Dessler Fhrm2 Inppt14

Gary Dessler

Fundamentals of Human Resource Management

2e

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall14-2

Building High-Performance Work Systems and

Improving Strategic ResultsChapter 14

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

When you finish studying this chapter, you should be able to:

1. Define high-performance work system.2. List four characteristics of high-performance work

systems.3. Give an example of using evidence-based

management.4. Discuss, with examples, how to conduct an HR audit.5. List and explain at least five HR metrics.6. Explain the process you would use to select an

outsourcing vendor.

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What Are High-Performance Work Systems?

High-performance work system∟ An integrated set of

human resources policies and practices that together produce superior employee performance

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High-Performance Human Resource Policies and Practices

Human resource metric∟ The quantitative measure of some human

resource management yardstick, such as employee turnover, hours of training per employee, or qualified applicants per position

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Comparison of HR Practices in High-Performance and Low-Performance Companies: Table 14.1

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How High-Performing Firms Organize Their HR Practices: Table 14.1

1. Helps show why metrics are important2. Illustrates the things human resource systems must

do to be high-performance systems3. Shows that high-performance work practices usually

aspire to help workers manage themselves4. Highlights the measurable differences between the

human resource management systems in high-performance and low-performance companies

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Evidence-Based Human Resource Management

Evidence-based human resource management∟ The use of data, facts, analytics, scientific rigor,

critical evaluation, and critically evaluated research and case studies to support human resource management proposals, decisions, practices, and conclusions

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What Are HR Audits?

HR audit∟ An analysis by which an organization measures

where it currently stands and determines what it has to accomplish to improve its HR function

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What Areas Should the HR Audit Cover?

• Roles and head count• Legal issues• Recruitment and

selection• Compensation• Employee relations• Mandated benefits• Group benefits

• Payroll• Documentation and

record-keeping• Training and

development• Employee and internal

communication• Termination and

transition policies14-10


Types of Audits

Compliance audits∟ How well is our company complying with current

federal, state, and local laws and regulations?Best practices audits

∟ Are our recruitment practices, hiring practices, performance evaluation practices, and so on comparable to those of companies with exceptional practices?

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Types of Audits

Strategic audits∟ Are our human resource management practices

helping our company achieve its strategic goals by fostering the required employee behaviors and organizational outcomes?

Function-specific audits∟ Audits of one or more specific human resource

management areas, such as compensation or training and development.

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Some Issues Prompting HR Audits

Are we in legal compliance?Are our human resource department’s practices

supporting our company’s strategy?Are we administering our human resource

management functions as productively as we might be?

Did our key human resource projects or initiatives last year produce the results we intended?

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Some Issues Prompting HR Audits (cont.)

Are there issues, such as low morale or poor performance, that might respond to improved HR practices?

What improvements can we institute within HR to reduce costs?

How can HR improve the company’s performance management process?

Have we instituted policies and practices that ensure fair treatment of all employees?

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Sample Legal Issues to Audit:Figure 14.1

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High-Risk Compliance Areas to Audit

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When to Audit?

Threshold employee numbers (15, 20, 100) at which point various federal, state, and local regulations and laws become applicable

Business grows to the point where line managers can no longer make their own hiring, discipline, and promotion decisions without HR management’s assistance

Employer creates or modifies an employee handbook

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When to Audit? (cont.)

New head of human resource management arrives

Employee morale, turnover, attendance, or excessive discipline problems seem to signal the need to evaluate HR practices

Company becomes a government contractor or a subcontractor

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The HR Audit Process

1. Decide on the scope of the audit2. Draft an audit team3. Compile the checklists and other tools that

are available4. Know your budget5. Consider the legalities6. Get top management support

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The HR Audit Process

7. Develop the audit checklist8. Collect the data about the company and its

HR practices9. Benchmark the findings10.Provide feedback to your firm’s HR

professionals and senior management11.Create action plans

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Sample Metrics from SHRM Measurements Library: Figure 14.3

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HR-to-Employee Ratios(by Organizational Size): Figure 14.2

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Highlights of SHRM® Customized Benchmarking Service: Figure 14.4

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Strategy and Strategy-Based Metrics

Strategy-based metrics∟ Metrics that specifically focus on measuring the

activities that contribute to achieving a company’s strategic aims

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Improving Productivity through HRIS Tracking Talent Management Applicant Metrics

Recruitment effectiveness measurement process involves two basic steps:1.The employer (and vendor) decide how to measure the performance of new hires2.The Applicant Tracking System enables the employer to track the recruitment sources that correlate with superior hires

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Two Ways to Reduce the Emphasison Day-to-Day Operational HR Activities

1. Use more technology2. Outsource one or

more specific services

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Percent of Surveyed Employers that Outsource HR Functions Completely, Partially, or Not at All

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Some Top HR Outsourcing Vendors: Figure 14.5

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Making the Decision to Outsource

The decisions regarding whether to outsource and what to outsource depend on three things: Employer sizeFinancial pros and consStrategic issues

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Outsourcing Checklist

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Copyright

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

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