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Human Resource Metrics.

“People are the most important asset” HR measurement systems rarely reflect a logical theory regarding how human factors translate into strategic outcomes. For the most part, the management of people retains a focus on administrative efficiency, traditional and disconnected functional initiatives, and measurements that focus on activities rather than strategic outcomes. There are literally thousands of cost- based and ratio-based measures available to researchers and managers (e.g., cost per hire, trainee, recruit, employee; number of HR employees per total employees, etc.). To date, metrics theory and SHRM theory have not connected, to the detriment of both. While a complete inventory of SHRM measures is not feasible today. HR metrics adding value to the organisation. Metrics support SHRM in at least two ways. 1. Testing SHRM theories and propositions requires developing or finding measures of key variables. 2. Effect that metrics may have on the strategy and decision-making proces...