A Survey for Managers and Executives[1]
Select the response that best describes the situation in your organization and circle the letter preceding the response.
Performance measurements have been developed and are used to determine the effectiveness of:
All human resources (HR) functions
Approximately half of the HR functions
At least one HR function
Major organizational decisions:
Are usually made with input from the HR function
Are usually made without input from the HR function
Are always made with input from the HR function
The return on investment in HR is measured primarily by:
Intuition and perception by senior executives
Observations by management and reactions from participants and users
Improvements in productivity, costs, time, quality, and so on.
The concern for the method of evaluation in the design and implementation of HR programs occurs:
Before a program is developed
After a program is implemented
After a program is developed but before it’s implemented
New HR programming, without some formal method of measurement and evaluation, is:
Never implemented
Regularly implemented
Occasionally implemented
The costs of specific HR programs are:
Estimated when the programs are implemented
Never calculated
Continuously reported
The costs of absenteeism and turnover:
Are routinely calculated and monitored
Have been occasionally calculated to identify problem areas
Have not been determined
Benefit/cost comparisons of HR programs are:
Never developed
Occasionally developed
Frequently developed
In an economic downturn, the HR function will:
Be retained at the same staffing level, unless the downturn is lengthy
Be the first to have its staff reduced
Go untouched in staff reductions and possibly be increased
The cost of current or proposed employee benefits are:
Regularly calculated and compared with national, industry, and local data
Occasionally estimated when there is concern about operating expenses
Not calculated, except for required quarterly and annual reports
The chief executive officer (CEO) interfaces with the senior HR officer:
Infrequently; it is a delegated responsibility
Occasionally, when there is a pressing need
Frequently, to know what’s going on and to provide support
On the organizational chart, the top HR officer:
Reports directly to the CEO
Is more than two levels removed from the CEO
Is two levels below the CEO
Management involvement in implementing HR programs is:
Limited to a few programs in its area of expertise
Nil; only HR specialists are involved in implementing programs
Significant; most of the programs are implemented through management
The HR staff involvement in measurement and evaluation consists of:
No specific responsibilities in measurement and evaluation with no formal training in evaluation methods
Partial responsibilities for measurement and evaluation, with some formal training in evaluation methods
Complete responsibilities for measurement and evaluation; even when some are devoted full time to the efforts, all staff members have been trained in evaluation methods
Human Resources Development (HRD) efforts consist of:
A full array of courses designed to meet individual’s needs
Usually one-shot, seminar-type approaches
A variety of education and training programs implemented to improve or change the organization
When an employee participates in an HR program, his or her supervisor usually:
Asks questions about the program and encourages the use of program materials
Requires use of the program material and uses positive rewards when the employee meets program objectives
Makes no reference to the program
Variable pay programs (bonuses, incentive plans, etc.):
Exist for a few key employees
Are developed for all front-line employees
Are developed for most employees, line, and staff
Productivity improvement, cost reduction, or quality improvement programs:
Have not been seriously considered in the organization
Are under consideration at the present time
Have been implemented with good results
The results of HR programs are communicated:
Occasionally, to members of management only
Routinely, to a variety of selected target audiences
As requested, to those who have a need to know
With the present HR organization and attitude toward results, the HR function’s impact on profit:
Can be estimated but probably at a significant cost
Can be estimated (or is being estimated) with little additional cost
Can never be assessed
Scoring: Assign a numeric value to each of your responses to the questions based on the following schedule: 5 points for the most correct response, 3 points for the next most correct response and 1 point for the least correct response. Total your score and compare it with the analysis that follows.
The following schedule shows the points for each response:
POINTS |
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Rationale: Explanations for responses are given below.
Performance measurements should be developed for all HR functions. When that is not feasible, at least a few key measures should be in place in each function; otherwise, a function may be perceived to be unimportant or not a contributor.
Major organizational decisions should always involve input from the HR function. HR policymakers should have input into key decisions where human resources issues are involved.
Whenever possible, the investment in human resources should be measured by improvements in productivity, costs, time, and quality. Although other types of evaluation are important and acceptable, these measures are the ultimate proof of results.
The concern for the method of evaluation should occur before the program is developed. In the early stage, some consideration should be given to how the data will be collected and how the program will be evaluated. This ensures that the proper emphasis is placed on evaluation.
Human resources programs should never be implemented without a provision for at least some type of formal method of measurement and evaluation. Otherwise, the contribution of the program may never be known.
The costs of all individual HR programs should be continuously monitored. This provides management with an assessment of the financial impact of these programs at all times—not just when the program is implemented.
Because these important variables represent a tremendous cost for the organization, the cost of absenteeism and turnover should be routinely calculated and monitored.
Benefit/cost comparisons of HR programs should be conducted frequently, particularly when a significant investment is involved. Even rough estimates of payoffs versus estimated costs can be helpful in the evaluation of a program.
In an economic downturn, the HR function should go untouched in staff reductions or possibly increased. Ideally, the function should enhance the bottom line by improving productivity or by reducing costs that can keep the organization competitive in the downturn.
Because employee benefits represent a significant portion of operating expenses, they should be routinely monitored and compared with national data, industry norms, and localized data. Projected future costs of benefits should also be periodically reviewed.
The CEO should frequently interface with the executive responsible for human resources. It is important for the CEO to know the status of the HR function and receive input on employee satisfaction and commitment. This provides an opportunity for the CEO to communicate concerns, desires, and expectations to the HR executive. Frequent meetings are important.
The top HR executive should report directly to the CEO. A direct link to the top will help ensure that the HR function receives proper attention and commands the influence necessary to achieve results.
Management involvement in the implementation of HR programs should be significant. Management’s participation in the design, development, and implementation of HR programs will help ensure its success. Managers should be partners with the HR staff.
The entire HR staff should have some responsibility for measurement and evaluation. Even when some individuals are devoting full time to the effort, all staff members should have a partial responsibility for measurement and evaluation. Staff members should also have training in measurement and evaluation methods. This comprehensive focus on evaluation is necessary for successful implementation.
Human Resources Development (HRD) efforts should consist of a variety of learning and development programs implemented to increase the effectiveness of the organization. HRD involves more than just courses or short seminars. It should include a variety of instructional methods aimed at improving organizational effectiveness.
When an employee completes an HR program, his or her supervisor should require use of the program material and reward the employee for meeting or exceeding program objectives. This positive reinforcement will help ensure that the appropriate results are achieved.
Variable pay programs should be considered for most employees, both line and staff. Although usually limited to a few key line employees, these programs are appropriate for all employees. Through gainsharing plans, bonuses, and incentives, employees can see the results of their efforts and are rewarded for their achievement. This is fundamental to a results-oriented philosophy for the HR function.
Productivity improvement, cost reduction, or quality-improvement programs should be implemented in many locations and should achieve positive results. These programs are at the very heart of bottom-line HR contributions and have been proven successful in all types of settings. The HR function should take the lead to ensure that these programs are administered efficiently and are successful.
The results of HR programs should be routinely communicated to a variety of selected target audiences. Different audiences have different interests and needs, but several important audiences should receive information on the success of HR programs. While some may need only limited general information, other audiences need detailed, bottom-line results.
The impact of the HR function on the bottom-line contribution can be estimated with little additional cost. If measurement and evaluation is an integral part of the organization’s philosophy, data collection can be built into the human resources information system. It adds a little cost but should generate data necessary to calculate program results.
Total score should range from 20 to 100. The higher the score, the greater your organization’s emphasis on achieving results with the HR function.
Score Range | Analysis of Range |
|---|---|
81–100 | This organization is truly committed to achieving results with the HR function. Additional efforts to improve measurement and evaluation for the HR function is not needed. There is little room for improvement. All HR subfunctions and programs appear to be contributing to organizational effectiveness. Management support appears to be excellent. Top management commitment is strong. This HR department is taking the lead in measurement and evaluation by showing the contribution it can make to the organization’s success. Chances are, it is a vital part of an effective and successful organization. |
61–80 | This HR department is strong and is contributing to organizational success. The organization is usually better than average in regard to measurement and evaluation. Although the attitude toward achieving results is good, and some of the approaches to evaluation appear to be working, there is still room for improvement. Additional emphasis is needed to make this department continue to be effective. |
41–60 | Improvement is needed in this organization. It ranks below average with other HR departments in measurement and evaluation. The attitude toward results and the approach used in implementing HR programs are less than desirable. Evaluation methods appear to be ineffective and action is needed to improve management support and alter the philosophy of the organization. Over the long term, this department falls far short of making a significant contribution to the organization. |
20–40 | This organization shows little or no concern for achieving results from the HR function. The HR department appears to be ineffective and improvement is needed if the department is to survive in its current form and with its current management. Urgent attention is needed to make this department more effective in contributing to the success of the organization. |
This instrument has been administered to HR managers and specialists attending local, regional, national, and international HR conferences. The typical respondent has been the individual responsible for the HR function. The instrument was administered anonymously and the respondents were provided ample time at the beginning of the meeting to complete it. Questions and answers were allowed during the administration of the instrument. To date, there have been more than 1,500 usable responses representing an average score of 62.9 with a standard deviation of 7.3.
The score can reveal much about the status of human resources in an organization and the attitude toward measurement and evaluation. A perfect score of 100 is probably unachievable and represents utopia; however, it is the ultimate goal of many HR executives and a few other key executives. On the other extreme, a score of 20 reveals an ineffective organization, at least in terms of the contribution of the HR function. The organization will probably not exist for long in its current form or with the current staff.
Although the analysis of these scores is simplistic, the message from the exercise should be obvious. Achieving results from the HR function is more than just evaluating a single program or service. It represents a comprehensive philosophy that must be integrated into the routine activities of the HR staff and supported and encouraged by top executives.
[1] This survey is adapted from previous versions developed by the author and published in several publications.