The goal of this research is to find out what is the current focus of organization in the field of HR, what best practices are they following, what KPIs are they using to measure the performance of their employees and last but not the least are these organization implementing e HR for their employees.
H0: The KPI's does not leads to successful HR planning.
H1: The KPI's leads to successful HR planning.
The research methodology used by us is a combination of both secondary research and primary research.
The secondary data will be extracted from various articles and research papers available online as well as available in business magazines.
The tools that will be used to collect primary data will be survey questionnaires and interviews which will be conducted from the employeers of different organization.
Research 1: Good and Bad KPI's
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Key performance indicators (KPI's) reflect the performance of an organization. There are a number of KPI's in the business sector but only those KPI's should be selected that are aligned with HR Mission, Vision and goals. The goal of presented research is to find and set the KPIs on HR level according to defined HR strategy and targets. The research also presented the strategy map which is a necessary part of the HR scorecard and serves as a base for specifying the KPIs.
The main purpose of all organization should be to have a manageable and sustainable HR scorecard with visible and measurable KPIs. The selected KPIs include all possible aspects-internal and external - to HR strategy with aim to maximize an organizations performance.
This research presents an overview of KPI's on HR level.
F1 - Labor costs
Labor cost per 1 employee
F2 - Decreasing of turnover rate
% of turnover
F3 - Effective using of training budget
ROI of training
Efficiency of investment to
C1 - Succession planning
% of employees who were
Number of successors on
C2 - Using of human
% of multiskilled employees
C3 - Retention of the
% of employees who
performed the Employee Dialogue
Participation in career
C4 - Corporate social responsibility
Amount of investment to
IT HR technologies
Number of activities
organized for employees
(sport, family day,â€¦)
Savings (money and time)
from HR IT technologies
Number of new hiring
relates to good referral
I1 - Internal flexibility
Posts filled by internal
I2 - Simplify of the sales
Time for dealing with
% of customer satisfaction
I3 - Increasing of motivation
Result from employee
Influence of the inflation
I4 - Employee survey
Return ability of questionnaire
Performed action measures
I5 - Idea management
Number of accepted IM
Acquisition for company
according to accepted IM
I6 - Online HR tools
Time for saving of routine
HR paper work
Time for saving of routine
HR paper work
L1 - Consistently supporting of
% of training courses
matching company requirements
Average number of training hours per employee
L2 - Increasing of internal
% of participants in communication
Number of customerÂ´s
L3 - Multiprofession
Costs for training relates
L4 - Rewarding system
Average company salary
L5 - Consistently develop
of leadership skills and
strengthen managerÂ´s role
as a coach and a mentor
Source: (Iveta, 2012)
The KPI's mentioned above are divided as lagging or leading KPI's. Where lagging means the way we are doing now or was doing in past and leading means the way we have improved or can improve.
Research 2: High Performance Work System
Always on Time
Marked to Standard
This study presents a theoretical framework demonstrating the relationship between high-performance work systems (HPWS) and organizational performance. HPWS are conceptualized as a system of human resource (HR) practices, and it lead to (a) financial performance via administrative efficiency and (b) sustainable performance via flexibility arising from the coordination and exploitation of knowledge resources.
Organizations using HPWS make a noteworthy investment in their pool of human capital so that employees are well trained, skilled, and empowered to perform their jobs. Existing perspectives on HPWS are directly allied with research on high involvement work practices and high-performance management practices. In fact, researchers often note that various naming preferences are frequently used interchangeably and refer to the similar phenomena of interest. HPWS is defined as an integrated system that is not only aligned with the HR practices and strategies but is also aligned with the organization's strategy.
After thorough analysis of this study the researcher concluded that HPWS has a strong relationship with the organizations performance. In order to achieve the organizations objective the HR should implement HPWS to ensure that clear contribution is given not only by the HR but also by the employees towards the achievement of final outcome.
The researcher during this study identified some of the HR categories which may comprise the HPWS. These categories are supported with description and examples are listed below:
HR Practice Categories
Extensiveness of procedures
to evaluate relevant knowledge,
skills, and abilities for job fit
and organization fit
Assessment of technical and interpersonal skills,
attitudes, and/or personality
Self Managed Teams
Redistribution of power downward
by granting authority and
responsibility to team structures
Employee participation programs
Teams with task and decision-making authority
Extensive use of teams throughout the organization
Decentralized Decision Making
Empowering employees via
greater responsibility and access
Less well defined tasks
Authority to make decisions
Extensiveness of formalized
programs to develop knowledge,
skills, and abilities
Training for current and future skills; including
technical and interpersonal
Training for both new hires and experienced employees
Flexible Work Assignments
Opportunities to broaden individual
knowledge, skills, and
Job rotation; rotation across teams
Ability to perform +1 job
Open vertical and horizontal
communication channels providing
access to information
and opportunities to express
Access to all levels of operating results
Employee suggestion systems
Explanation of business strategy
group-based pay, and above market
Comparatively high level of pay
Source: (Davis, 2005)
Research 3: The Role of e-HRM in Building Positive Work Attitudes
Generation Y are the new generation of employees. These employees are talented, technology oriented and self-starting, but at the same time are not too much committed or loyal towards their work. Developing effective work arrangements for such a new generation is essential for the future growth and sustainability of firm competitive advantage. This research suggests that e-HRM systems assist work arrangements that produce positive outcomes; E-HR signals and reinforces the organization's investment in the employee-organization relationship. This broad study provides priceless and at times unpredicted outcome particularly for the new and thus far little known Generation Yers.
HRM departments should become genuine â€žbusiness partnersâ€Ÿ competent to generate and sustain a company's strategic value. The rapid growth of the Internet in recent years has obliged HR department towards the new e-HRM approach. Latest technological opportunities are a link that could help unite the two sides of the working relationship; for organizations, e-HRM solutions are techniques to maintain organizational flexibility and knowledge-sharing.
E-HRM can be designed with three types of goals in mind: improving conventional HRM strategic orientation, improving client service orientation and improving efficiency, thus creating three special types of e-HRM: operational, transformational and relational.
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The results of this research are listed below:
Are Generation Y Technologically ready: the results suggested that there is no one best way to deal with Gen-Yers. They are optimistic towards technology but feel insure while dealing with it.
Are E-HRM systems adopted and useful: E-HRM is not fully adopted and needs much more attention all over the world. However E-HRM is definitely useful and helps as a retention strategy for those Gen-Yers who are fully comfortable with technology.
Does E-HR influences the employees work attitude: it definitely influences the employees work attitude as it influences trust in HR department.
From a more realistic perspective these outcomes suggest that organizations have to enhance their e-HRM investments, but they also have to introduce and communicate them better in order to be consistent not merely with the technological optimism of the fresh employees but also with their technological distress (Bissola & Imperatori, n.d).