Final Exam

Question 1

Definition of Performance Measurement:

Answer 1

Whatever means an organization decides to use in order to measure what they are doing

Question 2

Definition of Maturity Model:

Answer 2

It is a way to assess how well the organization is measuring their performance

Question 3

Maturity model has 4 steps:

Answer 3

1. Financial
2. Financial and operational
3. Multi-functional/multi-year
4. High performance organization

Question 4

What is the first thing you need to do when considering HR metrics?

Answer 4

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

Question 5

What is an HR scorecard?

Answer 5

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

Question 6

What does an HR scorecard do (2 things)

Answer 6

1. 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

Question 7

What are the 4 themes we need to consider when defining a scorecard?

Answer 7

1. HR Deliverables
2. High performance work system
3. External HR system alignment
4. HR efficiency

Question 8

HR Deliverables:

Answer 8

Helps show the value that HR gives to a firm

-Show ROI on HR initiatives

Question 9

High performance work system:

Answer 9

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

Question 10

External HR system alignment:

Answer 10

allow hr to align to firm’s strategy - highlights cause and effect of HR programs
ex) activities like recruiting and training

Question 11

HR efficiency:

Answer 11

the measures to show efficiency and effectiveness of deliverables
ex) ROI of a certain program

Question 12

Risks and/or potential cost of scorecard:

Answer 12

1. Measuring too much
2. Causation vs correlation
3. Time consuming - costs outweigh benefits
4. lack of understanding
5. incomplete and/or dirty data
6. ex) HR’s focus is shifted from lead initiatives to lag initiatives - constantly looking in the rear-view mirrors (Higgins, 2016)

Question 13

What is a sound measurement system? - two things it does

Answer 13

1. Helps with HR decision making by focusing on what creates value
2. Provides validity and justification for HR initiatives - shift away from cost center

Question 14

What are principals of sound good measurement?

Answer 14

1. Understand the story (question behind the question)
   (McConnell)
2. Speak the business language (Higgins)
3. Numbers establish trust - credibility - show that you contribute to the bottom line
4. 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)
5. Use several metrics to relate to the bigger picture.
6. Benchmark

Question 15

Key thing to remember?

Answer 15

Leave legacy metrics behind if not useful

Question 16

communication strategy definition

Answer 16

How information is shared to the rest of the organization

Question 17

What are 3 complexities that can arise with respects to communicating HR metics?

Answer 17

1) Who gets it and what do they get?
2) How do they get it?
3) Communication must be consistent

Question 18

Who gets it and what do they do with it?

Answer 18

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

Question 19

How do they get it?

Answer 19

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

Question 20

Communication must be consistent

Answer 20

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.