Scope Of Hr On Best Practices Commerce Essay

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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

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.


Lagging KPI's

Leading KPI's


F1 - Labor costs

Sickness rate

Labor cost per 1 employee


F2 - Decreasing of turnover rate

% of turnover

Recruiting costs

F3 - Effective using of training budget

ROI of training

Efficiency of investment to

human capital


C1 - Succession planning

% of employees who were


Number of successors on

key posts

C2 - Using of human


% of multiskilled employees

Qualification index

C3 - Retention of the


% of employees who

performed the Employee Dialogue

Participation in career

coaching program

C4 - Corporate social responsibility

Amount of investment to

IT HR technologies

Number of activities

organized for employees

(sport, family day,…)

Savings (money and time)

from HR IT technologies

Number of new hiring

relates to good referral



I1 - Internal flexibility

Job rotation

Posts filled by internal


I2 - Simplify of the sales


Time for dealing with


% of customer satisfaction

I3 - Increasing of motivation

Result from employee

motivation survey

Influence of the inflation

on salary

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

Learning Growth

L1 - Consistently supporting of

employees qualification

% of training courses

matching company requirements

Average number of training hours per employee

L2 - Increasing of internal

customer orientation

% of participants in communication


Number of customer´s


L3 - Multiprofession

Costs for training relates

to multiprofession

Qualification index

L4 - Rewarding system


Compensation cost

Average company salary

L5 - Consistently develop

of leadership skills and

strengthen manager´s role

as a coach and a mentor

Leadership index

Leadership index

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

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

Selective screening

Assessment of technical and interpersonal skills,

attitudes, and/or personality

Performance-based promotions

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

to resources

Less well defined tasks

Authority to make decisions

Employee involvement

Participative management


Extensiveness of formalized

programs to develop knowledge,

skills, and abilities

Training for current and future skills; including

technical and interpersonal

Cross training

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

Job enrichment


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


Performance-contingent pay,

group-based pay, and above market

pay policies

Profit/gain sharing

Employee ownership

Comparatively high level of pay

Performance-contingent pay

Team-based 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 „business partners‟ 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.


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).