Measuring HRM & HCM Effectiveness: Tools, Questions, and Performance

This essay delves into the methods and metrics HR professionals can employ to assess the effectiveness of Human Resource Management (HRM) and Human Capital Management (HCM), emphasizing their contribution to overall business performance. It identifies key tools and measures, such ...Read More

Running head: MEASURING HRM EFFECTIVENESS
Measuring HRM Effectiveness
Name of the Student
Name of the University
Author Note

1MEASURING HRM EFFECTIVENESS
1. What measures, metrics or tools might HR professionals use to assess the
effectiveness of HRM and/or HCM and/or its contribution to business performance?
The effectiveness of the HCM Human capital Management and HRM Human
resource Management deals with the reporting, analysing and obtaining of data which enables
the information about the direction in which the people management in an organisation is
developing through strategic investment of the decisions taken at a corporate level at the level
of the front line management (Michael 2006). For inducing effective HRM and HCM
contribution to the business performance the following are the tools, measures or metrics that
the HR professionals should put into practice:
 According to personal opinion a characteristic of HCM is defined only with
the use of proper metrics that would help in guiding an approach for managing
the people in the organisation as they are also recognised as an asset for the
company. This emphasizes the competitive advantage over the strategic
investments made in behalf of the company and this can be further enhanced
with the employee engagement plans, employee retention plants, talent
management and enhancement of the skills of employees through learning and
development programmes.
 The metrics should be used to measure the value that has been added to the
organisation due to these attributes and this information should be effectively
used for the management of the organisation further.

2MEASURING HRM EFFECTIVENESS
2. What types of questions might an HR leader, or other organisational leader with HR
responsibilities, is able to answer in his or her context about how to improve
HRM/HCM effectiveness?
Every time the HR managers at question and challenged for managing the talent
within the organisation and mobilizing them to help the business have a competitive
advantage in the market (Guest 2011). For focusing the entire idea of managing the human
resource or capital within the organisation an HR manager needs to accommodate all the
broader capabilities of both human and capital that is required for the achievement of a
competitive advantage and attaining global growth through practices which are robust in
nature (Coe and Letza 2014). For this any charge needs to be ready for the questions that
would be asked to them about the rapid development of their priorities in setting up the
resources, both human and capital, for the provision of used range of expertise that would be
a necessary for the survival and prosperity of the organisation. Following are few questions
that the HR manager needs to be ready for if asked:
 Are there necessary competence skills and abilities, commitment of engagement
in working hard, and the contribution of the people being able to find out the
meaning behind the services provided?
 Is the culture in the organisation proving to be just right according to the
capabilities of the resources and are they able to shape up an individual identity
and pattern out of the company's behaviour?
 Does the organisation has a death in the leadership throughout the company and
are focused on the right things?

3MEASURING HRM EFFECTIVENESS
3. In organisations with which you are familiar, what types of information about
HRM/HCM effectiveness and business performance were available? What types of
information might have been useful in improving management practice?
In a large organisation like Coca-Cola, it is known that the HR management has been
understood according to the capability for acquiring Global success. The company staff is
killed and well managed and it is easier for the HR manager to manage the performance and
productivity. There is little information as below about the HRM effectiveness according to
the business performance of Coca-Cola:
 Coca-Cola has always created an environment for the learning and development of
skills for the employees (Rousseau and Barends 2011). They believe that the learning
environment is essential for every employee for their personal development and to
generate employee motivation. This is characterized by salary hikes with the
employees who achieved the farthest.
 Proper training and education is provided to the employees who have been serving in
the organisation to enhance their skills and knowledge and they are encouraged to
achieve their 100%.

4MEASURING HRM EFFECTIVENESS
References
Coe, N. and Letza, S., 2014. Two decades of the balanced scorecard: A review of
developments. The Poznan University of Economics Review, 14(1), p.63.
Guest, D.E., 2011. Human resource management and performance: still searching for some
answers. Human resource management journal, 21(1), pp.3-13.
Michael, A., 2006. A handbook of human resource management practice. Cambridge
University Press, India, 4843(24), pp.878-889.
Rousseau, D.M. and Barends, E.G., 2011. Becoming an evidence‐based HR
practitioner. Human Resource Management Journal, 21(3), pp.221-235.