Strategic HRM Measurement in the 21st Century: From Justifying HR to Strategic Talent Leadership

Measurement will be vital to the evolution of human resource management in the coming century, but in this chapter we propose that it will not be measurement as usual. The future of HRM will require a decision science for talent resources that is as logical, reliable, consistent and flexible as Finance, the decision science for financial resources, and Marketing, the decision science for customer resources. In this chapter we describe the elements of this new decision science, which we call “Talentship,” and its implications for the future of strategic HR measurement. Using this framework, we review leading measurement approaches, describe their contributions, and identify the significant opportunities for improvement in future HR measurement systems

Beyond Cost-per-Hire and Time to Fill: Supply-Chain Measurement for Staffing

Identifying and acquiring talent is one of the most important processes in human resource management. It is a key element in being competitive in a knowledge driven, talent constrained economy. In addition, it is often the first contact that potential employees have with the organization, so it can be the basis for the entire employment relationship. Increasingly, organizations recognize that a professionally excellent staffing process can be a source of competitive advantage. Moreover, the emergence of fundamentally new information technologies and communication processes – such as the Internet, virtual job fairs, online testing, and global job boards – increase the opportunities and the risks associated with staffing process management. Unfortunately, existing staffing process measurement systems typically fail to provide the information necessary to understand, evaluate and make rational decisions about investments in the staffing system, and fail to support decisions about staffing by HR professionals, line managers, applicants and employees. As a result, organizations often base decisions about their staffing systems solely on information about the volume of applicants or new hires, or the costs and time involved in staffing activities. This leads to potentially disastrous decisions, and opens the door for competitors. In this article, we propose a framework for a staffing measurement system that truly supports professional excellence, partnership and optimal investment decisions

Strategic I/O Psychology and the Role of Utility Analysis Models

In the 1990’s, the significance of human capital in organizations has been increasing,and measurement issues in human resource management have achieved significant prominence. Yet, I/O psychology research on utility analysis and measurement has actually declined. In this chapter we propose a decision-based framework to review developments in utility analysis research since 1991, and show that through lens of this framework there are many fertile avenues for research. We then show that both I/O psychology and strategic HRM research and practice can be enhanced by greater collaboration and integration, particularly regarding the link between human capital and organizational success. We present an integrative framework as the basis for that integration, and illustrate its implications for future research

From Professional Business Partner to Strategic Talent Leader : What’s Next for Human Resource Management

The HR profession is at a critical inflection point. It can evolve into a true decision science of talent, and aspire to the level of influence of disciplines such as Finance and Marketing, or it can continue the traditional focus on support services and program delivery to organizational clients. In this paper, we suggest that the transition to a decision science is essential and not only feasible, but historically predictable. However, we show that making the transition is not a function of achieving best-practice professional practices. Rather, it requires developing a logical, deep and coherent framework linking organizational talent to strategic success. We show how the evolution of the decision sciences of Finance and Marketing, out of the professional practices of Accounting and Sales, provide the principles to guide the evolution from the current professional practice of HR, to the emerging decision science of talentship

Global Talentship: Toward a Decision Science Connecting Talent to Global Strategic Success

It is widely accepted that global competitive advantage frequently requires managing such complex situations that traditional organization and job structures are simply insufficient. Increasingly, in order to create a flexible and integrated set of decisions that balance local flexibility with global efficiency, organizations must rely on more social, informal and matrix-based shared visions among managers and employees. Research on global strategic advantage, global organizational structures, and even shared mindsets has suggested that dimensions of culture, product and function provide a valuable organizing framework. However, typical decisions about organization structure, HRM practices and talent often remain framed at such a high level as to preclude their solution. We maintain that there is often no logical answer to such questions as, “Should the sales force be local or global?” or “Should product authority rest with the countries or the corporate center?” However, we propose that embedding business processes or value chains within a Culture and Product matrix provides the necessary analytic detail to reveal otherwise elusive solutions. Moreover, by linking this global process matrix to a model that bridges strategy and talent, it is possible to identify global “pivotal talent pools,” and to target organizational and human resource investments toward those talent areas that have the greatest impact on strategic advantage. We demonstrate the Value-Chain, Culture and Product (VCCP) matrix using several examples, and discuss future research and practical implications, particularly for leadership and leadership development

The Human Capital “Impact” on E-Business: The Case of Encyclopedia Britannica

[Excerpt] The term “New Economy” has been coined to describe the remarkable economic performance of the 1990s. Stiroh, (1999) an economist at the Federal Reserve Bank of New York observes that its defining characteristic is a “focus on increasing globalization and expanding information technology” (pg. 87). Research suggests that revenues from electronic based business to business trade will double over the next five years from $43 billion in 1998 to$1.3 trillion in 2003. Revenues from business to consumer trade are predicted to rise from $8 billion to$108 billion over the same time period (Forrester Research, 1998). However, there is increasing attention to the challenges facing business in the new economy, and an increasing chorus of analysts suggesting how tenuous many of these business models really are. A recent Barron’s article showed that many dot-com companies have only days of remaining cash (Willoughby, March 20, 1999). Such a key emerging phenomenon has not escaped the attention of writers, though the existing body of writing has some important gaps. We would classify existing e-business literature into two groups. First, there is a growing body of literature that discusses the how the Internet is transforming business models and organizational strategies. A second, much smaller body of work has focused on e-HR, or more specifically, the implications of the Internet on various HR practices

Measuring Intellectual Capital: Learning from Financial History

[Excerpt] Emerging evidence from scientific studies and specific organizations suggests that how people are managed significantly affects organizational success, and that certain patterns of human resource activities are associated with financial performance. Most human resource (HR) and line managers, however, find existing measures of human and intellectual capital woefully inadequate. In this article, we suggest that designers of HR measurement systems can learn from the success of well-accepted measurement models in the financial and marketing arenas. We show that the historical development of these measurement systems suggests several lessons for the HR measures of the future. These lessons include articulating the links in the value chain, focusing on key organizational constraints, and using data to make “soft” intangible factors more tangible.Measuring_Intellectual_CapitalWP96_08.pdf: 7807 downloads, before Oct. 1, 2020