ebook img

The Human Resources Scorecard: Measuring the Return on Investment (Improving Human Performance) PDF

537 Pages·2001·3.27 MB·English
Save to my drive
Quick download
Download
Most books are stored in the elastic cloud where traffic is expensive. For this reason, we have a limit on daily download.

Preview The Human Resources Scorecard: Measuring the Return on Investment (Improving Human Performance)

The Human Resources Scorecard Measuring the Return on Investment The Human Resources Scorecard Measuring the Return on Investment Jack J. Phillips Ron D. Stone Patricia Pulliam Phillips Boston Oxford Auckland Johannesburg Melbourne New Delhi Copyright © 2001 by Butterworth–Heinemann A member of the Reed Elsevier group All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Recognizing the importance of preserving what has been written, Butterworth– Heinemann prints its books on acid-free paper whenever possible. Library of Congress Cataloging-in-Publication Data Phillips, Jack J., 1945– The human resources scorecard: measuring the return on investment / Jack J. Phillips, Ron D. Stone, Patricia Pulliam Phillips. p. cm. Includes index. ISBN 0-87719-367-3 1. Wages and labor productivity—Measurement. 2. Labor costs Accounting. 3. Human capital—Cost effectiveness. 4. Manpower planning. 5. Labor ecomonics. 6. Rate of return. I. Stone, Ron D. II. Phillips, Patricia Pulliam. III. Title. HD 4945.P44 2000 331—dc21 00-062236 British Library Cataloguing-in-Publication Data A complete record for this title is available from the British Library The publisher offers special discounts on bulk orders of this book. For information, please contact: Manager of Special Sales Butterworth–Heinemann 225 Wildwood Avenue Woburn, MA 01801–2041 Tel: 781-904-2500 Fax: 781-904-2620 For information on all Butterworth–Heinemann publications available, contact our World Wide Web home page at: http://www.bh.com 10 9 8 7 6 5 4 3 2 1 Printed in the United States of America iv Contents Preface, x Acknowledgments, xvii P a r t I The Need for ROI in Human Resources C h a p t e r 1 The Business Case for ROI ...................................................... 12 Approaches to HR Accountability, 3. Why ROI?, 12. A Credible Approach, 18. Barriers to Implementing the ROI Process, 34. Benefits of Implementing the ROI Process, 36. Final Thoughts, 38. References, 40. C h a p t e r 2 Initial Analysis and Planning .................................................... 42 Evaluation: Project Requirements, 43. Levels of Objectives for HR Programs, 46. Linking Evaluation with Needs, 52. Planning for Measurement and Evaluation, 57. Shortcut Ways to Plan for the Evaluation, 62. Final Thoughts, 64. Further Reading, 64. v P a r t I I The ROI Process, Step-by-Step C h a p t e r 3 Collecting Data During HR Program Implementation ......... 168 Measuring Reaction and Satisfaction, 69. Measuring Skill and Knowledge Changes, 83. Conclusion, 98. C h a p t e r 4 Collecting Data After HR Program Implementation ............ 100 Measuring Application and Implementation, 100. Capturing Business Impact Data, 140. Selecting the Appropriate Method for Each Level, 163. Shortcut Ways to Capture Business Impact Data, 165. Conclusion, 167. C h a p t e r 5 Isolating the Effects of an HR Program ................................ 168 Preliminary Issues, 169. The Ten Strategies, 171. Using the Strategies, 194. Conclusion, 195. References, 195. C h a p t e r 6 Converting Data to Monetary Value ...................................... 197 Preliminary Issues, 198. Strategies for Converting Data to Monetary Values, 200. Converting Output Data to Contribution, 200. Calculating the Cost of Quality, 203. Converting Employee Time, 204. Historical Costs, 205. Internal and External Experts’ Input, 205. Values from External Databases, 206. Participant Estimates, 207. Supervisor Estimates, 208. Senior Manager Estimates, 209. HR Staff Estimates, 210. Selecting the Appropriate Strategy, 210. Accuracy and Credibility of Data, 211. Conclusion, 214. References, 215. C h a p t e r 7 Monitoring the Cost of Human Resource Programs ............ 216 Cost Strategies, 217. Major Cost Categories, 222. Cost Accumulation and Estimation, 226. Summary, 232. Reference, 232. vi C h a p t e r 8 Calculating the Actual Return on Investment ....................... 233 Basic Issues, 234. Benefit/Cost Ratio, 235. ROI Formula, 236. BCR/ROI Case Application, 237. Other ROI Measures, 241. Utility Analysis, 243. Consequences of Not Providing an HR Solution, 244. ROI Issues, 245. Conclusion, 248. References, 248. C h a p t e r 9 Identifying Intangible Measures .............................................. 249 Key Issues, 250. Employee Satisfaction, 252. Employee Withdrawal, 254. Customer Service, 256. Team Effectiveness Measures, 257. Conclusion, 260. References, 260. C h a p t e r 10 Communicating Results ........................................................... 261 Why Be Concerned About Communicating Results?, 262. Principles of Communicating Results, 264. A Model for Communicating Results, 266. Shortcut Ways to Provide Feedback and Communicate with Clients, 298. Final Thoughts, 299. P a r t I I I Important Issues with ROI Implementation C h a p t e r 11 Forecasting the ROI ................................................................ 302 Why Forecast ROI?, 302. The Tradeoffs of Forecasting, 304. Pre-Project ROI Forecasting, 306. Forecasting ROI with Reaction Data, 314. Forecasting ROI with Learning Data, 319. Forecasting ROI with Application of Skills and Competencies, 322. ROI at Level 4: Business Results, 325. Shortcut Ways to Forecast ROI, 325. Final Thoughts, 326. C h a p t e r 12 Implementation Issues ............................................................. 327 Planning the Implementation, 327. Preparing the HR Staff, 337. Initiating the ROI Process, 343. Management Team, 346. Monitoring Progress and Communicating Results, 350. Conclusion, 350. References, 351. vii P a r t I V Case Applications C h a p t e r 13 Sexual Harassment Prevention (Healthcare Inc.) .................. 354 Background, 355. Events Leading to Program, 355. The Program: Design, Development, and Implementation, 356. Why ROI?, 357. Data Collection, 358. ROI Analysis, 360. ROI Analysis Plan, 361. Reaction and Learning Data, 363. On-the-Job Application, 363. Business Impact, 364. Program Costs, 367. Monetary Benefits from Program, 368. Program Costs, 370. ROI Calculation, 371. Questions for Discussion, 372. C h a p t e r 14 Competency-Based Pay System (National Crushed Stone Company) ....................................... 373 Background, 373. Competency-Based Pay, 374. ROI Drivers, 375. Development and Implementation, 376. Evaluation Methodology, 377. Control Group Selection, 377. Evaluation Planning, 378. Results: Reaction and Learning, 381. Application/Use, 381. Business Impact, 384. Program Costs, 386. Intangible Benefits, 387. Forecast Value, 389. Questions for Discussion, 389. C h a p t e r 15 Absenteeism Reduction Program (Metro Transit Authority)........................................................ 390 Background, 390. Causes of Problems and Solutions, 391. Objectives of the Initiatives, 392. Data Collection, 393. Isolating the Effects of the Initiatives, 395. Converting Data to Monetary Values, 397. Costs for Initiatives, 399. Results: Reaction, Learning, and Application, 400. Business Impact, 400. Monetary Benefits, 401. Costs, 402. ROI Calculation, 403. Questions for Discussion, 403. C h a p t e r 16 Stress Management (Midwest Electric Inc.) ........................... 404 Background, 404. Program Planning and Design, 407. Program Results, 419. Questions for Discussion, 438. viii C h a p t e r 17 Safety Incentive Program (National Steel) ............................. 439 Background, 439. A Performance Problem, 440. The Needs Assessment, 440. The HR Solution, 441. The Measure of Success, 441. The Incentive Plan, 442. Implementation of the Incentive Plan, 442. Cost Monitoring, 443. Data Collection and Analysis, 443. Data Interpretation and Conclusion, 446. Calculating the Return on Investment, 447. Communication of Results, 447. Questions for Discussion, 448. C h a p t e r 18 Executive Leadership Development (Imperial National Bank) ........................................................ 449 Background, 449. Initiation of the Leadership Development Program, 450. Data Collection Plan, 452. Reaction and Learning, 457. Application, 459. Business Impact, 461. Program Costs, 463. ROI Analysis, 469. Intangible Benefits, 472. Results, 474. Questions for Discussion, 475. C h a p t e r 19 Technology-Based Learning (United Petroleum International) ............................................ 477 Background, 478. Designing and Implementing the Solutions, 479. The Technology Learning Competency Program (TLC), 480. Measurement Methods and Data Analysis, 481. ROI Model and Process, 482. The Data Collection Plan and ROI Analysis Plan, 483. Levels 1 and 2 Data, 486. Levels 3 and 4 Data, 486. Isolating the Effects, 488. Design and Implementation Costs, 489. Levels 3 and 4 Results, 491. ROI Results, 492. Intangible Benefits, 492. Learning Issues from the Study, 493. Reporting to Stakeholder Groups, 494. Questions for Discussion, 495. a p p e n d i x Self-Test: How Results-Oriented Are Your Human Resources Programs? .................................................. 496 Index ......................................................................................... 505 ix

See more

The list of books you might like

Most books are stored in the elastic cloud where traffic is expensive. For this reason, we have a limit on daily download.