Group 2 Seminar
Retaining employees – defending HRM
effectiveness
Tracey
Paula
Sunny
Mina
Steve
Purpose:
By the end of the session, you will
have connected your learning
throughout the course to the analysis
of the case studies
By the end of the session you will
have shown how effective HR
practices benefit the bottom line
HR Effectiveness : Definition for
today's purposes -
benefits and challenges of HRM
systematic evaluation & analysis
to the organisation's competitive
advantage
Strategic advantage:competitve affectiveness: building a plane in the air
http://www.youtube.com/watch?v=M3hge6Bx-4w
Group work –stay in your seminar groups; all but one
member in each group are the HRM’s; the remaining
member takes the role as CEO, and is antagonistic to
the HRM’s, since there is frustration in the company at
the cost of replacing staff.
The scenario – construct your arguments for a report
back about what HRM is doing to address the costs,
and loss of staff. Also defend the role of the HRM as an
effective member of the Executive leadership team.
20 mins group work
The HR manager has been called to account to the CEO
as to why the HR manager should continue to be
included in the strategic discussions at the company
leadership level. This is because of the rising level of
employee turnover and its effect on costs
Using the information in the case studies, and what
we've learnt in the course, construct your arguments
1. in response to rising costs, and
2.why the HRM function should continue to contribute
at the strategic level.
1st debrief
Each group offers one at a time of their points of
view in sequence (gp1, gp2, gp3 etc) until we
have heard all of the arguments available in
the room.
Reflection: which of the arguments seem to
carry the most weight?
HRM effectiveness
All too frequently, HR specialists focus on activities such as writing recruitment
advertisements, promoting programs, interviewing and counselling. It may come
as a surprise, but this is not what HR personnel get paid for – they are paid to get
results. ‘What management wants to know about the human resource function is
how it will affect the year end result, its strategic return on investment’.
HR managers must ensure that their function facilitates the achievement of the
organisation’s strategic business objectives and that performance is expressed in
quantifiable terms using facts figures and dollars. Only then can the HRM function
be seen as not belonging among the expense items and the HR manager can be
recognised as a strategic business partner. The hard reality is that until HRM can
show a substantial and quantifiable positive effect on the bottom line, it will not be
given a place at the strategic decision-making table. A recent development in the
measurement of HR performance is the HR scorecard, which attempts to show how
HR adds value by linking HR activities to measures (for example, profitability) that
line managers understand. (Stone, 2008 p661)
Stone, R J (2008): Managing Human Resources, 2nd ed’n. Wiley & Sons. Australia
Balanced Scorecard
People
Learning and innovation
Internal
operations
Development of learning
organisation
Customer
satisfaction
Financial
Needs of the customer
Financial results that drive the
business
Synthesise your arguments from the first activity
by deciding which of the arguments fits
against which of the balanced score card
categories. Record your consensus decisions
by transferring each argument to your group’s
agreed category. Be prepared to defend your
decisions.
Conclusion
Should the bottom line only be dollars?
Is it critical for HRM to be a strategic partner and
report to the CEO?
How are the BSC indicators related to each other
and the impact on the organisation?
Just for fun:
http://www.youtube.com/watch?v=dpzMPiNWQpw