Non-profit and public organizations are always looking for new ways to measure the effectiveness of the organization HRM. Many organizations are striving to find a promising tool for measuring the effectiveness of HRM for many years. The proven model is the HRM effectiveness Audit, which establishes a measured based value added service and improves the performance of the system. This tool has helped to review the HRM in many organizations. The audit consists of four phases, which determines the effectiveness of personnel in both public and non-profit organizations (Gallo and Thompson, 2000).
Ranking the importance of the HRM service Portfolio is the first approach of the model in determining the effectiveness. It determines the objectives of HRM department in relation to achievement of organizational goals. The services provided by HRM department are ranked with business objectives, and services that help meeting the business objectives yearly. This assists in making sure the organization meets the objectives and set goals. Improvement is imposed when the results becomes negative. HRM team self-evaluation includes discussion of challenges faced by individuals and suggestion of means of improvement. It can be done by use of a questionnaire. This assists in identifying the reason of poor performance in HRM and in finding new strategies for improvement. Measuring current service level is the third phase aimed to develop the performance metrics for service provided by HRM and to measure the satisfaction level. Staffs provide answers on how they rate services like recruitment and others performed by HRM, and this assist in improvement of service. Developing action plan assists in developing new strategies to improve the performance of HRM (Borbidge, 1998).
All of those approaches bring change in management and improve the performance of the organization. They are much costly. A successful program can be determined by the recommendation it makes from the results gathered. When the performance is not outstanding, the program should advice on implementation of new strategies.
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