It’s a believe and key management scholars support that for Human Resource Development’s continued growth and development, the implementation of performance measurement systems is required. A Performance Management System is a process that produces a focused set of measurable targets connected to the performance improvement of individuals and organizations. In a 2006 study, Bersin asked training managers at more than 140 companies about training measurements. Survey topics ranged from areas of training routinely measured to the percentage of training budget spent on measurement. The study revealed that many organizations continue to struggle with how to gauge the business value of training. The research data showed a significant disconnect between what organizations view as the most important and valuable areas to measure and what is actually being measured. Eighty percent of organizations reported measuring only completions, enrollments, and satisfaction of training, but only 8% measured return on training investment. According to Bersin (2006), there is a large gap between the necessity to show business impact and the very small number of training services doing so. Most training departments lack the performance management infrastructure required to measure business impact. In fact, Bersin’s research shows more than two thirds of organizations do not have systems in place for employee performance management.
While Human Resourse Development practitioners can measure and report on easily available data, such as completions, enrollments, and satisfaction, the current lack of integration between learning and job performance makes it very difficult to obtain data on the business impact of training. As a result, many executives view the Human Resourse Development budget as the first area to cut spending during tough financial times. According to Jacobs (2006), this vulnerability is partly the failure of Human Resourse Development to be positioned as an asset in the performance and profitability. of the organization and to use standardized metrics in which to measure and evaluate the return on investment and performance improvement benefits, thus limiting the convincing evidence needed to demonstrate that training expenditures have produced a measurable return on investment for the organization. Corporations appear to use varying ways to track and account for training costs (Bersin, 2006). Several means of tracking costs and income have been developed, including needs assessments, materials development, and production and program design time. Costs can be applied per participant or per program numbers (Bassi, 2006). However, justifying the performance improvement value that training produces is another matter entirely. While there are models for measurement, there does not seem to be any accepted standard for measuring the value of training costs in business. Other common reasons cited by Human Resourse Development leadership for this gap include the fact that the benefits of training are subjective and difficult to quantify in how they may accumulate over time (Drucker, 2007).
To improve and enhance the staff engagement which will enable the organisation to achieve better outcome from applying Performnace Management System, leader’s shall use the power to alter attitude and behaviours by addressing individual needs and motivations as a practice of effective leadership (Sullivan and Decker, 2005).Leaders may often engage staff to assist in managing resources but the ultimate responsibility of resource management rests on leaders (Nourthhouse, 2015). Organisation Leaders role will be to develop a new reward and recognition strategy. NHSIII (2008) reports that staff involvement and training is important to sustain improvement and increase sustainability.
About the Author:
Dr.Hisham M Safadi (Hisham Safadi ) BDS & MSc Leadership and Management in Health Care Practice form the University of Salford where his Master dissertation was in the effect of Emotional Intelligence on improving Dentistry care in Middle East. He was born and raised in the Emirates of Ras Al Khaimah, United Arab Emirates. Dr.Safadi had start his professional career as a dentist then turn to the field of managing medical facilities and investment management. His main interest is business start-up, leadership and mentoring. Currently he is leading several projects in Manchester that is related to enhance patient experience and improving leadership style through education.
- Leadership in Dentistry Opportunities and Threats. Review 2008 by Dr.Hisham Safadi
- Why shall Healthcare Providers care about Patients Payments and Finance?
- 12 successful elements for Business Start-ups Leadership.
- How to Say Thanks for Your Business?
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NHS Institute for Innovation and Improvement, N. (2008). The Productive Leader. [Online] Institute.nhs.uk. Available at: http://www.institute.nhs.uk/quality_and_value/productivity_series/the_productive_nhs_leader_ship_team_-_making_time_to_lead.html [Accessed 1 Jan. 2015].
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Sullivan, E. and Decker, P. (2005). Effective leadership and management in nursing. 6th ed. Upper Saddle River, N.J.: Pearson/Prentice Hall.
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