Human Resources Effectiveness Term Paper

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Measuring Human Resource Effectiveness

Human resources' effectiveness must be measured accurately since it allows the organization to assess the costs incurred of training and development of HR while at the same time it helps them see if they should continue incurring those costs. The two most commonly used methods of measuring effectiveness are: average revenue per employee and average cost per employee. These methods are popular because they are simple to use and give a quick look into the effectiveness of HR. average revenue per employee is the method whereby it is determined as to how much revenue is being produced by one employee of the company.

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If revenue per employee is high, it shows that employees are productive and they are contributing significantly to company annual turn-over. This can be done with the help of such tools as performance assessment charts, scorecards, total revenues divided by number of employees etc. But this method may not be very accurate since it is not easy to determine per employee revenue without compromising the fact that some employees….....

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