6.25.2 Methods for Evaluating HRM

• Match the criterion with its description:

  Employee Satisfaction ↔️ Contentment with job and workplace

  Employee Retention Rates ↔️ Success of HR policies

  Productivity ↔️ Output per employee

  Cost-Effectiveness ↔️ Ratio of HR costs to benefits
• What is the formula for cost-effectiveness in HRM?

  $\text{Cost - Effectiveness} =$$\frac{\text{Benefit}}{\text{Cost}}$
• In Human Resource Management (HRM), KPIs are used to evaluate the effectiveness of HR practices and policies
• What does the Employee Satisfaction Index measure?

  Overall employee satisfaction
• Time-to-Hire measures the duration from job posting to hiring, reflecting the efficiency of the recruitment process.
• What does Cost-per-Hire indicate?

  Efficiency of recruitment process
• Labor costs refer to the total expenses related to employee salaries, wages, and benefits
• Match the employee satisfaction metric with its description:

  Employee Satisfaction Index ↔️ Measures overall satisfaction on a scale

  Net Promoter Score ↔️ Determines likelihood to recommend company

  Absenteeism Rate ↔️ Percentage of working days missed

  Performance Appraisal Ratings ↔️ Average ratings from reviews
• What does the Net Promoter Score (NPS) determine?

  Likelihood to recommend company
• The Employee Satisfaction Index (ESI) measures overall satisfaction on a scale
• The Turnover Rate measures the percentage of employees who leave the organisation within a specific period.
• What does the Retention Rate calculate?

  Employees who stay employed
• What are the two key metrics for evaluating HR effectiveness?

  Turnover Rate and Retention Rate
• The Turnover Rate measures the percentage of employees who leave within a specific period
• What does HRM effectiveness measure?

  Achievement of organisational goals
• HRM effectiveness is evaluated using criteria such as employee satisfaction, retention rates, productivity, and cost-effectiveness
• Key Performance Indicators (KPIs) are used in HRM to track progress towards strategic goals.
• Match the KPI with its description:

  Employee Satisfaction Index ↔️ Measures satisfaction with job

  Employee Retention Rate ↔️ Calculates employees who stay

  Employee Turnover Rate ↔️ Calculates employees who leave

  Training ROI ↔️ Determines financial effectiveness of training
• The absenteeism rate measures the percentage of working days lost due to employee absence
• What does Training ROI calculate?

  Return on investment for training
• An Employee Satisfaction Index (ESI) indicates the quality of the work environment and employee engagement.
• HRM effectiveness is evaluated using criteria such as employee satisfaction, retention rates, productivity, and cost-effectiveness
• What is the formula for Turnover Rate?

  $\frac{\text{Number of Employees Who Left}}{\text{Total Number of Employees}} \times 100$
• The Retention Rate calculates the percentage of employees who remain employed over a period
• What is the formula for Retention Rate?

  \frac{\text{Number of Employees Who Stayed}}{\text{Total Number of Employees}} \times 100</latex>
• The Turnover Rate indicates the ability to retain talent.

  False
• The Retention Rate reflects the ability to retain talent.
• What does monitoring both Turnover Rate and Retention Rate help HR identify?

  Strengths and weaknesses in talent management practices
• HRM Effectiveness measures how well HR activities achieve organisational goals
• Match the criteria with its contribution to HRM effectiveness:

  Employee Satisfaction ↔️ Improves motivation and reduces turnover

  Employee Retention Rates ↔️ Indicates the success of HR policies

  Productivity ↔️ Reflects efficiency supported by HR

  Cost-Effectiveness ↔️ Ensures HR provides good value
• Employee satisfaction directly contributes to reducing turnover.
• What are KPIs used for in HRM?

  Tracking progress toward strategic goals
• The Employee Satisfaction Index measures how satisfied employees are with their jobs
• The Employee Retention Rate reflects how well HR policies retain valuable employees.
• What does the Employee Turnover Rate indicate?

  Effectiveness of HR practices
• The Time-to-Hire measures the duration from job posting to hiring
• What do financial metrics in HRM evaluate?

  Cost-effectiveness and ROI of HR activities
• The Training ROI is calculated as $\frac{\text{Benefit}}{\text{Cost}}$ to determine the financial effectiveness of training
• What do employee satisfaction metrics measure?

  Employee happiness and contentment
• Behavioral metrics for employee satisfaction include absenteeism and turnover rates.