Hr Accountability

7/28/2019 Hr Accountability

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Accountability in Human

Resource Management

Dr. Jack J. Phillips


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Dr. Jack J. Phillips

Dr. Phillips has 27 years of corporate experience

in five industries. He has served as training and

development manager at two fortune 500companies. In 1992, Dr. Phillips founded

Performance Resources Organization (PRO), an

international consulting firm specializing in

human resources accountability programs.

Dr.Phillips has authored or edited ten books

addressing human resource development.


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The need for a Results-Based

ApproachTim Epps, vice president of People Systems

for Saturn Corp., in Troy Michigan, explains,

HR must become bottom line valid. It must

demonstrate its validity to the business, itsability to accomplish business objectives and

its ability to speak of accomplishments in

business language. The HR function mustperform in a measurable and accountable

way for the business to reach its objectives.

(Phillips 1996)


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Important trends related to HR

contribution

Increased importance of the HR function

Increased accountability

Organizational change and quality programs Improvement in productivity

Adoption of HR strategies

Growing use of HR information systems

Reliance on partnership relationships


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Important trends related to HR

contribution (cont.)

Increased importance of the HR function

Increased accountability

Organizational change and quality programs Improvement in productivity

Adoption of HR strategies

Growing use of HR information systems

Reliance on partnership relationships


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Measuring the HR contribution

Surveys

HR accounting

HR auditing HR case studies

HR cost monitoring

Competitive benchmarking

Key indicators


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Measuring the HR contribution

(cont.)

HR effectiveness index

HR management by objectives

HR profit centers Return on investment


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Developing a results-based

approach and a new model

Purposes of measurement and evaluation

Obstacles to measuring the contribution

Levels of evaluation

The attitude of the HR team

Sharing responsibilities for the HRmeasurement and evaluation

A results-based model for program

implementation


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Purposes of measurement and

evaluation

To determine whether a program is

accomplishing its objectives.

To identify the strengths and weaknesses ofthe HR process

To calculate the ROI in an HR program

To gather data to assist in marketing futureprograms.


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Purposes of measurement and

evaluation (cont.)

To determine if the program was

appropriate

To establish a data base that can assistmanagement in marketing decisions


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Obstacles to measuring the

contribution

Evaluation cost

Lack of top management commitment

Lack of evaluation knowledge Attention to evaluation design

Fear of evaluation

Lack of standards


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Levels of evaluation

It is helpful to view HR measurement and

evaluation as consisting of three levels:

Measure of perceived effectiveness

Measures of performance

Measures of return on investment


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A Results-Based Model for

Program Implementation*Step one: Needs analysis

*Step two: Measurement and evaluation System

Step three: Program Objectives

Step four: Program DevelopmentStep five: Program Implementation

*Step six: Cost M onitor ing

* Step seven: Data collection and analysis

* Step eight: I nterpretation and conclusion

* Step nine: Communicate resul ts

*Steps receiving recent emphasis


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Evaluation design

Evaluation design Is important to

the overall process of HR

measurement. It includes the timing ofmeasurements and the minimization of

factors that can threaten the validity of

program evaluation results.(Phillips, 1996)


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Evaluation design issues

Control groups

Timing of measurements

Factors that jeopardize validity

1) Time or history

2) Effects of testing3) Mortality

4) Selection bias


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Evaluation design and

implementation

Common evaluation designs.

One-shot program evaluation design

Single group, pre- and post-programmeasurement design

Single group, time series design

control group design

Ideal evaluation design


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One-shot program evaluation

design

Program

fully implemented

Program or

initiated completed

Program

Implementation

period

time

Data

collected


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Single group pre- and post-

measurement design

Program

fully implemented

Program or

initiated Program completed

implementation

period

Time

Data collected #1 Data collected #2


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Single group, Time Series

Design

Program

Fully implemented

or

Program program completed

initiated implementation

period time

Data collected Data collected Data collected Data collected

#1 #2 #3 #4


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Control group design

Program

fully implemented

Program or

initiated completed

ProgramImplementation

period

Experimental Time

group

Data collected #1 Data collected #2

Control No program Time

group


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Ideal evaluation design

Program fully implementedProgram initiated or completed

Program implementation

Experimental period Time

group A

Data collected #! Data collected #2

Control group No program Time

Program fully

implemented or

Program initiated completedProgram implementation


group B

Data collected #2


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Post measure only, control

group design

Program

fully implemented

Program or

initiated completed

Program

implementation


group

Data collected

#1

Control No program Time

group


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Measuring the total human

resource effort

Measuring the human resource

effort will help management

understand and appreciate the ways inwhich the human side of an

organization interacts with and effects

the financial side. (Phillips 1996)


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Measurement issues

Measurement is important to

determine success of performance.

Success also depends on the ability tomeasure performance and to use these

measurements persuasively to obtain

needed resources. (Phillips 1996)


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Measurement issues (cont..)

The following principles of

performance measurements apply:

The effectiveness of any function canbe measured by some combinations of

cost, time, quantity, quality, or

behavioral indices.


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Measurement issues(cont.)

A measurement system promotes

productivity by focusing attention on

the most important issues, tasks, andobjectives of the organization.

The performance of white collar

workers is best measured in groups.

The ultimate measure is effectiveness,

not efficiency.


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Measurement issues (cont.)

Managers can be measured by the

effectiveness and efficiency of the

units they manage.


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The HR contribution modelHR contribution model

HR Management

Functions

Programs

Policies

Practices

Strategy

Activities

HR performance measures

HR investment

Absence rate

Turnover rate

Job satisfaction

Organizational commitment

Organizationaleffectiveness measures

Revenue

Employees

Assets

Employee costs

Operating income

employee costs

Other factors

Revenue growth rate

Industry type

Economy

Market forces

Strategic choices


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In determining which strategy of

measures to use, for your HR program,

four rules should be considered.


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The Four Rules

1. Each measure should represent the

impact of as many functions as

possible within the HR department.2. Each function should represent

functions that are important across

business and industry groups.


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The Four Rules

3. Each measure should represent data

that is available and assessable.

4. All of the measures must account forthe large portion of the activities,

programs,, and services of the HR

department.


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(cont).

HR expenses

Absence rate

Turnover rate

Job satisfaction

Organizational commitment


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Using benchmarking to

measure HR effectiveness

The benchmarking process develops

standards of excellence from

organizations that are considered to

have the best practices.

(Phillips 1996).


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The seven phase benchmarking

process

7

Initiating

]improvement

frombenchmarking

1

Determiningwhat to

benchmark

2

Build the

benchmark team

3

Identify benchmarkingpartners

4

Collect

data

5

Analyze data

6

Distribute information

to benchmark

partners

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Hr Accountability