5. How the relevant variables would be measured.
The measurement of human resource efficiency may be somewhat difficult, and indeed thought by some not to be possible at all (Brewster and Tyson, cited in CIPD, 2005). There are, however, a number of measures that can at least move towards a greater understanding of the contribution of HR to overall organizational effectiveness. These range from the general to the more specific and quantitative. Overall, general tests of HR effectiveness rely firmly on the extent to which HR objectives are directly linked to the aims of the organization as outlined in its strategy and its associated operational plans. If this is well done – that is to say, if the workforce plan is developed along with the organizational strategy and seen as integral to it and not as a post-planning ‘add-on’ – then it may be said to be effective if the organization as a whole is seen to be succeeding. This of course is a somewhat indirect measurement of HR effectiveness, but is nonetheless considered to be viable. If, for example, the organizational strategy demands a workforce of a particular character and shape, possessing a defined skill mix, and the HR function is able to provide this through effective recruitment, retention, training, development and employee relations policies, then it must be seen to be making a valuable contribution. This descends from the introduction and maintenance of sound HR policy and procedure at the senior level to a committed application on the ground with a rigorous attention to detail, fairness and consistency.
The HR Model of David Ulrich brings several benefits to the HR Organization in the company as it is more driven by the business and the internal voice of the customer and HR spends less time on its internal processes and its HR paperwork.
The main benefits can be measured as:
Quicker response to the need of the management
Quicker response to the changed conditions in the organization
Proactive HR approach towards its internal and external clients
Different HR Organization based on the job content and the needs of the customers
Better methodology for the HR Measurement