Overcoming Challenges: Human Resource Metrics System Analysis Report

This report addresses the challenges encountered in implementing new Human Resource (HR) metrics systems, focusing on the persistent use of legacy metrics. It highlights the difficulties HR managers face in transitioning from familiar, outdated systems and the complexities associated with introducing new Information Technology (IT) systems. The report emphasizes the importance of aligning HR metrics with the organization's strategic framework, advocating for a consensus-driven approach to change management. It draws on examples, such as the Sears case, to illustrate the significance of securing support within the organization for the implementation of new metric systems. Furthermore, it contrasts the 'bottom-up' and 'top-down' approaches to metric system development, recommending the latter to ensure the validity and constructiveness of HR strategies. The report provides a comprehensive overview of the challenges and potential solutions in HR metrics, offering valuable insights for HR professionals seeking to improve their measurement systems.

Running head: HUMAN RESOURCE METRICS
HUMAN RESOURCE METRICS
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Author Note

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One of the major and most common challenges faced in the implementation of new
HR metrics system is the continuous use of what is known as the legacy metrics system. Most
of the Human Resource (HR) managers get too comfortable operating the old and familiar
metric systems they had created. In fact, introducing a new and better measurement system
that is strategically focused often revolves around the complexity of introducing new systems
of Information Technology (IT) that can fail to be cost-effective (Van & Bondarouk, 2016).
Therefore, most managers continue to operate the legacy metrics that have long lost its
appropriateness and this demonstrates a contradictory relationship between the convenience
of the legacy metrics and the its value in the system of strategic management.
In order to overcome such a challenge in the HR metrics system it must be
remembered that it is necessary that the measurement system is capable of completely
capturing the fundamental processes of the organization and the results that influences the
strategic framework (Hussain & Murthy, 2013). Hence, HR managers must be able to
understand the context of the organization’s value formation and to correctly measure drivers
and factors that influence the process. The first and foremost step in this regard would be
arrive at a consensus supported by members and employees of the organization that a change
in the metric system is necessary instead of adhering to the old legacy metrics systems. Toni
Rucci, the former administrative vice president for Sears had the support of the Chief
Executive Officer (CEO) Arthur Martinez for the implementation of new metric systems that
demonstrated the importance of building a foundation of support wherever it is possible for
the Chief Human Resources Officer (CHRO) (Becker, Huselid & Ulrich, 2001). However, a
significant fraction of two-thirds among the employees were either indifferent or had
contrasting views regarding the implementation of such strategies (Becker, Huselid & Ulrich,
2001). In this context, Rucci opines that an effective change could be achieved if the focus is
driven on the one-third of the employee count who support the initiative or change rather than

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focusing on the two-thirds who are against the proposed initiative (Becker, Huselid & Ulrich,
2001).
The problem of the incessant use of the legacy metrics can also be reduced with the
implementation of strategically planned metric systems. The HR managers must consider and
analyze critically if the HR metric system in use is able to provide with information that
would enable efficient and effective strategic management of the HR operations (Dulebohn &
Johnson, 2013). Some managers tend to use a “bottom-up” approach concerning the metric
systems that begins with the measures that are available and strives to make the best out of
them. Such an approach is often the primary principle for pursuing legacy metrics, is time
consuming, and fails to provide credibility to the HR strategies (Becker, Huselid & Ulrich,
2001). In this context, a “top-down” approach must be used that enables an understanding of
the organization’s value creation process leading to the development of new measures and
metric system that are valid and constructive for the organization.

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References
Becker, B. E., Huselid, M. A., & Ulrich, D. (2001). The HR scorecard: Linking people,
strategy, and performance. Harvard Business Press.
Dulebohn, J. H., & Johnson, R. D. (2013). Human resource metrics and decision support: A
classification framework. Human Resource Management Review, 23(1), 71-83.
Hussain, S. A., & Murthy, O. N. (2013). HR metrics: A benchmarking towards
excellency. Journal of Business Management and Social Sciences Research, 2(9), 23-
27.
Van den Heuvel, S., & Bondarouk, T. (2016). The Rise (and Fall) of HR Analytics.
In Proceedings from 2nd HR Division International Conference (HRIC), Sidney,
Australia.