Quantifying the contributions of Human Resources Management to overall organizational effectiveness. (How Human Resources can contribute in creating a competitive advantage for the company.)

Essay by fanboy37College, UndergraduateB, September 2009

download word file, 4 pages ( 6 KB ) 1.0

Human Resource Management (HRM) is a vital part of creating and maintaining an effective organization that is able to meet its goals and gain a competitive advantage over the competition.. HRM includes myriad activities ranging from recruitment to training and even the development of compensation systems. HRM has evolved significantly since the early 1900s. The need to deal with labor unions, as well as global competition, technological advances, and the changing nature of work make it ever more imperative that companies employ effective human resource managers and maintain effective programs of HRM. (Dessler, 2008)Human resource managers must be prepared to quantify their overall contribution to the company. A balance must be struck between managerial and organizational requirements, while ensuring that staffing goals are met in a way that contributes to organizational objectives. The reasons an organization would want to measure the efficacy of a HRM program include; to identify HR contributions to organizational effectiveness, to determine whether or not the HRM program is meeting its own objectives, to identify strengths and weaknesses of the HRM process, to calculate a return on the companies investment into the HR department, to determine if a HRM program justifies an investment of further resources or capital, and to establish a database that can be used to assist management in making decisions related to HR.

There are a number of ways available for managers to quantify the contributions of the HR department. These include surveys, Cost- Benefit and ROI Analyses, Activity Based Costing (ABC), Benchmarking, and Strategic Analysis using HR as a portion of a balanced scorecard approach.

Surveys work as a means of measuring HR effectiveness by providing both customer and employee feedback that managers can translate into data that can be used to; asses organizational strengths and weaknesses, provide a basis for...