Leadership Development Programs - Essay Example

Title: Leadership development programs Student’s Name: Instructors Name: Course Code and Name: Institution: Date Assignment is due: Students are required to assume the role of an HR manager reporting to his/her CEO making a business case for the introduction of one of the following HR tools, HR metrics, Executive Summary These are the main points that call for the introduction of HR metrics in the company. First and foremost, HR metrics allow for fact based decision making. This ensures that decisions are based on facts, and not assumptions. Company profits are secured this way. Secondly, HR metrics clarify what is important for the company. Thus, the company avoids unnecessary wastage of resources.HR metrics are also used to communicate behavior change in the company (Sullivan 2003, pp.43-45). The communication of behavior change does much to avoid meaningless conflicts in the company.HR metrics are also used to gauge the impact of the people in the business. In this way, the organization is enabled to know its most profitable people. The provision of information about the company’s competitive advantage comes though HR metrics.HR metrics enable the company to know whether increasing pay for its employees will increase productivity. The company can therefore establish whether it is making a profit or not. On -the job performance of new employees is determined by the use of HR metrics. This way the company gets to know whether new employees are profitable, or whether they are failures (Sullivan 2003, pp. 43-45). Table of contents Contents Order Written/pages 1. Executive Summary 2 1. Contents 3 1. Introduction 4 1. Findings (Main Body) 4-7 1. Conclusions 7 1. Recommendations 8 1. Bibliography / sources 8 Introduction The HR department has seen the need for the introduction of HR metrics in the company. This is because if the company has got to increase profits, it has to start having HR metrics in operation. The HR department has come to the conclusion that the reason for past failures in the company is because there has been no HR metrics in the company. The introduction of HR metrics will catapult the company into a new height of productivity. It will make employees’ performance increase at almost 75 %. HR metrics will curb the practice of employee absenteeism. (Becker and Gerhart 1996, 779). It will be able to track the employees who are performing, and those who are not performing if HR metrics are introduced. If the company adopts HR metrics, the constant fights between the HR department and the executive will end (Sullivan 2003, pp.43-45). Main body/Findings The introduction of HR metrics in the company will allow for fact based decision making. Metrics allow for the collection of data in the company, and this makes it possible for the management to arrive at decisions through data collection. This means that the decisions that the company will make will be informed decisions (Jac Fitz-enz 1994, 122). A lot of erroneous judgments will be eliminated this way. This is because it is going to be difficult to make decisions based on personal whims. The HR department believes that if HR metrics are introduced, the profits the company makes will increase. This is because the company will be basing all their decisions on facts, and not assumptions (Jac Fitz-enz 1994, 122). HR metrics are crucial to the company because they clarify what is important.Thus, the company will not be given to the process of endlessly debating over issues. The company resources will be used in the most appropriate manner. Because HR metrics clarify what is important, many interdepartmental wars will cease (Ulrich 1996, 98). Interdepartmental wars are caused by the different departments struggling to get their projects allocated resouerces.HR metrics will enable the entire company management to know what is important, and in this manner interdepartmental wrangling will come to an end. The cessation of interdepartmental wars is important because it destroys needless animosity that is detrimental to the company objectives (Sullivan 2003, pp.43 -45). Metrics have been shown to change behavior when communicated through the company. This is negative behavior that employees exhibit n the company. It is important to note that most of the productivity in the company is tied to the behavior of the employees. (Prahalad and Hamel 1990 73). The behavior of one employee has got a domino effect on the rest of the workers in the company. This is especially so if the employee is in a management position. Negativity with some employees contributes to employees turn over. If the organization keeps losing employees, the productivity of the company is affected (AMA, 2007, 56). HR metrics are quite important because they gauge the impact of the people in the company. They measure the input made by the various workers who grace the company. The measurement of the impact of the people in a company is remarkably important (Legge, 2004, 105). This is because people constitute to more than half of the expenses of a company. The tragic thing is that over 57% of companies do not track the impact of HR on their business. To a large extend, most companies operate blindly when it comes to their personnel (AMA, 2007, 56). Metrics provide the company with information as to how the company has a measurable competitive advantage over its competitors. The knowledge of a company’s competitive advantage is central to the management of the company. This is because it enables the company plan strategy as to how to conquer the market (Delery and Doty 1996, 807). It gives the company’s strengths and weaknesses. The competitive advantage makes a company know whether it can lure employees from its competitors. It also helps in the formulation of advertisement strategies in the company. In general, it gives a picture of how the competition views the company, and subsequently how the general public looks on the company (Jac Fitz-enz 1994, 122). HR Metrics also enables the management of the company to answer the crucial question whether increases in pay increase production. This vital question carries a lot of weight. The realization that pay increases do not increase company production is central to reorganization within the company. If it is realized that pay increases d increase production, then it is beneficial to know what exact percentage does bring about what percentage increase. This is to ensure that production grows in tandem with production expenses. In this way, company expenses are kept in check, and profitability is ensured (Prasad and sangeetha 2007, 79). HR metrics help the top management to whether increasing training hours increases productivity in the company. The past few years have seen the clamoring for the increase in employee training. As the company plunges into employee training, it is significant to understand if the company records increased productivity. Training is an extra expense to the company, and it should increase production. This cannot be established unless the company engages in measurements. This is where HR metrics come in handy ((Prasad and sangeetha 2007, 79). On- the job performance of new employees is measured through though HR metrics. In this way the company gets to know whether the hires it contracted in the present year are more productive than workers it employed in past years. The productivity of new people in the company is established. This practice enables the management to evaluate the recruitment process. Hr metrics enable the company to select the best people for the company. It also empowers the company to select the people who will stick with the company. This is because it has become exceedingly frustrating for most companies today. They hire the best people and train them. After training the hires leave the organization or are poached by other organizations. This has become the norm in some companies. It is a thing to be avoided because it is expensive to train new people when they leave the organization, the company loses so much. The introduction of Hr metrics will check this trend in the company. It will ensure that at least 75% of the new employees stay in the company (Armstrong 2006, 58). On the other hand, HR metrics enable the company to know the failure rate of new hires. The number of new employees who leave the organization is established. The reasons they give for leaving the organization are unearthed. The time they leave the organization is also established. Such information proves to be of immerse value during the hiring process (Sullivan 2003, pp. 43 - 45). Conclusion In conclusion, it is important to know that HR metrics are remarkably important in the running of the company. This is especially so in this period when companies must make profits.HR metrics show that the management of the company is involved in the total management of the company. They can be used by the top management of the company in directors meetings to make important decisions (Paauwe 2009, 36).Thus, it is the prayer of the HR department that the management will allow the introduction of HR metrics in the company. The HR department has done extensive studies, and has come to the conclusion that HR metrics are quite beneficial to the company. The few points illustrated above are the icing on the cake on the case for HR metrics. More points can be given if the top management so wishes. Recommendations Following the observations made by the HR department, the department recommends the following. First and foremost, the company should introduce HR metrics as soon as possible. This should be in the next three to four months. The introduction of HR metrics will do much to increase productivity for the company. In the wake of introducing the Hr metrics, it is imperative that the HR personnel be schooled in the measurement of these performance indicators. The Harvard school of business has impressive tutelage on the subject, and the HR department recommends that its managers be taken there. Lastly, the company should consider buying more HR metrics books to supplement the few that are available n the library. References AMA, 2007 Human Resources metrics What to Measure and Why (Report) AMA, Sep 21, 56. Armstrong, Michael, 2006, A Handbook of Human Resource Management Practice (10th ed.). London: Kogan Page, pp58. Becker, B, and Gerhart, B. 1996, 'The impact of human resource management on organizational performance' Academy of Management Journal 39 (4) 779. Delery, J, Doty, H, 1996, 'Modes of theorizing in SHRM, Academy of Management Journal, 39(4), 807. Jac Fitz-enz, 1994, How to measure human resource management, McGraw-Hill Companies, New York, pp 122. Legge, Karen 2004, Human Resource Management: Rhetoric’s and Realities (Anniversary ed.). Basingstoke, Palgrave Macmillan, pp 105. Paauwe, 2009, 'HRM and Performance: Achievement, Methodological Issues and Prospects' Journal of Management Studies, 46 (1), pp 36. Prahalad, C, Hamel, G, 1990,'The core competences of the organization' Harvard Business Review I6 (6) (Paauwe 2009, 36), pp 73. Prasad ,B V S,  sangeetha, K,2007, HR Metrics - An Introduction ICFAI University Press, New Delhi, pp79. Sullivan, John 2003, HR Metrics, the world class way, Kennedy information, New York, pp. 43-45. Ulrich, Dave, 1996, Human Resource Champions. The next agenda for adding value and delivering results. Boston, Mass.: Harvard Business School Press, pp 98. Read More