Dr. Jack J. Phillips
Accountability in Human
Resource Management
Dr. Jack J. Phillips
Dr. Phillips has 27 years of corporate experience
in five industries. He has served as training and
development manager at two fortune 500
companies. In 1992, Dr. Phillips founded
Performance Resources Organization (PRO), an
international consulting firm specializing in
human resources accountability programs.
Dr.Phillips has authored or edited ten books
addressing human resource development.
The need for a Results-Based
Approach
Tim Epps, vice president of People Systems
for Saturn Corp., in Troy Michigan, explains,
“HR must become bottom line valid. It must
demonstrate its validity to the business, its
ability to accomplish business objectives and
its ability to speak of accomplishments in
business language. The HR function must
perform in a measurable and accountable
way for the business to reach its objectives.”
(Phillips 1996)
Important trends related to HR
contribution
Increased importance of the HR function
 Increased accountability
 Organizational change and quality programs
 Improvement in productivity
 Adoption of HR strategies
 Growing use of HR information systems
 Reliance on partnership relationships

Important trends related to HR
contribution (cont.)
Increased importance of the HR function
 Increased accountability
 Organizational change and quality programs
 Improvement in productivity
 Adoption of HR strategies
 Growing use of HR information systems
 Reliance on partnership relationships

Measuring the HR contribution
Surveys
 HR accounting
 HR auditing
 HR case studies
 HR cost monitoring
 Competitive benchmarking
 Key indicators

Measuring the HR contribution
(cont.)
HR effectiveness index
 HR management by objectives
 HR profit centers
 Return on investment

Developing a results-based
approach and a new model
Purposes of measurement and evaluation
 Obstacles to measuring the contribution
 Levels of evaluation
 The attitude of the HR team
 Sharing responsibilities for the HR
measurement and evaluation
 A results-based model for program
implementation

Purposes of measurement and
evaluation
To determine whether a program is
accomplishing its objectives.
 To identify the strengths and weaknesses of
the HR process
 To calculate the ROI in an HR program
 To gather data to assist in marketing future
programs.

Purposes of measurement and
evaluation (cont.)
To determine if the program was
appropriate
 To establish a data base that can assist
management in marketing decisions

Obstacles to measuring the
contribution
Evaluation cost
 Lack of top management commitment
 Lack of evaluation knowledge
 Attention to evaluation design
 Fear of evaluation
 Lack of standards

Levels of evaluation
It is helpful to view HR measurement and
evaluation as consisting of three levels:
 Measure of perceived effectiveness
 Measures of performance
 Measures of return on investment
A Results-Based Model for
Program Implementation
*Step one: Needs analysis
*Step two: Measurement and evaluation System
Step three: Program Objectives
Step four: Program Development
Step five: Program Implementation
*Step six: Cost Monitoring
* Step seven: Data collection and analysis
* Step eight: Interpretation and conclusion
* Step nine: Communicate results
*Steps receiving recent emphasis
Evaluation design
Evaluation design Is important to
the overall process of HR
measurement. It includes the timing of
measurements and the minimization of
factors that can threaten the validity of
program evaluation results.
(Phillips, 1996)
Evaluation design issues
 Control
groups
 Timing of measurements
 Factors that jeopardize validity
1) Time or history
2) Effects of testing
3) Mortality
4) Selection bias
Evaluation design and
implementation
Common evaluation designs.
 One-shot program evaluation design
 Single group, pre- and post-program
measurement design
 Single group, time series design
 control group design
 Ideal evaluation design
One-shot program evaluation
design
Program
initiated
Program
fully implemented
or
completed
Program
Implementation
period
time
Data
collected
Single group pre- and postmeasurement design
Program
initiated
Program
implementation
period
Program
fully implemented
or
completed
Time
Data collected #1
Data collected #2
Single group, Time Series
Design
Program
initiated
Data collected
#1
Program
Fully implemented
or
program
completed
implementation
period
Data collected
#2
Data collected
#3
time
Data collected
#4
Control group design
Program
fully implemented
Program
or
initiated
completed
Program
Implementation
period
Experimental
group
Time
Data collected #1
Control
group
Data collected #2
No program
Time
Ideal evaluation design
Experimental
group A
Program fully implemented
Program initiated
or completed
Program implementation
period
Data collected #!
Control group
Experimental
group B
Time
Data collected #2
No program
Time
Program fully
implemented or
Program initiated
completed
Program implementation
period
Time
Data collected #2
Post measure only, control
group design
Program
fully implemented
or
completed
Program
initiated
Experimental
group
Program
implementation
period
Time
Data collected
#1
Control
group
No program
Time
Measuring the total human
resource effort
Measuring the human resource
effort will help management
understand and appreciate the ways in
which the human side of an
organization interacts with and effects
the financial side. (Phillips 1996)
Measurement issues
Measurement is important to
determine success of performance.
Success also depends on the ability to
measure performance and to use these
measurements persuasively to obtain
needed resources. (Phillips 1996)
Measurement issues (cont..)
The following principles of
performance measurements apply:
 The effectiveness of any function can
be measured by some combinations of
cost, time, quantity, quality, or
behavioral indices.
Measurement issues(cont.)
 A measurement
system promotes
productivity by focusing attention on
the most important issues, tasks, and
objectives of the organization.
 The performance of white collar
workers is best measured in groups.
 The ultimate measure is effectiveness,
not efficiency.
Measurement issues (cont.)
 Managers
can be measured by the
effectiveness and efficiency of the
units they manage.
The HR contribution model
HR contribution model
HR Management
HR performance measures
•Functions
•HR investment
•Programs
•Absence rate
•Policies
•Turnover rate
•Practices
•Job satisfaction
•Strategy
•Organizational commitment
•Activities
Organizational
effectiveness measures
Revenue
Employees
Assets
Employee costs
Operating income
employee costs
Other factors
•Revenue growth rate
•Industry type
•Economy
•Market forces
•Strategic choices
HR performance measures
In determining which strategy of
measures to use, for your HR program,
four rules should be considered.
The Four Rules
1. Each measure should represent the
impact of as many functions as
possible within the HR department.
2. Each function should represent
functions that are important across
business and industry groups.
The Four Rules
3. Each measure should represent data
that is available and assessable.
4. All of the measures must account for
the large portion of the activities,
programs,, and services of the HR
department.
HR performance measures
(cont).
 HR
expenses
 Absence rate
 Turnover rate
 Job satisfaction
 Organizational commitment
Using benchmarking to
measure HR effectiveness
The benchmarking process develops
standards of excellence from
organizations that are considered to
have the best practices.
(Phillips 1996).
The seven phase benchmarking
process
7
Initiating
]improvement
from
benchmarking
6
Distribute information
to benchmark
partners
5
Analyze data
1
Determining
what to
benchmark
2
Build the
benchmark team
3
Identify benchmarking
partners
4
Collect
data