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Dear Professionals,
I have some thoughts on measuring HR Effectiveness. I call it effectiveness because being a service function, it should be driven by how this is perceived by others. Hence, I would say that there would be three broad indicators for measuring effectiveness.
1. Measurment of Tangibles Here , we could measure HR function's degree of achievement against targets. For example, if you had to complete the appraisal process and issue the increment letters on 15th April, on what date did you actually achieve it. There could be a calibrated index to measure your performance. I am sure that we could formulate this on all such performance measures.
2. Benefits of Training & Development Activities : We could measure it by analysing how training has actually benefited the organisation. For this, you need to put in place a Competency profile at different levels against which individuals are mapped - structured training programmes conducted to address these needs and then again individuals are mapped. ( This could be done through any sort of appraisal / assessment process). In addition, you could calculate ROI on training.
3. How do the internal customers perceive the benefits of HR : Conduct a survey wherein the internal customers rate the usefulness ( hopefully) of HR function.
In case EVA process has been institutionalised in the organisation, that could be another input to the overall score.
Let's have views on these.. Nikhil
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