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Measuring HRM Effectiveness


MeasuringHRM Effectiveness

Carryingout a human resource audit has been recognized as one of the mosteffective ways of determining its success in executing its functions.However, there are varied other techniques that have been devised.The effectiveness of HRM may be measured through carrying out ananalysis of specific activities and programs. This analysis mayevaluate the success of a program with regard to whether it attainedits goals or whether it delivered economic value. Effective programswould deliver value higher than it costs (Noe et al, 2011). Costs mayinclude the expenses incurred in administering HRM programs includingtraining, satisfaction surveys and employee development, while thebenefits may include a reduction of the costs pertaining to theemployee turnover and absenteeism, as well as enhanced productivitythat comes with improved selection and training programs (Noe et al,2011).

Inaddition, the effectiveness of Human resource can be measured throughcalculating the turnover of employees. In calculating the overallturnover, a comparison of the total replacements hires by the totalnumber of employees in the organization would be carried out (Noe etal, 2011). This would be aimed at reducing turnover among topperformers, as well as finding acceptable turnover levels for theaverage and low performing individuals.

Moreover,HRM effectiveness may be determined by measuring the workplacecompliance. Strong compliance programs such as training on nondiscrimination and anti-harassment should undoubtedly result in areduction in the regulatory audit findings, employee lawsuit,accidents and the number of injuries in the workplace. Theeffectiveness of compliance programs can be determined by trackingthe total number of lawsuits, employee complaints and the amount oftime that is lost to injuries and accidents in the workplace.


Noe,R. A., Hollenbeck, J. R., Gerhart, B., &amp Wright, P. M. (2011).Fundamentals of human resource management (4th ed.). Chicago, IL:McGraw-Hill.&nbsp