Group 2 Seminar Retaining employees – defending HRM effectiveness TraceyPaulaSunnyMina Steve

Purpose: By the end of the session, you will have connected your learning throughout the course to the analysis of the case studies By the end of the session you will have shown how effective HR practices benefit the bottom line

HR Effectiveness : Definition for today's purposes - benefits and challenges of HRM systematic evaluation & analysis to the organisation's competitive advantage Strategic advantage:competitve affectiveness: building a plane in the air

Group work –stay in your seminar groups; all but one member in each group are the HRM’s; the remaining member takes the role as CEO, and is antagonistic to the HRM’s, since there is frustration in the company at the cost of replacing staff. The scenario – construct your arguments for a report back about what HRM is doing to address the costs, and loss of staff. Also defend the role of the HRM as an effective member of the Executive leadership team. 20 mins group work

The HR manager has been called to account to the CEO as to why the HR manager should continue to be included in the strategic discussions at the company leadership level. This is because of the rising level of employee turnover and its effect on costs Using the information in the case studies, and what we've learnt in the course, construct your arguments 1. in response to rising costs, and 2.why the HRM function should continue to contribute at the strategic level.

1 st debrief Each group offers one at a time of their points of view in sequence (gp1, gp2, gp3 etc) until we have heard all of the arguments available in the room. Reflection: which of the arguments seem to carry the most weight?

HRM effectiveness All too frequently, HR specialists focus on activities such as writing recruitment advertisements, promoting programs, interviewing and counselling. It may come as a surprise, but this is not what HR personnel get paid for – they are paid to get results. ‘What management wants to know about the human resource function is how it will affect the year end result, its strategic return on investment’. HR managers must ensure that their function facilitates the achievement of the organisation’s strategic business objectives and that performance is expressed in quantifiable terms using facts figures and dollars. Only then can the HRM function be seen as not belonging among the expense items and the HR manager can be recognised as a strategic business partner. The hard reality is that until HRM can show a substantial and quantifiable positive effect on the bottom line, it will not be given a place at the strategic decision-making table. A recent development in the measurement of HR performance is the HR scorecard, which attempts to show how HR adds value by linking HR activities to measures (for example, profitability) that line managers understand. (Stone, 2008 p661) Stone, R J (2008): Managing Human Resources, 2 nd ed’n. Wiley & Sons. Australia

Balanced Scorecard PeopleLearning and innovation Internal operations Development of learning organisation Customer satisfaction Needs of the customer FinancialFinancial results that drive the business

Synthesise your arguments from the first activity by deciding which of the arguments fits against which of the balanced score card categories. Record your consensus decisions by transferring each argument to your group’s agreed category. Be prepared to defend your decisions.

Conclusion Should the bottom line only be dollars? Is it critical for HRM to be a strategic partner and report to the CEO? How are the BSC indicators related to each other and the impact on the organisation? Just for fun: