Final Exam Flashcards
Definition of Performance Measurement:
Whatever means an organization decides to use in order to measure what they are doing
Definition of Maturity Model:
It is a way to assess how well the organization is measuring their performance
Maturity model has 4 steps:
- Financial
- Financial and operational
- Multi-functional/multi-year
- High performance organization
What is the first thing you need to do when considering HR metrics?
you have to look at where the organization is at a whole in gathering data points and metrics –> you need to assess where the business sits in the maturity model
What is an HR scorecard?
It is a visual representation of key measures of HR department achievements, productivity and other factors important to an organization.
***every company creates their own unique scorecard to fit their own company’s strategy
What does an HR scorecard do (2 things)
- Manages it as a strategic asset
2. Demonstrates HR’s contribution to a firm’s success - shifts focus from being seen as a cost centre
What are the 4 themes we need to consider when defining a scorecard?
- HR Deliverables
- High performance work system
- External HR system alignment
- HR efficiency
HR Deliverables:
Helps show the value that HR gives to a firm
-Show ROI on HR initiatives
High performance work system:
Keeps performance of HR activities at the forefront - workforce capacity - what can the workforce do to support strategy. Ex) can we meat future staffing needs
External HR system alignment:
allow hr to align to firm’s strategy - highlights cause and effect of HR programs
ex) activities like recruiting and training
HR efficiency:
the measures to show efficiency and effectiveness of deliverables
ex) ROI of a certain program
Risks and/or potential cost of scorecard:
- Measuring too much
- Causation vs correlation
- Time consuming - costs outweigh benefits
- lack of understanding
- incomplete and/or dirty data
- ex) HR’s focus is shifted from lead initiatives to lag initiatives - constantly looking in the rear-view mirrors (Higgins, 2016)
What is a sound measurement system? - two things it does
- Helps with HR decision making by focusing on what creates value
- Provides validity and justification for HR initiatives - shift away from cost center
What are principals of sound good measurement?
- Understand the story (question behind the question)
(McConnell) - Speak the business language (Higgins)
- Numbers establish trust - credibility - show that you contribute to the bottom line
- Relate to vision - use metrics to link to strategy
ex) you cant measure customer service, so what can u measure and then relate it back to the vision of sears) - Use several metrics to relate to the bigger picture.
- Benchmark
Key thing to remember?
Leave legacy metrics behind if not useful
communication strategy definition
How information is shared to the rest of the organization
What are 3 complexities that can arise with respects to communicating HR metics?
1) Who gets it and what do they get?
2) How do they get it?
3) Communication must be consistent
Who gets it and what do they do with it?
More effective if tailored to specific groups
- each department must understand how it relates to the bigger strategy and vision. CONFIDENTIALITY and PRIVACY are paramount
ex) think about benefits being shared with the rest of the company
How do they get it?
Push or pull methods?
Does it make sens to send mass emails?
Medium is super important. ex) face-to-face, memos, etc
ex) Kathleen couldn’t share Metrics with us - HR needs to establish credibility by being confidential
Communication must be consistent
Timing and content must be consistent
even if the results are negative still need to share because top management bases decisions on this
ex) Best Buy does employee engagement surveys, need to communicate every year, cant hold back info.
