Human Value Management: The Value-Adding Human Resource Management Strategy for the 1990s

Human Value Management : The Value-Adding Human Resource Management Strategy for the 1990s

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From similar to the scientific method, in which this perspective the wisdom lies in keeping meaningful and reliable variables are things simple and avoiding information identified.

The process begins by overload, and the implication is that only a developing as many measures as possible, few measures are needed to help line particularly in the HR areas of greatest managers or HR professionals gauge the concern. Second, measures whose current state of affairs. Third, systems are developed logic: if objectives have been defined in which regularly collect the necessary advance, there should be associated information, preferably devolved to line measures and thus no difficulty in management, and a commitment is made collecting and interpreting the data.

Most to the time and effort needed for managers simply cannot attend to twenty analysing the data and interpreting its measures at onceClet alone optimise meaning in the realm of HR strategy. In fact, imputing required to realise the impact of an HR significance to each of these measures activity it becomes possible to reduce the may only push the problem of devising a number of measures to four or five key meaningful performance measurement indicators by eliminating those which only system down to the level of each confirm the results of others.

For frustrated individual Eccles and Nohria, example, if employee turnover, job But as Morgan points out, satisfaction, absenteeism and so forth this method also runs the risk of being too were all perfectly correlated with one superficial. It is not enough to know that another, only one of the measures is a specific practice or activity has worked necessary; by examining this single to a greater or lesser extent. To be of real measure a manager would know the benefit there must be enough information company's performance for all the others. Benchmarking denotes of HR performance, there is the risk that a comparison with selected performance the task of collecting data, analysing them indicators from different organisations, and interpreting the results will be costly, typically in the same industry, or with time-consuming and result in no clear comparable organisations that are guidelines for action.

There is also the considered to be "best in class". The most danger of what Eccles and Nohria obvious points of comparison are with called creeping numeration, which close competitors, but some organizations refers to "the temptation to turn every have gone beyond their industry group to measure deemed relevant into a crucial identify best practice wherever it can be part of an official measurement system".

Xerox, for example, where Indeed, once the decision is made to benchmarking has been credited as one of expand the class of measures from a the main factors in its s revival, has single financial category to three or four, benchmarked railways, insurance and four or five measures are developed companies and facilities that generate for each category, a company can quickly electric power. A recent study Geanuracos,. Which attitudes and behaviours are executives surveyed reported using currently displayed by these benchmarking to evaluate performance, employees?

Which attitudes and behaviours are their own company's historical record as responsible for the trouble areas opposed to competitors or industry identified above? Clearly, the greatest gain to be had from a benchmarking exercise is 6. What HR policies and practices are provided through comparisons with other contributing to the current attitudes firms and different ways of thinking.

Indeed, as a programmatic effort 7. Which HR policies and practices need benchmarking serves a number of to be changed as a result of the above purposes Glanz and Daily, First, it in order to build on strengths or enables a company to calibrate how it is correct weaknesses in our approach to delivering HR practices.

By examining the HR management? What are the performance measures itself and identify areas where practices to determine the effect of our actions? What are the major cost components of Second, benchmarking enables a company the change program? Currently, the most to learn from others' successes and common form of HR benchmarking mistakes.

Building a continuous involves salary surveys. It is the rare HR improvement mentality has become an manager who steps beyond this, for two important goal for many organisations in principal reasons: 1 the difficulty of the last decade; benchmarking can open finding standard and acceptable minds and create a climate in which active performance indicators similar to those learning is encouraged. By 2 the reluctance of companies to divulge learning what other companies are doing, sensitive information about their employee line managers and HR professionals can retention, employment costs, and so on.

Description

Finally, organizations, the most prevalent perhaps benchmarking can be used to help set being the mythology that has developed direction and priorities for an HR manager. As Jac Fitz-Enz Rather than fall into the trap of trying to 7 observes: do everything well and please everyone The fundamental belief is that personnel is with limited resources which typically something of a complex and mysterious results in no one being satisfied , HR art.

Talent management

Allegedly, the true and full value of managers can use benchmarking to focus the work can only be judged by those who on critical activities Ulrich, Brockbank and perform it. Even then, the appraisal is Yeung, Questions which may bounded by subjective criteria. Many of indicate a need for benchmarking HR the faithful believe that, like virtue, practices in an organization include the personnel work is its own reward. Terms following: used to describe results are satisfied, 1. What is most critical to business quick, better, interesting, good, important, success: Cost reduction?

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What areas are causing the most There are also people who believe that trouble? Which employees contribute most to inappropriate. In their eyes, HRM is the critical success factors? When As noted earlier, developing the specific used solely to emulate rather than criteria which define effectiveness for HR improve performance, advantages may be activities is one of the most difficult short-lived, time consuming and challenges facing line managers and HR expensive.

Moreover, the most valuable professionals alike.

In this regard there information is generally not derived from are two schools of thought. The first the actual data, but rather the qualitative school advocates monitoring the costs and information on how and why the data benefits of human resource outcomes were achieved.

Nevertheless, a activitiesCthose associated with the well established benchmarking process attraction, selection, retention, can help managers set goals and targets development, and utilisation of people in designed to make the company the best in organisationsCin economic terms.

The its competitive field, and to initiate underlying assumption is that the ultimate focused programs that move the company single measure of HR effectiveness is from its current position.

Top Authors

Many firms financial To illustrate strive for performance improvements by this point, consider a comment by Cascio benchmarking standards of excellence in his book entitled "Costing from other firms in such areas as Human Resources": production, research and development, For some time now, I have had the and marketing. HR can be employed to uneasy feeling that a lot of what similar competitive advantage, and it is we do in human resource sensible to unearth those HR indicators management field is largely that contribute relatively more to overall misunderstood and underestimated performance than others.

Like it or not, the language pressures rocking the pharmaceutical of business is dollars, not industry. Janssen examined in detail the correlation coefficients. To begin, the Flamholtz , Cascio and Fitz- company determined that administrative Enz , and in the form of formulas white-collar productivity could be defined and accounting procedures for measuring through four key elements Figure 4. Figure 6 gives an illustrative example of conducting simple Management then compared Janssen's exit interviews with terminating performance with that of other companies employees.

Janssen's managers soon determined that achieving Insert Figure 6 white-collar productivity improvements This economic approach to measuring HR would be impossible unless appropriate performance has the advantage of being performance measures were developed simple and understandable, but it fails to and installed. Figure 5 displays four such provide guidance when implementing measures that Janssen now uses to effective HR management programs. Many HR managers and their Insert Figure 5 organisations understandably feel a need. Based on this be the lowest-cost producer of goods and model, the most effective managers or HR services.

In , Schuler introduced professionals are those providing the such a model which identified six highest possible quantity and quality of HR categories of HR practices: planning, practices at the lowest cost and in the staffing, training and development, most timely fashion, with a minimum of appraisal, compensation and union- supervision and with a maximum of management relations.

In increased sales, improved productivity addition, selection of HR practices should and, of course, return on investment. As Ulrich felicitous of it.

The HR Value Proposition

Moreover, organisations categories identified by Schuler Figure 7. Nonetheless, These indicators can help managers it is widely understood that the linkage is a evaluate how their HR practices relate to necessary one if line managers are to be both the operational and strategic level of convinced that HR activities are integral to the enterprise, and lay the foundation for organisational objectives, and that they comparing longitudinally, or sectorially create and sustain a competitive edge.

Another conceptualisation suggest that benchmarks may also evaluates the effectiveness of HR practices be developed for the HR competencies of according to six performance criteria individual managers in the organisation. Bernardin and Kane, : quality of Questions that may indicate a need to delivery in terms of conforming to some benchmark HR functions include the practice ideal, or fulfilling the intended following: purpose , quantity expressed in terms 1.

Who are the major customers of the such as dollar value, number of units, or HR function: Line managers? Employee standards, and monitors performance over organizations? External clients?

What services are provided to these Insert Figure 8 customers? Is there a reason for their In a similar vein, Storey and Sissons existence? What are the major cost components for benchmarking the organization's HR of these services? Their intention is to outline a possible approach to auditing the role and 4. What factors are responsible for performance of the function.

According to customer satisfaction? What problems have been identified in involved: the operation? Step 1: Decide the composition of the 6.

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