate employee morale? asses assign and develop employees to provide
pool of qualified people to meet future needs.
• Have the HRD been strict in maintaining
policies for employee safety?  Those who do well in their present job get
moved up to higher position perhaps
• Does the HRD successful in giving just transferred to higher responsibility.
and fair disciplinary action with
employee’s grievances?  To know whether the employee planning is
successful or not, frequent performance review
• Does HRD able to give the employee’s and feedback are conducted. Using
the necessary sick leaves and vacation performance as the main criterion of
leaves? evaluation, it is pitted against goals.
• Are the policies in availing sick leaves Unattainable goals are discussed in the light
and vacation leaves fair and both the how performance can be improved.
employers and the employees?
  One can say that employee planning is which are granting an employee request for a
successful if the HRD has trained the right flextime so that a mother can attend to her
employee with the appropriate skills or position children’s needs in the morning; work schedule
suited for him, and the trained employee is adaptation; and full timer’s request for a part-
available at the time his new skills are needed. time work assignment so that he can be able
finish studies.
CONFLICT RESOLUTION AND DISCIPLINE
 How well these assistances work can be
 The troubles of employees can invariably affect
evaluated on the productivity of the work of the
business performance and as such call for
concerned employee.
remedial measure – the need for discipline.
Maintaining an effective disciplinary procedure SAFETY AND HEALTH HAZARD
is only one step in helping in the smooth
 Equally important with wages are matters
functioning of the business organization.
involving working conditions, health and safety,
 Evaluation of how effective the disciplinary since labor cannot be separated from the
action is involves assessment of the employee human individuals. It is with this reason that
who has been given the sanction. The another function of the HRD is to provide,
disciplinary action aims to attain behavioral maintain and ensure safe healthy work policies
change to the employee. to its employees.

 Comparative statistic is usually used to  To evaluate how well the safety programs are
determine if disciplinary procedure have implemented, accident rate should be closely
lessened the similar offenses on different monitored. This will provide data for
period of time. comparison and analysis. The formula for
computing the accident and severity rate is a
 Observational learning might affect the
follows:
employees committing similar offense who are
not given yet disciplinary actions. Accident frequency rate = No. of disabling work injuries
x 1,000,000 Man hours worked

Comparative Chart Or

100 = No. of injuries and/ or illness/ Total Hours

worked by all employees during reference year x
200,000
0
Accident Severity rate = No. of days lost x 1,000,000
Man Hours worked
Series 1 Series 2
Or
Figure 1 shows a simple comparative chart written = No. of person-days lost/ No. of person worked
warnings issued for January and February, 2004. Notice during the period x 1,000,000
that violations are reduced from January to February.
This is a positive evaluation for disciplinary function of
HRD. The reason for the decrease in this violation may  A successful safety program results in reduction
be gathered through questionnaires of feedbacks from in the number and severity of accidents. The
the employees. frequency rate yields the number of lost time
accident per million person hours worked.
EMPLOYEE ASSISTANCE
 Accident analysis should also be performed by
 Employee assistance is the employer’s way of
supervisor whenever accident occur. This
helping the employees with personal matters so
includes investigation of the incident,
as not to impair work behavior. Some examples
 determination of causes and proposal of  HRD should be able to use an effective
corrective actions. communication line so as to properly attend to
the problems communicated with the
EMPLOYEE RELATIONAND SERVICES
department. Usually, communication line starts
 Milkovich and Boundreau defined employee with the staff to the immediate head. If no
services as voluntary benefits. Is includes all response during a reasonable period of time,
other benefits provided by the employers like one may directly refer the concern to the next
shuttle service, cafeteria, recreational higher personnel. Proper action for matters
equipment and the like. It is the day-to-day communicated will be attained if accurate
repeatable functions associated with the message is relayed to the right person
normal functional requirements of HR, such as concerned.
delivery of benefits, payroll, employee
PAID TIME AWAY FROM WORK
information, data management and employee
data storage; compensation costing and the  Time off from the job with compensation is
reward and recognition of the employees; called leave benefits. In the maximum, the
relocation, job requisition, vacation accruals, employees are accorded by employers 15 days
etc. of sick leave and 15 days of vacation leaves for a
full year or regular service. This usually begins
 Efficiency measures of employee relations
after a minimum period of employment. In one
programs could include improved product
company for instance, the employee earns the
quality, enhance productivity and reduce cost
number of leave benefits where he will be
measured in terms of cost per unit produced.
entitled to avail. Their total hours worked for
Obviously, these measures change as a result of
the whole cut-off years will determine how
other factors besides employees relation, which
many vacation and sick leaves he will be
makes evaluation difficult.
entitled to use for the following year. For newly-
COMMUNICATION regularized employees, start of earning leaves
in on the day they are regularized. Vacation
 Communication is defined simply as the transfer leaves re forfeited if they are not use on the set
of information from one person to another by period of the year while unused sick leaves are
whatever means. An employee handbook is a converted to cash at the end of the cut off year.
necessary part of communication an employee Unused sick leaves however, are converted into
relations program. The handbook sets out the cash which will be paid out at the end of the
rules and policies within which employees and cut-off.
managers must operate.
 Since these leaves are paid as if they are really
 While organizations audit their financial worked for that day, the basis of cost evaluation
resource regularly, 45% of large employers depends on the salary of the employee.
make regular use of worker opinion survey.
Many of those companies who survey don’t  Since these paid time away from work will
follow through with discussing result or explain mean non-reporting for work, availing of these
what changes resulted from the survey leaves should be schedule so as not to hamper
information. operations and minimize overtime due to the
leave of absence of the employee.
 Communication is usually evaluated on how
well the messages are properly relayed to Chapter 2.
people concerned and how efficient the
Introduction
communication medium is. In this modern day,
e-mail through the internet is the usual medium  Human resource planning includes both a
for remoter branches. supply and a demand side. An organization
must first develop an understanding of the task
 to be performed and the jobs to be filled • Planning is normally an example of a
through job analysis. conceptual skills. But it also requires
other skills, especially in order to get
 Job analysis provides the necessary information
the plans adopted and implemented.
for firms to develop both job description and
job specification. It is only after organizations 2. Planning is a process where managers outline
understand the nature of jobs to be filled that the steps to be taken in moving the
they can then turn their attention to forecasting organization toward its objectives to be
their anticipated demand for human resource. communicated throughout the organization.

 In this chapter it will discuss the ways in which 3. Planning is the process of setting goals,
firms utilized both internal and external labor developing strategies, and outlining task and
supplies to meet their anticipated human schedules to accomplish the goals.
resource needs.
4. Planning is the generation of an action
 Ideally, organizations would find an exact sequence action program for an agent, such as
balance between their anticipated demand for a robot, that can change its environment. The
human resources and the internal supply of purpose of a plan is to achieve one or more
such personnel. explicit goals.

 Imbalance necessitates adopting strategies for 5. Planning is about what and how much is to be
either adding needed personnel or decreasing produce, and to whom it is to be allocated – by
unnecessary personnel through attrition, the conscious decision of a determinate
transfer, or layoff. authority, on the basic of a comprehensive
survey of the economic system as a whole.
Objectives
Basic step in planning
 This examines the need of aligning the
management of Human Resource Planning with 1. Setting an objective goals.
the strategic context of organization. It reviews
2. Identifying and assessing present and future
the activities of human Resource planning
conditions affective and objective.
necessary to satisfy the needs of an
organization under changing conditions, as well 3. Developing a systematic approach by which to
as reviews the evolution of management styles achieve the objective.
and their impact on Human Resource Planning.
4. Implementing the plan.
The student will be able to:
5. Monitoring the plan’s implementation.
1. Define human resource planning.
6. Evaluating the plan’s effectiveness.
2. Differentiate strategic planning, and workforce
planning. Type of Planning

3. Identify the key objectives of human resource Strategic Planning

planning. 1. defining philosophy
4. Enumerate the advantage and pitfalls of human 2. Formulating statement of identify, purpose, and
resource planning. objectives.
5. Explain the human resource process. 3. Evaluating strengths, weaknesses, and
Definition of planning competitive dynamics.

1. Planning is deciding what will be done in the 4. Determining design.

future; in other words, planning is forward 5. Developing strategies.
looking.
 6. Devising program • Creating interactive links between
business objectives and people-
Tactical Planning
planning activities.
 Also known as Operational Planning addresses
Key objectives of human resource planning
issues associated with growth of current or new
operations as well as with any specific problems 1. Prevent Overstaffing and Understanding
that might disrupt the pace of planned growth.
• Having too many employees result in
Purchasing new or additional office equipment
lost sales revenue as the organization is
to enhance efficiency coping with the recall of
unable to satisfy existing demand
defective products, and dealing with the needs
customers.
to design tamperproof bottle caps are example
of tactical planning problem. 2. Ensure that the organization has the right
employees with the right skills in the right place
Workforce Planning
at the right time.
 We define workforce as an effect to anticipate
• Organization need to anticipate the
future business and environment demands on
kinds of employees they need in terms
an organization, and to provide qualified people
of skills, work habit, and personal
to fulfill that business and satisfy those demand.
characteristic and time their recruiting
Definition of human resource planning efforts so that the best employees have
been hired, fully trained, and prepared
1. Human resource planning is a dynamic
to deliver peak performance exactly
management process of ensuring that at all
when the organization needs them.
times a company or its unit has in it employs
the right number of people with right skills, 3. Ensure the organization is responsive to
assigned to the right jobs where they can changes in its environment.
contribute most effectively to the productivity
• Human resource planning process
and profitability of the company.
requires decision maker to consider a
2. Human resource planning concerned with variety of scenarios relative to the
efficient acquisition and maximum utilization of numerous domain in the environment.
the company’s human resources so that the
4. Provide direction and coherence to all HR
company can attain it’s goals and objective.
activities and systems.
3. Human resource planning is a systematic
• Human resource planning sets the
assessment of future HR needs and the
direction for all other HR functions such
determination of the actions required to meet
as staffing, training, and development,
those needs.
performance measurement, and
4. Human resource planning is the process for compensation.
ensuring that the human resource requirements
5. Unite the perspective of line and staff
of an organization are identified and plans are
managers.
made for satisfying those requirements.
• Communication between HR staff and
5. Human resource planning is decision-making
line manager is essential for the success
process that combines three important
of any HR planning initiaitves.
activities;
The broader aspect of human resource planning
• Identify the right number of people
with the proper skills.  HR Planning goes beyond simple hiring and
firing. It involves planning for the deployment of
• Motivating them to achieve high
organization’s human capital in the most
performance and
 effective and efficient ways, in the line with support of at least one influential senior
organization and business unit strategy. executive.

 Systematic forecasting or manpower need –  Size of Initial Effort: many HRP programs fail
planning and closely monitoring manpower because of an overcomplicated initial effort.
based on business conditions and forecast.
 Coordination with other Management and
 Performance management – analyzing, Human resource Function: HRP must be
improving, and monitoring the performance of coordinated with the other management and
each employee and of the organization as human resource functions.
whole.
 Integration with other Organization Plan: HR
 Career management – determining, planning, plans must be derived from organizational
and monitoring the career aspirations of each planners and the human resource.
individuals in the organization and developing
 Quantitative versus Qualitative Approaches:
them for improved productivity.
some people view HRP as a numbers games
 Management development – assessing and designed to track the flow of people in, out, up,
determining the developmental needs of down, and across the different organizational
managers for future succession requirement. units.

Advantages of HR Planning  Non-Involvement of Operating Management:

HRP is not strictly a human resource
department function.
Trough systematic planning of human resource,
Steps in human resource planning
a company can be better assisted in attaining its goals
and objectives.  Determine Organizational Objectives:

 It helps the company determine its • The first step in the process of HRP is
manpower needs and provide a method determining the business objective of
for meeting them. the company and analyzing their impact
on each department’s operational
 It can be an effective means of planning
functions. Once objectives are known,
the development and growth of
the operating executives can determine
employees.
what their responsibilities are in the
 It can assist in placing employees common endeavor of attaining
properly in jobs where they can corporate goals.
maximized the use of their skills and
 Determine the Skills and Expertise Required
potentials.
(Demand):
 It can assist the company in attracting
• After determining the work input, and
and retaining better-qualified
studying the requirements of each job,
employee.
and forecasting manpower needs
Pitfalls of human resource planning comes next.

 The identity crisis: HR planner’s work in an • Managerial Estimates method estimates

environment characterized by ambiguous of future staffing needs based primarily
regulations, company politics, and diverse on past experience. These estimates
management styles. can be made by top-level managers and
passed down, by lower-level managers.
 Sponsorship of Top Management: for HRP to
be viable in the long run, it must have the full • Scenario Analysis involves using
workforce environmental scanning data
 to develop alternative workforce
scenario.

 Determine Organizational Objectives:

• The first step in the process of HRP is

determining the business objective of
the company and analyzing their impact
on each department’s operational
functions. Once objectives are known,
the operating executives can determine
what their responsibilities are in the
common endeavor of attaining
corporate goals.

 Determine the Skills and Expertise Required

(Demand):

• After determining the work input, and

studying the requirements of each job,
and forecasting manpower needs
comes next.

• Managerial Estimates method estimates

of future staffing needs based primarily
on past experience. These estimates
can be made by top-level managers and
passed down, by lower-level managers.

• Scenario Analysis involves using

workforce environmental scanning data
to develop alternative workforce
scenario.