Human Resource Metrics In Decision Making Assignment Sample

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Introduction of Human Resource Metrics In Decision Making Assignment

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Human resource is the part of a business organization that involves employing people, recruitment, screening, selecting, training them, developing policies, and strategy building to retain and motivate employees (Mathis et. al. 2016). The main of human resources is the development of an organization and achieving organizational goals. Human resource plays a very important role in helping the organization in dealing with the fast-changing environment of business and also to full fill needs and demands of employees. Human resources play an important role in decision making which further helps in finding effective ways of investment, enhancing business, and most important performance (DeCenzo et. al. 2016)

The report discusses the human resource of international and global companies and various issues human resource faces in achieving objectives and goals. The report includes objectives of human resources that are specific, measurable, achievable, relevant, and time-bound. The main focus of the report is on human resource metrics and their use in the decision-making of the organization. By evaluating human resources' performance and relevant global factors company can make effective strategies.

HR strategy that contributes to the achievement of the organization’s objectives

Human resource is an essential component for every business, regardless of the size of the organization. Its focus is on maximizing employees' productivity and securing the organization from all issues that may arise in the workforce. Human resource includes various responsibilities which are compensation, recruitment, policy making, and updating laws that may affect the organization and employees (Stewart and Brown, 2019). The are various activities that HR effectively follows to add value to the organization which are as follows

  • Proper and effective use of the workforce for achieving organizational objectives and aims.
  • Providing performance appraisal and various compensation to encourage the capabilities of employees of the organization.
  • Human resource focus on developing abilities that will further help in enhancing organizational as well as individual performance.
  • Increasing innovation, flexibility, and, creativity enhances competitiveness.
  • By using several new approaches to design work processes, career development, succession planning, and inter-organizational mobility.
  • Managing the operation and integration of technology by different factors like improved staff, communication with employees, and improved staffing.

The human resource uses various strategies that help in the achievement of international organizations' objectives. A consistent, complete plan intended by human resources to manage its global human capital is called a global human resource strategy. By working hard with the management of the organization's human resources plan to create a cohesive plan which helps in managing the workforce that aligns with its viewpoint and purpose. The Human resource strategies that contribute to the achievements of international organization's objectives are as follows:

  • Setting goals and activities that best suit the organization's goals –

    each organization has its style and philosophy that is also part of the organization's goals. By identifying the best activities that focus on achieving the goals that will result in success (Sen, 2020). The organizational structure needs to be in accordance with the goals this will help in planning activities with effective strategies.
  • Finding the right talents –

    after setting the role and responsibilities it becomes quite easier to find the right person for the job. One of the best global HR strategies is to enable global hiring, which provides the organization with the benefits to hire employees from every corner of the world. Hiring across the world without any language and demographic barriers provides the organization with an opportunity to find the best talents.
  • Managing employee activities –

    the most important HR strategy is to manage the workforce, manually managing all activities of employees in an organization is very tough or nearly impossible (conway al. 2016). To manage employees' activities HR of the organization use several tools like timesheets, logs, task list, etc. These all tools help in building effective management of employees' activities.
  • Employee retention –

    with lots of opportunities sprouting in the market retention of employees is a strategic move for HR management. For retaining employees in an organization various methods are considered which are benefits, compensation, and given them challenges that encourage them to work to their full potential. This also provides opportunities for employees to enhance their skills and improve their strengths.

The key issues that affect HR and their significance to the organization.

The human resource of an organization faces several issues like recruiting new employees, engaging the existing employees, retaining the leaving employees, and providing training and benefits to all employees. This all is done by maintaining compliance in the organization. For overcoming these issue HR managers have access to various tools and techniques that helps the organization find solutions to a variety of issues.

The various issues that affect the human resource of the organization are as follows:

  • Compliance: Direct laws and regulations –

    the most common human resource problem in every organization are making sure about adhering to all the relevant laws in the operation area in the organization. It is a very huge challenge for organizations, especially when HR managers or professionals do not have any experience in dealing with local labor laws and regulations, how to guide them, and plan on strategies (Stewart and Brown, 2019).The main key challenge is to keep track of all employment laws in areas where the organization operates. Failure in understanding laws and regulations can lead the organization to some major consequences.
  • Recruiting the best of all:

    recruiting candidates requires a lot of workload for human resources. It includes evaluating the skills and necessary qualifications required for the job, creating an accurate job description, advertising, and screening and sorting resumes of applicants. All these are stages that occur before the interview stage (Arulrajah al. 2015). If an organization does not get the required and qualified applicants, then the organization has to redo the entire process for level one. It causes a loss of time and money for the organization.
  • Employee retention –

    selecting the top talents is very important for the organization but retaining them for long period in the organization is a very big challenge. Retaining employees require lots of time and energy which is a big issue for organizations. Balancing the cost between hiring the new employee and risking the retention of existing employees causes a big challenge for the organization. Various issues that might cause retention are lack of employee engagement, no opportunity for career development and growth for employees, and no extra benefits and compensation for hard work and encouragement. Offering various good working enviornment, competitve pay, and feedback on their performance organsation can solve this issue.
  • Monitoring and feedback –

    monitoring the performance of employees in an organization are shared responsibility between the manager and the human resource department of the organization (Pourrashidi al. 2017). HR manager is the person who is responsible for the motivation of employees and their performance. It is a tough decision for the HR department to look out for every employee and give them feedback about their performance. The main issue for the organization is to monitor the performance and productivity of employees working to ensure that the business is working effectively in achieving its goals. Providing feedback to an executive as well as employees will help the executive to make better decisions and employees improve their performance.
  • Compensation management –

    benefits and compensation are a big issue in human resources as these are the factors that encourage and affect the employee's performance in the organization. Compensation is the core concern for every employee in the organization, as its impacts the performance of employees and also their productivity.

Human Resource objectives (SMART)

The basic objective of human resource management is the achievement of organizational goals with the satisfaction of the employees. An organizational objective should be SMART, it is an acronym for human resource objectives which stands for specific, measurable, achievable, relevant, and time-bound. SMART objectives identify what an organization should do to achieve the desired goals with the available resources (Sarah kristenson, 2021). SMART objectives are used as key performance pointers and key results. A detailed description of SMART objectives is as follows:

  • Specific- In this category of objectives, managers specify every detail related to who, where, what, when, and what the company desires. A specific objective can be related to the performance of employees, salary of employees, reduction in employee turnover, etc. An objective should be specific because a specific objective makes sure that all the efforts are in the right direction. For example, If a company's employee retention rate is low then its specific goal can be an improvement in the employee retention rate and a reduction in the employee turnover rate.

  • Measurable- In this objective human resource manager set the criteria to track performance and measure the success of the organization. Human resource objectives should be quantified in nature, and these numbers can be used as success parameters (Ogbeiwi, 2017). For example, if the specific objective is to increase the employee retention rate, then the measurable objective is to be increasing that rate up to 90%.

  • Achievable- In this category the manager checks that the objective should be attainable with the available materialistic and human resources. Achievable objectives are set in a range rather than exact value, for example, an organization's objective is improving the employee retention rate but Its measurable objective is to increase the employee retention rate from 85% to 90% within a year.

  • Relevant- In this category, managers make sure the chosen objective should be aligned with the set objectives there should not be any contrast between goals. Departmental Objectives should be made while considering the organizational objectives which means every department in an organization should have its objectives on which they need to focus on (Townley, 2019). An objective can be understood by answering, why this goal deserves to be an organization's objective. For example, a specific objective is to increase the employee retention rate, but its relevant objective is to increase the employee retention rate because it will cut down and save the organization's displacement cost.

  • Time-bound- In this category of human resource objectives managers make sure that the objectives are set for a specific period (Ulrich and Dulebohn, 2015). The manager should make sure to have a lot of deadlines for the completion of those objectives because objectives without any deadlines will impact the ultimate goals of the organization.

Human resource management should form organization objectives that contain all the characteristics of the SMART objectives. SMART objectives will further help in setting the path to success for the organization. 

Source: Hailey Hudson, 2022

The role of Human Resource Metrics in Decision Making

HR metrics also known as human resource metrics help the organization keep track of its human capital. It also helps in measuring how effective the human resource strategies and plans are in the organization. For example, HR metrics include data such as turnover, benefits rate per participation, and cost per employee hired (Jennifer Hartman, 2022). These metrics help in measuring all information like what strategy is working well, what needs improvement, and also about trends and how will they help the organization in the upcoming future. Human resource metrics are the measurements that help an organization to tarck all the information and data across the HR department of the organization. The role of human resource metrics in decision-making is very important as these metrics help in gathering all the information which helps in the decision-making process. The key role of HR metrics in decision-making is as follows:

  • HR metrics help in managing organizational performance by making strategies. Strategies regarding turnover of organization, controlling the loss percentages, collecting information about employees leaving, and behavior of employees towards the organization (Subhashini Durai al. 2019).
  • Human resource operations also play an important role in decision making, it includes analyzing HR efficiency and effectiveness like HR service quality, time to resolve HR issues, etc.
  • Process expansion helps in deciding what to do and how to do it in human resource management The HR metrics focus on the effectiveness and efficiency of HR over time and helps in using reinvent decisions and process of HR.
  • Awareness about the cost and resources used in an organization plays an important role in the decision-making of the organization. Human resource metrics help in making a decision regarding cost control and proper usage of resources available for the organization. By collecting all the data regarding cost, the organization can make a decision regarding cost reduction.
  • Human resource metrics play an important role in understanding global factors which affect the organization which include cultural differences, and diversity (Wawer, 2018). HR management is required to make strategies regarding facing all the global factors which affect the performance of employees. Cultural difference in an organization affects the performance of employees, HR managers need to make effective strategies that encourage a good environment in the

 Human resource metrics

Source: Shani Jay, AIHR, 2022

Evaluating the human resources performance

Evaluating an employee's performance is a very crucial task for an organization, it provides feedback to the employees about their performance and suggests an area for skill development (Chakraborty and Biswas, 2019). Following are some ways to evaluate employees’ performance:

Work efficiency- The evaluation of the employee's performance is done based on the quality of work performed by employees. The level of quality can be determined by comparing to the set standards or by reviewing the executive and HR manager’s feedback.

Level of improvement- The employee's performance evaluation is done based on improvement in the performance of the employee as compared to the previous work (Lele, 2020). A positive result reflects a consistent improvement in the performance of the employee.

Reaction to the feedback- The performance evaluation has also been done based on how the employee reacts to the feedback provided by the HR manager. The employee who accepts the feedback and works on improving their performance is rated better in the performance evaluation process.

 The ratio of work done on time- The employee performance evaluation includes the ratio of tasks completed on time to the total tasks allotted (Tweedie et. al. 2019).The HR manager calculates the rate of tasks completed on time and the quality of work in the task assigned, which further helps in increasing the productivity of the organization.

Capacity to take responsibility- The employees that can take the authority and responsibility for the work performed, are an asset to the organization. A team of employees who can take responsibility helps in faster growth. Employees with the potential and capacity to take challenges are important for an organization's success.


The report concluded with the importance of human resources in an organization. Human resource plays a key role in helping the organization in dealing with the fast-changing environment of business and also to full fill needs and demands of employees. HR helps in managing and monitoring the workforce of an organization, main focus of HR is on the recruitment of the right candidate, training the current workforce to develop their skills, retaining the employees, etc. The reports discuss strategies that contribute to the achievements of global organizations' objectives. By applying strategies like setting goals and activities that best suit the organization's goal, employee development, and selecting the right candidate organization can achieve its desired objectives. The report also states the various issues that affect human resources, which directly affect the growth of the organization. The organization is required to take measured steps to find an effective solution to these issues to expand in the global market.

The report also discusses the role of human resource metrics in the decision-making of an organization, and various measure that is connected to the metrics. Human resource metrics help in making a decision regarding the operation activities or organization and managing the employee's performance for productive results. At last, the report talks about evaluating human reosurce performance, and how it affects the organization.


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