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Measuring ROI in HR

1. Managers and HR professionals have debated the possibility and limitations of bringing HR to the bottom line for the past three decades. Take a position, pro or con, on this topic and support your views with specific barriers to measuring the HR function or two specific measures that can be made regarding the ROI of human capital management. Using your professional experience and words are you for or against this statement?

2. Please explain what role (s) can HRM play in support or an organization's efforts to obtain ISO9000 certification or the Six Sigma methodologies?

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THE POSSIBILITY AND LIMITATIONS OF BRINGING HR TO THE BOTTOM LINE:
I believe that there are limitations of bringing HR to the bottom line and I am against bringing HR to the bottom line:
1. The HR function is highly qualitative and assigning values to it will be subjective.
2. The HR brings value to the organization that is far greater than what can be expressed in terms of ROI numbers.
3. The HR function if measured in term of ROI values will lose its holistic approach and get reduced to meeting metric related goals.
4. The quality of HR and its value is by nature equivocal and measuring it with ROI metrics will destroy its value.

TWO EXAMPLES

Consider the example of two recruitment managers in the HR department of a company. One recruits 27 employees during a year and the other recruits 50 employees. However, if bottom line metrics ...

Solution Summary

Measuring ROI in HR is discussed very comprehensively in this explanation.

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