11.3 Areas of interface between HR and FF & Key performance indicators Flashcards
1
Q
Traditionally, HR and FF:
A
Worked independently
- FF viewed people as a cost and HR viewed people as an asset
- Collaboration between functions was limited (eg: establishing a budget)
2
Q
The modern approach is
A
- To view people as one of the greatest assets an org has
- FF and HR need to work more closely with the “people as assets” as their focus
3
Q
Technology is
A
- Freeing up both functions from day to day duties in their respective fields
- This combined with the increasingly competitive and fast changing global environment is leading to the functions having an increased role in the strategic direction of the org and an opportunity to work in a more joined up way
4
Q
Both functions will have overlapping responsibilities, such as:
A
- The cost and benefit of recruiting and selecting new employees
- The impact of HR policies, such as reward policies, on the profitability of the bus
5
Q
How technology is helping this interaction:
A
- New technology has resulted in better joined up systems creating better info
- Some examples of this technology usage are
- Sharing a finance and HR cloud system, integrating enterprise resource planning and human capital management systems
- Advances in analytics technology have helped in quantifying different HR activities or to measure the impact of a HR programme.
6
Q
How the FF helps to manage HR using KPIs
A
- The HR function will identify relevant CSFs
- The KPIs are the measures that indicate whether or not the HR function is achieving these CSFs
7
Q
The FF works with HR function to:
A
- Identify appropriate KPIs
- Assemble KPI data and info
- Analyse this for insight
- Give advice to the HR function based on this insight
- Apply what has been learned to impact the achievement of the objectives of the HR function and the org as a whole
- Technology will act as a key enabler especially with assembly and analysis tasks
8
Q
Possible recruitment and selection KPIs:
A
- Cost per employee hired
- Selection method conversion rate
- Time to fill a position
- Female to male ratio
9
Q
Possible training and development KPIs:
A
- Training and development costs
- Impact of training on existing KPIs
- Training feedback
10
Q
Possible performance management KPIs:
A
- Appraisals completed on time
- Appraisal action plan agree and followed up
11
Q
Possible motivation KPIs:
A
- Turnover rate
- Employee absenteeism
- Employee productivity
- Employee satisfaction scores
- Flexible working arrangements offered
12
Q
Possible reward system KPIs:
A
- Cost of rewards
- Competitiveness of reward system
- Adherence to laws and regulations
13
Q
Potential flaws of the KPI setting process:
A
- Lack of discussion
- Incorrect level of difficulty
- Single KPI
- Unfairness between different members of staff
14
Q
KPI flaw - Lack of discussion:
A
- It is sensible to discuss KPIs with staff in advance
- this could flush out potential problems and ensures employee understands what is expected
- employees will buy into targets more readily if they feel that they have had an input to them
15
Q
KPI flaw - Incorrect level of difficulty:
A
- Without discussion the level of difficulty set for KPI could be wrong
- setting a target that is too difficult can demotivate an employee meaning that they resent the target and underperform (level of output achieved is sub optimal)
- If the target is too easily achieved by an employee they may have lack of respect for the setter, or feel patronised (output achieved will be suboptimal as employee stops pushing once target is reached)
