Lecture 6: HRA Flashcards
What is human resource accounting (HRA)?
What we see on the balance sheet and during payroll but also how much is invested in a person and what is gotten in return (ROI)
What costs are employees considered as?
Historical costs and replacement costs
How is an employees contribution to the organisation valued?
(1) present worth of services that employee will render to the organisation in the future
(2) Probability of creating value
(3) Market value
What are the 6 steps in the history of HRA?
(1) People are assets, employee costs are expenses
(2) HRA is a tool for increasing managerial effectiveness
(3) Human assests should be included on balance sheet & income statement
(4) Declining interest in HRA
(5) Skills, talents and behavioural attitudes are seen as intangible assets
(6) Not only checking numbers but looking for meaningful work
What are the analytic pitfalls contributing to making HR analytics a fad (Rasmussen & Ulrich, 2015)?
(1) Lack of analytics about analytics: where is the data that suggests that analytics is
critical for the future?
(2) Mean/end inversion or data fetish: having the right data and asking the right questions is more important than the amount of data. Do not start with data !
(3) Academic mindset in a business setting: in a work setting we cannot just generalize findings but consider the influence of context. What is important to the business?
(4) HR analytics run from an HR Centre-of-Expertise: the communication phase
between analytics and HR is sometimes missing so the data is interpreted from HR
perspective instead of finding random patterns
(5) A journalistic approach to HR analytics: HR analytics can be misused to maintain the status quo and drive a certain agenda and looking for data to support this
How can we move HR analytics from fad to success (Rasmussen & Ulrich, 2015)?
(1) Start with the business problem: context, stakeholders, strategies of business
(2) Take HR analytics out of HR: need to collaborate with each other + other departments
(3) Remember the human in HR: people will often choose their belief system over data, data has to be sold to have any impact (incl. qualitative data, intuition, experience etc.)
(4) Train HR professionals to have an analytical mindset
Which 3 methods can the effect size of training be based on?
(1) KSAO’s learned by training (exam or course evaluation)
(2) Behaviour / expertise (sales volume or 360 feedback)
(3) System results / performance (productivity / media reports)
Are objective or subjective measures better?
Neither. Objective measures are clearer indicators of effect size to decide if a training is beneficial however subjective measures have the advantage of gaining better insights.
What are the costs of not applying HRD practices?
Opportunity cost: not training employees and as a result they do not develop themselves to help the organisation
What is the correct order of steps in people analytics?
(1) Define problem (is it really a problem)
(2) collect data
(3) clean data
(4) analyses
(5) results
