The effectiveness of HRM should be assessed only by financial measures - Negative and Affirmative Free Essay Example, 1500 words

The Effectiveness of HRM should be Assessed by Other Measures In a study conducted by Crawford (2005, 3), he averred that â€Å"the multiple constituency approach to HRM effectiveness adopts the multiple constituency model of organizational effectiveness, which is the most appropriate for evaluating HRM. This approach considers the influences of key stakeholders in the organization. † Literatures presenting various approaches to measure the effectiveness of HR performance indicated the Balanced Scorecard approach as translating â€Å"strategy into operational terms by measuring a full range of perspectives: financial, customer, internal, and learning and growth. † (OPM, 1999, 19). In a paper written by Cabrera thus, it acts as a management, rather than measurement, system by helping managers to better understand how different measures are related and how they ultimately contribute to financial results (Bontis, et al. , 1999)†. The research of OPM discussed other measures of HRM effectiveness including benchmarking (â€Å"a systematic process of measuring an organization’s products, services, and practices against those of a like organization that is a recognized leader in the studied area† (OPM, 1999, 18); activity based costing, a method aimed to determine the true cost for a product or service; and the â€Å"Malcolm Baldrige and the President’s Quality Award Criteria, based on a set of core values and concepts that integrate key business requirements into a results-oriented framework (OPM, 1999, 20)†. More importantly, as the roles and functions of HRM become more diverse adapting to the demands of the times, the means to assess its effectiveness evolves into encompassing areas of employee development (employee behavior, attitudes and skills), competencies, performance, as these attributes all contribute to the achievement of organizational goals. We will write a custom essay sample on The effectiveness of HRM should be assessed only by financial measures - Negative and Affirmative or any topic specifically for you Only $17.96 $11.86/pageorder now As aptly concluded by Cabrera & Cabrera, â€Å"no longer are operational measures of internal efficiency sufficient. HR departments must be able to demonstrate the value of their strategic contributions† (2003, 3). According to Crawford, â€Å"from a HRM perspective, the multiple constituency approach can be operationalized by measuring HRM effectiveness from the perspective of HRMs internal and external stakeholders (such as top management, line management, employees, customers, and trade unions). This particular approach demonstrates the responsiveness of HRM to the demands of a variety of stakeholders who may hold different opinions regarding the effectiveness of the function.