Many organizations apply metrics to measure the success and strategic value of their HRM policies and practices. Metrics not only give HR professionals the evidence of strategic value, they also act as the drivers of HR policies and practices. HR metrics are an essential tool for the design, implementation, evaluation, and revision of HRM strategies. In addition, HR metrics give HR professionals the necessary information to more effectively manage and deploy HR assets.
There are many metrics organizations can use, so it is important to utilize the most appropriate metrics for the organization. For example, organizations have used economic and financial analysis to calculate the value of HR practices. The calculations are straightforward and provide the evidence of the extent to which HR practices are deployed toward specific strategic organizational objectives.
Choose an organization with which you are familiar or have access to public information (e.g. BP, McDonald’s, or Starbucks). You will use this organization throughout the course in various assignments. When selecting an organization, think about how you—if asked to act as an HRM, would determine the most appropriate metrics for demonstrating success and strategic value. What might these metrics include?
For this week’s Assignment, in a 2- to 3-page paper:
Identify 3–5 metrics that your particular organization might consider in measuring the success of the organization’s HRM policies and practices.
Analyze each metric’s relevance in setting HR annual strategies, assessing HR success and contribution to the organization’s successful attainment of its organizational strategies.
Finally, discuss whether each of the HR metrics are equally important to the organization you have selected for increasing strategic value and why. If not, which metrics are the most critical? Be specific and provide examples to justify your response.
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