In: Economics
The Human Resources Department has been up and operating for 18 months now. The CEO has asked for a report on the efficiency and effectiveness of the department. Prepare an outline of the steps that you would take to measure the effectiveness and efficiency of the department for the CEO.
The HR department is mainly responsible for all the employee related tasks in the organisation. To measure the effectiveness and efficiency of the HR dept, the CEO must follow the given steps :
1. Establish various areas/parameters of assessment : these can be areas like that gauge motivation levels among employees, employee connectivity, employee engagement programs, attrition rate of employees, Time spent in hiring, dispute resolution effectiveness etc
2. Establish the control measures : The CEO must establish benchmark rates/control measures that the HR dept is expected to fulfil.
3. Measuring performance : The performance is then measured against each of the identified parameters.
4. Mapping the performance with standards: The performance is then measured against the industry standards or the control measures set by the CEO initially.
If the outcome is better than the standards, the HR Dept is working efficiently but incase it is less, then the dept is not effective or efficient.