Unit 9 - Human Resources Metrics, Reporting, and Financial Management

Question 1

ROI Formula

Answer 1

(Benefit - Cost)/Cost

Question 2

What are 3 different types of web-based systems?

Answer 2

EE Self-Serve
Manager Self-Serve
HR Portals

Question 3

What are the 3 types of HR Management Systems?

Answer 3

1. Enterprise Resource Planning
2. Stand Alone HRIS
3. Speciality Products

Question 4

Enterprise Resource Planning

Answer 4

These systems support standardized data processes and allow for enterprise wide integration of business processes across functional areas.

Question 5

What do the Federal and provincial legislation regulate in terms of info & legal compliance?

Answer 5

• What is collected
• How it is stored
• Who has access
• How long it is retained

Question 6

Human Capital Metrics look at what type of information?

Answer 6

Employee characteristics

• Education level
• Experience
• Skills Inventories
• Performance Scores
• Tenure or Service

Question 7

Human Resources Metrics

Answer 7

Describe the efficiency and effectiveness of HR programs

• > Impact
• > Speed
• > Cost

This info is typically collected through HR audits.

Question 8

HR Audit

Answer 8

A review of HR policies, programs, processes, and documentation to identify opportunities to improve efficiency, effectiveness, customer satisfaction, and legal compliance.

Question 9

Efficiency Metrics

Answer 9

Tracks speed & cost. The time required to fill a position, cost of a training program, speed of grievance resolution are examples.

Question 10

Effectiveness Metrics

Answer 10

Tracks the value of the results of an HR activity. Quality of hires, measure of increased performance following a training program.

Question 11

Operational metrics

Answer 11

Assesses the efficiency and effectiveness of programs and services.

Short-term impact

Question 12

Strategic metrics

Answer 12

Assesses the linkage between HR programs and services and the organization’s strategic goals.

long-term impact

Question 13

What is the 5C Model of HRM Impact

Answer 13

Suggests that there are 5 important areas to measure when evaluating what value HR brings to an org.

• Compliance
• Client Satisfaction
• Culture Management
• Cost Control
• Contribution

Question 14

Baselines

Answer 14

Used to compare YoY results.

Question 15

Benchmarking

Answer 15

Compares current practice with best practices or practices outside the organization.

Question 16

Absenteeism measures

Answer 16

of workdays missed due to illness per full time equivalent employee (FTE) = sick days / FTE

Question 17

Overtime measures

Answer 17

Average # of overtime hours worked by each individual
contributor = overtime hours / individual contributor
headcount

Question 18

Human Capital Return on Investment

Answer 18

Rate of return for each dollar invested in employee pay and benefits

Revenue - [Operating Expenses- (Compensation and Benefits Costs)] / Compensation & Benefit Costs

Question 19

Compa-ratio for an individual

Answer 19

Compa-Ratio is used to show where an individuals salary is compared to the mid-point of their salary band.

Individual’s salary/midpoint of salary band

Ratio’s usually fall within 80% - 120%.

Question 20

Vacancy Rate

Answer 20

The % of positions being actively recruited for.

of vacant positions/headcount

Question 21

External Hire Rate

Answer 21

of external hires / # all positions filled

Question 22

Average time to fill when hiring from outside

Answer 22

sum of all external days to fill / # of external recruits

Question 23

Cost of external hires

Answer 23

total external hiring costs / # external recruits

Question 24

Quality of external hires by source

Answer 24

Quality of external hires by source = average performance ratings of new recruits after 3 months from each hiring source

Question 25

Turnover

Answer 25

Turnover = (resignations + retirements + involuntary terminations) / headcount

Question 26

Executive voluntary turnover rate

Answer 26

(executive resignations + executive retirements) / executive headcount

Question 27

Replacement Charts

Answer 27

Indicate the time required for an individual to be ready for their next promotion as well as the training that may be necessary to prepare them for it.

Question 28

Succession Planning Rate

Answer 28

of succession planning candidates / executive level headcount

Question 29

Grievance Incidence

Answer 29

of open grievances / unionized headcount

Question 30

% of grievances closed

Answer 30

``` # of grievances closed / # of open grievances ``` Grievance closure rate indicates the competency level of those handling grievances and of the quality of the relation btwn union & management.

Question 31

Arbitrated grievance rate

Answer 31

of grievances gone to arbitration / # of open grievances

Question 32

Incidence of Learning Programs/Courses

Answer 32

Incidence = # of learning & development events / | FTE

Question 33

Duration

Answer 33

of learning & development hours / FTE

Question 34

Participation

Answer 34

employees attending learning & development events / # of all employees

Question 35

What is the research process?

Answer 35

``` Identify the problem Review the situation Formulate the hypothesis Design program Implement program Evaluate program ```

Question 36

What are 4 common research designs?

Answer 36

1. Surveys 2. Experimental 3. Qualitative 4. Existing research

Question 37

Stratified Sampling

Answer 37

Selection of participants in a study by choosing a group of employees who represent the org in some way (e.g., gender, department, location, occupation, etc)

Question 38

Acquiescence response styles

Answer 38

* When a person gives the same favorable response to every question. * To avoid, word some questions positively and some negatively in order to change the scale.

Question 39

Social desirability

Answer 39

• When a person gives the answer they think you want to hear. • To avoid, use a forced choice behaviourally anchored check-list.

Question 40

Criterion measures

Answer 40

Ensure we are measuring what is important (i.e., the competencies related to a job when conducting interview assessments).

Question 41

Criterion relevance

Answer 41

Ensures the criteria are relevant to what we are trying to predict (i.e., all the right competencies are assessed).

Question 42

Criterion deficiency

Answer 42

Occurs when we haven’t assessed all the necessary criteria (i.e., an important competency is missing from our assessment). A recruitment process that does not assess the essential skills required for the job is criterion deficient.

Question 43

Criterion contamination

Answer 43

Occurs when we measure things that are irrelevant.

Question 44

What are the 4 types of measurement scales?

Answer 44

Nominal Scales Ordinal Scales Interval Scales Ratio Scales

Question 45

Nominal Scales

Answer 45

A list of variables that have no “value” (e.g., department name).

Question 46

Ordinal Scales

Answer 46

A list of variables that have an order (e.g., what | employees like best or least; or what the want most, etc.).

Question 47

Interval Scale

Answer 47

A scale that tells us the mathematical difference between two responses (e.g., the Likert Scale). Can calculate means & average responses.

Question 48

Ratio Scales

Answer 48

Show the relationship between two variables (e.g., sales per employee). E.g., Sales per employee, # of training hours per employee

Question 49

Content Validity

Answer 49

- Ensures the measure accurately measures what it is supposed to measure. - A screening tool that tests for a skill that is not needed by the job lacks content validity. - The appropriateness of measurement obtained by skill-based assessment test. E.g., Keyboarding test accurately tests for keyboarding skills

Question 50

Criterion-Related Validity

Answer 50

Ensures that what is being measured is relevant to the job. A recruitment process that does not assess the essential skills required for the job is criterion deficient. The job requires the ee to use the keyboard on the job

Question 51

Predictive Validity

Answer 51

Ensures that the measure can predict the dependent variable. Employee completes an assessment, then test scores are compared against performance sometime in the future.

Question 52

Construct Validity

Answer 52

Should demonstrate that scores on a particular test do predict the theoretical trait it says it does. Measures abstract constructs, such as IQ and Personality Type.

Question 53

Concurrent Validity

Answer 53

Shows that employees currently performing well on the job have assessment results that concur with new applicants test results. Will show that selection test scores of existing employees positively correlate with their performance. Suffer from range restriction.

Question 54

Range Restriction

Answer 54

We typically tend to assess the skills of higher performing employees. There aren't likely poor performers we can compare results with.

Question 55

Test-Retest Reliability

Answer 55

When a person achieves the same score when tested twice using the same test.

Question 56

Split-half Reliability / Internal consistency Reliability

Answer 56

When the score a person achieves on one-half of the test is the same as the score they receive on the other half of the test.

Question 57

Inter-rater Reliability

Answer 57

Ensures reliability across raters; for example, when two different raters have scored a candidate similarly.

Question 58

Mode

Answer 58

Response given by most people

Question 59

Median

Answer 59

The median value of a range of values Another term for median is 50th percentile, number below which 50% of responses are lower.

Question 60

Regression

Answer 60

Regression analysis uses correlations to predict an outcome.

Question 61

Affinity Diagrams / Mind Maps

Answer 61

Way to organize ideas gleaned from brainstorming sessions by grouping data into themes based on their relationships.

Question 62

Cause & Effect Diagrams / Fish Bone Diagrams

Answer 62

Cause-and-effect diagram that helps managers track down the reasons for imperfections, variations, defects, or failures. The diagram looks just like a fish's skeleton with the problem at its head and the causes for the problem feeding into the spine.

Question 63

Balance Sheet / Statement of Financial Position

Answer 63

Reports the resources (assets) owned by a company and the claims against those resources (liabilities and shareholders equity) at a specific point in time. Assets = Liabilities + Shareholders' Equity

Question 64

Income Statement

Answer 64

Shows an organization's total profit and loss over a period of time. Net Income = Revenues - Expenses

Question 65

Statement of Cash Flows

Answer 65

Reports the sources and uses of a company's cash over a period of time. Net cash provided from operating expenses, net cash used for investing and finances activities. Also known as the statement of changes in financial position.

Question 66

Direct Cost

Answer 66

Easily traced to a cost object

Question 67

Indirect Cost

Answer 67

Cannot be easily, accurately, or economically traced to a cost object.

Question 68

The formula for estimating the value added by human capital is:

Answer 68

[Total revenue - (Operating expenses - Total compensation costs)] / Total compensation costs

Question 69

The main purpose of the financial accounting system of an organization is to:

Answer 69

Prepare financial accounting reports for stakeholders

Question 70

Costs for maintaining classroom facilities year-round, or for the purchase of projectors, televisions, and VCRs for the training department, are examples of:

Answer 70

Overhead costs

Question 71

Dysan, a manufacturer of plastic disc holders, held a training course for all clerical employees. Postage, shipping and telephone were charged as __________ cost, while the fringe benefits of the instructors were charged as __________ cost.

Answer 71

Indirect; direct

Question 72

Validity Generalization

Answer 72

The assessment will predict successful applicants for many different situations.