netrashetty
Netra Shetty
Rockford Fosgate is a manufacturer of aftermarket and OEM car audio and In-Car Entertainment (ICE) products and accessories, as well as limited Pro Audio, and personal electronics such as earphones. Lightning Audio is a subsidiary brand of the company.
One of the most under measured parts of a business is the human resource capital
and it represents one of the biggest challenges facing business; namely finding the
best and brightest people. It is these human resources or people who ultimately
create value for the organization. People generate value through their application of
skills, talents, and abilities. The key is to invest in people so that human resources
are productive, knowledgeable, effective, and efficient. This is what separates the
average company from the exceptional. Getting a return on this investment or ROI is
extremely important.
People who create lots of value often have certain characteristics:
They openly share their knowledge and expertise with others
They transform data into intelligence for better decision-making.
They pay attention to details, collecting and gathering information to reach
informed conclusions.
They communicate clearly and concisely.
We can extend this concept to all aspects of intellectual capital; i.e. people interact
with processes, knowledge, systems, customers and other intangibles within the
business. Once you understand this interaction, you can measure these relationships
to ascertain returns on human resource capital. A critical question to ask is: What
impact does a person have on these intangibles? For example, one employee may
interact with complaining customers in order to gain knowledge and improve the
business. Another employee may view complaining customers as a nuisance to be
avoided.
Each process can have its own unique set of metrics. These metrics can be applied
within a formal measurement system designed specifically for human resource
capital. In his book The ROI of Human Capital, Dr. Jac Fitz-enz describes how all
performance measurement systems can be placed into a matrix. The following matrix
was developed for measuring Human Resource Capital (HRC):
Cost =>
Time =>
Quantity =>
Error =>
Reaction =>
In the above matrix, we would have costs associated with acquiring personnel; such
as advertising, agency fees, and relocation costs. These costs would fall under
Acquire HRC. The next level down is time; i.e. how long did it take us to recruit a new
employee. Quantity would be the number of applications processed; often viewed as
the "driver" within the process. Error refers to any event that does not meet our
expectations; such as incorrect processing of new applications. Finally, the Reaction
level looks at how people respond to various events within the process. This can be
somewhat subjective. In any event, we can transform our matrix into a Balanced
Scorecard:
Perspective => Metrics
Acquisition => Cost per Hire, Time Required to Fill Position
Maintain => Average Pay per Employee, Labor Cost % to Operating Cost
Retention => Cost of Turnover, Retention Rate, % of Voluntary Separations
Development =>Training Hours per Employee, % Promoteable People
Financial professionals are often too focused on applying metrics to a process as
opposed to the underlying foundation behind the process; namely people. The
emphasis should be on people since people are the glue that pulls together the
elements of intellectual capital – processes, systems, knowledge, etc. Measuring and
managing this “glue” is critical to squeezing value from all elements of intellectual
capital.
Managing human resource capital is now mission critical. One of the most effective
tools for managing human resources is the 360-degree evaluation process.
Traditionally, an employee is evaluated from a sole source (1 degree), namely the
immediate supervisor or manager. However, employees interact with numerous
sources: Co-workers, customers, Managers outside the employees department,
vendors, contractors, and others. The 360- degree evaluation process relies on these
multiple sources, providing a more balanced and objective approach to measuring
employee performance. This leads to higher productivity, better customer service,
and enhanced organizational performance.
“Every published report recommends multiple as opposed to single raters for
performance appraisal.” – John Bernardin, Author & Expert on Performance
Appraisal
In order to give you a clear picture of the key elements of a recruiting culture, will highlight the key elements that are generally required to be classified a true a recruiting culture.
These characteristics or focuses include:
Executive support. The CEO publicly declares themselves to be the "Chief Recruiting Officer" for the organization and also makes it clear that they accept the responsibility for ensuring that everyone contributes to the recruiting effort.
Every employee is a recruiter. Every employee is told prior to being given an offer letter that no matter what their job title, they are expected to seek out the very best "future coworkers" 24/7. In some recruiting cultures, they go the next step, which involves customers and former employees as both recruiting targets and referral sources.
A strong brand. The entire organization commits to building the strongest employment brand (external reputation and image) in the industry by doing its part to ensure that the organization's best management practices are talked about in the media and at industry events. Having every employee talking to and sharing success stories with numerous colleagues and strangers as part of the referral program also contributes to building a strong brand reputation.
One of the most under measured parts of a business is the human resource capital
and it represents one of the biggest challenges facing business; namely finding the
best and brightest people. It is these human resources or people who ultimately
create value for the organization. People generate value through their application of
skills, talents, and abilities. The key is to invest in people so that human resources
are productive, knowledgeable, effective, and efficient. This is what separates the
average company from the exceptional. Getting a return on this investment or ROI is
extremely important.
People who create lots of value often have certain characteristics:
They openly share their knowledge and expertise with others
They transform data into intelligence for better decision-making.
They pay attention to details, collecting and gathering information to reach
informed conclusions.
They communicate clearly and concisely.
We can extend this concept to all aspects of intellectual capital; i.e. people interact
with processes, knowledge, systems, customers and other intangibles within the
business. Once you understand this interaction, you can measure these relationships
to ascertain returns on human resource capital. A critical question to ask is: What
impact does a person have on these intangibles? For example, one employee may
interact with complaining customers in order to gain knowledge and improve the
business. Another employee may view complaining customers as a nuisance to be
avoided.
Each process can have its own unique set of metrics. These metrics can be applied
within a formal measurement system designed specifically for human resource
capital. In his book The ROI of Human Capital, Dr. Jac Fitz-enz describes how all
performance measurement systems can be placed into a matrix. The following matrix
was developed for measuring Human Resource Capital (HRC):
Cost =>
Time =>
Quantity =>
Error =>
Reaction =>
In the above matrix, we would have costs associated with acquiring personnel; such
as advertising, agency fees, and relocation costs. These costs would fall under
Acquire HRC. The next level down is time; i.e. how long did it take us to recruit a new
employee. Quantity would be the number of applications processed; often viewed as
the "driver" within the process. Error refers to any event that does not meet our
expectations; such as incorrect processing of new applications. Finally, the Reaction
level looks at how people respond to various events within the process. This can be
somewhat subjective. In any event, we can transform our matrix into a Balanced
Scorecard:
Perspective => Metrics
Acquisition => Cost per Hire, Time Required to Fill Position
Maintain => Average Pay per Employee, Labor Cost % to Operating Cost
Retention => Cost of Turnover, Retention Rate, % of Voluntary Separations
Development =>Training Hours per Employee, % Promoteable People
Financial professionals are often too focused on applying metrics to a process as
opposed to the underlying foundation behind the process; namely people. The
emphasis should be on people since people are the glue that pulls together the
elements of intellectual capital – processes, systems, knowledge, etc. Measuring and
managing this “glue” is critical to squeezing value from all elements of intellectual
capital.
Managing human resource capital is now mission critical. One of the most effective
tools for managing human resources is the 360-degree evaluation process.
Traditionally, an employee is evaluated from a sole source (1 degree), namely the
immediate supervisor or manager. However, employees interact with numerous
sources: Co-workers, customers, Managers outside the employees department,
vendors, contractors, and others. The 360- degree evaluation process relies on these
multiple sources, providing a more balanced and objective approach to measuring
employee performance. This leads to higher productivity, better customer service,
and enhanced organizational performance.
“Every published report recommends multiple as opposed to single raters for
performance appraisal.” – John Bernardin, Author & Expert on Performance
Appraisal
In order to give you a clear picture of the key elements of a recruiting culture, will highlight the key elements that are generally required to be classified a true a recruiting culture.
These characteristics or focuses include:
Executive support. The CEO publicly declares themselves to be the "Chief Recruiting Officer" for the organization and also makes it clear that they accept the responsibility for ensuring that everyone contributes to the recruiting effort.
Every employee is a recruiter. Every employee is told prior to being given an offer letter that no matter what their job title, they are expected to seek out the very best "future coworkers" 24/7. In some recruiting cultures, they go the next step, which involves customers and former employees as both recruiting targets and referral sources.
A strong brand. The entire organization commits to building the strongest employment brand (external reputation and image) in the industry by doing its part to ensure that the organization's best management practices are talked about in the media and at industry events. Having every employee talking to and sharing success stories with numerous colleagues and strangers as part of the referral program also contributes to building a strong brand reputation.
Last edited: