chapter-2-.ppt
- 1. CHAPTER 1 Models of HRD Analysis INSTRUCTOR: HELMI SUMILAN shelmi@unimas.my +6082584511 / +60198471184 KMS2154
- 2. LEARNING OUTCOMES At the end of the session, you will be able to: 1 Explain the HR analytics framework, 2 Discuss the LAMP model of HR analytics,
- 3. HR Analytics Framework Individual factors : skills, competencies, motivation, job alignment, career aspirations, number of years working with the organization Group factors : interpersonal relations, leadership, group cohesiveness, collaboration Strategic results in terms of improved market share, market growth, successful new product launch, brand awareness, customer satisfaction and retention Financial results in terms of market capitalisations, profit, return on assets and equity, improved cash flow HR Action: training, team building, compensation & rewards, career development, talent management, performance management. HR process improvements in terms of cost, quality, cycle time improvement, innovation & productivity.
- 4. LAMP MODEL • LOGIC L • ANALYTICS A • MEASURES M • PROCESS P Boudreau & Ramstad (2004). The letters in LAMP stand for logic, analytics, measures, and process; which are four critical components of a measurement system that drives strategic change and organizational effectiveness.
- 5. LAMP MODEL LOGIC Logic is understood in terms of analysis of impact, effectiveness & efficiency. ANALYTICS Help in finding answers in the data & are primarily drawn on statistics & research design. MEASURES The process of counting & it could be scorecards, dashboards and so on. PROCESS Reinforces actionable insights & helps in developing required strategies for effective decision-making.
- 6. LAMP MODEL One evening while strolling, a man encountered a drunk person diligently searching the sidewalk below a street lamp. "Did you lose something?" he asked. "My car keys. I've been looking for them for an hour," the person replied. The man quickly scanned the area, spotting nothing. "Are you sure you lost them here?" "No, I lost them in that dark alley over there." "If you lost your keys in the dark alley, why don't you search over there?" "Because this is where the light is." The LAMP metaphor refers to a story that reflects today's HR measurement dilemma: Source: http://www.informit.com/articles/article.aspx?p=1669502&seqNum=3
- 7. • In many ways, talent & organization measurement systems are like the person looking for the keys where the light is, not where they are most likely to be found. • Advancements in information technology often provide technical capabilities that far surpass the ability of the decision science & processes to use them properly. • So it is not uncommon to find organizations that have invested significant resources constructing elegant search & presentation technology around measures of efficiency, or measures that largely emanate from the accounting system. • The paradox is that genuine insights about human resources often exist in the areas where there are no standard accounting measures. • The significant growth in HR outsourcing, where efficiency is often the primary value proposition and IT technology is the primary tool, has exacerbated these issues. • Even imperfect measures aimed at the right areas may be more illuminating than very elegant measures aimed in the wrong places.
- 8. LAMP MODEL HR Metrics & Analytics that are a force to strategic change “The right analytics” Valid questions & result (information, design & statistic) “The right measures” sufficient data (timely, reliable & available) “The right process” Effective knowledge management (value, culture & influence) “The right logic” Rational talent strategy (competitive advantage, talent pivot point) HR measurement systems are only as valuable as the decisions they improve and the organizational effectiveness to which they contribute. HR measurement systems create value as a catalyst for strategic change.
- 9. LOGIC (L) - What Are the Vital Connections? •LOGIC L •ANALYTICS A •MEASURES M •PROCESS P Without proper logic, it is impossible to know where to look for insights. The logic element of any measurement system provides the "story" behind the connections between the numbers and the effects and outcomes. Where proper logic is in place then, it is quite easy to assist other managers outside the HR career to comprehend and utilize the measurement systems to improve their judgment. Eg. Connections between health/wellness and employee turnover, performance, and absenteeism Eg. How selecting employees is similar to optimizing a supply chain for talent, to help leaders understand how to optimize all elements of employee acquisition, not simply maximize the validity of tests or the quality of recruitment sources. Eg. Connections between HR and management practices, which affect employee attitudes, engagement & turnover, which then affect the experiences of customers, which affect customer-buying behaviour, which affects sales, which affect profits.
- 10. ANALYTICS (A) - Finding Answers in the Data •LOGIC L •ANALYTICS A •MEASURES M •PROCESS P • Even a very rigorous logic with good measures can flounder if the analysis is incorrect. • Eg. Some theories suggest that employees with positive attitudes convey those attitudes to customers, who, in turn, have more positive experiences and purchase more. • Suppose an organization has data showing that customer attitudes and purchases are higher in locations with better employee attitudes. This is called a positive correlation between attitudes and purchases. • Organizations have invested significant resources in improving frontline- employee attitudes based precisely on this sort of correlation. However, will a decision to improve employee attitudes lead to improved customer purchases? • Analytics is about drawing the right conclusions from data. • It includes statistics and research design & it then goes beyond them to include skill in identifying & articulating key issues, gathering & using appropriate data within & outside the HR function. • Analytics transforms HR logic and measures into rigorous, relevant insights.
- 11. MEASURES (M) - Getting the Numbers Right •LOGIC L •ANALYTICS A •MEASURES M •PROCESS P Virtually every area of HR has many different measures. Much time and attention is paid to enhancing the quality of HR measures, based on criteria such as timeliness, completeness, reliability, and consistency. These are certainly important standards, but lacking a context, they can be pursued well beyond their optimum levels, or they can be applied to areas where they have little consequence. Much debate centres on the appropriate formulas to use in estimating turnover and its costs, or the precision and frequency with which employee turnover should be calculated. Lacking a common logic about how turnover affects business or strategic success, well- meaning managers draw conclusions that might be misguided or dangerous, such as the assumption that turnover or engagement have similar effects across all jobs.
- 12. PROCESS (P) - Making Insights Motivating & Actionable •LOGIC L •ANALYTICS A •MEASURES M •PROCESS P Effective measurement systems must fit within a change-management process that reflects principles of learning & knowledge transfer. HR measures and the logic that supports them are part of an influence process. The initial step in effective measurement is to get managers to accept that HR analysis is possible and informative. The way to make that happen is not necessarily to present the most sophisticated analysis. The best approach may be to present relatively simple measures and analyses that match the mental models that managers already use.
- 13. Do you have any questions? This Photo by Unknown Author is licensed under CC BY-SA-NC
- 14. Thank You.