Uneak White's Personal Brand Exploration Presentation
HR Evaluation
1. Human Resource Evaluation and
Business Performance
A Study of Contemporary Human Resource Performance Measurement
Practices and its Association with Business Performance
2. Agenda
Objectives of the Study
Business Performance Management
Human Resource Evaluation
The Perfect Performance Management System
Linking HR Evaluation Practices with Profitability of firms
3. Objectives of the Study
To gain complete understanding of Business Performance
Management Systems
To understand the HR Evaluation Practices and critically
examine them
To find the link between HR Evaluation Practices and
Profitability
5. Defining Business Performance
What is Performance?
Efficiency and Productivity
Effectiveness and Efficacy
Quality
Dimensions:
Time Frame
Time Orientation
Means or Ends
Qualitative Vs Quantitative
6. Why Measure Performance?
‗What can‘t be measured, can‘t be improved upon.‘
Control
Communication
Alignment
Strategy
Motivation
Balance and Sustainability
Objectivity
7. The Evolution of Performance Measurement
Systems
Dupont Pyramid
15. Why Measure HR?
Big Expenses
Sustainability and Health of a Company linked to Strategic
HRM
Productivity linked with Employee Morale and Satisfaction
High Attrition Costs
People could be a Competitive Advantage
Differentiation based on Talent
16. Human Resource Accounting
As old as Industrial Revolution itself
‗The Human Oraganisation‘ by Likert
Brummet, HR as Cost
Flamholtz, Replacement Cost
Hekimian, Onward looking Cost
Kermanson, HR as Goodwill
Lev and Schwartz, Economic value of Employee
Freidman and Lez, Market Company Pay Differential
Morse, HR not an Asset
Critique
17. Human Resource Metrics
Productivity
Quality
Costs (Incurred, Saved)
Direct Value Generated
Time
Soft Data
Critique
18. Human Capital Management
Why HCM?
Talent approach
Development and Improvement
Need Automation
Data Analytics
Decision making
Future Oriented
Critique
21. Audit Approaches
HR Audits
HRD Audit and HRD Scorecard
Why Audits?
Cost
Maturity Constraints
Why not Audits?
Generic
One size doesn‘t fit all
True value added not researched well
Completion and success can‘t be differentiated
26. Why IPMS?
Accountability at Pyramid level
Simplicity and Drill Down Complex Display
Each Level considered (Unit Problem)
Each Stakeholder can be Accommodated
Metrics not bigger than Framework
A good mix of Ends and Means
A good mix of Leading and Lagging Measures
Objective
Needs high level of Automation and IT systems Maturity
and Integration
27. Linking HR Evaluation Practices
with Profitability of a Firm
An industry wide study of Fortune 100 companies
28. Research Problem
How do HR Evaluation Practices Impact Performance of a
Firm?
29. Methodology
Sample: Fortune 500 Companies
Performance : Utilization of Assets (ROA)
Employee Satisfaction: Glassdoor Ratings (ESR)
Career Opportunities
Communication
Compensation and Benefits
Employee Morale
Recognition and Feedback
Leadership
Work Life Balance
Fairness and Respect
30. Methodology contd.
Indexed HR Evaluation Practices (HRE)
1. HRA
2. HCM
3. Communication
4. Framework
5. Process Audit
6. Accountability
7. Motivation
Market to Book Value Ration (MBR)
Future Earnings Capacity
Indicator of Certainty, Technology and Intellectual Capital
31. Data Analysis
Model 1 ROA = f (HRE, ESR, MBR)
Model 2 ROA = f (ESR, HRE)
Model 3 ROA = f (MBR, HRE)
Model 4 ROA = f (HRE)
33. Discussions and Conclusions
ESR and ROA poorly correlated for the sample.
ESR and ROA correlation increases with the industry
classification or MBR classification
Higher MBR has been linked with higher ESR Correlation
with ROA
HRE as expected correlates highly and is very significant
in the model
HRE and MBR together explain 55% of variation in ROA.
HRE practices directly influence firms ability to utilize the
talent or human capital
Accountability and Motivation are both important in
order to leverage the HR Evaluation
34. Limitations and Recommendations
Limitations
ESR Source not very clean
Singular measure of performance
High dependence on Secondary Data
No Time Scale Comparison
Recommendations
Further research needed to prove marginal increase in
productivity if HR is held accountable and incentivized
More Time Series data needed to confirm increase in
profitability with change in HR Evaluation Practices
Research based on SBU‘s and not corporations could also link
HR Evaluation Practices with Competitiveness
35. Thank You
Shirshendu Pandey
FORE School Of Management
shirshendupandey@gmail.com
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