A Mathematical Approach to Human Resources 152755709X, 9781527557093

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A Mathematical Approach to Human Resources

A Mathematical Approach to Human Resources By

Teena Mishra

A Mathematical Approach to Human Resources By Teena Mishra This book first published 2024 Cambridge Scholars Publishing Lady Stephenson Library, Newcastle upon Tyne, NE6 2PA, UK British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Copyright © 2024 by Teena Mishra All rights for this book reserved. No part of this book may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the copyright owner. ISBN (10): 1-5275-5709-X ISBN (13): 978-1-5275-5709-3

This book is dedicated to my mother. ‘Nothing is better than practice,’ says my mother, Nirmala Mishra, who has always encouraged me to strive and try again in my life. And I was always one step ahead. She is no longer alive, but when I chose to publish a book about a mathematical approach to human resources, I discovered that it is a fresh method with many problems in this subject. I remembered my mother and began and eventually finished this job. While writing this book, my father (Ashok Mishra) has always put light on the practical parts of life, which has helped me to develop knowledge.

CONTENTS

Preface ....................................................................................................... xii Introductory Note ..................................................................................... xiv Acronyms ................................................................................................. xvi Chapter One ................................................................................................. 1 Introduction to Human Resource Management Evolution of Human Resource Management Human Resource Digitalization Human resource in the 21st century Challenges of Human Resource Management Human Resource Philosophy Approaches to Human Resource Management Management approach Commodity approach Strategic management Human Capital Management Approach Difference in Human Capital Management and Human resource Management Human Resource Approach Proactive Approach Reactive Approach Holistic Approach Hard and soft Approach System Approach Internal Marketing Approach Skill management Approach Mathematical Approach System appraoch to human resource management Approaches towards handling diverse human potential Case of Human resource practice in the health care system

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Contents

Chapter Two .............................................................................................. 29 Human Resource Accounting Why HR accounting is a new dimension? Why Human resource accounting has been gaining attention in the present context? Definition of Human Resource Accounting Meaning of Human Resource Accounting Objective of Human Resource Accounting Concept of Human Resource accounting Concept of accounting in Human Resource Management Features of HRA Concept of accounting in Human Resource Management Applications of Human Resource Accounting in Human Resource Management Accounting Functions Employee Training and Development Employee Salary Design Employee Allocation, Arrangement and Turnover Human Resource Reset Relationship between Accounting and Human Resource Management Cement Corporation of India Ltd HRA at Infosys Hurdles in HRA Enhancement of HRA Application Chapter Three ............................................................................................ 57 Mathematical Modelling of Human Resources Mathematical Model for HRP in the Production Process A Model for Defining Optimal Workforce Planning of Pilot Roles in an Airline Mathematical Modelling of Performance Management A Novel Perspective on Human Resource Management Based on Multiple Regression Modelling and Quantile Regression Modelling Mathematical Models to Solve Strategic Workforce Planning Mathematical Modelling for Allocating Human Resource Investigation of a Mathematical Model for Optimal Human Resource Allocation in Heavy Haul Railway Operation and Maintenance Units Mathematical Modelling of Bhagavat Gita Mathematical Modeling of Intellectual Capital and Business Efficiency

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Design of Mathematical Model Assessment of Performing Achievements Techniques for HR Forecasting Mathematical Models in Human Resource Management Mathematical models in human resource planning Mathematical Models for allocating human resource Chapter Four .............................................................................................. 85 Relation between Internal Marketing and Human Resource System Meaning of Internal Marketing Significance of Internal Marketing Internal Marketing Implementation Types of Measurement Scale Nominal Ordinal Interval Ratio Measurement of Internal Marketing Campaign Responsibility of Internal Marketing Campaign Internal Marketing and Human Resource Management Relation between Internal Marketing and Internal Communication Linakage between Internal Marketing and Branding Metrics to measure HR Recruitment Metrics Human Resource Service and Software metrics Engagement and employee retention metrics Training and development metrics Time tracking metrics Performance management metrics Internal Communication metrics Measurement of Capital Management Key Performance Indicators HR Analytical Tools Measuring Human Resource Internal Efficiency and Effectiveness Auditing Human Resource Compliance Chapter Five ............................................................................................ 109 Internal Marketing Measurement Developing Internal Marketing Plan Importance of Internal Marketing Measurement Measuring Human Resource Effectiveness

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Employee Net Promoters score Mapping HR Career Path Employee turnover rate Employee retention rate Absenteeism rate Trainingeffectiveness New hire performance Internal mobility rate Cost of HR per employee HR tech ROI Meauring HR efficiency Effectiveness of HR functions Development of Core competency Human capital metrics Internal marketing dimensions Chapter Six .............................................................................................. 128 Performance Measurement and Evaluation Meaning of Performance Measurement Advantages of Performance Measurement Performance Measurement Framework Meaning of Performance Evaluation Benefits of Performance Evaluation Essentials of Employee Performance review Six Best Practices to Conduct Effective Employee Performance Review Procedure of Performance evaluation Methods of Performance evaluation Performance Instruments and Indicator KPI Kinds of KPI Employee Performance Indicator Measurement and Perforamnce evaluation system Performance measurement and management of workforce Study on health care performance measurement Chapter Seven.......................................................................................... 156 Internal Marketing Methods and Tools Internal and External Marketing Communication of Internal Marketing campaign Internal marekting tools

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Internal Marketing methods and tools Advantages of Internal marketing program Internal marketing methods Methods of Internal marketing strategy Best Internal Marketing tools Mechanism of Internal marketing strategy Chapter Eight ........................................................................................... 172 Case Studies on Human Resource Practice and Measurement Recent Trends in Human Resource Practices Usage of IT technology Innovations Adoption of Internal marketing practices Green Human Resource Management Practices Human resource measurement and evaluation Measurement approaches Selection of Human resource measurement Case study on Ghana commercial bank Human resource analytical tools Nielsen case Case of reduction in road accidents Dutch FMCG retailer Shell HR driving store performance Compensation and advantage at Clarks A new office started at Cisco Uniliver workforce Bonus at small organization Improve health through proper human resource system Artificial intelligence Home health agency case study Dell technology Bibliography ............................................................................................ 196 Glossary ................................................................................................... 206 Endnote.................................................................................................... 208 Index ........................................................................................................ 209

PREFACE

This book, “A Mathematical Approach to Human Resources”, presented the concepts of various approaches to human resource practices. Academicians and practitioners follow human resource practices on the basis of their ideas and understanding. Currently, there is a rising debate on which human resource approach is better, i.e., human resource accounting, internal marketing approach, mathematical approach, proactive approach, reactive approach, etc. Due to the extensive usage of human resource practices, it is difficult to determine the number of human resource practices. Due to rising employee-related concepts and various approaches that are employeefocused, it isn't easy to implement human resource practices and differentiate them from other concepts. To bring clarity to the concept and to follow the right approach toward employees, this book was developed. There are eight chapters in this book. Chapter 1 provides an introduction to the mathematical approach to human resources, which includes the evolution of human resources, human resource digitalisation, human resources in the 21st century, and various approaches to human resource management. Chapter 2 elaborated on the concept of human resource accounting, which encompasses the meaning of human resource accounting, the objective, the concept of HRA, the application of HRA, and the relationship between accounting and human resource management. Chapter 3 explores the mathematical modelling for human resource practice, comprising human resource planning, workforce planning, performance management, human resource allocation, company efficiency, and intellectual capital. Every feature of the organisation is changing rapidly. Since the evolution of human resource management, various ways have been followed to attain its objective. Chapter 4 focuses on internal marketing, which is a different concept from human resource management. It works as an integrated approach between human resource management and marketing to increase the value of

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internal customers. The major distinction is that internal marketing is competitive and needs to build customer focus by providing value to internal customers. Employees' value was enhanced with the introduction of internal marketing, as they called employees internal customers. Chapter 5 explains the importance of internal management measurement, measuring HR effectiveness, and HR efficiency. Chapter 6 discusses performance measurement, the advantages of performance measurement, the performance measurement framework, the meaning of performance evaluation, benefits, employee performance reviews, KPIs, Employee performance indicators, and performance measurement and management of the workforce. Chapter 7 highlighted internal and external marketing, internal marketing tools, internal marketing campaigns, internal marketing strategies, and their tools and mechanisms. Chapter 8 revealed various recent trends in human resource practises, including the usage of IT technology, the adoption of internal marketing practises, and emerging human resource management practices and innovations. It also discussed human resource measurement and various case studies. Thus, these chapters are directed towards increasing knowledge of the mathematical measurement aspect of human resource practice as well as providing practical aspects of it.

INTRODUCTORY NOTE

Employees play a crucial role in organisational performance; thus, it is vital to measure and improve their performance in the future, which is the aim of this book, ‘A Mathematical Approach to Human Resources’. It is valuable to comprehend the effectiveness and efficiency of organisational initiatives, programmes, and projects in attaining organisational goals. The management of any organisation is continuously working hard for optimal employee effectiveness. The most widespread way to define an organisation's effectiveness is to inspect its financial accounts, like inventories, account receivables, cash, etc. There is a need to measure employee investment to save costs for the organisation and attain organisational goals. Due to considering the feelings and emotions of employees, various factors like leadership, attitude, commitment, emotional intelligence, happiness, and leader-employee interactions lead to organisational development through employee motivation and satisfaction. However, it is typical to measure these intangible aspects. But despite this, various measurement techniques are being used currently. Conventional and modern approaches to human resource management are discussed in this book. Human resource accounting is the concept of identifying, measuring, and reporting human resource investments that need to be accounted for by typical accounting methods. Businesses are heavily dependent on creativity or research to determine methods to measure human investment. However, it is critical to measure intangible assets such as human abilities. Despite the reason that human resource accounting is practised in the organisation, they are handling their problems with this method. Still, the fact is that effectiveness can only be gained with the positive attitude and commitment of the employees. For this, internal marketing is focused on the employer as well as employee commitment to attain organisational objectives. The reason is that employees and employers are both involved in the exchange process; thus, how can human resource professionals measure employee performance

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with a one-sided approach? In this regard, Internal marketing measurement is the technique to measure the functioning of its dimensions in the organisation, for example, internal communication, internal segmentation, rewards, job products, internal customer orientation, service quality, etc. There is a requirement for mathematical modelling to measure human resource practice so that organisations can utilise it for their development. Developing consistent quantitative methods for various practices takes time and effort. However, it is possible only if there is a proper understanding of the various concepts linked to it. This book will provide a better insight into the human resource measurement procedure and approaches and provide a basis to develop quantitative techniques in human resource practice.

ACRONYMS

HRM

Human Resource Management

HR

Human Resource

HRM

Human Resource Management

IM

Internal Marketing

SHRM

Strategic Human Resource Management

R and D

Research and Development

AI

Artificial Intelligence

COVID 19

Coronavirus Disease

ITC limited

India Tobacco Company Limited

HRA

Human Resource Accounting

SAIL

Steel Authority of India Ltd

BHEL

Bharat Heavy Electrical Limited

SPIC

Southern Petrochemicals Industries Corporations of India

MMTC

Metals Trading Corporations of India Ltd

SMEs

Small and medium-sized firms

IT

Information Technology

CIS

Common Wealth of Independent States

A Mathematical Approach to Human Resources

AHP

Analytical Hierarchy Process

HRA

Human resource allocation

SPSS

Statistical Packages of Social Science

IC

Intellectual Capital

KPI

Key Performance Indicator

ROI

Return on investment

SMS

Short Message Service

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CHAPTER ONE INTRODUCTION TO HUMAN RESOURCE MANAGEMENT1

Abstract There is a drastic change in every sector of business. Due to changing technology, increasing globalisation, and competition, there is a change in the organisation's overall system. Human resource management is one of the disciplines in management that focuses on managing employees at work. However, various conceptions have developed over time regarding how to tackle human resources in the organisation. There is an increasing awareness for the betterment of human resources in the organisation; thus, currently, organisations call human resources 'internal customers’. It is required to redefine and develop the human resource concept due to the increasing complexity and dynamic environment. To deal with human resource practices and assess the effectiveness of the human resource management process in the modern era, mathematical approaches and tools are required. In this context, the introduction to human resource management and other associated methodologies were the main topics of this chapter.

Introduction "Human resource management" describes managing human resources in a business. (Manashree 2019) With the advent of human resource management, the significance of human resources has been increasing. Employees play a vital role in the organisation, and their management brought various stages of its evolution.

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Chapter One: Human Resource Management

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Personal management, human relations approaches, human resource management approaches, strategic human resource management approaches, holistic approaches, mathematical approaches, and internal marketing approaches are some stages of its evolution. There is a need for much work in measuring human resources. It is time to consider how to quantify human resources. Therefore, there is a need to make an effort and provide a direction for implementing it. Due to growing rivalry, organisations concentrate on strategic human resource management to acquire a competitive advantage. In 1981, internal marketing was initiated in response to the growing need to motivate and retain workers following the emergence of human resource management. Instead of treating employees as assets, internal marketing involves treating them as internal customers. Later, different authors continued to explore this idea. Identification of measurement variables is required for internal marketing implementation to be successful. (Manashree, 2019) There is a question: Are internal marketing and human resource management similar notions? After extensive research in this field, it shows that both are distinct. (Mishra, 2022) A measurement approach needs to be identified to measure the internal marketing concept. Scandia is the first big company to concentrate on measuring knowledge assets. Intellectual capital is one of the factors present when the hidden components of human and structural capital are combined. (Edvinssion and Malone, 1997, as cited in Kucharþíková, 2011) According to Sveiby (1997), intellectual property is an intangible asset. He proposed a framework based on three families of intangible assets: internal structure (organisation management, manual systems, legal structure, attitudes, R&D software, and individual competence), external structure (customer relations, brand knowledge, supplier relationships, and distribution relationships) and individual competence (education, skills, and experience). Sveiby presented a method for calculating intangible assets. Several authors have updated their intellectual capital because intangible assets help boost value. According to conventional accounting, these assets are costs. An argument is made that a comprehensive indication of financial success and shareholder value can be found by utilising non-financial measurements to assess intangible assets and financial measurements to assess visible equity. (Kucharþíková 2011) There are various changes that have occurred in the development of human resource management. The most significant change is the way

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employees deal within the organisation. There is an exchange between the organisation and employees for mutual benefits. The organisation's ultimate aim is to improve employees' performance and lead to organisational growth and development. The problem for the organisation is how to measure their performance and accountability. Human behaviour is typical; therefore, it is vital to understand it and do proper planning and implementation to improve performance. If we look at organisations today, there is no need to manage employees rather than empower them. The human resource management concept remains, but there is a need for a new vision to see it.

Evolution of Human Resource Management Human resource management is a crucial component of every organisational management system. Human resource policies significantly affect individuals, as is well known. Firms have begun to focus on human resource strategies and applications to establish a sustainable competitive advantage and high performance in company operations. The concept of human resource management evolved from using human capital wisely and effectively. (Vardarlier, 2016) Following 1980, there was a noticeable increase in the use of human resource management. Craftsmen and skilled artisans played a significant role in product creation in the ancient world and for a substantial chunk of the mediaeval era. In addition to owning the tools and equipment, they produced and sold the products on the market. They handled their own business with assistance from their family members. Nevertheless, many artisans also employ apprentices and a specific class of labourers. Strong bonds existed between the master artisans and the apprentices, and they directly dealt with any problems that the family members and apprentices encountered. Some apprentices started their businesses after prolonged training, while others remained financially obligated to their master artisans. Throughout the mediaeval era, experienced craftsmen formed guilds primarily to defend the interests of their respective industries. These guilds also determine the price of the items, the salary of labourers and journeymen recruited to do the work, and the terms and conditions of their employment. The ancient and significant section of the mediaeval era saw many different labourers. Serfs, slaves, and indentured workers are among them. (Manashree 2019)

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Managing people, serfs, and indentured labour is one of the stages of human resource management. Other phases include managing the Industrial Revolution, the trade union movement, the beginning of the 20th century's era of social responsibility, the scientific management era from 1900 to 1920, the era of human relations, the era of behavioural science, the system and contingency approach, and the era of human resource management from 1980 onward. (Manashree 2019) The trade union developed in the 1920s, just before India gained independence. According to various authors, the First World War and trade unions were responsible for developing the human resource management concept. The Royal Commission recommended hiring a labour welfare officer in 1930 to investigate worker complaints. According to the Factory Act of 1942, if a factory employed 500 or more people, it was required to hire a labour welfare officer. The Second World War raised awareness of workers' rights, and from the 1940s to the 1960s, new technology was introduced to assist workers and expand human resources' application beyond welfare. Personnel management now refers to a combination of welfare, labour relations, and administration. Heavy industries began to take off with the second fiveyear plan, and professional management gained significance. In the 1970s, the emphasis was on labour productivity, whereas in the 1980s, it was on new technology, necessitating new norms and regulations. Human values and human development were prioritised in the 1990s. As workplaces got more liberalised and different types of workers began to dominate, this trend gave rise to human resources management (HRM) and the development of personnel management. ("Evolution of Human Resource Management", n.d.) Western Europe and the United States sowed the seeds of HRM during the industrial revolution in the 1850s. The wind gradually affected India at the turn of the 20th Century. (“Evolution and Development of Human Resource Management (HRM)” 2014) The evolution of HRM since then can be divided into three categories: Trade Union Movement Era: Trade union efforts led to the establishment of personnel procedures, including collective bargaining, grievance handling systems, arbitration, disciplinary practices, employee benefit programs, and sensible and logical compensation structures.

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Social Responsibility Era: The era gives importance to social welfare and the perspective of British industrialist Robert Owen on labour. He thought the fundamentals of social and economic environments and people face an impact on their physical, mental, and psychic development. Hence, improving employees' working and living environments is necessary to boost productivity. It can be done by removing them from an unfavourable setting or changing it to incorporate better living and working conditions. Scientific Management Era: At the start of the 20th century, Frederick Winslow Taylor popularised the idea of scientific management in the USA as an alternative to the dominant system of administration by initiative and incentive to improve the worker's efficiency. Based on his experience on the shop floor, Taylor developed the following four scientific management concepts: development and use of the scientific technique; provision for training and development; management and staff clearly defined; and harmonious relationships with employees. Human Relations Era: Since they failed to recognise workers as actual, aware people with their own needs, attitudes, and feelings, earlier approaches to human resource management were deemed inadequate by 1920. Between 1925 and 1935, many specialists expressed their opinions on the human facets of organisational action. (“Evolution and Development of Human Resource Management (HRM)," 2014)

Human Resource Digitalisation The Human Resource Management System (HRMS) underwent numerous modifications over the following two decades, and many new features were added, including a different human resource information system (HRIS) for managing personnel, sophisticated employee performance management software, learning management, and talent features. After 2010, the introduction of artificial intelligence was the next significant turning point in developing human resource (HR) technology. The introduction of artificial intelligence gave HR product architects a significant opportunity to address complicated issues in the human resources area. Artificial intelligence (AI) in the human resource system looks appropriate in numerous areas. One of the crucial areas where artificial intelligence may offer the finest solution is recruiting personnel. Studies have been

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performed to better understand this unusual phenomenon as the millennial age has begun to assume leadership roles in organisations worldwide. The new generation was characterised as impatient and a highly motivated group impacted by business culture and the workplace. It gave rise to the idea of putting the needs of employees first, and various influential people like Richart Branson, Vineet Nanayar, and others enthusiastically supported it. (Ahmer 2018)

Human Resources in the 21st Century Companies will rely on human resources professionals to serve as capable leaders who help employers and employees deal with the problems of the 21st-century workplace. People will perceive human resources specialists as strategic and business decision-makers who advance the organisation. By selecting the best candidates, training personnel, and adapting to the shifting environment, the human resource department contributes to the firm's success Fig 1-1.

Fig. 1-1: Human Resource Network, source https://cdn.pixabay.com/photo/2020/04/12/11/59/human-resources5033959_960_720.png

They will view human resources specialists as strategic thinkers and business partners who make decisions that advance the organisation. By selecting the best candidates and offering staff training to help them adapt

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to the changing environment, the human resources department contributes to the firm's success. ("Major Trends in Human Resources in the 21st Century", n.d.) Societal changes: The COVID-19 epidemic, according to global professional services company Deloitte, has altered the development of employee-employer interactions, possibly forever. Although it is impossible to predict where future trends in human resources will go, Deloitte offers the following four possibilities: Fashion in the workplace: Companies respond to worker demands and rival actions. Talent wars: A skill shortage causes workers to battle for positions. Employment is work. Workers anticipate finding significance and purpose outside of their employment, as opposed to in their professional capacities. Unleashed purpose: The employer and the employee have a sense of unity. Technology training: The move for businesses from using local servers to adopting cloud services with unlimited storage will be led by human resources. Human resources will employ cloud computing specialists to combine cloud apps, mobile devices, and social media during the transition. The experts will train workers on cloud operations and integrate the cloud into a company's daily operations. Developing policies regarding personal technology and employee data usage will also involve human resources. Globalisation Effects: Business is expanding internationally, and there is cutthroat competition. Globalisation is accelerating at a faster rate and also making changes in the business market. The human resources department of a corporation is in charge of hiring and educating local employees in foreign nations where the company has offices, as well as newly hired international employees in local offices. Human resources also teach work ethics to every staff member and how to comprehend cultural variations in addition to operational training. Internal changes: The obligation to modernise their technological ways is one of the developments in human resources. For instance, they will alter their recruiting strategy to use social media to discover qualified individuals for open positions. They will boost shared apps between

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employers and employees and update technology policies to incorporate conduct and safeguards for an IT property. They will also be able to evaluate an employee's value to the organisation by connecting their performance with its business objectives. The diversity of the workforce will continue to increase in the 21st century due to the growth of ethnic groupings. The public sees an organisation with variety as peaceful, stable, and forward-thinking. For employees' skills to operate in diverse teams, human resources professionals will be taught to understand, support, and achieve diversity efforts. Human resources experts will collaborate with business leaders to ensure the organisation embraces different cultures to preserve a competitive advantage. (Aslam et al. 2014) Although many firms were unprepared for the scope of the pandemic, human resource management was compelled to adjust to COVID-19 quickly. As everyone worked from home, they aimed to alter their procedures to increase production and employee performance. "Human resource management" describes managing an organisation's culture and human resources. The management of human resources was compelled to adjust quickly. Following are the ways in which HRM changed with COVID-19: Widespread adoption of remote work: There is a widespread adoption of remote work during pandemics, which makes the work easy and simple. Human resources and core onboarding: Online onboarding and a digitalised hiring process initiated. Human resource management departments use task management software and qualitative and quantitative data to manage employee performance. Engagement: As organisations maximise employees' well-being electronically and promote a healthy work-life balance, diversity and inclusion are essential to a human resource management job. Development and training: HR experts provide online training and tools to ensure employees have the necessary skills for remote work. HR will adjust to flexible and hybrid working after the lockdown. (Evans 2021)

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Human resource departments manage human capital, which includes people, their abilities, and their skills. Since employees are an organisation's most valuable asset, HR professionals must balance their needs with the bottom line. (Evans 2021) Organisational psychology is where the human resource management profession gets its inspiration, and it is a crucial technique for managing organisations. With time, this practice's strategic role started to take shape. The position of human resource management departments has evolved into one essential for modern business in the twenty-first century. (Aslam et al. 2014) In the twenty-first Century, organisations must compete for HR talent because of worldwide competition. High-achieving adolescents discovering enormous advantages and financial rewards for satisfying their materialistic needs are future talents. According to Taylor (2001), a new generation of highly skilled workers is emerging in this Century. These individuals are younger, educated, knowledgeable, and highly selfassured. They are also less concerned with what they can do for the company than with what the company can do for them. (Aslam et al., 2014) The expansion of service firms throughout developed and emerging nations shifts management attention to employee empowerment. In the global 21st century, when service companies are expanding quickly and intellectual capital is the most valuable asset, there are few examples of using the human asset accounting system. Financial reporting needs to recognise several intangibles, potentially decreasing the usefulness of the financial statements. (Gupta 2013)

Challenges of Human Resource Management Demographic shift: The demographic transition is challenging because of the dynamic environment. Demographic categories include physical handicap, gender, age, nation, and religion. By 2008, the proportion of female employees rose to 48% as their turnout ratio rose. As urbanisation has advanced, opportunities for women to find employment have increased. The choices for where and how employees might work have been significantly increased by contemporary technology that combines mobile communication and high-speed internet. For instance, software engineers

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work from home rather than in offices, receiving their projects over web connections. Employment preferences are another factor in the diversity of the workforce. Knowledge-based economy: Due to the knowledge-based economy, it is necessary to diversify HRM tactics to compete with existing rivals and gain a competitive advantage. To simultaneously provide value to customers and employees, the trend switched from an industry-based economy to a knowledge-based economy. Managers in industry-based economies place equal emphasis on effectiveness and efficiency. Expertise, entrepreneurial skills, innovation, and a varied workforce are in excellent demand today. (Aslam et al., 2014) Improve creativity and innovation: To compete in the dynamic environment, well-known firms emphasise the workforce's abilities and synergistic power. As an illustration, Apple and other businesses place their research labs worldwide to learn about consumer trends and preferences. By learning about changes, they produce novel and creative products. Gaining maximum market share: Owing to diversity, manufacturers must concentrate on the market and market knowledge to understand the needs and wishes of their customers and produce goods that will capture the largest possible market share. Teamwork and abilities have improved through sketching experiences, making it easier to respond quickly to opportunities in a new market. Relation between employees and employers: There are changes in the employee-employer relationship in the twenty-first century as well. Organisations operate in a fluid environment without centralised control. Workers work in a welcoming environment and continuously gain motivation and commitment. Relationships between employees and employees boost organisational performance as well as create a good work environment. Employees are devoted to their employers and give their best in today's highly competitive global environment. They may readily discuss cutting-edge market trends and strategies with the top management. Through exchanging ideas, they arrive at new, creative solutions that are highly beneficial for achieving organisational objectives.

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Reward and compensation system: Employees worked in a concentrated setting throughout the Industrial Age. No one was compromised in the decision-making process because top management was responsible. Managers gave orders to the workforce, and there was no adequate employee remuneration system. They were paid daily and based on the number of units produced. Employees are adequately compensated, and organisations also provide them with awards for their achievements in finishing tasks given to them and also receive bonuses every month. Employees work well and help the firm reach its goal thanks to the reward system. Managing the cost: The cost of running an organisation has decreased because of flexible working practices and the usage of technical equipment. It helps to produce goods quickly and effectively. Automation offers environmental flexibility, which helps keep costs in check. The likelihood of errors throughout the production process is likewise reduced. In the twenty-first century, the concept of employee staffing and employees as assets, or human capital, is known as human capital management. Interaction between two people is called counselling, and it is a process that involves building relationships with other people. It is helpful for businesses in the twenty-first century regarding employee training. The effects of globalisation vary depending on whether a business needs foreign labour or has a variety of cultural needs. In the twenty-first century, HRM is necessary for the growth of mindsets, capacities, and competencies needed for competitive advantage on a global scale. HR thus provides firms with the success criteria needed for a local and global competitive advantage. (Aslam et al. 2014) Employee commitment and engagement: Human resource management reinvented the notion of internal marketing practice, in which there is a focus on increasing employee commitment and engagement to improve organisational performance and lead to profitability. (Mishra, 2022) The human resource department of a company employs many tactics to accomplish various objectives, including utilising technological advancements, managing international business, adhering to current regulations, confirming ethical issues, monitoring union activities, and determining the best practice versus best fit. (Loji, Krabi, & Risti, 2012) Human resource management aims to make the best use of the resources at

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hand to boost both the business's and its employees' success. Moreover, it should consider competitive advantage, effectiveness, legal compliance, work-life balance, and workforce compliance. (Vardarler 2016)

Human Resource Philosophy Policy refers to the art of governing a country, the course of action that a country's leaders take with a given issue, particularly concerning other countries, and the principles on which any course of action is based. (New Webster Dictionary, cited in Ramaraju A, 2019) It is a somewhat enduring characteristic of a company and provides parameters for managerial decisions because it is a standing plan. Therefore, it needs to be carefully developed. There are varied approaches among organisations; thus, there is no universal procedure for creating and implementing policies. The organisational framework may state how the business will interact with stakeholders. Employees, distributors, clients, vendors, and other key group members work continuously on critical topics. (Ramaraju A, 2019) Any policy has two goals: general goals and specific goals. The overall objectives should reflect the organisation's strategy for the particular area or function of human resources, underscoring their importance and contribution to the long-term achievement of organisational goals. The specific goals are linked to the specific activities in that field, such as hiring, reviewing, developing, moving around human resources, industrial relations, incentive systems, etc. This framework must be used to evaluate various human resource policies, which should centre on the following: • •

•

To make it possible for the organisation to have adequate, competent, and trained employees. To create working conditions that enable employees to grow a genuine sense of unity with the organisation and do their jobs as effectively and willingly as possible. To instil and strengthen accountability in those who directly manage human resources, encouraging them to adopt a humanistic philosophy that protects the employees' fundamental rights and dignity.

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•

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To create conditions that foster mutual collaboration and trust between those who manage and those who are at all levels of the organisation. To create conditions encouraging people to reach their maximum potential for personal and organisational gain.

According to Peter Drucker (cited in Ramaraju A, 2019), the management must approach its policy objectives to ensure the person can perform their job. It implies that the human being is considered a resource with skills, odd psychological traits, and limitations that require the same level of engineering attention as characteristics of another source. It also suggests that people are treated differently from all other resources. Motivation, contentment, and participation incentives are required for citizenship, personality, and control over how much, where, and how well people perform. These needs can only be met by management. (Ramaraju A, 2019) The HR philosophy challenges management's presumptions and beliefs about people's needs, nature, values, and work style. Then, these presumptions and ideas dictate how individuals should be handled. There are three ways to handle people: as a commodity, as a machine, and in a humanistic way. In the commodity approach, a person is viewed as a good that can be bought or sold for a price, much like in the previous system of slavery. A person is considered a machine component that can be fitted like any other component under the "machine approach." Both of these methods view individuals as physiologically distinct human beings. (Ramaraju A, 2019) Later on, it was realised that there was a need to consider humans as people who have feelings, which started the humanistic approach. The humanistic approach treats each individual as a psychological entity. Therefore, HR philosophy should consider all of these human endowments, and in particular, HR philosophy should be based on the following beliefs: x The most critical resource in an organisation is its people. x People can be developed to a considerable extent since they have creative energy that is only partially used. x People feel devoted to their employment. x A sense of belonging is something that people frequently experience. x People make the most of their potential.

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x The organisational responsibility is to create a positive and inspiring work environment characterised by mutual respect, openness, excitement, and trust. ITC Limited follows a management philosophy concerned with its ultimate customers, suppliers, employees, competitors, shareholders, and national aspirations for India's future. This philosophy is to provide benefits to the customers. However, management must focus on all people involved in the business. (Ramaraju A, 2019)

Approaches to Human Resource Management Human resources are thought of as the guardians of human potential and capital. According to Vodak and Kucharková, human potential is the total of all the resources a person has access to and any assumptions they may have about how commodities and services might be generated. Blaková and Hitka contend that the individuals who operate in the appropriate human potential development divisions, such as personal services and human resource management services, are the most outstanding in organisations for motivating and overseeing all employees. (Kucharþíková 2011) There are various approaches to human resource management, which are: (Fig.1-2).

Fig. 1-2: Various Approaches to Human Resource Management

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x Management Approach: Management is the procedure used to run a business. The human resources division frequently includes them in its operational procedures. All business managers utilise it to manage their staff efficiently. Effective management is the company's main objective to achieve a competitive edge and maximise staff performance. (Thakur 2021) x Commodity Approach: Another essential tactic the HR division uses to preserve employees' efforts is the commodity method. It is critical to understand that a company's people are its most important asset. Make sure they function without any issues within the required constraints. The HR department must hire appropriately to fill all the required responsibilities. In this strategy, labour acts as the business's economic engine to support achieving its objectives. (Advantages and Disadvantages of Commodity Approach of Marketing, 2017) The commodity strategy includes examining each marketing system for various unique goods. It draws attention to specific products. It is challenging to promote certain products using this tactic. The plan covers the following topics: 1) 2) 3) 4) 5)

Resources and supply limitations for the product The magnitude and nature of its demand The methods used to distribute the goods The functions played by distinct supply chain connections The promotion, branding, pricing, and other marketing strategies for the product 6) The distinct qualities of product-specific marketing are crucial (Advantages and Disadvantages of Commodity Approach of Marketing, 2017)

Benefits of the Commodity Approach The concreteness of all the facts about a particular item is the main advantage of the commodity method. This strategy collects enough historical information about supply and demand factors. Commodity features evolve with time, and even minor changes' effects on marketing structures are correctly recognised. The students gain a fresh perspective on marketing particular products. (Advantages and Disadvantages of Commodity Approach of Marketing, 2017)

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Drawbacks of the Commodity Approach The commodity method has shortcomings that need to be fixed. The process is time-consuming and frequently overemphasises how variations in commodity quality impact the marketing system. Similar marketing techniques and delivery systems are used by many other commodities. The majority of products are marketed similarly across industries, far outweighing the distinctions. The factors mentioned above have caused the commodity strategy to change. An effort has been made to manage classes of closely linked commodities rather than focusing on specific individual commodities. (Advantages and Disadvantages of Commodity Approach of Marketing, 2017) x Strategic HRM: Strategic HRM is creating effective plans for hiring and managing personnel to achieve the organisation's longterm objectives. It provides staff members with a development roadmap they may follow, enabling them to combine their various points of view to accomplish the intended goals. Currently, most firms have found this strategy to be very successful. In the 1990s, it gained popularity. Most businesses found success with this technique, which accounts for its popularity. A clear-cut and purposeful management strategy is known as human resource management. It gives importance to organisational personnel and helps to attain organisational goals. HRM is the administration of personnel for the accomplishment of objectives. According to Boxall et al. (2007) (cited in Armstrong Michael), it is also seen as a collection of related policies with a guiding ideology and philosophy (John Storey 1989, cited in Armstrong Michael). A defined set of assumptions and attitudes, a strategic aim guiding decisions about human resource management, the critical role line managers play, and reliance on a handle to impact the working relationship are the four features that define the relevant version of HRM. (Page n.d.) x Human Capital Management Approach Employees are acknowledged as a company's most valuable resource. Utilising human capital exemplifies how to recognise and exploit those resources. In addition to being valued, they are also seen as expensive assets, as described by Burr. An organisation's leadership effectively manages its workforce and promotes a positive and inspiring work

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environment. Along with being advantageous to the business, this is also advantageous to the employees. (Jotform 2022) The benefits of human capital management are: x Higher productivity: When a company prioritises increasing and maximising the expertise, abilities, and knowledge of its staff, it may work more productively and meet deadlines. x Lower turnover: Human capital management deeply engages employees by ensuring they know the organisation's mission, goals, and values. As a result, commitment and a sense of ownership increased. x Enhanced customer experience: Customers gain benefits when employees succeed. Innovation is promoted by human capital management, which leads to more usable products and services that meet consumer needs. Both human resource management and human capital management share many overlapping elements and are relatively similar. Although these terms do not refer to the same processes, they should not be used interchangeably. (Jotform 2022) Human Capital Management and Human Resource Management Human capital management focuses on attaining a significant ROI from the organisation’s employees, whereas human resource management aims to manage the whole process, systems, and regulations effectively to succeed at their jobs.There is a difference in both the concepts which is presented in the Table 1-1 Table 1-1 Differences in Human capital Management and Human Resource Management On the basis of

Human Capital Management

Human Resource Management

Goal

Human capital management aims to attain the most significant ROI from the organisation's employees.

Human resource management aims to effectively manage the processes, systems, and regulations to succeed at their jobs.

Chapter One

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Responsibility

In huge companies, various organisational leaders take part in human capital management.

The human resource team handles human resource management.

Elements

Human capital management includes benefits such as payroll, time off policies, performance appraisals, employee engagement, and talent management, which can assist human capital management in attaining goals.

Human resource management elements include organising, managing, and coordinating organisational employees. It involves recruitment, training, hiring, compensating, motivating and retaining employees.

x Human Resource Approach: This strategy includes all crucial HR subjects. All aspects of hiring, training, development, succession planning, and compensation are included. However, the HR department must treat every employee with respect and dignity while carrying out these tasks. Human resource management is the term used to describe how human resources are managed inside an enterprise. It consists of a number of interrelated, philosophical, and ideologically driven policies that, taken together, create a business-focused method of managing personnel for competitive advantages. HRM starts with defining a philosophical stance that encourages developing a long-term, visionary idea for a company. An organisation's management situation comprises a comprehensive set of beliefs and presumptions about how things should be, what they should accomplish, and how they are currently. These presumptions and ideas of the people who create an organisation (owners) and administer it (managers, notably the leading decision-makers) serve as the foundation for defining the organisation's vision. In the minds of decision-makers, these ideas and assumptions are occasionally explicit and other times implicit. Two premises—fact and value—are the foundation for each individual's philosophy. Using factual premises, it is possible to describe how the world works. They are based on research results and experience value hypotheses, which provide a perspective on the desirability of particular endeavours and objectives. The HR philosophy steers precise management's presumptions and beliefs regarding people's nature, worth, needs, and performance-related strategies.

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x Proactive Approach: Prior to starting, HR managers should assess the problems. Problem-solving is preferred over prevention in this technique. It allows businesses to save considerable sums of money and time. x Reactive Approach: The reactive approach goes against the proactive approach, where high officials must take action after problems arise. The risk of missing windows of opportunity and making problems worse is significantly increased when all attempts are made using a reactive method. Businesses frequently lose a substantial amount of time and money by employing this method. Experts strongly warn employers to avoid adopting a reactive strategy in their HR practices. x Holistic Approach: It is an integrated approach to satisfying all people in the organisation. In the present context, it plays a vital role in facing dynamic situations and competing in the market. Manufacturing organisations require new strategic approaches to comprehensive human resource management to solve the competitive and knowledge concerns associated with Industry 4.0's innovative technologies and processes. Continuous automation of simple industrial processes will result in the growth of highly intricate workspaces that need a high level of worker education. The challenge is developing people to transfer their abilities to a workplace with complex procedures while ensuring job retention in continually changing and dynamic work environments. Industry 4.0 undoubtedly presents innovative business potential but also introduces challenges due to increasing digitalisation and automation. (Hecklau et al., 2016) x Hard and Soft HRM approach Human resource management is a systematic approach to recruiting, training, inspiring, and managing an organisation's HR activities. HRM is most likely split into three categories: Individual: Assisting employees in their professional development within the company Organisational: Establishing an efficient structure for all businesses Career: Assigning employees to appropriate positions and providing opportunities for growth throughout the organisation. (BrightHR 2010)

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Hard HRM: Hard HRM, as opposed to soft HRM, focuses on more progressive business outlooks. The purpose is to determine the workforce requirements so that the organisation can hire personnel while also managing as needed. (BrightHR 2010) The following are the main characteristics of the hard approach: • Regular variations in staff numbers; • Slight company transparency; • Lower compensation; • Little to no employee empowerment; • Appraisal methods that emphasise good and negative performance; • A more traditional leadership style. Soft HRM: Employees are viewed as a vital resource for the organisation. As a result, there is a more progressive viewpoint. The soft HRM paradigm prioritises employee motivation and rewards. (BrightHR 2010) Leadership in the soft approach is democratic. In this approach, the focus is on long-term planning for the company's workforce. A business model requires that it be open and transparent with a strong communication network. The empowerment of employees plays an important role in the speedy decision-making process of organisational functioning. They receive payment based on benchmarking and provide bonus programs to motivate and empower them. It is also necessary to evaluate the performance of the employees, prepare a suitable appraisal program, and find out the gaps in training and professional development. For identifying the best approach, it is vital to find out the answer to the following question: x What organisation needs to prefer soft HRM or Hard HRM? The organisation aims to determine the use of a hard or a soft HRM approach. Different features of the two can be mixed depending on the company's needs. However, the soft HRM strategy is more widespread in today's business sector, especially for employees who are supposed to be appreciated. The truth is that today's employees have access to a much broader range of companies and have more options for where they can work. Organisations retain professionals, and a competitive compensation package is required. Employees will be happier in a more supportive and relaxed environment. They will also be more committed to the company. (BrightHR 2010)

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Advantages and Disadvantages For an employer, a friendly HRM approach's main advantage is acquiring the most control over the organisation. Effective policies can be produced with faster decisions. This method of management might irritate staff members because it is congruent with micromanagement. It frequently needs to be more palatable to the staff. High turnover rates necessitate hiring new employees, which raises recruitment costs. Soft HRM Advantages and Disadvantages The essential advantage of an employer's rigid HRM approach is acquiring the most control over the firm. Effective policies may be produced with faster decisions. The company will first suffer costs due to its emphasis on training and professional growth. On the other hand, personnel upskilling has a return on investment, so it may be balanced. Because of the more democratic approach with the requirement for input from other departments, decisionmaking can occasionally be delayed. (BrightHR 2010) x System Approach The authorities use the system method to combine various interconnected components to attain a single aim. Even if two or more of a company's goods or components are closely linked, they are only sometimes used together. However, the existence of this strategy will allow these aspects to meet the organisation's needs in a collaborative manner. (Thakur 2021) x Internal Marketing Approach Internal marketing is one of the strategies used to develop the human resource system in the internal market. Internal marketing practice has several dimensions, such as job products, internal segmentation, internal service quality, customer orientation, rewards, and motivation. This method was developed in 1980 but still needs to be used more. Various organisations need more expertise to practice it. To accept this concept, one must realise the worth of employees and be willing to invest in them. The reason for this practice's non-adoption is that many organisations are resistant to change.

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x Skill Management Approach An organisation's ability to maximise its employees' best usage is called skill management. It focuses on a mix of various kinds of individuals to adapt qualities and functions to changing environmental situations and demands, such as knowledge, behaviours, and skills. It enables organisations to improve outcomes using efficient, adaptable, and costeffective human resources. Various interventions have been followed to attain this dynamic approach to human resource optimisation. They are categorised into two kinds, which are skill flexibility and skill development. One of the most challenging issues organisations have faced in recent years has been adjusting to the rapid pace of a wide range of internal and external changes. Environmental changes are due to changes in interest, needs, consumer tastes, legislative needs, economic changes, technological changes, etc. (Dubois and Singh, 2009) Organisations' strategic and operational changes rely heavily on their people's ability to transform. It can only update its reactions to changes when its staff can learn and apply the skills required to take on new roles and functions. Various organisations are focusing on skill development to improve the performance of their employees, for which they are initiating training and development programs. To efficiently perform the skill management approach, there is a need to follow other approaches to motivate employees to make changes and improve their skill and knowledge inventory. x Mathematical Approach The mathematical approach focuses on measuring and evaluating employee and organisational performance in terms of quantitative methods. The actual position of organisational development can be known if proper evaluation and continuous measurement are done in quantitative terms. Due to the dynamic and competitive work environment, monitoring and rewarding human resources is necessary to increase dedication and engagement.

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x System Approach to HRM An organisation is a system, whereas HRM is a sub-system. HRM is a system that converts employees into productive human resources. Input elements are transformed into refined output throughout the managerial process. Many sub-systems like employment, training and development, compensation, maintenance, and personal resources are activated in the HRM system. HRM systems should adopt environmental change like political, economic, technological, and cultural goals. HRM is an open system that includes input processing, transformation, and output relationships. (“System Approach to HRM | PDF | Human Resource Management | Human Resources,” n.d.) 1. INPUT: It is used as the primary resource for organisational output. a) Human resource: It is an active means of production. It is mobilised from one job to another job. b) Non-human resource: It includes machines, markets, capital information, and other non-human resources utilised to attain the goals. Machine, market, capital, information, etc., are non-human resources, and other resources are utilised to attain the goal through various managerial procedures. 2. Process Transformation It is a mechanism by which input elements are converted into output. The elements of process transformation are acquisition, employment, training, management development, motivation, and maintenance. Acquisition means recruiting, selecting, and placing people in the organisation. It ensures the correct number of people at the right place and time. Recruitment produces potential candidates. Selection selects the best candidates, and placement or socialisation makes these selected candidates familiar with organisation rules and regulations. Employee training is given to lower and middle-level employees for skill development, knowledge, and ability to work. Management development is an educational and other academic activity provided to top-level managers to develop their future potential.

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Motivation stimulates people for better performance evaluation, reward and punishment, compensation, management, discipline, etc. Maintenance of employees is the procedure of retaining employees for a longer period of time. It is keeping those people having better performance than nonperformers. It includes labour relations and employee welfare. 3. Output: The final product or service is produced through a managerial function using input and output components. It focuses on quality, productivity, readiness to change, and employee satisfaction. Quality refers to good relationships among employees, total performance among employees, and a total performing environment. It actively and efficiently engages employees in organisational procedures and involves autonomy, recognition, belonging procedures and development, and external rewards. Productivity is the ratio of input and output and how much work is being generated. The efficient relationship between input and output is productivity, i.e., higher productivity means less cost of production and vice versa. There is also a need to bring about changes in the productivity system and other organisational functions to enhance performance. Readiness to change means the ability to adjust in a dynamic environment. The HRM system confirms that the employees can handle the change that happens in the organisational environment. Employee development in the organisation is to manage the changes in the environment, and their satisfaction and attitude represent the commitment to the job. It leads to organisational performance. (“System Approach to HRM | PDF | Human Resource Management | Human Resources,” n.d.) x Approaches Towards Handling Diverse Human Potential Globalisation, demographic variations, and a scarcity of bright personnel all contribute to managing the diversity of workers' potential. Diversity management was first introduced in the 1980s, but it now appears more frequently, particularly in corporate, scientific, social, and legal contexts. (Dermol and Valerij, 2014) It has been discovered that there needs to be more scientific study and evaluation of diversity management practices in businesses. Organisations evaluate the results of these practices regularly. Although employees rate

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these benefits positively, they are more likely to use diversity management practices to improve their image and for legal reasons. Political, economic, social, and historical variables influence attitudes towards managing human resource diversity in an organisation. In the United States, for example, diversity management is based on economic rather than moral grounds, which is replicated in a strategic orientation targeted at discovering diverse and skilled people. (Kramar, 2012, pp. 246–247, cited in Dermol, Valerij, 2014)

Case of Human Resource Practice in the Health Care System Countries around the world need more healthcare providers. Policymakers and system administrators have devised various approaches and initiatives to optimise the available workforce and attain the appropriate amount and mix of employees required to offer high-quality care. According to literature examination, such initiatives frequently focus on employees' kinds' rather than staff members' talents and the practical application of those skills. This review provides information on the benefits and drawbacks of current approaches to optimising human resources in health care. To utilise human resources most effectively, healthcare companies must adopt a more systemic approach that considers elements other than narrowly defined human resource management practices, such as organisational and institutional contexts. (Dubois and Singh, 2009)

Conclusion Organisations offer customers excellent value, so businesses must retain competitiveness in today's continuously changing market environment. To achieve this, they must constantly seek novel and creative approaches to creating this value, new methods, and ways to identify the price points their target market is prepared to pay. There is a need to change various competitive tactics to beat the competition. The internal market is the first market of the organisation, where it sells jobs to the employees. In recent trends, there have been many changes in the human resource aspects; the most significant change is to keep relationships with the employees for a long time. It is also necessary to provide value to the employees so that they are committed and satisfied with the job.

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There is a drastic change in the market environment, needs of customers, attitude and interests of customers, workforce management, culture, etc. It leads to changing the human resource management system to attain organisational goals. It takes work to measure human resources and reward them accordingly. There are various approaches to human resources: strategic human resource management, management human resource management, commodity approach, human resource approach, proactive approach, reactive approach, and internal marketing approach. A mathematical approach is needed in the current organisational system to prepare it for future human resources. There are challenges in the human resource management approach. It cannot be said that one approach is good and the other is bad. Following an integrated human resource approach per the organisation's needs and situations is also possible. Various approaches have limitations due to a lack of theoretical applicability and insufficient measurement techniques. To solve this issue, first study the organisation to identify which approach works best and follow the integrated approach so that it is possible to get a positive outcome.

References Advantages and Disadvantages of Commodity Approach of Marketing | Business Finance and Accounting Blog.” 2017. April 23, 2017. Ahmer, Naveed. 2018. “The Evolution of Human Resource Management System. HRZone. April 23, 2018. https://www.hrzone.com/community/blogs/naveed/the-evolution-ofhuman-resource-management-system Aslam, Hassan Danial, Mehmood Aslam, Naeem Ali, and Muhammad Badar Habib. 2014. (PDF) Importance of Human Resource Management in 21st Century: A Theoretical Perspective.” ResearchGate. 2014. https://www.researchgate.net/publication/313269603_Importance_of_ Human_Resource_Management_in_21st_Century_A_Theoretical_Pers pective. Boxall P, Purcell J, Wright P (2007) Human resource management: Scope, analysis, and significance. In: Boxall P, Purcell J, Wright P (eds) The Oxford Handbook of Human Resource Management, Oxford: Oxford University Press, pp. 1–16. BrightHR. 2010. “What Is Soft HRM and Hard HRM? | BrightHR.” BrightHR. 2010. https://www.brighthr.com/articles/hris/hard-and-softhrm/.

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Dermol, Valerij. 2014. Strategic Approaches to Human Resources Management Practice. Pp 1 19 Dubois, Carl-Ardy, and Debbie Singh. 2009. “From Staff-Mix to SkillMix and Beyond: Towards a Systemic Approach to Health Workforce Management.” Human Resources for Health 7 (1). https://doi.org/10.1186/1478-4491-7-87. Evans, Laura. 2021. “HRM Post-COVID: The Evolution of Human Resources Management.” Www.peoplegoal.com. June 11, 2021. https://www.peoplegoal.com/blog/human-resources-management-postcovid. Evolution of Human Resource Management.” n.d. BrainKart. Accessed February 21, 2023. https://www.brainkart.com/article/Evolution-ofhuman-resource-management_7234/. Gupta, N., & A. K. Singh. 2013. An Empirical Analysis of Key Components of Measurement of uman Asset. Delhi Business Review, 14(2), 43–55. https://doi.org/10.51768/dbr.v14i2.142201314 Hecklau, Fabian, Mila Galeitzke, Sebastian Flachs, and Holger Kohl. 2016. “Holistic Approach for Human Resource Management in Industry 4.0.” Procedia CIRP 54: 1–6. https://doi.org/10.1016/j.procir.2016.05.102. Jotform. 2022. “Human Resource Management: The Ultimate Guide.” Jotform. October 10, 2022. https://www.jotform.com/human-resourcemanagement/#human-capital-management_section. Kucharþíková, AlĠbeta. 2011. Human Resources Management & Ergonomics HUMAN CAPITAL – DEFINITIONS and APPROACHES. https://frcatel.fri.uniza.sk/hrme/files/2011/2011_2_05.pdf. Major Trends in Human Resources in the 21st Century.” n.d. Work Chron.com. Accessed September 12, 220. https://work.chron.com/major-trends-human-resources-21st-century20735.html. Manashree, C. 2019. Evolution of Human Resource Management (HRM). Economics Discussion. May 2, 2019. https://www.economicsdiscussion.net/human-resourcemanagement/evolution-of-human-resource-management-hrm/31460. Mapping human resource career path: Determine how you want job performance: A Usmanu Danfodiyo University Sokoto study. Journal of Business Studies Quarterly. 5. 247-259. Mishra, Teena. 2022. “Human Resource Management and Internal Marketing,” December. https://doi.org/10.4324/9781003266013. Page, Kogan. n.d. “Strategic Human Resource Management.” Kogan Page. Accessed June 23, 2023. http://www.koganpage.com/strategichrm.

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Ramaraju, A. 2019. Review of HUMAN RESOURCE MANAGEMENT PHILOSOPHY. International Journal of Social Sciences Research and Development (IJSSRD) 01 (01): 1 8. https://iaeme.com/MasterAdmin/Journal_uploads/IJSSRD/VOLUME_ 1_ISSUE_1/IJSSRD_01_01_001.pdf. System Approach to HRM | PDF | Human Resource Management | Human Resources.” n.d. Scribd. https://www.scribd.com/document/406814064/System-Approach-toHRM#. Tabiu, Abubakar & Nura, Abubakar. 2013. Assessing the effects of human resource management (HRM) practices on employee job performance: A study of Usmanu Danfodiyo University Sokoto. Journal of Business Studies Quarterly. 5. 247-259. Talukder, Md.Farid Hossain, Md.Yahin Hossain, and Md. Nahin Hossain. 2014. “HRM Practice in Commercial Banks: A Case Study of Bangladesh.” IOSR Journal of Business and Management 16 (2): 29– 36. https://doi.org/10.9790/487x-16232936 Thakur, Sumit. 2021. “Approaches to HRM: & Different Kinds of Approaches.” November 27, 2021. https://101hrm.com/approaches-to-hrm/. Vardarler, Pelin. 2016. “Strategic Approach to Human Resources Management during Crisis.” Procedia - Social and Behavioral Sciences 235 (235): 463–72. https://doi.org/10.1016/j.sbspro.2016.11.057. Veldsman, Dieter. 2022. “HR Career Path: Everything You Need to Know.” AIHR. March 23, 2022. https://www.aihr.com/blog/hr-careerpath/. Yeung, Arthur K., and Bob Berman. 1997. “Adding Value through Human Resources: Reorienting Human Resource Measurement to Drive Business Performance.” Human Resource Management 36 (3): 321–35. https://deepblue.lib.umich.edu/bitstream/handle/2027.42/34580/4_ftp.pdf

CHAPTER TWO HUMAN RESOURCE ACCOUNTING1

Abstract Human resource accounting entered the service sector but later became applicable in all industries. The purpose is to measure intangible assets in the accounting system. This method focuses on cost rather than how much value it provides to the organisation and employee, which originates from other concepts in the human resource field. It is a critical component of every organisation and represents employee costs like wages, workspace, benefits, and training. It reveals accurate information on employees' contributions and measures the economic value of the organisation. Human resource accounting can help with strategic decisions on hiring, allocation, maintenance, and development cost-effectively. Human resource accounting can be used to evaluate employee performance and the impact of human resource management practices on employee performance and productivity. It can assist firms in identifying areas where employee performance can be improved and establishing programmes to promote productivity. It is an endeavour to identify, quantify, and report an organisation's investment in human resources that needs to be accounted for under conventional accounting practices. This chapter explores the concept of human resource accounting.

Introduction Human resource accounting was developed primarily for the service industry, but it has recently acquired popularity across a wide range of businesses. The service business has received much attention in the twenty-first century, while the manufacturing sector has a relatively restricted reach. Now, the question is, can accountants properly evaluate and reflect the service industry on a company's balance sheet?  1

Chapter Two: Human Resource Accounting

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Chapter Two

In the manufacturing industry, a company's physical assets and machinery are its primary assets, whereas its employees are its intangible assets. The worth of an employee in a service sector organisation is proportionate to the value they contribute. (“What Is Human Resource Accounting?" n.d.) Internal marketing also originated in the service business but is currently used in various industries. This widely accepted concept would be beneficial to the firm's overall development. The problem is determining how to measure it, which will be addressed in a later chapter. Human resource accounting concepts and practises have evolved to aid organisations in public and management reporting. Traditional accounting accounts for the final three components of production: man, money, materials, and land. It does not include human capital. (“What Is Human Resource? (Defined) Human Resource Management Topics - Labour Laws - High Courts & Supreme Court Citation - Case Laws - Human Resource Accounting,” n.d.) According to Ajay Sharma, senior HR manager at Cadence Systems, when an organisation can evaluate an individual's value, it helps to improve its value. HRA can help determine how much an organisation can gain from an individual because an organisation's intellectual assets are generally worth three or four times the tangible book value. Human capital also provides essential and in-demand specialist services such as consultancy, assurance services, and financial planning. However, a few organisations assess the worth of their human resources and include this information in their yearly reports. In India, some of these organisations include; Infosys, Bharat Heavy Electricals Ltd (BHEL), Minerals and Metals Trading Corporations of India Ltd (MMTC), Southern Petrochemicals Industries Corporations of India (SPIC), and Steel Authority of India Ltd (SAIL), The associated Cement companies Ltd Madras Refines Ltd, Hindustan Zinc LtdEngineers India Ltd, The Oil and natural gas Commission Oil India are some of the companies in India. (Ruan and Liu 2016) The management of any organisation is continually aiming for optimal effectiveness. Examining its financial accounts is the most popular way to determine an organisation's effectiveness. These statements include a balance sheet, which tracks physical assets like cash, accounts receivable, equipment, and inventories. These statements rarely represent the employees' or the company's good faith or ability to produce.

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The discipline of recording, valuing, and carefully displaying the labour of human resources in a company's financial records is known as "human resource accounting." As a result, the information system that alerts management to changes in human resources is essential to incorporate into the organisational system. (“What Is Human Resource? (Defined) Human Resource Management Topics - Labour Laws - High Courts & Supreme Court Citation - Case Laws - Human Resource Accounting,” n.d.)

Why Human Resource Accounting is a New Dimension? The goal of human resource accounting is to recognise, quantify, and report organisational investments in human resources that cannot be accounted for using conventional accounting techniques. Businesses with a high market-to-net book value gap are those that heavily rely on research or creativity. Intangible assets, such as human abilities, have this variation even though human resources still need to be defined in the balance sheet. Businesses' accounting for it in their records needs to be increased. One of their significant faults is their inability to distinguish between two effects on human capital development, which is the foundation of accounting. (Kodwani and Tiwari, 2007) A company can benefit from HRA in a variety of ways. They not only estimate the return on capital invested in total organisational assets (including human assets), but they may also plan resources accordingly. HRA system information can be used to make several managerial decisions, such as recruitment planning, personnel advancement analysis, turnover analysis, and capital budgeting, which can help companies save money in the future. (Ruan and Liu, 2016) The following are the key points: x Human resource accounting permits management to monitor human resource utilisation efficiently. x It supports the construction of good management practices by sequencing the financial consequences of various practices adopted by an organisation. x “To effectively supervise management's utilisation of human resources, human assets are evaluated to see whether they are conserved, appreciated, or depleted.” x By separating financial results from diverse practices, we can aid in the future growth of management concepts and proper decisionmaking.

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x It makes it easier to appraise human resources, record the valuation in the books of account, and disclose the information in the financial statement. It assists the organisation in making the following decisions: x Direct recruiting vs. promotion retention vs. transfer x The impact of budgetary controls on human relations and organisational behaviour x Relocating plant decisions comprising the closure of current operations, establishing overseas subsidiaries, etc. ("What Is a Human Resource? (Defined) Human Resource Management Topics - Labour Laws - High Courts & Supreme Court Citation - Case Laws - Human Resource Accounting," n.d.)

Why has Human Resource Accounting been gaining attention in the present context? Any company's management is constantly striving for optimal efficiency. Examining its financial accounts is the standard way to determine any organisation's effectiveness. These statements include a balance sheet, which records physical assets like cash, accounts receivable, plant, and inventory. These assertions do not reflect the workers' productive capacity or the organisation's goodwill. Human resource accounting is the skill of recording, valuing, and logically reporting the work of human resources in a company's books of accounts. As a result, it is primarily an information system that notifies management of changes in an organisation's human resources. ("What Is Human Resource? (Defined) Human Resource Management Topics - Labour Laws - High Courts & Supreme Court Citation - Case Laws - Human Resource Accounting,” n.d.) HRA has grown in popularity for several reasons, including: x A standard accounting framework allows for including a broader range of assessments than was previously possible. Employees are the most valuable asset in any company. However, their value still needs to be reflected in the financial records, and it needs to be incorporated into the management information system.

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x Traditional accounting techniques included all expenditures for human capital development, which needs to be more accurate and sufficient. x It is a component of the management information system HRA calculates the cost and value of employees to a company. It comprises assessing the costs of organisational processes, including hiring, training, selecting people, and establishing their financial worth to the firm. (“HUMAN RESOURCE ACCOUNTING UNIT -I,” n.d.)

Definitions of Human Resource Accounting There are various definitions of human resource accounting. Some of the definitions are given in Table 2.1. Table 2.1: Definitions of Human Resource Accounting S.No. 1

Definition

Author

Source

“Human Resource Accounting is the process of identifying and measuring data about human resources and communicating this information to interested parties.”

American Accounting Society Committee on HRA

American Accounting Society Committee on HRA cited in (What Is Human Resource? (Defined) Human Resource Management Topics - Labour Laws High Courts & Supreme Court Citation - Case Laws - Human Resource Accounting,” n.d.)

Eric Flamholtz of University of California, Los Angeles 1974

Eric cited in (What Is Human Resource? (Defined) Human Resource Management Topics - Labour Laws High Courts & Supreme Court Citation - Case Laws - (Human Resource Accounting, n.d.)

2

“Human resource accounting is the measurement of the cost and value of the people for the organisation.”

Chapter Two

34

3

4

“Human resource accounting (HRA) refers to the measurement and quantification of human organisational inputs such as recruiting, training, experience, and commitment.” –

Stephen Knauf (1983)

Stephen cited in (“Human Resource Accounting (HRA): Definition, Advantages, Limitations” 2019)

“Human resource accounting is the process of identifying and measuring data about human resources and communicating this information to interested parties”.

American Accounting Association

American Accounting Association cited in (“Human Resource Accounting: Concept, Methods and Other Details” 2015)

“Human resource accounting involves measuring the costs incurred by business firms and other organisations to recruit, select, hire, train, and develop human assets. It also involves measuring the economic value of people to the organisation".

Palanivelu, R.P (2007)

Palanivelu cited in (“Human Resource Accounting: Concept, Methods and Other Details” 2015)

Falmholtz has extensive experience in the accounting industry. According to his definition, human resource accounting measures personnel expenses and value. (Human Resource Accounting: Concept, Methods, and Other Details, 2015) According to Ravindra Tiwari (2012), human resource accounting is an accounting practice that only exists in standard accounting practice. It attempts to identify, quantify, and report an

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organisation's human resource investment. (Human Resource Accounting (HRA): Definition, Advantages, and Limitations” 2019)

Meaning of Human Resource Accounting As defined above, human resource accounting identifies and records all human resource processes to examine their cost and value. It is an effort to recognise and disclose investments in human resources that should have been accounted for under typical accounting practices. It is an information system that notifies management about changes to the company's human resources and compares the cost and value of that component. The system provides crucial data about recruitment, training, and other development decisions to interested users. ("What Exactly Are Human Resources? Human Resource Management Topics - Labour Laws - High Courts & Supreme Court Citation - Case Laws - Human Resource Accounting," n.d.) The accounting profession needs to describe the worth and expense of an organisation's staff. Various decisions need to be taken regarding human resources, but if they are not measured, it is easier to say whether the decision is correct or wrong. Therefore, it is necessary to measure the results of human resource decisions and take corrective actions for further improvement. With measurement techniques, it is easier to correct anything. Human resources is the intangible aspect of the organisation, but it is the only resource that drives other resources for maximum utilisation. (“What Is Human Resource Accounting?" n.d.) Human resource accounting, according to S. Abeysekera (2008, cited in Shyam Kumar 2020), is the measurement of the human resources value that assists management in surviving with variations in their quantity and quality to achieve equilibrium between the required resources and human resources accounting to provide vital data to the organisation's management, employees, and financial experts who require this data for examining the organisation's actual performance. The purpose is to embed an accounting system in an organisation's human resources. It is an alternative to the traditional accounting method. Human resource value measurement can assist businesses in correctly documenting their assets. Human resource accounting, in other words, quantifies the expenses connected with human resource activities. ("Human Resource Accounting", 2023)

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Human resource accounting can be beneficial if employees know its utility and view it correctly. It is vital in today's market to keep track of productive employees, especially in government organisations. (Shyam Kumar, 2020)

Objectives of HRA Human resource accounting's purpose is to quantify the value of all resources used by the business and to manage human resources to improve the quality and quantity of goods and services. The purpose of human resource accounting is to quantify employees' potential. There are two methods to explain this concept: Human resource costs: It is expenses incurred for human resource activities such as recruiting, staffing, and training to improve employee quality. Human resource value: It is the future yield the investment described above can produce. ("What Is Human Resource Accounting?" n.d.) Objectives of human resource accounting can also be explained in the following points (Fig. 2-1):

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Fig. 2-1: Objectives of HRA

x To assign a monetary value to an organisation's human resources: It assists companies in calculating the costs of hiring, retaining, and training people, as well as the economic value of their knowledge, skills, and experience. This information can assist firms in more effectively allocating resources and making more informed decisions about human resource investments. x Tracking the costs associated with human resource management: It can assist firms in tracking the costs involved with human resource management, such as recruitment. Training, expenditures, salaries, and other fees and benefits are all included. By examining this data, organisations can identify areas for cost reduction and efficiency enhancement. x To evaluate the efficacy of human resource management practises: Human resource administration provides a framework for evaluating the effectiveness of human resource practises, such as training and development programmes, compensation, employee retention measures, and benefits policies. By reviewing HR data, organisations can identify areas for improvement in human resource practises, employee productivity, and performance.

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x To aid decision-making: HRA provides valuable information to assist with HR management decisions, such as establishing the optimal number of staff, identifying areas for improvement in employee performance, and measuring the impact of wage and benefit adjustments. x Meeting legal and regulatory criteria: Human resource accounting can assist firms in meeting human resource management regulatory and legal requirements such as equal employment opportunity laws, minimum wage regulations, and workplace safety standards. By reporting and documenting compliance-related data, HRA can assist firms in avoiding penalties and legal disputes. ("Human Resource Accounting: Meaning, Concept, Features, and Objectives, 2023") The following are the specific goals of human resource accounting: x To give a cost-benefit analysis for managerial decisions influencing human resource acquisition, development, maintenance, and allocation to achieve cost-effective organisational goals. x To give information to better the utilisation of human resources. x To provide data for determining if a human asset is efficiently preserved and whether it is increasing or declining. x It helps create effective human resource management practices by dividing the economic effects of these practices. ("Human Resource Accounting: Concept, Methods, and Other Details", 2015)

Concept of Human Resource Accounting Accounting for human resources necessitates accounting for an organisation's most valuable resource: people. Human resource accounting is a method of calculating and reporting the costs of an organisation's human resources. HRA can provide valuable information for human resource decisions like recruiting, compensation, training, and performance evaluation. By analysing this data, organisations can identify areas where they can improve the efficiency and effectiveness of their human resource practices and allocate resources to achieve their organisational goals. HRA can also assist firms in meeting legal and regulatory human resource management criteria while lowering workforce management hazards. HRA is an effective tool for companies that need to better understand and manage

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their human resources. It helps to ensure the long-term success of the business. ("Human Resource Accounting: Its Meaning, Concept, Features, and Objectives," 2023) Human resource accounting entails estimating the expenses of recruiting, hiring, choosing, placing, training, and developing personnel within an organisation. It also includes estimating a company's present economic value of its human resources. Mathematical representation of human resource accounting Cost of HRA= cost of recruitment+hiring+selecting+placing+training+ development Measuring HRA=measurement of the current economic value of human resources ("Human Resource Accounting: Concept, Methods and Other Details", 2015) Many characteristics of human assets are quantified in human resource accounting. Its primary purpose is to increase the efficacy of human resource management by providing information on acquiring, developing, using, retaining, and assessing human resources. Recognising, reporting, and valuing human resources as an organisational asset is known as human resource accounting. It is based on the idea that people resources are valuable assets that contribute to the growth and success of an organisation. It is a strategy businesses use to calculate the monetary value of their human resources. It quantifies and displays the cost and value of employees' knowledge, skills, and competencies in the organisation's financial statements. Human resource accounting views human resources as a long-term investment for the firm. It assesses the value of human resources using several methods, including the cost of recruitment, training, experience and knowledge, and potential for future growth. ("Human Resource Accounting: Meaning, Concept, Features, and Objectives" 2023) It means that the value of human resources is determined not only by hiring and training expenditures but also by their skills, knowledge, abilities, and experience. Human resources are intangible assets that frequently play a critical role in the success of an organisation.

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HRA is a rigorous approach to determining the value of human resources that includes balancing human resource expenses and benefits. Determining the worth of human resources and presenting this information in a way that allows for informed decisions ("Human Resource Accounting: Meaning, Concept, Features, and Objectives”, 2023) Accounting for human resources requires accounting for the most precious resource in any organisation. Human resource accounting measures and reports the costs associated with an organisation's human resources. HRA can provide vital information for human resource choices such as recruiting, pay, training, and performance evaluation. Organisations can uncover areas where they can improve the efficiency and effectiveness of their human resource practises and allocate resources to achieve their organisational goals by studying this data. HRA can also help businesses satisfy legal and regulatory human resource management criteria and reduce workforce management risks. HRA is a valuable tool for businesses wishing to understand and manage their human resources to achieve long-term success. ("Human Resource Accounting: Its Meaning, Concept, Features, and Objectives," 2023) Human resource accounting is concerned with quantifying many aspects of human assets. Its primary goal is to improve human resource management effectiveness by providing information on obtaining, developing, using, retaining, and assessing human resources. Human resource accounting recognises, reports, and values human resources as an organisational asset. It is founded on the notion that human resources are valued assets contributing to an organisation's growth and success. It is a method that corporations use to determine the monetary value of their human resources. It entails quantifying and displaying the cost and value of employees' knowledge, skills, and competencies in the organisation's financial accounts. Human resource accounting considers human resources as an investment with long-term potential for the organisation. It evaluates the worth of human resources by employing various approaches, such as the cost of recruitment, the cost of training, the value of experience and knowledge, and the potential for future growth. ("Human Resource Accounting: Meaning, Concept, Features, and Objectives", 2023)

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The concept behind human resource accounting is that an organisation's human resources are valued assets. It entails assessing human resources' monetary value to make informed decisions about workforce investment, talent retention, and talent development. It implies that the value of human resources is defined not just by the costs of hiring and training but also by their skills, knowledge, abilities, and experience. Human resources are intangible assets that frequently play a critical part in an organisation's success. HRA is a systematic way to determine the value of human resources that includes weighing the costs and benefits of human resources. Assessing the value of human resources and presenting this information to make informed judgements ("Human Resource Accounting: Meaning, Concept, Features and Objectives", 2023)

Concept of Accounting in Human Resource Management Internal organisational management has continuously been more normalised with the growth of the market economy, while HR accounting is advancing the use of human resources in HR. Labour equity and human resource value accounting are being developed. (Ruan and Liu, 2016) Even though many firms have made significant efforts in practice, such an application could be better in China. HR accounting was established in 1960 by an American professor named Hermanson and is popularised in various countries. (Ruan and Liu, 2016) When domestic firms utilise accounting system to manage human resources, preliminary results are produced. To begin, some firms focus on the prominent role of employees, which is a critical concern regarding employee value and cost (Fig. 2-2).

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Fig. 2-2: Valuation of cost and value, source https://cdn.pixabay.com/photo/2013/07/12/13/44/justice-147214_1280.png

Human resource values have been followed, either intentionally or unintentionally. There are some limitations in China, and the use of accounting in human resources is not extensively used, so it can only partially perform its role. (Ruan and Liu, 2016) This variant is for intangible assets (human skills), even though human resources have yet to be identified in the balance sheet. Businesses need to account for it in their books properly. Their inability to recognise two effects on the building of human capital, which is the basis for accounting, is the fundamental issue. (Kodwani and Tiwari, 2007) Accounting for human resources is a new accounting discipline. It is based on the widely held belief that any investment in human capital building is regarded as a charge against income because it does not produce physical assets. This thinking, however, has altered, and the cost of any asset (such as human resources) should be capitalised because it delivers a monetary advantage.

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In this accounting, people are accounted for as organisational resources. It calculates the cost and value of people to businesses. It comprises evaluating the costs incurred by private and public sector companies to recruit, select, hire, train, and develop employees and determining their economic value to the organisation. ("What Is Human Resource? (Defined) Human Resource Management Topics - Labour Laws - High Courts & Supreme Court Citation - Case Laws - Human Resource Accounting,” n.d.) According to Likert 1971, HRA provides management with cost/value information to make cost-effective decisions regarding acquiring, allocating, developing, and sustaining human resources. The key points are; x It enables management personnel to monitor human resource usage in a better way. x It serves as a robust and practical foundation for human asset management. x It can be valued, depleted, or conserved. x It helps to determine cost and value information. x It helps in making financial decisions. ("What Is Human Resource? (Defined) Human Resource Management Topics - Labour Laws - High Courts & Supreme Court Citation - Case Laws - Human Resource Accounting,” n.d.)

Features of HRA There are various features of HRA (Fig. 2-3), which are cost tracking, analysing and quantifying the value of employees, decision-making, reporting, identifying potential risks of HR practices, calculating the ROI of HR practices and strategic planning.

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Fig. 2-3: Features of HRA

x HRA involves analysing and quantifying the value of an organisation's employees' knowledge, experience, and abilities. It can be performed through various methods, such as estimating the economic value of their contributions or assessing the cost of employee substitution. x Cost tracking: Human resource accounting keeps track of the costs connected with human resource management, such as recruiting, training and development, and remuneration. It can assist firms in identifying areas where they can save costs and enhance efficiency. x HRA can be used to calculate the ROI of human resource practices such as training and development programmes. It can assist organisations in determining the success of specific practices and deciding where to allocate resources. x Decision making: HRA can provide helpful information to assist with decisions on human resource management practices, such as defining the best amount of employees, identifying areas for

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improvement in employee performance, and measuring the impact of wage and benefit adjustments. x Reporting: HRA requires the creation of reports describing the value of human resources and the costs connected with their management. These reports can assist managers and executives in making decisions. x Strategic planning: Human resource accounting can help with strategic planning by giving information on a company's human resource constraints and capabilities. It can assist firms in identifying potential gaps in human resource capabilities and developing strategies to fill them. HRA can be used to identify potential risks linked with human resource management practises, such as a lack of qualified employees or high turnover rates. It can assist firms in developing risk-mitigation plans and confirming the availability of the human resources required to meet organisational goals. ("Human Resource Accounting: Meaning, Concept, Features and Objectives", 2023)

Concept of Accounting in Human Resource Management Various companies have made substantial attempts to implement such an application that serves better human resource management. Labour equity and human resource value are the primary concerns for development. HR accounting is a technique in human resources, used in various nations, that was devised in the 1960s by an American professor named Hermanson. As the market economy continues to grow, HR accounting is advancing the use of accounting in human resources. Human resource value accounting and labour equity are being developed. (Ruan and Liu, 2016) Preliminary results are generated when domestic enterprises use accounting to manage human resources. Some businesses emphasise the importance of personnel, which is a critical concern in terms of both employee value and cost. Human resource values have been followed, whether on purpose or unintentionally. In China, there are some constraints, and accounting in human resources is not widely employed, so it cannot fully execute its duty. (Ruan and Liu, 2016) Human resource accounting is an effort to identify, quantify, and report an organisation's investment in human resources that needs to be accounted for under traditional accounting practices. Businesses with high creative

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demands or ones built on scientific principles typically have a wide discrepancy between market value and net book value. This variation applies to intangible assets (human skills), even though human resources must be listed on the financial sheet. Businesses need to account for it appropriately in their books. The primary issue is that they cannot distinguish between two effects on human capital production, which is at the heart of accounting. (Kodwani and Tiwari, 2007) People are accounted for as organisational resources in this accounting. It computes the value and cost of people to enterprises. It also entails assessing the expenditures made by private and public sector organisations in recruiting, selecting, hiring, training, and developing people, as well as establishing their economic value to the organisation. ("What Is Human Resource? (Defined) Human Resource Management Topics - Labour Laws - High Courts and Supreme Court Citation - Case Laws - Human Resource Accounting,” n.d) According to Likert (1971), HRA gives cost and value information to management to make cost-effective decisions about acquiring, allocating, developing, and sustaining human resources. It allows management to monitor the usage of human resources better. This technique offers a solid and valuable framework for human asset management. It can be valued, depleted, or conserved, and it also contributes to developing management concepts by dividing the financial consequences of various practices. ("What Is Human Resource? (Defined) Human Resource Management Topics - Labour Laws - High Courts & Supreme Court Citation - Case Laws - Human Resource Accounting,” n.d.)

Applications of Accounting in Human Resource Management Accounting in human resource management provides vital data for the development of human resource policies, human resource functions, and theories and for measuring the organisation's current performance. Ruan and Liu investigated human resource accounting applications (Fig. 2-4). Today's organisations place an increasing value on skills. Investing in human resources is becoming more expensive. The challenge is figuring out how to manage human resources using accounting. (Ruan and Liu, 2016)

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Fig. 2-4: Applications of HRA

x Accounting functions Accounting aids managers in appropriately assessing human resource information, arranging internal organisational information, and giving reports to managers. In this way, managers may effectively avoid errors and rash decisions to invest in human resources, assisting businesses in securing a position in a highly competitive market and seeing continuous growth. (Ruan and Liu, 2016) Applications of accounting in human resource management provide benefits in the following manner: x Recognise the best way to allocate human resources: Accounting in human resources can assist firms in developing their capabilities and successfully utilising their benefits. Accounting may represent human resource data and establish the framework for a business to practise effective human resource management. Managers can also

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determine the best way to allocate human resources, which can improve human resource planning and management. x Encourage employee motivation and initiatives: Traditional financial reports lack human components and cannot convey information on human resource costs, overlooking human resource participation in economic development. (Ruan and Liu, 2016) In today's world, accounting and human resource management are inextricably linked, and they can collaborate to produce more scientific and accurate human resource management. (Ruan and Liu, 2016) x Accounting application in recruitment and selection: To satisfy new human resource needs as the business grows, the HR department will bring new blood through recruitment, selection, employment, and training. To forecast, the human resource department must undertake a statistical plan on the required staff for each department. Human resource recruitment and management costs includes, recruitment, employment, selection, and replacement costs. The cost of disseminating recruitment material and alluring new employees is referred to as the recruiting cost, which includes advertisement costs, human resource costs, travel expenses, court fees, and commissions. The expenditure of selecting, conducting matching degree examinations, and assessing competence, as well as human resource remuneration, material, and administration fees, are all included in the selection cost. Employment fees are included when material and management costs are incurred during recruitment. (Ruan and Liu, 2016) “It can be expressed in a mathematical expression: Cost of recruitment and selection = cost of advertisement + human resource cost, travel expenses+ fee and commission + cost of material + cost of management.” x

Employee Training and Development

Human resource training and development costs primarily assist new entrants in becoming acquainted with corporate culture, responsibilities for their work and department, and promoting their skills in terms of personal qualities to match the corresponding post better. Work direction, on-thejob training, and off-the-job training are all included in these costs. (Ruan and Liu, 2016)

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The word "direct cost" refers to the pre- and post-training costs, which include the trainer's salary and personnel supplies. Off-the-job training is when workers receive short-term training based on workplace requirements. Setting the development cost within the human resource cost will assist in determining the total cost of human resource investment. (Ruan and Liu, 2016) “Mathematical expression of training and development =d+ot+oft The total cost of training and development Analysis of how organisations evaluate training and development costs." x Employee Salary Design Salary is an essential component of human resource management in modern firms. Compensation design provides information about compensation, salary amounts, and payment systems. Human resource management influences salary design, which has an impact on organisational success. As a result, properly constructing the compensation with the accounting concept can aid in carrying out an ideal incentive model, fixing the principal-agent problem, and doing substantial research to perfect the property's proper structure. Examples of organisational pay incentives include front-line worker incentives, non-oriented rewards, and managerial staff. (Ruan and Liu, 2016) x Employee Allocation, Arrangement and Turnover Human resource allocation, turnover, and arrangement mention adequately arranging employees to various positions after being recruited or adjusting their positions based on their abilities and personalities. (Ruan and Liu, 2016) Human resource management accounting may assist in identifying the number of variables in human resource allocation and explaining these variables based on currency, which is helpful for managers in arranging staff turnover correctly. Staff turnover frequency and methods must be determined based on the expected returns and an investment comparison strategy. The organisation will implement personnel turnover when it can provide a demonstrable advantage, i.e., when the turnover advantages surpass the turnover costs. Accounting assessment methodologies such as return on investment and net present value analysis can be used by firms to

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illustrate the investment benefits of human turnover. The formula given below demonstrates how to account for return on investment. (Ruan and Liu, 2016) “ B= (Ba-Bb)/C B=labour turnover benefits Ba signifies incremental aids while labourers change to department A, Bb signifies the loss while labourers coming out of department b C signifies the cost to carry out internal turnover." x Human Resource Reset Severance expenses, which include pay, performance disparities, and the cost of a vacant position, are the critical expenditures that occur during a human resource reset. The money spent on the individual is referred to as severance pay. When an employee leaves a company, the loss and performance difference costs are incurred due to business performance. The term "unfilled position" refers to the cost of not being able to execute certain activities until a new employee is hired. (Ruan and Liu, 2016)

Relationship between Accounting and Human Resource Management Human resource management has long been considered a separate function from accounting. This approach ignores employees' vital role in making and keeping a company profitable. Strategic human resource management (SHRM) is a modern business concept that integrates human resource accounting (HRA) and human resource information systems (HRIS). Human resource management and accounting are inextricably interwoven. Employees have traditionally been viewed as an expense. They cost the organisation money regarding amenities, remuneration, workspace, and other expenses. Traditional HR operations have little to do with accounting under this structure.

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Recent research and thinking into human resources has emphasised the requirement for human resource accounting to boost employees' ability to enhance business performance. (Happy 2022) Similarly, the Institute of Chartered Accountants of India has yet to produce a standard metric for measuring human resource costs. However, a few firms see the value of their human resources and incorporate it in their yearly reports. Some of the organisations in India are Bharat Heavy Electrical Ltd., Infosys, Steel Authority of India Ltd. (SAIL), Southern Petrochemical Industries Corporations of India Ltd. (SPIC), Minerals and Metal Trading Corporation of India Ltd. (MMTC), Associated Cement Companies Ltd., Madras Refineries Ltd., Engineers India Ltd., the Cement Corporation of India Ltd., and others. (“What Is Human Resource? (Defined) Human Resource Management Topics - Labour Laws - High Courts & Supreme Court Citation - Case Laws - Human Resource Accounting,” n.d.)

The Cement Corporation of India Ltd. Various models for calculating the value of human resources have been developed. The conventional cost approach, the opportunity cost approach, the existing purchasing power approach, and the Lev and Schwartz present value of future earnings model are a few examples. The Lev and Schwartz approach has been widely implemented by Indian organisations such as BHEL, SAIL, Satyam Computers, Reliance Industries, and others, and it is more widespread in India. Many Indian organisations, both public and private, use the Lev and Schwartz model to calculate the worth of their human resources. (Ruan and Liu, 2016)

HRA at Infosys Human resource accounting is an attempt to find out and report investments made in an organisation's human resources that currently need to be accounted for in traditional accounting practice. Fundamentally, it is an information system that expresses to the management what changes over time are happening to the human resources in the business. (Ruan and Liu, 2016) Human resource investments are those made to improve the knowledge, aptitudes, and abilities of the organisation's staff. In the late 1960s and

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early 1970s, several authors predicted that the capital aspect of specific human resource expenditures would be identified as investment rather than expenditure, which became known as HRA. Academics discovered that amortisation and capitalisation of applicable HRA expenditures had no measurement of the worth of the HR investment. As a result, suggestions were created to take the essential information and add the dimension of the 'worth' of individuals and the organisation as a whole. The anticipated HRA enhancement withdrew it from the scope of proper accounting practice because accounting evaluates cost rather than value. (Ruan and Liu, 2016)

Obstacles in the HRA Accounting in human resource management can help to continuously improve the employment process by making timely modifications, hence increasing the essential competencies of firms. Simultaneously, it can assist organisations in lowering the cost of human resources to recruit leaders. To summarise, to add value to human resources, firms must raise the share of human resources and educational expenses for employees. Organisations that follow the principles outlined above have experienced long-term and consistent growth. (Ruan and Liu, 2016) The evaluation of intangibles by human accounting presents a number of functional difficulties. Therefore, subjective aspects are quite important. As a result, the following groups of crucial operational worries are included in human resource accounting: There is a need for an optimum standard accounting approach for determining human resource worth. In the case of financial accounting, each organisation must follow a set of guidelines. Human resource accounting, on the other hand, uses it in a different way. In order to develop their models, many organisations that use human capital appraisal do so. As a result, the human resource practices of the two firms may vary and have different models. 2. The valuation of human assets is based on the assumption that the employees stay with the organisation for a certain stated period. However, this assumption may not hold today because of greater human resource mobility.

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3. To prevent dehumanisation in the organisation, human resource accounting must be carried out correctly, and the valuation results must be successfully used. 4. It is also possible that labour unions may oppose the adoption of human resource accounting. They are interested in consistent compensation or salary and also demand their value. Some concerns are operational, while others are psychological. These can be prevented by creating a suitable corporate culture and climate. (egyankosh.ac.in)

Enhancement of HRA Application Improvements in the use of accounting in human resources are: 1) Create dedicated human resource research institutions: While breakthroughs in human resource management application theories employing accounting procedures have been made, the most pressing issue is practical application. (Ruan and Liu, 2016) 2) Finish the human resource report and provide all human resource information. External reporting, such as balance sheets, must include detailed data on human resource beginning value, net worth, and amortisation and must include human resources. Aside from that, a static and dynamic analysis of human resource information should be performed. The former can reveal the proportion of human resources in total capital and employee quality. On the other hand, the latter can provide data on human resource development, investment, and contribution to total capital to support a more thorough human resource analysis. (Ruan and Liu, 2016) 3) Enhance accounting personnel evaluation training in terms of both human resources and complexity. 4) Accounting professionals should have relevant experience, a solid understanding of accounting, and be familiar with accounting operations for the application to become more proper and scientific. (Ruan and Liu, 2016)

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5) Establish an environment where accounting can adequately perform its job in human resource management. China's political, social, and economic contexts have evolved dramatically recently, and organisations have emphasised human resource management. As a result, the external and internal conditions have improved for accounting to play a role in human resource management. As organisations normalise, accounting's application in human resource management in China will likely be finished conceptually and practically. To be competitive worldwide, Chinese organisations must focus on human resource construction and profit and enhance their understanding of the application of accounting to human resource management. (Ruan and Liu, 2016)

Conclusion Human resource accounting acknowledges and reports the investment made in human resource activities. It is the art of documenting, valuing, and showcasing the work of an organisation's human resources. It can assist management in making important decisions about layoffs, selection, transfer, training, and promotion. Human resource accounting considers the costs and economic values of various human resource activities such as recruiting, hiring, selection, training, and staff development. To give cost-value information for precise and efficient management decisions on human resource acquisition, allocation, development, and maintenance to accomplish cost-effective organisational goals. It delivers cost-value information on human resource acquisition, development, and allocation to fulfil organisational goals effectively. Human resource accounting provides vital information about the organisation's human capital. Such information enables the management to make sound decisions on recruitment, transfers, promotion, and retention. It represents the strengths and shortcomings of the workforce and assesses the efficiency of human resource management. Human resource accounting makes it simple to evaluate the performance of traditional human resource practices and helps to take feedback on the performance. It also provides vital information for current and potential investors to better evaluate a company's workforce performance.

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The implementation of human resource accounting is complicated; there are no specific guidelines for calculating the cost and value of human resources; there is no tax regulation that defines human assets, which may be hypothetical; there is little general agreement on the approach; it is difficult to measure human assets; there are measurement challenges; and there is a demand for compensation and rewards. Despite these weaknesses, human resource accounting helps management provide information for better human resource planning and management. It helps measure the cost of recruiting, choosing, hiring, and training people. The information collected is used for planning and making effective human resource decisions. Investors know the value of the organisation. Information also helps develop personnel policies and make decisions regarding the acquisition, development, allocation, and upkeep of human resources. There are various difficulties found in human resource accounting, which are based on conventional methodology, inadequate accounting, and the inability to clarify the property rights of human resources. Human resource accounting helps the organisation determine how much investment is made in its employees and how much return it can expect. Mathematically, it can be expressed as investment on employees =Ioe, return expected from investment=RI. Regarding accounting, there should always be a focus on receiving higher returns than investment. Therefore, there is the possibility of three conditions, which are: if Ioe is smaller than RI (this means a lower return); if RI is more significant than Ioe (this means a higher return); and if Ioe=RI (this means investment equal to return).

References Ahmer, Naveed. 2018. “The Evolution of Human Resource Management System. HRZone. April 23, 2018. https://www.hrzone.com/community/blogs/naveed/the-evolution-ofhuman-resource-management-system Happy. 2022. "Relationship between Accounting and Human Resource Management." Happy. March 21, 2022. https://gethppy.com/internalcommunication/relationship-betweenaccounting-and-human-resource-management.

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HUMAN RESOURCE ACCOUNTING UNIT -I.” n.d. https://backup.pondiuni.edu.in/storage/dde/downloads/hrmiv_hra.pdf. (2 4 pdf). Human Resource Accounting (HRA): Definition, Advantages, Limitations.” 2019. IEduNote.com. July 16, 2019. https://www.iedunote.com/human-resource-accounting. Human Resource Accounting: Concept, Methods and Other Details.” 2015. Your Article Library. July 2, 2015. https://www.yourarticlelibrary.com/accounting/human-resourceaccounting/human-resource-accounting-concept-methods-and-otherdetails/62551. Human Resource Accounting: Meaning, Concept, Features and Objectives.” 2023. GeeksforGeeks. February 17, 2023. https://www.geeksforgeeks.org/human-resource-accounting-meaningconcept-features-and-objectives/. Kodwani, Dr Amitabh Deo, and Ravindra Tiwari. 2007. "Human Resource Accounting - a New Dimension.” SSRN Electronic Journal. https://doi.org/10.2139/ssrn.961570. Ruan, Xiaoping, and Shijun Liu. 2016. “Application of Accounting in Human Resource Management.” https://www.atlantis-press.com/article/25853168.pdf. What Is Human Resource Accounting?” n.d. Accessed June 21, 2023. https://www.charteredclub.com/what-is-human-resource-accounting What Is Human Resource? (Defined) Human Resource Management Topics - Labour Laws - High Courts & Supreme Court Citation - Case Laws - Human Resource Accounting.” n.d. Www.whatishumanresource.com. https://www.whatishumanresource.com/Human-Resource--accounting

CHAPTER THREE MATHEMATICAL MODELLING OF HUMAN RESOURCES1

Abstract Every aspect of the company is changing dramatically. Since the evolution of human resource management, numerous models that reflect the process have been established. There is a need for mathematical modelling to measure human resource practice so that organisations can use it for development. Creating a consistent quantitative language for various human resource practices takes time and effort. Despite this, researchers and practitioners are working to overcome this problem to improve organisational effectiveness. This chapter explores mathematical modelling for human resource practice, including human resource planning, workforce planning, performance management, decision-making, human resource allocation, intellectual capital, and company efficiency.

Introduction There are various ways to measure human resource management. Employees are one of the resources whose cost is measured by the organisation. However, this resource is a living thing with feelings, attitudes, and perceptions. The measurement of this resource and the development of mathematical models need careful consideration. In the organisation, employees work because they are encouraged to meet their needs or their lives. They work harder when the consequences are attained from their work to get satisfactory remuneration or reward. Performance appraisals are a way to identify the performance of employees. Motivating  1

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them is vital so they work to attain the organisational goals. (Siregar and Siregar, 2018) Human resource management is to train their talents and utilise the overall resources. The current computational models implemented in human resources are usually based on statistical computation, which can no longer meet the processing needs of massive data and need to consider the hidden characteristics of data, which can lead to the problem of information scarcity. (Feng, Feng, and Su, 2021) With the invention of artificial intelligence technology, the intelligent procedures of enterprise are also progressing quickly. Due to technological innovation, there is a thought that it will replace man. However, in reality, there is no substitute for human resources. It is how organisations develop their model and manage their resources, and to whom they give priorities. Human resources play a vital role in the organisation. Thus, every organisation must have the correct number of employees at the right time and place. For organisational effectiveness, it is vital to utilise employees. If the organisation exploits their employees for work, they become dissatisfied and develop negative feelings towards the organisation—Fig. 3-1.

Fig. 3-1: Showing positive and negative feelings, source: https://cdn.pixabay.com/photo/2021/08/05/17/58/emotion-6524546_1280.jpg

Following COVID 19, businesses discovered they could use their personnel in remote places and cut costs. The employer or superior is not required to stand in front of the workers as they complete their work. Employees work more than eight hours at home, which demotivates

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employees to do work at remote locations. Flexibility in work performance also motivates employees because it enables them to manage their timing. Various organisations are providing flexible and part-time jobs. However, when they talk about their remuneration, which is different from their profile, that represents that the job is just time passed, which deteriorates the significance of flexibility in work; these examples represent that whenever an organisation adopts any new policy or idea for work, it is vital to ask if this new idea or policy is for employees, organisations, or both. The main thing is which model they follow and what they like to measure. It depends on the expectations of the organisation regarding how much value they want to provide to the organisation. Most organisations learn how to save costs and how to attain organisational goals. When there is rising competition and a dynamic environment, developing organisational and employee commitment through mutual trust and respect is a prerequisite. Modern human resources must be reconsidered in order to create a new mathematical model that is both employee- and organisationfocused. A two-way mathematical model: one side employee-focused and the other organisational-focused. There is a need for mutual interest between employees and employers. In this respect, it is necessary to follow internal marketing dimensions for human resource practice.

Mathematical Model for HRP in the Production Process The global economy is evident in manufacturing processes, affecting small and large businesses. COVID-19 has put human resources and customers almost on the same footing in terms of production system orientation. Because of the flaws of the traditional system, the lean concept was created, which represented a breakthrough in more critical process evaluations to improve production and the factory environment in which goods are made. Lean manufacturing has developed an environment in which work is focused on the work process, the elimination of losses in the work procedure, and the continuous training of personnel at all levels and in all tasks to achieve shorter delivery times and lower costs. (Kostic et al., 2021) Kostic, Maric, Timotic, and Kustru provided a mathematical model for human resource planning. The model's implementation was evaluated based on the work potential of multidisciplinary personnel in the production system. (Kostic et al., 2021)

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Efficiency in creating organisational and management structures for production or industrial systems is known as the efficiency of the third dimension, which plays a foundational role in the lean concept. The essential characteristics of managers who drive the work process in the lean concept include dynamic behaviour, quick decision-making, teamwork focusing on products, training, customers, and the market, and retaining employees' ability to respond to environmental events. (Kostic et al., 2021) There is a need to plan and manage human resource issues for business management and proper usage of human resources in manufacturing. Training is one of the most effective means to develop and improve employee skills and competencies. However, it includes costs. Reducing the number of workers in the production plant became increasingly apparent with the COVID-19 pandemic. (Zhuang and Pan, 2022)

A Model for Defining Optimal Workforce Planning of Pilot Roles in an Airline Akyurt and colleagues investigated a technique for finding optimal workforce planning for pilot jobs at an airline firm. Its goal is to investigate workforce planning issues in pilot roles and devise an efficient plan that makes the most of the available personnel. A novel mathematical model based on mixed integer programming addresses this issue. The model reflects numerous events, such as hiring pilots with various skill types, retirements, resignations, pilot vacations, and transitions between various skills based on the company's needs within the planning horizon. The proposed approach's implementation is explored using a case study using real-world data from a Turkish airline. The findings demonstrated that a corporation could use transitions rather than new employment as a better medium-term production and human resource planning option. (Akyurt et al., 2021) To ensure excellent efficiency in their operations, airlines must overcome various hurdles. Problems in airline operations are complicated, and academics and planners need help to create a model to solve them in the time allotted. Due to the increasing size of the airline industry, it becomes complex and difficult to handle; hence, decision-making is one of the biggest problems within a hierarchical framework. Some advanced problem-solving approaches connect succeeding difficulties in a hierarchical order to confirm improved decision-making integration.

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(Akyurt et al., 2021) The output of one phase includes the input of the other phase. Human resource planning regards pilot staffing and training as one of the most critical and challenging issues confronting significant airlines. It balances the number of employees working with the number of jobs required over the planning horizon. An airline must manage adequately to compete in the highly competitive air transport business. The planning of the workforce is one of the key challenges for competition that the rise in airline demand has brought about. (Akyurt et al., 2021) When it comes to workforce planning, the aviation industry should; • • • •

Accurately anticipate personnel needs based on future company strategies. Recruit personnel to meet these needs. Create a training programme. Management based on production criteria is complex and challenging.

A planned and systematic effort is likely to manage the pilot workforce well to ensure high efficiency in its operation. One of these management difficulties is the challenge of workforce planning, which refers to determining the number of pilots who should be retained under demand limits during the planning horizon to work or be trained. Because the pilot is a valuable resource, airlines aim to keep it to a minimum. (Akyurt et al., 2021) The way to accomplish this is to have minimum employment, which allows companies to cover all of their required flights with the fewest number of pilots. Despite the pay increase, Turkey's pilot resources are limited since international pilots are returning to their home countries due to declining exchange rates. People choose to relocate to Asia because of the high incomes, especially in China. The need for new pilots, retirements, and training is crucial for an airline because there are a finite number of pilots. In this regard, Akyurt aimed to figure out a model to solve the pilot workforce planning problem based on the required skills enhancement. A mathematical programming strategy and solution to the planning challenges are sought for this determination. (Akyurt et al., 2021)

Mathematical Modelling of Performance Management Performance is defined as behaviour having measurable components that positively or negatively impact individual or organisational effectiveness.

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Outcomes are the changes in people's states as a result of performance, either benefiting or obstructing the achievement of organisational goals. Simply put, it is the activity and consequences of people's efforts. Performance as outcomes and procedure has advantages as well as disadvantages. (Liu and Yong, 2022) Human resources have become an essential resource for organisations, and performance appraisal in human resource management has also become one of the vital aspects of modern enterprise management since talent is a crucial and vital factor for the development and success of an enterprise. (Liu and Yong, 2022) With a set of standardised performance appraisal systems and scientific methods, it will be easier for an enterprise's daily human resource performance management to achieve the expected goals. This study analyses an enterprise's requirements, existing problems, and business processes in performance management. It employs a multiobjective decision-making mathematical model to achieve an optimisation plan for human resource performance assessment. (Liu and Yong, 2022) To manage digital performance, a system is also added. Currently, various organisations have adopted digital technology to manage their employees. With the aid of digital technology, the performance management process can be improved. Employee attendance, work outcomes, daily reports, employee suggestions and feedback, etc., can be stored for a long time and retrieved quickly (Fig. 3-2).

Fig. 3-2: A man preparing the report and collecting feedback, source: https://cdn.pixabay.com/photo/2015/05/31/10/55/man-791049_1280.jpg

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The competition for human resources is becoming increasingly fierce, and the most important thing for businesses to win the talent war is to establish a team that combines capability and political integrity. Senior managers are responsible for decision-making in the organisation. In contrast, intermediate managers are responsible for the application, and ordinary employees are responsible for the execution, determining if the enterprise's strategic goals can be met. Various organisations are strengthening performance appraisal systems to accomplish business goals and confirm their realisation. (Liu and Yong, 2022) Key performance indicators and balanced scorecards work as required performance indicator methods to end the organisation's strategic objectives, produce operational objectives, and improve the realisation of enterprise objectives through the completion of performance indicators. The design of key performance indicators should be aligned with organisational objectives. A balanced scorecard aims to turn the enterprise's goals into a comprehensive set of performance indicators that can be used as a single tool for the organisation's management. (Liu and Yong, 2022)

A Novel Perspective on Human Resource Management Based on Multiple Regression Modelling and Quantile Regression Modelling In the digital era, statistical analysis and data mining systems have been utilised to solve problems, notably in engineering and management. Therefore, researchers hope to attain a novel perspective on human resource management based on multiple and quantile regression modelling. In this study, the systematic framework of job satisfaction is developed by three variables from a psychological standpoint: the perception of interpersonal relationships, financial compensation, and work conditions. It represents employee attitude. (Zhuang and Pan, 2022) Employee turnover increases management costs and increases productivity losses. It is critical to maintain sufficient employee retention while also comprehending the causes of why people disengage and leave their organisations. One possibility for employee turnover is that employees are not only drawn by better offers but also pushed out of the organisation where they perform, owing to relatively low satisfaction. (Zhuang and Pan, 2022)

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Job happiness has an impact on employee turnover. Various studies relate job happiness with various aspects of human resources, proving it plays a vital role in employee and organisational benefit. It is critical to focus on employee retention by improving employee work satisfaction. It can be characterised in a variety of ways. It refers to the happy sensations and emotions associated with one's employment or job experience. Job satisfaction can be defined broadly as the mix of environmental and psychological factors that elicit a person's subjective attitude towards all aspects of their job. In this study, job satisfaction is defined as attitudes towards the perception of what one desires from one's employment and what one obtains from the job. (Zhuang and Pan, 2022) Based on three dimensions of determinants of job satisfaction, which are interpersonal relationships, work conditions, and compensation, a regression model is established as follows: “JS=ȕ0 + ȕ1MANAG + ȕ2COLLEA + ȕ3RATION + ȕ4EAUITY + ȕ5MATCH + ȕ6AUTON + İ.” On the left side, JS indicates the dependent variable: job satisfaction. On the right side, six independent variables are indicated by acronyms. 'MANAG' indicates a relationship with mathematical problems in engineering five managers. 'COLLEA' indicates a relationship with colleagues. 'RATION' indicates the perceived rationality of compensation 'EQUITY' indicates the perceived equity of distribution 'MATCH' indicates the perceived match degree of the job 'AUTON' indicates the perceived autonomy degree of work ‘ȕ1, ȕ2 . . . ȕ6 are the corresponding regression coefficients.’ ȕ0 is a constant term İ indicates the random error.

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The results revealed that perceived relationship with managers, perceived rationality of compensation, perceived match degree of ability and perceived autonomy degree of work are all positively correlated with job satisfaction. (Zhuang and Pan, 2022) Besides, the effect of perceived rationality on compensation significantly varies between the high and low quantiles. For those with a lower perceived rationality of compensation, their job satisfaction is more likely to be affected by the perceived rationality of compensation than for those with a higher perception of compensation. Supervisors must initiate suitable management styles and utilise empathy to interact well with employees. In this way, they can make employees feel themselves when communicating and better perceive interpersonal relationships with managers, thus helping employees improve their job satisfaction. It is vital to have two-way communication and help employees. Identifying employees' perceptions of compensation by providing informal communication and improving job satisfaction is vital. Managers should also offer employees suitable opportunities and platforms to match their abilities and develop their talents. It is vital to provide autonomy to employees when arranging tasks and flexibility in their work, thus leading to employee satisfaction. (Zhuang and Pan, 2022)

Mathematical Models to Solve Strategic Workforce Planning Strategic personnel planning has become increasingly important for modern businesses. It is a critical approach that organisations use to improve and preserve the capabilities of their personnel. Though several experts distinguish between training and development, training tends to be more precisely tailored and focused on short-term performance problems. In contrast, development tends to be tailored more towards enhancing an individual's skills for future responsibilities. Improvement of abilities through training programmes results in a variety of performance outcomes. (Priya K.B. and Felix Jeyshree Fernandes, 2019) In the digital age, the success of any industry is determined by three factors: production, capacity, and labour. Workforce planning is a critical process that assists organisations in determining the optimal workforce composition and selecting the requirements for recruiting. Every organisation creates a workforce plan or framework for human resource planning based on the organisation's mission and goals. An effective plan

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delivers the appropriate quantity of personnel with the appropriate abilities at the appropriate time and location. (Priya K.B. and Felix Jeyshree Fernandes, 2019) It is a simple task for any organisation. Workforce planning is a critical process that confirms the employee skill set level, contributing to organisational productivity. Because the cost of training is high, the resources provided for training must be used efficiently. (Priya K.B. and Felix Jeyshree Fernandes, 2019) The training facility's capacity and the number of trainers are limiting elements in the workforce planning assignment. The organisation teaches its employees at the appropriate moment to meet market demand with all necessary skill sets, and it manages the idleness of highly qualified personnel. Thus, personnel planning and facility utilisation are two essential elements organisations must consider. (Priya K.B. and Felix Jeyshree Fernandes, 2019) The number of consumers enrolled in training programmes determines the success of any training organisation. This study demonstrates unique mathematical models and techniques for appropriately displaying and quickly solving workforce planning challenges. Furthermore, it emphasises the optimal allocation of adequate trainer working hours and decreases the cost of carrying out the plan. Based on the assumptions, a cost function is generated, and the lowest cost is obtained while satisfying the requirements. The relative service efficiency approach and the cost method were used to investigate the organisation's efficiency. (Priya K.B. and Felix Jeyshree Fernandes, 2019) The use of mathematical models for workforce planning has grown dramatically in recent years. In turn, it helps with quantitative workforce planning. In terms of organisational management, prior research has used Markov chain models to describe an organisation's current workforce demands or to estimate future workforce needs. (Priya K.B. and Felix Jeyshree Fernandes, 2019) Priya and Fernandes presented a mathematical model based on Lagrangian multipliers to identify the probable optimal grouping of necessary capacity, lot size, and workforce for an organisation and workforce. The Lagrange multiplier method is a methodology for determining a function's local maxima and minima subject to equality criteria or restrictions (Priya K.B. and Felix Jeyshree Fernandes, 2019).

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The Lagrange multipliers approach is practical for nonlinear optimisation issues and can handle both equally constrained and inequality-constrained nonlinear optimisation problems. A model concluded that the number of hours the trainer works relies on the relative service efficiency and the average arrival rate of the trainees; it is also inversely proportional to the cost. Thus, as 'Ȝ' increases, 'R(X)' also rises. As a result of trainees' desire for efficient trainers, a large number of trainees engage in the training curriculum. The proposed cost function model can be applied to improve trainer service efficiency in any training company. This technique can also determine the best hours to allocate to trainers for training. The total cost obtained will be as low as possible, and the total number of trainer work hours will be proportional to the predicted relative service efficiency. It corresponds to natural phenomena and can be used by any training company. (Priya K.B. and Felix Jeyshree Fernandes, 2019)

Mathematical Modelling for Allocating Human Resource Managers are aware of how important human resources are to an organisation's success. As a result, they seek efficient tools to optimise allocating their available resources across various services or systems to maximise or minimise certain functions associated with performance and productivity. (Bouajaja and Dridi, 2017, cited in Ruan et al., 2022) Human resource allocation can be explained as the method through which professionals are distributed among the organisation's duties, given that each individual has an exclusive set of features and each activity has specific needs. Ruan proposed a mathematical programming model for distributing human resources that considers employees' formal qualifications and experience and the possibility of employees sharing tasks in each project. For resolving small, medium, and large random instances, the recommended model was devised and implemented using a collection based on a Greedy search (GS), a Genetic Algorithm, a Conine Cosine PigeonInspired Optimizer, and an Iterated Local search (ILS) (Ruan et al., 2022). x This process determines the best use of limited resources for various tasks. People, materials, or capital are all examples of resources that can be employed to achieve a specific aim. According to Lin and Gen (2008), the best approach can mean increasing profits, lowering expenses while maintaining the highest possible quality, or completing projects in the shortest possible

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x x x x

period. According to Osman et al. (2005), the following are some typical examples of resource allocation difficulties: (Ruan et al., 2022) Financing and investment comprise allocating financial resources over time for various objectives such as accounts receivable, inventories, and so on to maximise interest gains. Capital budgeting allocates funds to activities that initially use funds but then create revenue, increasing an organisation's return on capital. Portfolio optimisation is the process of allocating funds to stocks or bonds in order to maximise return while avoiding risk and achieving a target rate of return. Job shop scheduling is allocating time to work orders on various types of manufacturing equipment to reduce delivery time or maximise equipment utilisation.

The resource allocation process involves allocating resources to various projects or business divisions. This process aims to determine the best use of limited resources for various tasks. People, materials, assets, or capital can all be considered resources that can be employed to achieve a specific aim. (Iyer Priya K.B. and Felix Jeyshree Fernandes 2019) Though this is not an easy undertaking because there are numerous possible staff combinations to consider and often conflicting criteria such as cost, time, and quality. According to Silva and Costa (2013), managing staff selection and allocation without a defined system can be pretty challenging and lead to the manager building a team that is not the best for the current circumstances. Various ways have been offered in the literature to improve the efficiency of resource allocation, as illustrated by Arias et al. (2018). However, the many approaches for allocating human resources need to consider factors such as interactions in the organisation's dynamic environment and expert knowledge, as mentioned by Khanizad and Montezer (2018, cited in Ruan et al., 2022). Consequently, it was found that heuristics performed the best in crucial metrics such as resolution time and average quality of the recognised solutions. The objective function to be minimised is separated into three segments in the model proposed by Ruan et al. The first refers to the completion date of all projects, utilising a specific number of people for each project. The second addresses the penalty for dividing resources

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among initiatives. In this case, if an employee is assigned to only one project, the expression is zero for this employee, and there is no time penalty because this employee will be dedicated solely to one project. There will be a penalty if he or she is assigned to two projects, and so on. The final section discusses the time penalty regarding professional knowhow, i.e., the lower the professional know-how in a given project, the bigger the time penalty. Conversely, the model confirms that each employee is assigned to at least one project. The model was then applied to multiple instances of varying sizes using the Cbc Solver and heuristics, with the ILS heuristic having the best average performance and the CPIO heuristic having the lowest. However, in large-instance tests, its performance is similar to the GS, and it is possible that the ILS-based heuristic cannot escape the enormous location of the GS response. The model was used in two scenarios, and budgetary constraints were considered or ignored. Overall, greater resource sharing was significant for better project execution performance in less time despite higher human resource expenses. Furthermore, another suggestion for future work is to apply methods to alter the parameters of the heuristics, such as Revac, F-Race, and SPO, to improve the performance of the suggested heuristic. (Ruan et al., 2022)

Investigation of a Mathematical Model for Optimal Human Resource Allocation in Heavy Haul Railway Operation and Maintenance Units Human resource allocation is managing enterprise human resources based on project organisation to enhance efficiency and maximise human resource management value. Human resource allocation should improve the effectiveness of human resource management while guaranteeing a match between personnel talent and position. The personal management concept started during the Industrial Revolution. It gives rise to the concept of human resource management. After 1970, various countries started to follow management approaches. (Shen et al., 2022) The demand quantity of various employees of the company for the past three years is predicted based on the existing personnel structure, quantity, development strategy, and market demand of the Shuohuang Railway Company's operation and maintenance project, and a human resource

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optimisation model based on existing human resources and plans is established. (Shen et al., 2022) LINGO software was then used to construct and analyse the optimal solutions of the two mathematical models. Finally, the ideal allocation of human resources for the operation and maintenance projects of KY Company was obtained when paired with the actual scenario. The following findings were obtained: (1) The most significant net profit of the optimal staffing model for the optimal allocation model of existing human resources is CNY 3258000. (2) The minimum dismissal model has a human resource allocation cost of CNY 81000. (3) The lowest cost model's human resource allocation cost is CNY 15,500. (Shen et al., 2022) The research findings may effectively guide the human resource management of the Shuohuang Railway Company's operation and maintenance project, and they have significant theoretical and practical implications for further analysis of the human resources model and its optimal allocation technique. (Shen et al., 2022)

Mathematical Modelling of Bhagavad Gita For professional human resource management, researchers provided a mathematical model of the Bhagavad Gita as an algebraic field of human resources. An individual is well thought out as an algebraic field of human resources such as soft skills, outside and inner human resources, addition (Karma-Yoga-Professional Aptitude), and multiplication (Bhakti-YogaProfessional Aptitude). The researcher explored Bhagvat Gita's human resource management principles and their mathematical expression in the abstract algebraic term. (Suresh Kumar and Supervisor 2020) The Bhagavad Gita, a section of the famous Indian epic Mahabharat, has been researched by researchers from various disciplines, including psychology, management, education, humanities, politics, Upanishads, social work, and spiritual sciences. An exciting research field is the mathematical description of the human resource management principles reflected in the Gita. (Suresh Kumar and Supervisor 2020)

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Suresh Kumar began such a study and obtained two algebraic group theoretical models of the scientific component of the Bhagavad Gita and conversed about Bloom's Taxonomy levels of the learners' familiar domain and the Ishikawa continuous quality enhancement principle. While most other studies are concerned with discussing their faculties with illustrations or comparisons from some selected parts of the Bhagavad Gita and proposing a mathematical model of the entire Bhagavata Gita, the abstract algebra sector of human resources is concerned. (Suresh Kumar and Supervisor 2020) This work provided and examined the mathematical model of the science of the Bhagavat Gita as an algebraic field theory of human resources for professional quality enhancement and human resource management. In this study, the only mathematics employed is an 'algebraic field,' which is an abstraction of the algebraic features of a conventional number system under addition and multiplication. (Suresh Kumar and Supervisor 2020)

Mathematical Modeling of Intellectual Capital and Business Efficiency Mathematical modelling tests the impact of different intellectual capital (IC) components, such as structural, human, and customer capital, on the working and performance of small and medium-sized firms (SMEs). They evaluate intellectual capital in light of the resource-based view philosophy. This report is based on data from 206 surveys conducted with representatives of small and medium-sized businesses from nations in the Commonwealth of Independent States (CIS). In order to investigate the hypothesis concerning the influence of intellectual capital on firm efficiency, they used a mathematical modelling approach and the SPSS application. (Strielkowski et al., 2021) This finding concluded that intellectual capital is rarely applied to administering small and medium-sized firms in the Common Wealth of Independent States (CIS) nations. Individual approaches for managing intellectual resources are identified spontaneously based on an in-depth review of the existing tasks confronting managers. These findings confirmed the positive impact of intellectual capital on the performance of small and medium-sized enterprises in transition economies, as demonstrated in the paper by CIS countries, but only with the availability of financial resources and with some important caveats. (Strielkowski et al., 2021)

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This study investigated the company's leadership's unique perception and management of intellectual capital and the degree of intellectual capital influence on the performance of national SMEs. The publications demonstrated the concept of intellectual capital and its components from the standpoint of resource-based view theory. They use a factor analysis toolbox to analyse the impact of intellectual capital on a company's competitiveness and understand the nature of the link between a firm's efficiency and indicators of its intellectual capital. According to recognised research, there is a clear relationship between increasing intellectual capital and the growth of SMEs' productivity. (Strielkowski et al., 2021) Furthermore, calculations allow us to conclude that by constructing a set of measures for boosting efficacy through intellectual capital, it is possible to improve the knowledge and professional abilities of the organisation's management team. It also examines how intellectual capital is used in SMEs and what factors influence its utilisation. It could be critical in shaping government strategies and policies to increase intellectual capital efficiency. (Strielkowski et al., 2021)

Design of Mathematical Model Assessment of Performing Achievements Siregar and Siregar analysed employee performance by looking at work results based on competency. Relevant competencies are discovered based on Spencer's competency assessment of employees and then processed using the Analytical Hierarchy Process (AHP) method. The results of AHP weighting show that customer satisfaction (0.1325), group work (0.1324), and technical expertise (0.0826) are the highest priority order of criteria. The weight of the criteria is used to create the work performance value (WPV) that will be used to calculate the incentive index. (Siregar and Siregar, 2018) The higher an employee's incentive index, the greater the rewards earned. Both government and private organisations are now more compelled to sustain the company's survival. As a result, HR with high competency is required to enhance employee performance because of their knowledge or competence. Employee performance appraisal is a method businesses use to improve and grow their human resources. The corporation must know the advantages and weaknesses of employees as a basis to keep the advantages and eliminate the existing weaknesses to increase productivity

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for the sake of corporate progress based on the findings of the performance appraisal. PT.Z is a company that manufactures paper (Joss Paper), skewers, and chopsticks. Employees work in general because they are encouraged to meet the demands of their lives. Therefore, employees work more when the results of their labour are rewarded with satisfactory remuneration. Incentives are one type of reward that can be given. All employees receive bonuses or incentives from PT. Z is based on their work performance as determined by absenteeism. It affects the motivation level of employees, and a lack of excitement develops among employees at work. As a result, it is required to create a mathematical performance appraisal model that considers employee work results to compute incentive giving. Siregar and Siregar (2018) aimed to assess the competency of production staff at PT. Z as a foundation for providing performance-based incentives utilising the Analytical Hierarchy Process (AHP) approach. The benefits of this research are to be considered in determining the decision-making strategy for planning, designing, and developing the provision of incentives with optimal employee performance. (Siregar and Siregar, 2018)

Techniques for HR Forecasting Human resources are indeed an essential component of every organisation. As a result, every organisation must have the correct number of employees at the right place and time. Proper human resource requirements are critical for adequately planning the workforce. It requires the organisation to forecast human resources (Fig. 3-3). ("Techniques for Human Resource Forecasting: Methods and Questions", 2019)

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Fig. 3-3: Techniques of HR Forecasting

1. Managerial Judgement: This procedure starts with experienced managers who estimate the workforce needs for respective departments. Based on their comprehension of the predicted workload and personnel efficiency, it is done. In conclusion, upper management aggregates and approves the department estimates. This process is straightforward and saves time. 2. Work Study Method: This method utilises time and motion study to explain and measure the work. Such studies assist managers in deciding the standard time taken per unit of work. For example, if the planned output for next year is 50 thousand, the standard hours per unit is 2, the planned hours needed are fifty thousand, the planned hours required are fifty thousand multiplied by 2, and the productive hours per worker in the year is 2000, then the number of workers required is 100000/2000 = 50.

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3. If the span of control is ten, five (50/10) supervisors will supervise the performance. The work-study method is more suitable for manual and repetitive jobs when it is likely to measure work and set standards. 4. Ratio trends analysis: This method helps measure the ratio based on previous data. First, it calculates the future ratio based on time series analysis after accounting for changes in the organisation, jobs or methods. Extrapolation is the mathematical extension of historical data into the future. Exponential smoothing and moving averages can assist with projections. Based on ratios, the company estimates the requirements for human resources. 5. Mathematical models: The connection between independent and dependent variables is represented by a mathematical model. In the form of a formula, these models represent various features influencing personal needs. There are various models, such as regression, optimisation, and probabilistic models. They are welldesigned and only appropriate for big organisations. Future human resource demand is determined by several factors, some of which are: Employment trends: The organisation can measure its workforce by comparing and analysing staff over the last five years. Replacement needs: These are based on retirement, followed by personnel termination, death, or resignation. Its evaluation is based on preceding experience and predicted retirement situations. Productivity: Enhanced productivity makes an impact on personnel needs. One technique for preserving productivity enhancements is using current labour. Computerization and automation are other methods of productivity improvement. It will have an impact on both the quantity and amount of labour. The strategy is to match talents to employment needs. Therefore, job analysis is a method that can be useful in such a match. ("Techniques for Human Resource Forecasting: Methods and Questions", 2019)

Mathematical Models in Human Resource Management Workforce planning is an attempt to balance the supply of people with available occupations. It can also be considered a technique by which management governs how the organisation should change from its current personnel structure to the desired one. Stochastic workforce planning

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models have been proposed because they are based on human unpredictability and an uncertain environment. (Mariappan Perumal, 2013) These models consider various elements such as recruiting, promotion, training, demotion, and waste. These aspects are interconnected, and their examination is required when dealing with personnel planning. As a result, careful planning is required to ensure that the goal is met at the lowest possible cost. Overall, workforce planning management strives to have the correct quantity of people, the right people, at the right places, and at the right time. To attain the goals mentioned above, many mathematical models have been devised. (Mariappan Perumal, 2013) There can also be various other models of human resource management based on their elements. Possible mathematical models of HRM can be expressed as: x x x x x

Recruitment and selection model Employee promotion model Employee training model Employee welfare model Employee motivation and satisfaction model

Various factors are included in every model. For example, to develop an organisation's training model, it is necessary to analyse the business and understand its requirements. Measure training effectiveness and efficiency can be expressed as: Te=training effectiveness Tef=training efficiency The total value of the training programme =Te+Tef The total cost of the training programme can be expressed as: = cost of training method (TMc) + time cost (Tc)+ energy cost (Ec). The success of any training programme depends on the cost and value of it.

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The cost of the training programme should be less than its value. Now, the question is how to measure value. Training not only makes an impact on employees but also on the organisation. It has tangible as well as intangible benefits. The organisation and employees both decide what is valuable to them. For example, environmental protection can be part of any organisational work to boost corporate governance, which may not be for others. Therefore, for proper cost and value analysis, there is a need to focus on the organisation's internal marketing.

Mathematical Models in Human Resource Planning An organisation must know its internal dynamics and surroundings to manage its workforce. It comprises tracking internal staff movements and explaining external supply. Hirings, promotions, internal transfers, redundancies, and retirement planning can all assist in tackling internal situations. (Price, Martel, and Lewis, 1980) The problem is regulating and organising these related activities to achieve a stable organisation capable of achieving its goals. The impact of the environment on economic circumstances, competitiveness, law, and other variables further complicates the challenges of handling these activities. The organisations can use models that are either descriptive (Markov Chains, renewal models) or normative (stochastic programming, linear and goal, network approaches) to aid in the planning and regulation of these activities. After reviewing various modelling methodologies, the authors can draw particular judgements about their appropriateness for handling a wide range of practical circumstances. (Price, Martel, and Lewis, 1980) The matter is how to govern and organise these interlinked operations to attain a stable organisation capable of attaining its goals. The impact of the environment on economic situations, laws, competitiveness, and other variables further complicates the challenges. (Price, Martel, and Lewis, 1980) Statistical analysis and data mining have been widely employed to resolve problems in the digital age, specifically in management and engineering. Consequently, it seeks to develop a novel understanding of human resource management based on multiple and quantile regression modelling. In particular, the systematic framework of job satisfaction is constructed on three psychological dimensions (perception of interpersonal relationships, financial compensation, and work

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circumstances). Each dimension has two metrics that represent the employee's understanding of them. The empirical estimations show that job satisfaction is strongly linked with a perceived relationship with management, perceived logic of compensation, perceived autonomy, degree of work, and perceived match degree of job. The impact of perceived reasonableness of compensation varies significantly between high and low quantiles. Job satisfaction is more likely to be affected by perceived remuneration for those with lower perceived rationality of compensation than those with more excellent perceptions. It advances the current theory by constructing a complete framework of the determining components of job satisfaction, which provides practical implications for corporate human resource optimisation. (Zhuang and Pan, 2022) According to Braham, employee turnover can raise management costs and hurt productivity. It is difficult to maintain sufficient employee retention while also comprehending the reasons why employees leave their positions. Employee turnover is probably caused by employees being drawn not only by superior providers but also pushed out of the organisation where they work, owing to relatively low satisfaction. (Zhuang and Pan, 2022) Job satisfaction has been shown to have a critical relationship with organisational staff turnover, producing great interest among researchers. As a consequence, it is critical to prioritise employee retention by enhancing employee job satisfaction. Job satisfaction can be characterised in many ways. In a restricted sense, it means positive sensations and emotions linked with one's employment or job experience.

Job Satisfaction Job satisfaction can be explained broadly as the psychological and environmental factors that provoke a person's subjective attitude towards all job features. Researchers found job satisfaction attitudes towards the perception of what one desires from one's employment and what one gains from the job as offering or involving (Zhuang and Pan, 2022) Job satisfaction has a positive impact on organisational performance via various channels. MC Neese Smith represents that employees who are satisfied with their jobs are more likely to be productive. A higher level of job performance leads to job happiness. Work satisfaction leads to higher performance; it is critical to have a deeper understanding of the elements that influence employee job satisfaction so that employees and employers

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may achieve better coordination by boosting organisational success and happiness. It should be noted that many researchers still need to study the characteristics that impact job satisfaction thoroughly. It alters depending on employment and country. (Zhuang and Pan, 2022) China is one of the world's most influential developing economies. Workforce planning is an effort to match the supply of people with the occupations that are accessible. It can also be thought of as a process through which management declares how the organisation should alter its current workforce structure to the desired one. It is based on humans' unpredictable behaviour and the environment's uncertainty. Workforce planning is becoming vital due to the rising costs of training, recruiting, promotion, and demotion. As a result, careful planning is required to confirm that the goal is to meet the lowest likely cost. Workforce planning management focuses on having the right quantity of people, the right kind of people, in the right places, and at the right time. Various mathematical models have been developed to achieve the goals. (Mariappan Perumal, 2013)

Mathematical Modelling for Allocating Human Resource Human resource allocation (HRA) can be described as the way professionals are distributed across the organisation's tasks, given that each individual has his or her own set of characteristics and that each task has specific needs. A mathematical programming model for allocating human resources represents employees' experience, formal qualifications and the probability of employees sharing tasks in each project. The model was designed and implemented according to a set of heuristics based on a Greedy search (GS), a Genetic Algorithm, a Conine Cosine Pigeon Inspired Optimizer and an iterated local Search (ILS) to resolve minor, medium and large random instances. Allocating human resources in an organisation is one of the problematic and daily problems for managers as this a grouping of decision-making and scheduling difficulties, including the whole team; thus, the more the team members are suitably allocated to a particular project, the more efficiently it will be developed. (Khanizad and Monteze, 2018) Human resources play a decisive role in the success of an organisation. All resources must be allocated across various services or systems to

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maximise or minimise certain functions linked to productivity and performance. (Bouajaja and Dridi, 2017 cited in Ruan et al., 2022) It is a complex task, as there are many combinations of probable employees and often conflicting factors, such as cost, quality, and time. Therefore, managing personnel selection and allocating with a formal process can be more accessible and lead the manager to develop a team that may not be best suited for the given situation. (Silva and Costa, 2013, cited in Ruan et al., 2022) Many approaches have been planned in the literature to allocate resources efficiently, according to Arias et al. (2018). Various methods for human resource allocation usually do not consider characteristics such as interactions in the organisation's dynamic environment and expert knowledge, as explained by Khanizad and Montezer. (Khanizad and Montezer, 2018, cited in Ruan et al., 2022) Resource allocation problems occur while allocating resources to many projects or business units. This process seeks to allocate limited resources for various tasks properly. Resources can be people, assets, materials, or capital used to achieve a specific goal. (Ruan et al., 2022) The best manner is to increase profits, reduce costs of the best likely quality, according to Lin and Gen (2008), or implement projects in the shortest possible time. According to Osman et al. (2005), some examples of resource allocation difficulties are as follows (Ruan et al., 2022) x Investment and financing include allocating financial resources for different purposes, such as accounts, inventory, receivables, etc., over various periods to maximise interest gains. x Capital budgeting is connected to allocating funds to projects that initially consume money but then generate revenue that maximises an organisation's return on capital. x Portfolio optimisation includes allocating funds to stocks or bonds to make the best use of return under a certain level of risk and to decrease risk under a desired rate of return. x Job shop scheduling includes allocating time to work orders on various types of production equipment to reduce delivery time or maximise equipment usage.

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Strielkowski et al. (2021) assessed intellectual capital concerning the resource-based view theory. It is based on the data gained from the 206 surveys with the representatives of small and medium-sized enterprises from the Commonwealth of Independent States (CIS) countries. They used a mathematical modelling approach as well as the SPSS application. This consequence assisted in determining that the concept of intellectual capital is practically not used in managing small and medium-sized enterprises in CIS countries. The findings confirmed the positive impact of intellectual capital on the performance of small and medium-sized enterprises in the circumstances of the economies in transition represented here in the paper by CIS countries, but only the accessibility of financial resources, with some significant reservations. Based on the initial findings, many studies have focused on intangible resources as the critical factor for achieving competitiveness and profit generation in current market circumstances. (Strielkowski et al., 2021) Strategic staff planning in consultancies is a critical problem that directly affects the firm's performance and capacity for dealing with projects suitably. The decisions will have long-term results because consultants are highly qualified workers, requiring long learning periods to attain enough expertise. The size and composition of the future workforce rely on the decisions taken presently. It is vital to underline that the system predicts future capacity adjustment in response to predicted demand needs; thus, it is flexible to plan the workforce in various scenarios and time horizons. Llort studied a decision support system based on a mathematical optimisation model for resolving strategic staff planning by taking the organisation's strategies, objectives, and policies into account and optimising both the costs and the staff composition. It is tested by implementing it in an office belonging to a multinational consulting firm. (Llort et al. 2018) The human resource management system cannot provide correct analysis and deployment of the organisation's workforce data, wastes lots of data collected by various information resources, and decreases the intelligent information procedure. Thus, applying advanced artificial intelligence algorithms to the organisation's human resource system is necessary, which can significantly improve the processing capability of the organisation's human resource data. (Feng, Feng, and Su, 2021)

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The processing of data is called data mining. It is called the use of software systems to extract valuable information from the data reasonably, and most traditional data mining methods use statistical methods. (Feng, Feng, and Su, 2021) Statistical methods are used in the case of small data sets. However, if there is also an enormous amount of data, statistical methods are less capable of adapting to the needs. Machine learning is an extensively used data mining method that can be trained on vast amounts of data and extract the unseen characteristics of the data. These characteristics are continuously learned, and data extraction can be performed accurately. Researchers used machine learning to process human resource data and improve human resource data handling capabilities. (Feng, Feng, and Su, 2021) Unlike traditional mathematical modelling methods, neural networks have the capability to explore the imaginary part of imaginative human thinking and find out the relationship of the characteristics (mapping) between the input (influencing factors) and the output (human resource needs) through the memory and learning association of historical data. The human resource structure of an organisation is a function of economic, political, social, and technological factors. Modelling with conventional mathematical models is a vast workload and needs to be improved to guarantee accuracy. (Feng, Feng, and Su, 2021)

Conclusion This chapter explained mathematical modelling for human resource practice, comprising workforce planning, decision making, performance management, human resource planning, decision making, intellectual capital, human resource allocation, and company efficiency. In the current era, it is necessary to utilise a mathematical modelling model to measure human resource practice for organisational development. Modelling by conventional mathematical models is a vast workload and needs to be improved. Researchers and practitioners are working to overcome the problem of measuring human resource practice. For this, there is a need to manage human resource matters for business management. Performance is explained as behaviour having measurable elements that positively or negatively impact individual or organisational effectiveness. Training is used as an effective means to improve and develop employee skills and competencies. Workforce planning model, performance

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management model and other employee improvement models are discussed in this chapter. There are diverse business problems, needs, and processes; thus, only one size fits some. All organisations need to present a separate model that is best for them. For this purpose, proper strategic planning needs to be done. A perfect model should include all the human resource activities that boost organisational performance.

References Akyurt, øbrahim Zeki, Yusuf Kuvvetli, Muhammet Deveci, Harish Garg, and Mert Yuzsever. 2021. “A New Mathematical Model for Determining Optimal Workforce Planning of Pilots in an Airline Company.” Complex & Intelligent Systems, May. https://doi.org/10.1007/s40747-021-00386-x. Feng, Qi, Zixuan Feng, and Xingren Su. 2021. “Design and Simulation of Human Resource Allocation Model Based on Double-Cycle Neural Network” 2021 (October): 1–10. https://doi.org/10.1155/2021/7149631. Iyer Priya K.B. and Felix Jeyshree Fernandes 2019. “A Cost Effective Mathematical Model for Strategic Workforce Planning.”. International Journal of Engineering and Advanced Technology 9 (2): 4759–64. https://doi.org/10.35940/ijeat.b2275.129219. Kostic, Aleksandra, Bogdan Maric, Mladen Kustura, and Valentina Timotic. 2021. “Mathematical Model for Human Resources Planning in the Production Process,” January, 0004–9. https://doi.org/10.2507/32nd.daaam.proceedings.001. Liu, Li, and Seechen Yong. 2022. "Optimisation of Digital Management Path for Human Resource Performance Evaluation Based on Multiobjective Decision-Making Mathematical Model." Edited by Wen Zhou. Mobile Information Systems 2022 (July): 1–9. https://doi.org/10.1155/2022/2604761. Llort, N., A. Lusa, C. Martínez-Costa, and M. Mateo. 2018. “A Decision Support System and a Mathematical Model for Strategic Workforce Planning in Consultancies.” Flexible Services and Manufacturing Journal 31 (2): 497–523. https://doi.org/10.1007/s10696-018-9321-2. Mariappan Perumal 2013. “Mathematical Modeling in Human Resource Management / 978-3-659-45113-3 / 9783659451133 / 3659451134.” n.d. Www.lap-Publishing.com. Accessed June 25, 202https://www.lap-

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publishing.com/catalog/details/store/gb/book/978-3-659-451133/mathematical-modeling-in-human-resource-management. Price, WL, A Martel, and KA Lewis. 1980. “A Review of Mathematical Models in Human Resource Planning.” Omega 8 (6): 639–45. https://doi.org/10.1016/0305-0483(80)90005-5. Ruan, Italo, Silva Junior, Maisa Mendonça Silva, Lucio Camara, and Ana Paula. 2022. “PROPOSITION of a MATHEMATICAL PROGRAMMING MODEL for ALLOCATING HUMAN RESOURCES CONSIDERING MULTIPLE FACTORS and USING DIFFERENT HEURISTICS” 42 (January). https://doi.org/10.1590/0101-7438.2022.042.00245885. Shen, Linfang, Kuoyu Liu, J F Chai, Weibin Ma, Xiaoxiong Guo, Yao Li, Peng Zhao, and Boying Liu. 2022. “Research on the Mathematical Model for Optimal Allocation of Human Resources in the Operation and Maintenance Units of a Heavy Haul Railway” 10 (19): 3707–7. https://doi.org/10.3390/math10193707. Siregar, K, and S F Siregar. 2018. “Design of Mathematical Models Assessment of Working Achievements Based on Spencer Competency in PT. Z.” IOP Conference Series: Materials Science and Engineering 309 (February): 012030. https://doi.org/10.1088/1757-899x/309/1/012030. Strielkowski, Wadim, Aida Guliyeva, Ulviyya Rzayeva, Elena Korneeva, and Anna Sherstobitova. 2021. “Mathematical Modeling of Intellectual Capital and Business Efficiency of Small and Medium Enterprises.” Mathematics 9 (18): 2305. https://doi.org/10.3390/math9182305. Suresh Kumar, J, and Research Supervisor. 2020. “Mathematical Modeling of Bhagavat Gita: Algebraic Field of Human Resources” 8: 1191. https://ijcrt.org/papers/IJCRT2004150.pdf. Techniques for Human Resource Forecasting: Methods and Questions.” 2019. Toppr-Guides. April 30, 2019. https://www.toppr.com/guides/business-management-andentrpreneurship/human-resource-management/human-resourceforecasting/. Zhuang, Mei-Er, and Wen-Tsao Pan. 2022. “Data Modelling in Human Resource Management: Influencing Factors of Employees’ Job Satisfaction.” Edited by Ali Ahmadian. Mathematical Problems in Engineering 2022 (February): 1–14. https://doi.org/10.1155/2022/3588822

CHAPTER FOUR RELATION BETWEEN INTERNAL MARKETING AND HUMAN RESOURCE SYSTEM1

Abstract Every aspect of the company's human resource and marketing activities changes dramatically. There is an increasing value of services in the organisational system, and a new management approach has been developed. It gives origin to the internal marketing concept. It was initiated in 1980 and was later refined. According to many writers, internal marketing is comparable to human resource management, comprehensive quality management, marketing, service quality, etc. Internal marketing, however, is distinct from human resource management and other notions. The significant distinction is that internal marketing is a competitive market requirement to build customer focus in internal marketing by giving value to internal customers. Employees' value increased with the introduction of internal marketing, and they are now referred to as "internal customers." This chapter deals with the significance of internal marketing and the difference between internal marketing and human resource management.

Introduction The internal marketing concept originated in 1980. It was debated in the literature to bring clarity to the notion. A tool, practice, and strategy are found to implement external marketing successfully. Various benefits of internal marketing are explained based on diverse philosophies. It is similar to marketing, human resource management, market orientation, service quality, etc. Now, again, we need to reemphasise this practice to bring clarity. However, it has overlapping  1

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dimensions with other concepts, but it provides direction to attain organisational goals. Now, the question is, if it is a different notion, what are the factors through which it can be measured? Lots of questions and overlapping factors make human resource practice problematic to put into practice. However, there needs to be more debate about whether human resource management and internal marketing are the same concepts. If the answer is yes, then what are the similarities? And if the answer is no, what are the differences? There are differences in the ideas, opinions, and findings of various researchers, and finally, it is possible to differentiate them in the literature. It is vital to understand it thoroughly. Mishra et al. (2022) represented that internal marketing differs from human resource management and discussed various dimensions, i.e., internal communication, internal segmentation, job product, service quality, employee engagement, motivation, and customer orientation, that create confusion in its implementation process. Whenever we need to measure anything, we need to identify its dimensions. Therefore, this chapter brings to light internal marketing practices and the foundation for their measurement.

Meaning of Internal Marketing Internal marketing emerged from service marketing in early 1970 to provide high-quality services. (Sasser and Arbeit) Berry first discovered internal marketing concepts in 1970. It is used as a key to delivering highquality service. Since the evolution of the internal marketing notion, many authors have explained it in their own way. Internal marketing enhances employee and organisational relationships and positively impacts external customers. It is a continuous organisational procedure through which value is delivered for the successful exchange in the internal market of the organisation. (Mishra, 2022) Internal marketing is “a planned effort using a marketing approach to overcome organisational resistance to change and to align, motivate, and inter-functionally coordinate and integrate employees towards the effective implementation of corporate and functional strategies to deliver customer satisfaction through creating motivated and customer-oriented employees”. (Rafiq and Ahmed, 2000)

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Employees are internal customers in the internal marketing system. They concentrate on the marketing operations of the organisation's management plans to achieve commercial objectives. Internal marketing and human resource management are similar in focusing on employees. On the other hand, internal marketing includes marketing and human resource management tasks.

Significance of Internal Marketing Various organisations are implementing internal communication as an internal marketing tool. Studies have shown that internal communication plays a vital role in organisational success. However, internal marketing is not similar to internal communications or resembles the employer brand. ("The Link between Internal Marketing and HR", 2022) Internal marketing promotes an organisation's objectives, products, and services to employees. Human resource professionals work in the organisation and decide what process to follow to handle the internal market (Fig. 4-1).

Fig. 4-1: People at work, source: https://cdn.pixabay.com/photo/2017/01/14/10/56/people-1979261_1280.jpg

The internal marketing campaign is persuasive. It helps to win the hearts of internal people and make them happy (“The Link between Internal Marketing and HR” 2022) and promotes the organisation internally so that employees keep the company's goals, values, mission, and brand and commit to its purpose, mission, vision, products, and services. Human resource practice also focuses on attaining organisational goals by utilising their employees.

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So, what is the novel approach? Let us talk about novelty in internal marketing practice. It focuses on the internal market of the organisation, which is not utilised by employees only but provides a framework through which employees and employers can work to earn mutual benefit. Various issues like emotional intelligence, leadership, happiness, and leader-employee relationships due to emotions play a significant role in employee satisfaction and commitment as the job duties and responsibilities assigned (“The Link between Internal Marketing and HR", 2022) An employer can assign a job to employees. Employees need to understand the contribution of their efforts towards organisational success and want to be linked with the organisational goals. Employees want to know their worth in the organisation, and the organisation wants to know the worth of their performance. If employees are unsatisfied, they become less productive and take little or no interest in the work. Therefore, in internal marketing, there is a focus on the exchange value between employer and employee. (“The Link between Internal Marketing and HR", 2022)

Internal Marketing Implementation There are many ways to implement internal marketing practices. It depends on the organisation. The way organisations treat their employees and how they provide value to their internal customers. There is no unique way to implement internal marketing. Therefore, various authors explain implementation in their own style. (Mishra 2022) Here are some of the best internal marketing practices: This research offered six characteristics of highly effective internal marketing programmes, which can help explain internal marketing. (“Engagement Strategies in Media: Internal Marketing Best Practices,” n.d.) These six characteristics include: 1. Senior management participation 2. Strategic marketing approach

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Human resource partnership Integrated organisational structure Employee engagement Internal brand communication

Internal marketing inspires people by recognising and involving them in the corporate brand so that a commitment to its values and purpose develops. It becomes an internal brand ambassador to co-workers and customers (“Engagement Strategies Media: Internal Marketing Best Practices,” n.d.).

Types of Measurement Scale x Measurements can be taken on features ranging from temperature to length to weight. (“Human Resource Management | HR Staffing | Types of Measurement", n.d.) When human resource data is collected, it is necessary to measure it. There are various kinds of measurements, which are as follows: x Nominal Measurement Scale: It is a measure in which numbers are allocated to discrete labels. For example, '1' represents male and '2' represents female. x Ordinal Measurement Scale: It measures allocating numbers in ascending or descending order for characteristics. For example, in a task, '1' can show a task finished by one person, '2' for the second person, and so on. It is used to represent a rank. x Interval measurement Scale: It provides the meaning between the set of scores. For example, the distance between 70 to 80 degrees centigrade is similar to the distance between 20 to 30 degrees. Here, the interval is constant. Examples are intelligence scores, self-reported motivation scores, etc. x Ratio measurement scale: It comprises a meaningful ratio point by which ratios from the measure are constructed. For example, if there are 20 males and 10 females in a department, the ratio of males to females is 2:1. Meaning of Scores Scores are used in the procedure of assigning number values during measurement. It is vital to comprehend the scoring system to understand the scores. The data are represented as standard scores, raw scores, and percentile scores. Raw scores are the number of unadjusted scores on a

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measure. The raw score shows several positive responses for a specific trait in an assessment. Criteria-referenced measures: It is based on specific standards. For example, an applicant has to successfully finish a computer test for the next level in the selection procedure. Norm-referenced measure: These scores have an understanding when compared to the scores of others. For example, in a group, the candidates attaining the top three scores in an assessment are eligible to qualify for the next level. ("Human Resource Management | HR Staffing | Types of Measurement", n.d.)

Measurement of Internal Marketing Campaign According to Smith, comprehending how employees' consumer information is vital, email may be effective for employees who perform at a desk most of the day, but a brief 10-minute meeting may perform best for front-line employees. There is no need to establish practices to develop an internal marketing plan. Internal marketing should work at the strategic and tactical levels of the internal marketing process. Internal marketing is a continuous effort, and it can add novel communication initiatives when an organisational change occurs, like rebranding or responding to signs of union organising. Initially, there is a need to reinforce the organisation's vision, values, and mission for employees to connect with the organisation. An organisation that is purpose-oriented attains higher employee engagement. Many internal marketing strategies are required to be developed. It depends on the goals established by the internal marketing communications team for the specific organisation. For example, internal marketing strategies could focus on areas like the following to develop an engaged workforce that holds the organisation's brand: • • • • • • • •

Improving employee voice Nurturing enhanced collaboration among employees Communicating change initiatives Generating more innovation to enhance competitiveness Improving brand education Responding to a union organising campaign Enhancing employee engagement Nurturing a positive organisational culture

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• •

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Coaching employees on brand support on social media Enhancing employee resiliency (“The Link between Internal Marketing and HR," 2022)

Responsibility for Internal Marketing According to tech recruiter Martyn Basset, educating an incredible internal marketing team is vital to the success of your efforts. It means that IM strategy development may include a marketing team, HR labour relations, members of executive leadership, HR labour relations, and internal communication. Recognising that each organisation is diverse, there is one overriding feature of an effective internal marketing strategy. It includes more than just human resources or an internal communications function. In reality, it is essential to remember that human resources is not a marketing function but focuses on sharing information related to employees. Human resource professionals are great communicators who share information about the organisation and play an essential role in employee engagement, but they are also generally the people who should be expected to adapt to connecting employees to the organisation's brand. The IM strategy should include leaders and employees from all levels of the organisation. Top-level human resource managers perform most of the work in human resource practice. Top-level management also plays a vital role in the internal marketing strategy, but all employees are involved. High-level communication starts with top leadership, and an effective internal marketing strategy is to inspire and deepen engagement and involvement. Michael Desrochers, the founder of polite mail software, is to identify a leader in each department and develop an employee communication team. The goal of the team is to improve coordinated communication efforts. The intent is to develop an internal marketing team, including employees and leaders at all levels. One of the challenges that many organisations need to overcome is altering top-down information flows. Human Resources (HR) is an enormously data-driven division of any organisation, even if it does not always raise images of analytics and reporting. Human resource metrics are necessary for any business as they can contextualise very difficult-to-measure people.

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Nowadays, HR technology is being implemented to make organisations with this data more accessible. (“HR Measurement: Everything You Need to Know about HR Metrics,” 2022) A study revealed that only 28 percent have been very fruitful at establishing enterprise-wide HR metrics. At the same time, 45% reported that they were not successful at all. ("HR Measurement: Everything You Need to Know about HR Metrics", 2022)

Internal Marketing and Human Resource System Various authors have argued that internal marketing is similar to human resource management. However, internal marketing is different from human resource management. Iacovone agreed that internal marketing is oriented toward human resource management, providing a competitive edge. (Iacovone, n.d., cited in Mishra, 2022) However, it works in between marketing and human resource management. Fig. (4-2).

Fig. 4.2: Internal marketing includes marketing activities and human resources activities

Human resource management may assist organisations in attaining their goals by providing various services. It permits the company to hire and retain talented, committed, and motivated staff. This approach improves and develops people's intrinsic capabilities, potential, contributions, and

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employability by providing learning and development opportunities. It develops an environment where employees and management can maintain pleasant and productive interactions and develop mutual trust. The HRdriven approach enhances a collaborative and adaptable atmosphere. It helps the company balance and react to its stakeholders' requirements, for example, workers, government authorities or trustees, owners, management, suppliers, consumers, and the general public. This way, people are identified and recognised for their performance and achievements. Manage a diverse workforce, taking individual and group variances in employment demands, work styles, and aspirations into account. It helps to improve employees' physical and mental health and provides them with equal possibilities. Internal marketing creates customer orientation and boosts employee motivation and satisfaction. It also enhances engagement and loyalty, improves staff retention, and fosters a pleasant work environment. It comprises the elements of attraction, recruiting, selection, integration, retention, motivation, and loyalty and includes human resource and marketing activities. (George and Prakash 2019, cited in Mishra 2022) Human resource management is the discipline that manages all employees' activities. Due to the competitive world and the evolution of novel technology, retaining employees and satisfying customers has become tricky. Internal marketing is the process of teaching marketing activities to employees and focusing on how to motivate and satisfy them. Table 4-1 shows the internal marketing and human resource management concept. Table 4-1: Internal Marketing and Human Resource Management S.NO

Human Resource Management

Internal Marketing

1

HRM is the employee management process.

Internal marketing is the process of teaching marketing activities to employees.

2

HRM is the process of managing employees.

IM is the process of empowering employees.

3

HRM includes managerial and development functions.

IM includes marketing and HRM functions.

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4

HRM deals with employees activities.

IM treat employees as internal customers.

5

HRM is to utilise employees.

IM is to add value to employees.

Relationship between Internal Marketing and Internal Communication Internal communications play a vital role in effective communication within an organisation. It is one of the critical dimensions of internal marketing that organisations use widely. It focuses on disseminating information so that employees know it promptly. (Table. 4-2) Table 4-2: Internal Marketing and Internal Communication S.NO

Internal Marketing

Internal Communication

1

IM comprises various dimensions, for example, internal communication, reward, motivation, job product, internal segmentation, etc.

Internal communication is one of the dimensions of internal marketing.

2

IM is the process of internal customer orientation.

IC is the tool for creating internal customer orientation.

3

IM is the broad concept that needs to utilise the IC tool.

IC improves the IM process.

4

IM uses an integrated approach of marketing and HR activities for the employees.

IC is also used in various other HR practices.

5

The focus of IM is to improve organisational culture and development.

The focus of IC is to disseminate the correct information at the right time, in the right place and to the right people.

For the first time, employee engagement in a decade went from 36 percent in 2020 to 34 percent in 2021 and continued to decline to 32 percent as of April 2022, according to a Gallup survey. Engaged employees participate

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in their work, and disengaged employees are disloyal because their needs are unmet. The significance of the connection between internal marketing and internal communications is that all communications should be involved and exciting to receive employees' attention. For the effectiveness of internal marketing, there is a need for a dimension of internal communications that are attractive, regular, appealing, informative, and of high quality. (“The Link between Internal Marketing and HR", 2022)

Linkage Between Internal Marketing and Branding Branding is one of the popular terms used in the present context of internal marketing. The employer brand focuses on current as well as prospective employees. Marty Neumeir (cited in “The Link between Internal Marketing and HR” 2022) specified in the book that employer brand requires'scoring high’ in five essential areas of communication, which are; 1. Distinctiveness: The employer brand must stand out. 2. Relevance: The employer brand must be steady and suitable for the organisation. 3. Memorability: There is a need for help reminding them. 4. Extendibility: It must be communicated across various platforms. 5. Depth: The employer brand needs to connect employees at all levels. IRI communications consultant Sarah Smith (cited in “The Link between Internal Marketing and HR” 2022) depicted that employer brand is how employees feel about working daily. Internal communication is the discussion between the employees and the employer. It is how they feel proud and connected with the organisational mission and values. According to Sarah, internal communication is necessary to develop emotional linkage and how communications are implemented. A strong employer brand can help the right candidate enter the organisation. Internal marketing campaigns help to involve employees, motivate competent employees, and attract suitable candidates. (“The Link between Internal Marketing and HR", 2022)

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Because internal marketing is focused on employees, it fosters employee orientation. Employees know the tangible and intangible qualities of products and services offered to customers via internal branding. In today's competitive environment, attraction and retention are not the only paths to success. (Mishra, 2021) According to Mishra, internal branding is a solution for improving the internal market, which benefits the external market and leads to organisational success. Internal branding informs employees about the company's products, services, and value, which helps customers. Building a culture that supports the most significant utilisation of employee talent is vital to sustaining an organisation in today's competitive environment. Internal market orientation promotes the growth of staff brand knowledge. (Mishra, 2021)

Metrics to Measure HR Human resource metrics Fig. (4-3) are the key points that help organisations track their human capital and measure how effectively their human resource works. Measuring this data includes what is performing well, what area needs improvement, what trends work in the future, and how to make a roadmap for human resource success. (Fica, n.d.) Human resource metrics are the metrics that find out the pathway of human capital and measure its effectiveness. The overall success of the business starts with this initiative. Human resource metrics can be divided into three areas: organisational performance, human resource operations, and process optimisation. Organisational performance includes turnover percentage, statistics on employees leaving the organisation, absence percentage, percentage of apologetic loss, and recruitment statistics such as the number of applicants, recruitment cost, etc. Human resource operations include human resource efficiency and effectiveness. Process optimisation includes changes in human resource effectiveness and efficiency, which are used to reinvent and reengineer the nature of human resources in the organisation and optimise the delivery process. (“HR Professionals Archives • SpriggHR,” n.d.)

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Fig. 4-3: Human Resource Metrics

ƒ Recruitment Metrics 1. Acceptance rate: The number of offer letters in the organisation is divided by the number of applicants who accept an offer. 2. Time to productivity: Novel hires must become accustomed to the organisation and initiate working at total productivity. 3. Cost per hire: The average cost of hiring a new employee To generate this number, add internal and external hiring costs and divide that total by the number of employees hired in a given period. 4. New hire turnover: The number of new hires who leave the organisation within a set period, such as within their first year of employment, is known as new hire turnover. 5. Time to hire: the average number of days between when a job is posted and when a candidate accepts the offer.

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6. Demographics: The characteristics of the workforce, such as age, educational level, gender, and length of service, are called demographic characteristics. 7. Headcount: The total number of employees in the organisation or within a particular department that may be tracked. (Fica, n.d.) ƒ Human Resource Service and Software Metrics 1. Cost of human resources per employee: the total cost of human resource functions divided by the total number of employees 2. The ratio of human resource professionals to employees: The number of employees per human resource professional on the team 3. Human resource software employee involvement rate: The number of employees who actively utilise HR software divided by the total number of employees multiplied by 100 to get a percentage. 4. ROI of HR software: Various factors contribute to the ROI of HR software, but the core formula is the difference between how much the cost of the software is and how much money it produces or saves for the organisation. (Fica, n.d.) ƒ Engagement and Employee Retention Metrics 1. Employee satisfaction: The number of employees who would mention the company as an excellent workplace versus those who would not show overall employee satisfaction. 2. Voluntary turnover rate: The turnover rate comprises only those employees who leave the organisation voluntarily. 3. Talent turnover rate: The rate of turnover among the organisation includes high-performing and high-potential employees. 4. Total turnover rate: The number of employees who leave the organisation within a given period divided by the average number of total employees. 5. Retention rate: The opposite of turnover rate, dividing the number of employees who persisted in the organisation over a given time by the number of total employees. 6. Retention rate per manager: The retention rate is broken down by individual teams and managers. (Fica, n.d.)

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ƒ Training and Development Metrics 1. Training completion rate: The number of employees who finished a training is divided by the total number of employees, then multiplied by 100 to get a percentage. 2. Time to completion: The average time it takes for an employee to finish a given training programme. 3. Training effectiveness: Various methods for evaluating training effectiveness include running tests or assessments to produce a pass or fail rate. 4. Training expenses per employee: The total costs of organisations' training courses and programs divided by the total number of employees ƒ Time Tracking Metrics 1. Absence rate per manager: Individual teams and managers break down the absence rate. 2. Absence rate: The average number of days employees are absent in a given time not comprising approved PTO, also known as absenteeism. 3. Overtime hours: The number of overtime employees performed in a given period. Calculate an average number or break it down by individual employees. (Fica, n.d) ƒ Performance Management Metrics 1. Company performance: A high-level comparison of how well employees work versus how engaged and valued they feel 2. Goal tracking: If your performance management software comprises goal tracking, the goals employees have set, how these goals link to larger company goals, and the progress employees have made 3. Employee performance: To track employee performance through self-assessment, peer reviews, manager assessments, or a combination of all three. 4. Revenue per employee: The total revenue is divided by the total number of employees. 5. Performance and potential: The nine-box model permits the categorisation of employees according to their potential and performance levels for leadership planning and succession (Fica, n.d.)

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Internal Communication Metrics 1. According to a survey by the International Association of Business Communicators, most (72%) employee communication professionals worldwide report that internal communications are vital to employee engagement with company leadership. However, far fewer (41%) report having dashboards or reports to repeatedly measure the impact of activities. This separation between the strategic significance of internal communications and the lower occurrence of actionable communications. KPIs is value-solving for the profession and enterprise communication to move forward meaningfully in the coming decades. (“10 Metrics and KPIs for Internal Communications,” n.d.) 2. Ten metrics and KPIs for internal communication are employee engagement rates, page visits and logins, open rates or intranet read receipts, employee feedback, employee profiles, mobile usage rates, adoption rates for new apps, employee advocacy and sales, customer satisfaction, and employee turnover rates. (“10 Metrics and KPIs for Internal Communications,” n.d.) 3. Employee Engagement Rates: This is one of the most vital metrics used to measure the effectiveness of internal communications. Employees who are actively engaged are happier in their jobs, and they are interestingly working in the organisation. They feel they are respected for their contribution and respect their managers and co-workers. Employee surveys on overall work satisfaction and effective communication provide information about how employees feel. The company intranet can assist in measuring employee engagement and key performance indicators (KPIs) such as readership, social metrics, and participation, like the number of shares, likes and comments on content or communities. 4. Page Visits and Logins: When measuring workplace communications, capturing unique page views and other observable metrics is vital for day-to-day optimisation. eTracking employees' activities on how long they stay in the company's intranet and how long they participate in the company's communities provides employee communications professionals with a notion of the effectiveness of an internal communication strategy. Most corporate employees feel their employer must communicate more effectively with them. The company also want to track when employees are logging into the intranet. To enhance engagement, schedule company-wide announcements or news for times when traffic is likely high.

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5. Open Rates or Intranet Read Receipts: Communication on safety procedures can be clear and motivating, but it will not matter if most employees do not read it. A 2019 survey found that companywide emails were only opened 21.33 per cent of the time. Open rates and other email metrics are helpful, but leveraging read receipts on a company intranet can be more vital in measuring. 6. Employee Feedback: Utilising features built into an intranet to motivate employees to ask questions and provide their opinions about what is occurring within the company is always a great place to initiate. Whether it is a regular employee survey or commentary on particular pages, it is vital to facilitate two-way communication in addition to top-down and personalised company updates. Insight often comes from unpredicted places, so linking front-line workers and others can yield outsized advantages in other areas of an organisation like the product, customer support and more. 7. Adoption Rates for New Apps: When presenting a novel employee app, tracking the adoption rate is critical. It is the number of employees who have downloaded the app and are involved with it online. A cloud-based company intranet can assist with this vital task. It is an industry best practice to provide workers with some notice before presenting any digital tool, presenting them its characteristics and advantages before the launch via vital documents on an organisation's intranet. If adoption rates are low even after a well-planned rollout, having a data-driven content strategy to combat the trend with real-time KPIs can help. 8. Employee Turnover Rates: Employees who feel involved will likely stay in their jobs. Due to this reason, a vital internal communication KPI is to measure the employee turnover rate. This metric is a complex function of internal communication professionals alone; it is a suitable device for employee communication effectiveness overall, and internal communications specialists frequently assist in moving the needle on turnover. 9. Sales and Customer Satisfaction: If internal communications are performing well, enterprises should see a corresponding enhancement in sales and customer satisfaction levels. Employees have the information they require to do their work well. They can provide the customers they are dealing with a much better experience. Identifying employees for their efforts and attaining their goals with the company is vital.

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10. Employee Advocacy: Employees who are engaged and happy at work are more likely to take the next step to become brand advocates. Adjusting internal communication strategy to motivate team members and to post company content on social media is becoming table stakes at various companies. It can also serve as a good testing ground for external marketing messages. 11. Mobile Usage Rates: It is vital to determine how often team members read organisation content and where they access it. People invest their time looking down at their smartphones every day. For some people, this device is an extension of their own body. 12. Employee Profiles: Employee profiles permit team members to share details about their skills, educational background, and interests with their colleagues. When a photo is included in the profile, it assists in putting a face to a name, particularly in a considerable company. To monitor employee engagement and measure how completely all team members fill out each profile and check whether they are updated repeatedly. Some profile components will not change, though employees can update their profile by changing their favourite quotes or sharing something positive. One of the valuation metrics, particularly in the wake of COVID 19, to determine the potential effectiveness of internal communication is to test how quickly employees could be reached in the event of an emergency. Does it include two components? How quickly can a communication team provide a message to employees? After the message has been delivered, how do they respond to it? In various cases, new technology is required, like a mobile intranet and digital workplace app that can assist push notifications to get urgent messages delivered quickly.

Measures of Human Capital Management The Saratoga Institute, now a part of Spherion’s Human Capital Consulting Group, has been measuring the worth of human capital for 20 years. Among the 250 diverse metrics the institute uses are revenue factors, investment, profitability, and a business’s workforce. Researchers are using several formulas at the institute to measure the worth of human capital and its overall effectiveness, claims Robert Morgan, president of the Human Capital Consulting Group.

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One thing that motivates companies to perform is to take the top ten metrics, not essentially all 250, and measure themselves. Not all metrics are vital to a company. It depends on the type of organisation: a labourintensive company or a knowledge industry. Jack Fitz-Enz, founder and chairman of the institute, developed ten metrics. There is no set standard for the measurement that fits the organisation. No measurement standard fits all companies, varying from situation to situation. Therefore, firms need to decide which things are important to them. These points can be considered: Most essential matters: If the target attainment is the central issue for the organisation, then it is directly linked to the metrics. 1. Human Capital Value: This represents how much an organisation values their employees. 2. Human Capital Return on Investment: The ratio of money invested on pay and benefits to an adjusted profit number. 3. Separation Cost: It is vital to know how various people are leaving. It represents that the average cost of separation for an employee is at least six months, equivalent to revenue per employee. 4. Voluntary Separation Rate: Loss of personnel shows potentially lost opportunity, lost revenue and highly stressed employees who have to fill in the gaps. 5. Total Labor cost Revenue Per cent: This is the total compensation and benefits costs per cent of organisational revenue, including the cost of human capital. It represents the organisation's total labour cost, including seasonal, temporary, contract, or contingent workers. 6. Total Compensation Revenue Per cent: This is the percentage of the organisation's revenues assigned to the direct costs of the employees. 7. Training Investment: There is a continuous distribution and invasion of technology to enhance individual productivity and increase demand for better service. Thus, organisations need to invest in the training program to improve the skills of their employees. For the aim of skills and knowledge of the employees, training plays a key role. 8. Time to Initiate: With the continuous talent shortage, recruitment will be crucial. Monitoring the time from approval of a requisition until someone is on the work is necessary to indicate revenue production.

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9. Revenue Aspect: This is the primary measure that managers comprehend. (“Workforce Management Software News, Blog, and Resources,” n.d.) Therefore, various metrics can be used in the organisation, but it is necessary to understand the organisation and follow the metrics. To get the most from the human resource metrics, there is a need to find the key figures that will clarify how the company is growing and succeeding. ("28 Important HR Metrics to Measure: SpriggHR” 2020) Based on human resource activities or practices, human resource metrics can be divided into recruitment metrics, human resource service and software metrics, engagement and employee retention metrics, time tracking metrics, performance management metrics, and training and development metrics.

Key Performance Indicators KPI is a key performance indicator, the data point that helps track and communicate across the organisation. These are human resource metrics that are linked to particular goals. It is found that executives and human resource professionals need help evaluating human resources in the organisation. This topic is discussed in detail in Chapter 6. (Fica, n.d.)

HR Analytical Tools HR analytics tools take complex data about the company and turn it into user-friendly reports. For example, Bamboo HR people data and analytics tools rationalise the reporting procedure, permitting collection and generating a report with the push of a button. It saves HR departments hours or even days. With automated reports, it can speedily and easily develop for meetings, stay updated with HR performance, and develop clear goals to confirm that the company can grow and attain sustainability. (Fica, n.d.)

Measuring Human Resource Internal Efficiency and Effectiveness Measuring human resource internal efficiency and effectiveness is required to enhance the organisational system further.

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The following inquiries should be directed at the team: x x x x x

Are we recruiting through the most effective channels? What are our training costs? How effectively are employees performing in the organisation? How effective are the different types of training? How effective are we at recruiting the competencies the business needs? x What are our costs-per-hire? (Zavyiboroda 2021)

Auditing Human Resource Compliance There is a need to audit human resource compliance. It concerns all the legal needs surrounding human resources. Human resource professionals need to focus on this area. Clarity in compliance is essential and needs to be monitored regularly. It must be done by measuring those functions related to the organisation's strategic urgencies. Necessary measures may include up-to-date policies and practices, training, an employee handbook, and maintaining equality and diversity obligations. Standard metrics for measuring HR compliance comprise: x x x x x

Percentage of employees trained in company policies Diversity rate/employee demographics Salary competitiveness Number of diversity initiatives Gender pay gap

Human resource costing is a necessity and an established mechanism to manage costs. Various vital human resource costs need to be kept in mind to run human resource activities. HR focuses too much on efficiency and cost reduction. The main thing is that human resource activities need to add value. (Zavyiboroda 2021) The overall cost needs to be removed from the human resource activities and only costs that add value to the human resource activities added.

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Conclusion Various organisations are using internal marketing and utilising one or two dimensions. Human resource management and marketing are interlinked in the concept of internal marketing. There are overlapping dimensions that create diverse approaches and different implementation procedures. Every organisation is different from each other. Thus, there is also a varied style and dimensions used to implement it. Internal marketing should be done at the strategic and tactical levels of the internal marketing process. Internal marketing is a continuous endeavour that might include unique communication activities when an organisation transitions, such as rebranding or responding to signs of unionisation. Due to emotions, factors like emotional intelligence, leadership, happiness, and leader-employee interactions significantly impact employee satisfaction and commitment as job duties and obligations are imposed. Measurement scales such as nominal, ordinal, interval, and ratio measurements can be used to use human resource data. Scores are employed during the measurement method to assign a numerical value. Human resource metrics can be classified based on human resource activities or practises, such as recruitment metrics, human resource service and software metrics, engagement and employee retention metrics, time tracking metrics, performance management metrics, and training and development metrics. Employee engagement rates, page visits and logins, open rates, or intranet read receipts are ten KPIs for internal communication. Employee input, employee information, mobile usage rates, app adoption rates for new apps, employee engagement, sales, and customer satisfaction. Branding is one of the popular terms used in the current context of human resource metrics in the form of internal branding. Human resource metrics are essential criteria that assist organisations in tracking their human capital and measuring the effectiveness of their human resources. Internal branding is a novel concept for measuring the organisation's internal market. Internal marketing encompasses all marketing efforts within the organisation, whereas human resource management employs personnel for external marketing operations. Human resource management and internal marketing are different concepts. However, it is difficult to determine which dimension is employed in internal marketing and which

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dimension in human resource practice due to various aspects. Internal marketing is a novel concept that aims to empower employees rather than management. It guides individuals in achieving both individual and organisational objectives.

References Engagement Strategies Media: Internal Marketing Best Practices.” n.d. Www.enterpriseengagement.org. https://www.enterpriseengagement.org/articles/content/8288825/intern al-marketing-best-practices/. Fica, Tori. n.d. “The 29 Most Important HR Metrics You Need to Track.” Www.bamboohr.com. https://www.bamboohr.com/blog/key-hr-metrics-b HR Measurement: Everything You Need to Know about HR Metrics.” 2022. PeopleSpheres. January 13, 2022. https://peoplespheres.com/hrmeasurement-everything-you-need-to-know-about-hr-metrics/. HR Professionals Archives • SpriggHR.” n.d. SpriggHR. https://sprigghr.com/blog/category/hr-professionals/. https://shodhsankalp.in/wpcontent/uploads/2021/12/proceedingsCIBM ERSP2021.pdf Human Resource Management | HR Staffing | Types of Measurement.” n.d. Tutorial. Accessed June 25, 2023. https://www.vskills.in/certification/tutorial/types-of-measurement/. Lohana, Sarika, Nazia Abbas Abidi, Niranjan Sahoo, M. Sameer Babu, Harikumar Pallathadka, and Uma Sanjay Singh. 2021. “Performance Measurement of Human Resource by Design a Human Resource Scorecard.” Materials Today: Proceedings, July. https://doi.org/10.1016/j.matpr.2021.06.203. Mishra, 2021. “Internal branding: Exploring how to sell brands in the internal market, Shodh Sankalp Education and Research, ISBN 978819445301 pp. 19 Panel®, Expert. n.d. “Council Post: 15 Smart Steps to Help Measure an HR Department’s Success.” Forbes. Accessed June 25, 2023. https://www.forbes.com/sites/forbeshumanresourcescouncil/2021/05/0 6/15-smart-steps-to-help-measure-the-hr-departmentssuccess/?sh=426ba2d24e17. Ten Metrics and KPIs for Internal Communications.” n.d. LumApps. https://www.lumapps.com/internal-communication/metrics-kpis-forinternal-communications/.

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The Link between Internal Marketing and HR.” 2022. Projections. October 6, 2022. https://projectionsinc.com/the-hr-internal-marketing-link/ Today’s HR Measurement Approaches | Making HR Measurement Strategic | InformIT.” n.d. Www.informit.com. https://www.informit.com/articles/article.aspx?p=1174796&seqNum=5. Twenty-eight Important HR Metrics to Measure • SpriggHR.” 2020. SpriggHR. September 4, 2020. https://sprigghr.com/blog/hr-professionals/28-important-hr-metrics-tomeasure/. Workforce Management Software News, Blog, and Resources.” n.d. Workforce.com. https://workforce.com/news/10-measures-of-humancapital-management. Zavyiboroda, Maryna. 2021. “How to Measure HR Effectiveness?” HRForecast. February 8, 2021. https://hrforecast.com/measure-hr-effectiveness/

CHAPTER FIVE INTERNAL MARKETING MEASUREMENT1

Abstract Internal marketing has caused significant changes in the way organisations operate. Several authors explained its various dimensions. For measuring internal marketing, there must be clarity in the question of what the organisation wishes to achieve. Internal marketing is much more than just measuring employee or organisational performance. Due to a need for more clarity in the concept, several organisations use one or two dimensions. Internal marketing is a procedure that organisations must follow to gain a competitive edge. It also leads to the organisation's profitability. However, if the organisation's primary focus is on how to raise profit through people, it indicates that they need to be on the proper track to adopt it. The organisation employs a variety of measurement tools due to its diversified understanding. This chapter presents internal marketing measuring methodologies and tools.

Introduction Human resource experts work tirelessly to achieve organisational objectives. They train and direct their personnel to accomplish various roles and obligations. In human resource practice, job evaluation, performance appraisal, and performance management are common phrases. These are used to assess employee performance and compare it to industry standards. If employee performance falls short, it is corrected by providing them with training and development. Human resource measurement practices emphasise organisational and employee performance improvement. These practices are focused on results. In the  1

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previous chapter, human resource metrics were discussed. This chapter focuses on the measurement technique of internal marketing. Internal marketing measurement is the technique to measure the functioning of its dimensions in the organisation, for example, internal communication, internal segmentation, rewards, job product, internal customer orientation, service quality, etc. To measure internal marketing, developing an internal marketing plan is a prerequisite.

Developing an Internal Marketing Plan The first step is to develop an internal marketing plan to measure it. With a proper plan, it is easier to measure it appropriately. It gives direction to attaining business goals (Fig. 5-1).

Fig. 5-1: Business Tree, source: https://cdn.pixabay.com/photo/2016/01/13/08/08/business-1137367_1280.jpg

 The internal marketing plan starts with deciding what the organisation wants to attain. There is a need to establish audiences and develop campaigns to achieve particular goals. It includes tactics for implementing the campaign and meeting the objectives. Goals, campaigns, and tactics will develop in the internal marketing strategy. For the success of a marketing campaign, it is always necessary to establish a way to measure it. ("The Link between Internal Marketing and HR", 2022)

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Importance of Internal Marketing Measurement CEOs (chief executive officers) and HR (Human resource) specialists feel that measuring HR areas and evaluating their impact on an organisation is critical. As a result, HR metrics are transitioning from a business advantage to a need for every HR team looking to create a solid, datadriven business plan for their organisation. ("28 Important HR Metrics to Measure • SpriggHR", 2020) Human resource management is an essential aspect of every organisation. There are numerous tools available to assess human resource practice. Due to rivalry and dynamic changes, there is a need to make a relationship between the human resource and marketing practice. Organisations ultimately use employees to produce results for which human resource management is essential. On the other hand, internal marketing is about providing value to employees so they are prepared to generate results. However, there is only a result if something is measured. As a result, internal marketing must be measured to evaluate its process. If there is an error in the procedure, the organisation will correct it.

Measuring Human Resource Effectiveness Inefficiencies can be identified and eliminated, allowing for greater human resource effectiveness. Human resource effectiveness refers to a human resource department's operations and activities in a firm. A highly effective human resource team is critical to enabling a firm to develop because human resource leaders are involved in setting overall business decisions. (Jay, 2022) For example, an efficiently designed and implemented recruitment and onboarding strategy can assist in bringing top talent on board, leading to enhanced productivity and, thus, revenue. In the same way, dynamic performance management permits managers and employees to keep track of performance and progress and enhance and meet organisational goals. (Jay, 2022) To understand human resource activities, tracking and analysing various metrics is vital. These metrics will assist in planning what the workforce will look like and taking steps to prepare the strategy and budget accordingly. Comprehending the overall impact of human resources will

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assist in visualising and demonstrating the overall effect of human resources on the organisation. Human resource effectiveness plays an essential role in overall organisational development. The significance of human resource activities can be determined if there is a proper measurement procedure. For example, to track metrics like quality of hire and cost of hire, if organisations want to comprehend recruitment procedure effectiveness, we want to calculate how effective utilising the human resource budget is. In that case, there is a need to look into the cost of human resources per employee and training effectiveness in terms of return on investment. (Jay 2022). Let us discuss here various metrics: x Employee net promoters score (NPS): This metric allows us to measure how likely employees are to recommend the organisation to others as a great workplace. Calculation: Question: How likely are employees to recommend an organisation as a workplace? Employees rate it on a scale from 0 to 10. From 9 to 10 promoters: happy and motivated employees From 7 to 8=passive=Employees who are content but need to be more passionate about the organisation. 7 to 8=passives: Satisfied employees must be more passionate about the organisation. From 0 to 6 Detractors: Dissatisfied employees To measure it, eNPS subtract the percentage of detractors from promoters For example, An XY Company with 80% Promoters and 10% Detractors equals an NPS score of 70. Generally, a good score is between 10 and 30, while anything over 30 is considered best. An NPS survey can help to gauge how happy or dissatisfied employees are, pinpoint the phases human resources can take to improve these results and take action. It is for employees to respond and can be distributed with preferred communication channels with comparatively low costs. While

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this metric is a solid starting point, it should follow up with more questions, For example: Why do you like the job? How can we improve the organisation? x Mapping human resource career path: Determine how you want to progress based on human resource career goals and capabilities. Engagement rate is the share of employees comprised in their work in the organisation. Calculation: Some simple ways to track the engagement rate are to collect feedback during one-to-one meetings, stay and exit interviews, and pulse surveys. In a survey, the focus is to stick to a maximum of five questions. For example; x Are you happy at work? x Have you got sufficient training for the job? x Would you recommend this organisation as an employer to others? A weighted average should be implemented for each question where the maximum score an employee can get is 10. For example, Q.1: Are you happy at work? Yes, 2 points somewhat 1 point and response NO 0 points Total number of points =individual engagement score Average engagement rate across business (Number of employees above the engagement norm/total number of employees) = engagement rate An excellent average engagement score for an organisation is 50% or more. According to Gallup, an engaged team will have low employee turnover and 21 per cent greater profitability. Low engagement represents a weakness in hiring, processes, onboarding, and training, and it will help to handle these. Equally, employee engagement will show star players who are developed to put extra effort, attention and time into their work.

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x

Employee turnover rate refers to the rate at which employees leave an organisation. It can be voluntary or involuntary.

Calculation: Employees who leave/total several employees*100= Employee turnover rate. Firstly, it is essential to note that new hires are not included in the turnover count. For example, organisations had 22 employees in 2020. Ten novel hires and 18 employees left during that year. Calculation’ 18/220*100=8.18 The turnover rate average varies significantly across industries. A 50% yearly staff turnover rate would need to be better thought out in fast churn sectors, for example, retail or call centres. Turnover is the oldest method to track organisational culture and human resource activities. x Employee Retention Rate: It represents the number of employees who remain in an organisation over a set period compared to the total number of employees who work there during that period. Calculation: Employee retention =rate total number of employees minus the total number of employees who left/total number of employees*100 For example, If an organisation has 800 hundred employees and, over the last year, 30 of them left, their employee retention rate would be 96.25 %. Employee retention rate is a meaningful indicator of an organisation's ability to retain a uniform workforce, and it is one of the essential HR metrics. It helps HR departments examine and tweak their talent acquisitions and retention strategies to ensure they are keeping up to date with changes in the labour market and workplace and performing everything they can to retain talent. Failure to act can result in low team morale, knock on the broader goals of the business, and cause disruptions. Employee retention rate can decrease company costs, enhance employee engagement and productivity and address recruiting issues. x Absenteeism Rate: The absenteeism rate is also known as the absence rate or percentage. It is the rate of unplanned absences during a fixed period, whether due to stress, illness, or a fake sick day, but it does not include holidays or lateness. Managers can measure it for individuals, teams, or the whole organisation.

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Calculation: Number of absent days/Number of available workdays in a period*100 =absenteeism rate For example, Sally's absenteeism rate for 2021. The total available workdays are 220 after deducted holidays and weekends. She was absent for ten days that year. 10 / 220 x 100 = 4. 54% Usually, managers consider 1.5% a healthy absence rate, given that it is impossible to stop illnesses all of the time. However, it is significant to note that certain diseases (such as the flu or Covid-19) can result in an employee being inattentive for a few weeks, increasing their absenteeism rate to over 4%. However, an absenteeism rate higher than 1.5% can often designate the absence as somewhat more severe, such as lack of engagement, stress or burnout, or conflict with team members. Anything lower than 1.5% can also cause concern—are employees afraid to call in sick, so they come into work unwell? In the long run, it can lead to a drop in productivity, poor health, and even exhaustion. For example, many employees may have absence days when their children are sick and must look after them. In this case, a flexible working-fromhome policy could help decrease absenteeism. Suppose employees get payment for a full day's work even when absent. In that case, it might reflect rewarding and incentivising the employees with the lowest absenteeism rates on a quarterly or annual basis through a small bonus or gift. x Training Effectiveness: Training effectiveness measures how specific training impacts employees' skills, knowledge, and performance and how it impacts the organisation's efficiency. Calculation: Training effectiveness is measured by one-to-one discussions, questionnaires and surveys. It is vital to decide goals for the training and how to measure training effectiveness before the training starts. For example, the manager selects to measure the trainee's productivity levels, engagement, moods and after the training. Five proven learning evaluation models are trusted by organisations today which are (Jay, 2022):

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1. 2. 3. 4. 5.

Kirkpatrick’s Four-level Training Evaluation Model Kaufman’s Five Levels of Evaluation Anderson’s Model of Learning Evaluation Summative vs. Formative Evaluation The Phillips ROI Model

Measuring training effectiveness can assist in determining how helpful current offerings are and how they can be enhanced. Organisations invest many resources into training programs; thus, monitoring them is necessary to see what is performing, what is not, and why. More effective training consequences in excellent employee performance and satisfaction, enhanced team morale and a higher ROI. (Jay, 2022) x New hire performance: It is one of the popular manners of measuring the quality of hire and will generally assess the extent to which a novel hire adds value to the business. Calculation: Any performance metric representing a novel hire's value can be used to measure novel hire performance. It comprises meeting a particular sales quota and receiving positive managerial feedback during a performance review. Organisations will generally use a combination of various metrics to evaluate novel hire performance, comprising job performance, ramp-up time and productivity. According to a report by LinkedIn, over a third of companies want to enhance their hiring quality and 50% of organisations use novel hire performance evaluation to enhance it. New hire performance represents how adequate human resources is in recruiting suitable candidates for the business, providing them with the tools they require to prosper from the start, and onboarding them successfully. A steadily high novel hire performance rate assists organisations in meeting strategic business goals. (Jay 2022) x Cost per hire: Cost per hire tells how much it costs organisations on average to hire a novel employee. Calculation: For example, the company hired ten new employees last year and incurred recruiting costs of Rs. 10,000. The cost per hire would be Rs. 1,000. Cost per hire is among the most valuable and used HR and recruiting metrics. It assists in forecasting what budget needs to be hired over the next period and represents how recruitment contributes to the bottom line.

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x Internal mobility rate: Internal mobility rate is the percentage of employees that move through an organisation through transfers, promotions and demotions. Calculations Total number of internal movements/total number of employees*100=internal mobility rate Internal mobility rate is usually insufficient to develop clarity, so it is vital to analyse other HR metrics. For example, an Internal mobility rate of 5% and a turnover rate of 5%. It specifies that most of the open positions are being filled by the current talent in the organisation. For this to be correct, the organisation is good at succession planning and effective mentoring and development programs, has a robust pool of skilled employees, and has clearly defined career paths. However, internal mobility is at 5% and turnover is at 25%. In that case, it proposes that few open roles are being filled with current talent, which means more resources are being used to hire externally. (Jay 2022) The most significant source of talent for any organisation is its current employees, and a solid internal mobility program can assist businesses to utilise this and decrease time to fill and cost per hire in the procedure. Also, view this metric alongside diversity to see how inclusive organisations are and where it is required. For example, is there a lower mobility score for women than men? If so, why and how can we address this? x Cost of Human Resources per Employee: The cost of human resources per employee mentions the total cost a company invests in human resources per full-time employee. Calculation: Total human resource costs (salary+benefits)/ total number of employees=human resource cost per employee Let us say an organisation had human resource costs of Rs 10,000 last year and 100 employees. 10,000 / 100 = 100 Human cost per employee assists HR professionals in staying aware of their department costs, understanding or overspending, predicting future recruiting costs, and calculating ROI.

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x HR tech ROI: Human resource tech ROI measures the return on investment of many HR software and technologies invested in and potentially rolled out across human resources and broader organisations. (Jay 2022) Calculation: It improves the recruiting process, reduces paperwork management time, and boosts employee engagement or something else. It comprises the ticket price, the cost of implementation (user training, expert fees, staff time and storage costs) and continuous maintenance and upgrades. Next, compare existing metrics with metrics before rolling out the tech. For example, has there been a boost in human resource performance? The final step is determining the value and whether the organisation has saved more than it has spent. HR tech user adoption rate: HR tech user adoption rate refers to the percentage of employees actively using the new technology at work. To calculate adoption rate: (Number of new users of a feature / Total number of users) x 100 = Adoption rate. User adoption plays a vital role in the success of an organisation, and this metric will assist in enhancing the adoption rate. A low adoption rate indicates insufficient training or understanding of how the novel technology can assist employees in performing their roles at work. Different characteristics or tools may also be required to utilise the technology effectively. It helps human resource teams track progress. (Jay 2022) Measure HR Efficiency The human resource department must often represent the organisational value of money and time invested in human resource training and activities. The value of analysing and reporting human resource performance in many areas aims to enhance the organisation's function and internal functioning. The challenge of human resource is to provide business leaders with actionable information that assists them in making decisions regarding investment, strategies, and new products. In the internal marketing concept, jobs are called products. Thus, it is a challenge for business

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leaders. Any product produced in the internal market must be measured based on its outcome and investment. Human resource metrics are an essential way to measure the cost and the impact of employee programs and human resource procedures and measure the success and failure of its initiates. Internal marketing is employee-focused; therefore, every cost included in the human resource activities and the value produced must also be measured. There is also an imbalance between human resource costs and employee outcomes. The key focus is to increase the costs that add value to the human resource activities, which helps to attain the organisation's long-term goals. Internal marketing is not to attain short-term goals; thus, it must be measured on a short-term basis. They enable an organisation to track trends and changes. It is how organisations measure the value of the money and time spent on human resource activities. HR metrics are the data and measurements of what happens in human resources. HR measurement quantifies what HR does as well as employee performance. As such, these are incredibly essential statistics because they provide a trackable and measurable way of assessing the company's financial health, HR department performance management, and employee happiness and productivity. It covers various HR topics, including recruiting and retention, employee engagement, payroll, absenteeism, staffing, leadership, learning and development, and benefits. ("HR Measurement: Everything You Need to Know about HR Metrics", 2022) Examples of the efficiency of the Human resource functions are: (Kavanagh, M.J. & Thite; M. 2009) x Cost per Hire: It is the cost linked with a new hire. It is vital to know how much it costs to hire and to see if the money invested is used to hire the right people, according to Boudreau et al. 2004). x Time of Fill: the total number of days to fill a position per job. The shorter the time, the more efficient the human resource department is in identifying the replacement for the job. x The human resource expense factor is the ratio between total company and human resource expenses.

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Effectiveness of Human Resource Functions The effectiveness of human resource functions shows whether or not human resource practices are beneficial to employees. It is critical for human resources since they are recognised as the leaders in recruiting, assisting, and developing talent for deployment. (Lawler, Boudreau & Levenson, 2004) Examples of the human resource effectiveness functions (Kavanagh and Thite, 2009) are: x Training ROI is an organisation's entire financial gain from specific training. It shows the training program's success and how much benefit it can bring to the firm. x Absent Rate: It determines the organisation has an absenteeism problem among its personnel and shows the success of human resource policies as well as the policies of the organisation. It is always associated with employee satisfaction.

Development of Core Competencies Metrics aid in developing core competencies by illustrating the relationship between human resource practises and the tangible effects on an organisation's capacity to obtain and maintain a competitive advantage. Training and development programmes are utilised to improve the employees' competency and are also one of the goals of the internal marketing process. Employees are frequently viewed as human capital rather than an expense under this approach. (Lawler, Boudreau; & Levenson, 2004) Examples are; 1. Revenue Factor: It shows the corporation's efficiency by utilising its personnel as human capital. 2. Defects Rate: It denotes the number of defective products in service. The lower the defect rate, the more successful human resource practices are in cost reduction in the developing company's core competency.

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Human Capital Metrics Internal marketing focuses on measuring human resource efficacy and efficiency and the exchange connection between employee and employer that benefits both the organisation and its shareholders. According to Lockwood (2006), human capital measures describe the organisation's health. Human capital measurements are becoming more popular in human resource practices. The tool used to measure human capital is known as key performance indicators. The advent of new HR KPIs that optimise HR management mean more objective decisionmaking, greater employee involvement, a comprehensive view of corporate health, and more precise budgeting. Organisations may implement new, more efficient HR strategies by using and analysing HR. Choosing the correct HR KPIs for the company can take time and effort. Some characteristics of high-quality KPIs are as follows: Clear, objective, attainable, relevant, linked to the intended outcome, understandable, actionable, and measurable. ("HR Measurement: Everything You Need to Know about HR Metrics", 2022) It supports human capital outcomes such as talent management, high performance, and employee engagement, illustrating the organisation's financial and strategic goals and improving collaboration with senior management for organisational success. Human capital is essential since individuals work in organisations. It helps organisations create core skills and competitive advantages. Employees are treated as internal customers according to the internal marketing concept. According to the internal marketing notion, employees are not assets or capital of the organisation but rather purchasers of job products in the internal market. According to this approach, before measuring employee performance, it is critical to assess how the employer meets the requirements of the employees. As a result, it gained an advantage in human capital measures.

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Some organisations need to know how many individuals work for them. When a new programme or campaign is launched, human resource leaders must prepare to assess its impact on the organisation. Internal marketing metrics are essential for organisations to establish a link between employees and employers. In contrast, human resource metrics enable organisations to establish a link between the value of human resources and business outcomes. As a result, internal marketing begins with senior management and ends with external customers. Before human resource metrics, evaluating and comprehending the costs associated with various human resource operations and procedures was impossible. Currently, we have the notion of internal marketing, which measures human resource activities and organisational actions for the mutual benefit of the organisation, employer, and employees. Retention metrics are human resource metrics that help quantify aspects such as average tenure, turnover rate, or the financial impact of employee turnover. It is also a significant result of the internal marketing process. These implications can show how much separating people from the organisation costs and help the company establish proactive actions to avoid future talent loss. More crucially, metrics help organisational leaders and decision-makers provide more efficient and effective HR services. (Lawler et al., 2004) HR Metrics and Data When executives objectively use facts acquired from their organisations, they tend to make consistently better decisions. Many of the significant decisions made by executives impact the business and the bottom line; hence, HR will need to produce tangible evidence to convince senior leaders that organisations are profiting from their people rather than losing money and squandering resources. The key to identifying the proper metrics for the organisation's objectives is establishing the overall business needs, as organisations may utilise different measures. Metrics employed by the organisation must demonstrate statistics on the effectiveness of the human resource capital strategy. The organisations recruit, develop, and deploy appropriate talent according to business needs. As long as there are employees, there will be voluntary and involuntary turnover, and any turnover experienced by the organisation results in the loss of money and resources. Most businesses

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need to be aware of turnover's impact on the organisation. However, when turnover costs 15%, 25%, or 35% of an organisation's profits, it significantly influences the organisation as a whole. By implementing metrics, organisations will be astonished at how much money they may save on hiring, staffing, and separation costs. (Lawler et al., 2004) The following are some proposals for organisations interested in tracking talent using metrics: •

Percentage of performance goals met or exceeded, indicating whether the organisation is meeting performance goals aligned with its mission. • Percentage of employees rated at the top performance appraisal level who are paid above average salary. • Percentage of top-performing employees who resign for compensation-related reasons. • Turnover percentages of low-performing managers; and

HR measurements are the first and most important step, followed by data acquisition. However, making sense of the data and telling a compelling story about what it means in connection to the business strategy is just as important. Software and Outsourcing HR Metrics The HR system of the organisation gathers metrics, but many organisations can hire services from outside due to a lack of time or resources. There is also the possibility that organisations need to know where they have to start or what they want to include in the metrics. Uncertainty and unpredictability is also a problem for the organisation to decide HR metrics. HRIS systems (Workday et al.) frequently include robust reporting features to represent the cost of people. At the same time, talent acquisition tools (such as Taleo) offer information about recruitment costs. If the HR department wants to collect data on organisational insight, engagement, culture, and general employee opinions, software such as FieldRate (business intelligence) or Beekeeper (more focused on communications) can be used, especially if employees who do not have corporate email addresses need to be reached. (Kavanagh et al. 2009)

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Internal Marketing Dimensions Internal marketing has many dimensions that play essential roles in the organisation (internal segmentation, internal communication, training, internal segmentation, managers' concerns, service culture establishment, appraisal, job product, teamwork, inter-functional coordination, and customer orientation). Compete for talent, offer a vision, improve employee skills, make them knowledgeable of their roles and team management, increase employee freedom, and link achievement with rewards and job design. (Parsuraman Zeithmal and Berry 1991, cited in Mishra, 2022) Dissemination of information, Development of competence, and development of incentive and motivation systems. (Varey and Lewis 1999, cited in Mishra 2022). Reward, Development, and provision of vision (Foreman and Money 1999, cited in Mishra 2022) Staff selection, training design, competency measurement, strategic rewards, staff climate monitors, internal communication, and quality improvement. (Ballantyne, Christopher, and Payne 1995, cited in Mishra 2022) Communication, staff training, appraisal and feedback, and customer consciousness. (Hogg, Carter, and Dynne, 1998, cited in Mishra, 2022) Internal marketing components are recruiting, training, developing, and motivating. The focus is on how to improve external marketing. (Preston and Steel 2002, cited in Mishra 2022) Job security, extensive training, generous rewards, information-sharing, employee empowerment, and reduced status distinctions. (Bansal et al. 2001, cited in Mishra 2022). Strategic rewards, internal communication, training and development, organisational structure, senior leadership, physical environment, staffing, selection and succession, inter-functional coordination, incentive systems, empowerment, and operational changes (Ahmed and Rafiq 2003, cited in Mishra 2022). According to Cha Ha Abu Bakar and Jaffar (2007), marketing tools are used to attract and retain the best employees. IM constructs are interfunctional coordination and integration, customer orientation, marketinglike approach, job satisfaction, empowerment, employee motivation, quality of service, employee development vision, strategic rewards, internal communication, and senior leadership. (Cha et al. 2007, cited in

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Mishra 2022) The service training program, performance incentive, and vision for service excellence. (Tsai and Tang 2008, cited in Mishra 2022) Formal interaction, reward system, feedback, internal procedures and policies, and internal customer orientation. (Panigyarakis and Theodoris 2009, cited in Mishra 2022) Establishment of service culture, development of marketing approach to human resource management, dissemination of marketing information to employees, and implementation of reward and recognition are the dimensions that are used to study the extent of internal marketing implementation in Egyptian five-star hotels. (A Tag-Eldeen and O.A. EI-said 2011, cited in Mishra 2022) Internal marketing elements are the awarding system, supervision support, empathy, appraisal system, and empowerment. (Shekary 2012, cited in Mishra 2022) Training and development, reward and recognition, international communication, and empowerment. (Narteh 2012) Meagre empirically researched internal marketing: elements for employeerelated outcome 1) job satisfaction 2) work motivation 3) organisational commitment customer-related outcome service quality. (Meager, cited in Mishra, 2022) To measure the level of internal marketing in Japanese companies. Factor 1 Leadership, Factor 2 Collaboration, Factor 3 Degree of Information Utilisation, Factor 4 Operational Strength, and Factor 5 Market Developmental Strength (Kimura Tatsuya 2011, cited in Mishra 2022). These variables were utilised to study employees' job satisfaction at the State Bank of India, and a favourable influence on job satisfaction was discovered. Dimensions of employee job satisfaction in internal marketing: content, training, working conditions, superior support, coworkers, and recognition. (A Vijaya Kameswari, cited in Mishra 2022) Before implementing internal marketing, it is necessary to identify the internal marketing aspects and processes. Understanding employee desires, service delivery, welcoming employees' ideas, creating solid relationships, developing work culture, and team spirit are all vital in the internal market. Internal marketing aspects can be utilised in any organisation; the key is understanding the organisational system and concentrating on building it to improve organisational performance and lead to organisational profitability.

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Conclusion HR executives can use HR analytics to define long-term and short-term goals. Before strategic meetings, HR directors may examine their organisation's metrics to determine what works effectively and what needs improvement. HR has long been considered a data-free organisational division, but data measurement and analysis are central to HR operations. Monitoring HR metrics measures HR's role as an essential business partner to the more prominent organisation. The method is to improve personnel management by training new employees and collecting data explaining the organisation's requirements. Cost per hire, time to hire, employee turnover, employee satisfaction rates, absenteeism rates, revenue per employee, overtime hours worked, attrition rate, training expenses, training effectiveness, return on investment of HR Software, Equal Employment Opportunity Commission (EEOC) Metrics are the most commonly used human resource metrics. Creating human resource metrics or internal marketing metrics requires serious thought. It is vital to examine the organisational system and then develop appropriate practices. The organisation's priority determines it and the value assigned to it. It also depends on the product or service and its objectives. HR leaders must then incorporate HR metrics into business goals and organisational objectives. These indicators are then reported to leadership on a regular and consistent basis. It not only focuses the organisation on achieving HR objectives but also illustrates to senior leadership the advancement of the HR profession and its alignment with larger organisational aims. Human resource metrics are an essential component of any modern human resource team. It is time to prioritise internal marketing KPIs to progress human resource metrics. It is challenging to select dimensions of HR metrics, but it is essential to improve human resource activities. Organisations that understand themselves and their employees can set suitable HR metrics, which leads to sustainable development.

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References The Link between Internal Marketing and HR.” 2022. Projections. October 6, 2022. https://projectionsinc.com/the-hr-internal-marketing-link/. Kavanagh, M.J. and M. Thite. 2009. Human Resource Information Systems: Basics, Applications, and Future Directions. Thousand Oaks: Saga Publications, Inc. Lawler III, E.E., Levenson, A., & Boudreau, J.W. 2004. HR Metrics and Analytics: Use and Impact. Human Resource Planning, 27(3): 27–35. Lockwood, N. 2006. Maximising Human Capital: Demonstrating HR Value with Key Performance Indicator. HR Magazine, 51(9): 1–10. HR Measurement: Everything You Need to Know about HR Metrics.” 2022. PeopleSpheres. January 13, 2022. https://peoplespheres.com/hrmeasurement-everything-you-need-to-know-about-hr-metrics/. Mishra 2022. “Human resource management and internal marketing, Routledge Taylor and Francis Group, ISBN 97810322093 6 4 Jay, Shani. 2022. “How to Measure HR Effectiveness: 12 Useful Metrics.” AIHR. May 24, 2022. https://www.aihr.com/blog/how-to-measure-hreffectiveness/

CHAPTER SIX PERFORMANCE MEASUREMENT AND EVALUATION1

Abstract Performance assessment and evaluation are critical for the growth and development of an organisation. Employees are crucial players in organisational performance; consequently, it is necessary to assess and enhance their performance in the future. Understanding the effectiveness and efficiency of organisational initiatives, programmes, and projects in achieving organisational goals is helpful. On the other hand, internal marketing directs and measures employee performance to motivate and reward them, which benefits organisational performance. Recent human resource trends emphasise a continuous performance measurement process that achieves individual and organisational goals while keeping employees engaged and pleased. This chapter delves into the idea of performance measurement and evaluation. It is related to other notions because of its practical orientation and also considers how to increase the organisation's efficiency and effectiveness.

Introduction Employee development is aided by performance evaluation and measurement, which contribute to organisational growth and development. Assessing and evaluating employee performance is critical to increasing organisational efficiency and effectiveness. Because there is a gap between employees' expected and actual performance, it is vital to understand where individuals stand to achieve the organisation's goals. Therefore, determine the actual performance in the best way to attain goals.  1

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When one of the sets of numerals is assigned to each set of objects, be it commodity or person, as per the acceptance rules or standards and explained in common words, symbols, and units to characterise the status of that object, it is known as measurement. ("Difference between Measurement and Evaluation (with Examples and Comparison Chart)". 2020) From the human resource aspect, it is a mechanical process that includes systematically studying the features with the help of suitable assessment tools. ("Difference between Measurement and Evaluation (with Examples and Comparison Chart)", 2020) There are two types of measurement: one is physical, and the other is mental. Employees are working physically and mentally at a job. There is high mental work in some higher-level jobs, whereas for lower-level jobs, there is more physical work. Internal marketing connects employees to the organisational goal and fosters internal consumer orientation. As a result of this modern notion, there is no need to be concerned about employee performance because internal marketing must be measured. If internal marketing is not successfully applied, staff are not goal-oriented. The benefits of performance reviews are numerous, as long as the measures for a helpful and practical approach are followed. Some benefits include maintaining clear objectives and standards for the employees, providing staff with critical comments to assist them, setting companywide objectives for all employees to perform, developing a direct path for promotions and raises, and providing supervisors with the option of putting problematic employees on a performance enhancement plan. Jotform suggested step by step guide for the performance evaluation procedure: (Fig. 6-1):

Fig. 6-1: Steps for Performance Evaluation Procedure

1. Create forms: For collecting feedback, there is a need for each employee to have a question form that addresses all of the performance areas that they want to cover.

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2. Mechanise feedback gathering: After creating forms, e-mail them to employees and start collecting the feedback. The Jotform account collected all the data in the cloud. 3. Set up approvals: If the evaluation procedure requires approval, Jotform has a simple solution. When employees submit an evaluation form, the right manager will receive an instant notification. 4. Manage data: With Jotform, all data is easily managed. It permits sorting, adding tags and colours, importing, and haring. With jotform tables, it can manage all data in an easy-to-use workspace. It permits sorting data, adding tags and colours, and importing it whenever required, for example, when deciding bonuses and compensation. 5. Hold discussion: After collecting all the information, it is time to have a discussion between employees and managers for the official reviews. (Jotform, n.d.)

Meaning of Performance Measurement Performance evaluation is the process of determining the efficacy and efficiency of initiatives, projects, and programmes. It is an activity that a firm will regularly engage in to demonstrate accountability, improve procedures, and assist in decision-making. Companies must create their own performance indicators based on their projects' progress and goals. Performance evaluation assesses the effectiveness and efficiency of initiatives, projects, and programmes. It is a technique for gathering, analysing, and grading data on how "on track" a project or programme is to meet its results, goals, and objectives. Organisations frequently take this step to demonstrate accountability, improve operations, and support decision-making. Organisations must create success indicators based on the status and goals of their operations. Any project or plan with precise objectives and targets should include performance measurement as a core component of the planning process. Performance metrics provide information that facilitates strategic decisions concerning an organisation's operations and internal procedures. Structures for measuring performance are customisable and can be used for new or continuing operations. They can determine the viability of a pilot project, a multi-year programme, or a strategic plan. (Ontario 2022)

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Advantages of Performance Measurement There are various advantages of evaluating performance measurement, ranging from analysing the success of a single project to establishing a culture of continuous improvement across a whole organisation. Regularly using performance measures helps guide decision-making and allows midcourse plan revisions or priority rearrangements to capitalise on new opportunities. An organisation can learn from its successes and failures by employing an internal performance monitoring system to drive repercussions. (Ontario, 2022) The advantages of performance metrics are; x Encourages 'buy-in' by including stakeholders in developing goals and objectives. Creates "best practices" and "lessons learned" that can be used in future endeavours. Increase accountability by proving the effectiveness and significance of plans and activities in achieving desired results. x Provides recommendations for resource allocation and budgeting in situations where scarce resources may compete. x Assist in depicting and documenting changes throughout time. x Assist in telling the organisation's story. x Builds relationships by including stakeholders and establishing a shared understanding of the procedure. x A framework for implementing this method must be developed to enjoy the full benefits of performance measurement. (Ontario 2022)

Performance Measurement Framework A performance measurement framework recognises the indicators needed to control and evaluate the performance of a programme (Fig. 6-2). Its purpose is to; x Recognise the following measures: linkage and analytical approach, roles and responsibilities, and logic model reporting. x Programme managers are given a framework for measuring performance in making educated decisions and acting on initiatives promptly. x Performance measurement constantly evaluates and monitors the effectiveness of programmes and their administration. x Verifying the data will aid in the review process. (2022, Ontario)

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Fig. 6.2: Performance outcome of employees, source: https://cdn.pixabay.com/photo/2017/10/04/08/36/crowd-2815531_1280.png

Meaning of Performance Evaluation The method of evaluating employees' job success is called performance evaluation, sometimes called performance appraisal. Organisations should use these assessments to determine whether a person is suitable for a promotion. Appraisals can also be used to provide staff with comments on how they might improve their performance. Some businesses use performance reviews to choose which staff to hire. They could be laid off or put on a performance improvement plan. This could make the performance review process uncomfortable for employees. According to Gallup, only fourteen per cent of employees are inspired by their performance management system, and even worse, 95 per cent of managers are dissatisfied with it. Most businesses would benefit from critically examining their current strategy and devising a better one. Some employees view feedback as a tool to help them grow and become more efficient. Others may be concerned about someone judging their performance. So, how can we design a performance appraisal method that works for the wide range of situations that employees face? The quick answer is yes, given a sound plan and the proper instruments. (Jotform, n.d.)

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Benefits of Performance Evaluation The following are the key benefits of performance evaluation: x Enhanced communication: In the performance evaluation system, managers provide feedback to their team members. This feedback provides information based on the work, delivery and completion. Using feedback, employees can improve their work and plug any gap areas identified by their managers. It also brings various other matters the employees may have and need to address, and assists in open and honest communication between the manager and the team. ("Performance Evaluation - Definition, Method, Survey and Example", 2019) x Resource planning: Employee appraisals assist in comprehending how an employee is working and what their future goals or assignments can be. It does not only assist in practical goal management but also resource planning. It can effectively reallocate resources or hire new members to add to the team. ("Performance Evaluation - Definition, Method, Survey and Example", 2019) x Build a career pathway: Managers help their employees during work and direct how to perform them effectively. A performance evaluation meeting is a time to see an employee's career path. It assists in knowing about employees' future goals and what they need to do to get there. It helps to develop small and attainable goals, assign deadlines and targets, and perform towards completion. It also lets the employees know where they stand and where they will be in the coming years. ("Performance Evaluation Definition, Method, Survey and Example", 2019) x Check levels of engagement: Engaged employees work better than their counterparts. They are better team players, productive, and actively assist their peers. Employee performance evaluations are a perfect time to check how involved an employee is. It will help the organisation understand how engaged the employee is and what essential steps would be required to confirm high engagement. ("Performance Evaluation - Definition, Method, Survey and Example", 2019) x Get feedback: A performance evaluation meeting is not only to provide feedback. It is an excellent opportunity to get feedback on performance from the team members. There is a need to comprehend the gaps and what can be done to enhance the

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performance of team members and be an excellent mentor to them. ("Performance Evaluation - Definition, Method, Survey and Example", 2019)

Essentials of Employee Performance Review An effective performance review supports employees in recognising chances for growth and potential areas for improvement while maintaining strong company relationships. Writing a good evaluation takes time, and managers frequently need more information. The recommended practises for completing evaluations and how performance management tools might help. x Employee performance appraisals should include teamwork, communication, job quality, problem-solving, dependability, and timeliness. x Consistently provide regular and informal feedback. There is a need to be honest in face-to-face interaction. Moreover, it positively ends in formal reports. x Employee performance evaluations are required in all firms. However, how reviews are conducted affects how effective they are. A performance evaluation inspires employees to reach new heights or leave the organisation. Performance management software and professional employers can help with speedy performance reviews. (Peek 2019)

Six Best Practices to Conduct Effective Employee Performance Review Six best practices to conduct effective performance review are (Fig. 6-3):

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Fig. 6-3: Six best Performance review practice

1. Offer regular and informal feedback to employees: Performance assessments are frequently held once or twice a year; however, feedback should be more comprehensive than these times. Provide consistent performance reviews to employees annually, and pay attention to high achievers. 2. Be honest: No employee is flawless, and there is always room for advancement. When offering constructive criticism, it is vital to be truthful. 3. Perform face-to-face employee performance reviews: A written review should provide a brief but direct description of discussion points, allowing for a more nuanced in-person discussion. It may be planned to have a meeting in a coffee shop or outside the office to

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provide a comfortable environment. Video chat can be scheduled for remote workers to have a live interaction. 4. Use tangible, pertinent examples during the performance review: Use concrete examples to demonstrate paying attention when emphasising areas for improvement or what an employee has done well. 5. End the performance review positively. The evaluation should conclude with mutual respect and understanding. Encouragement and expression of appreciation boost a positive evaluation and boost an employee's morale after a poor evaluation. Employees can obtain the confidence and drive they need to perform better by receiving positive feedback and constructive professional comments. 6. Choose words carefully during evaluations: It is vital to select words carefully. There is a need to take extra care in phrasing evaluations. Excellent leadership language includes meaningful and action-oriented terms that have far more impact than common expressions like "good" or "satisfactory." (Peek, 2019)

Process of Performance Evaluation The process of performance evaluation are given below: Step 1: In most organisations, a performance review system specifies that an employee's performance is evaluated every three to six months if the individual has consistently performed with the organisation. The human resources department can distribute an online survey to employees to gauge their engagement and happiness. ("Performance Evaluation Definition, Method, Survey and Example", 2019) Step 2: After measuring yearly performance, conducting an employee engagement survey, and having a face-to-face meeting, the employee's direct manager will decide on their performance quality. Step 3: The online employee satisfaction survey responses can be kept anonymous. A centralised dashboard allows for real-time analysis of this feedback. Based on the data, the manager can generate additional questions for the face-to-face performance evaluation meeting. To be labelled a tenured employee, a probationary employee must work for six months according to their supervisor's potential. The first six months of an employee's stay are essential since management continually

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seeks their involvement in assigned work, punctuality in task completion, and ownership abilities. After confirmation, a direct manager will evaluate the non-probability employee annually. ("Performance Evaluation Definition, Method, Survey and Example", 2019)

Methods of Performance Evaluation There are five critical performance evaluation methods. ("Performance Evaluation - Definition, Method, Survey and Example", 2019) Using only one of these performance evaluation methods might assist an organisation in attaining one-sided information while using multiple methods to obtain insights from many perspectives, which will be instrumental in developing unbiased performance-centric decisions. x Self-evaluation method: Employees are predicted to rate themselves using multiple-choice or open-ended questions after seeing some evaluation criteria. After performing self-evaluation, management can fairly evaluate an employee by focusing their thoughts on their performance. The gap between self-evaluated and supervisor ratings can be deliberated to maintain a certain level of transparency. x Graphics rating scale: It is a widely used method by supervisors. Text values or numeric values corresponding to values from poor to excellent can be used in this scale, and parallel evaluations of various team members can be performed using this graphical scale. This scale measured expertise, skills, and other qualities that were similar for each employee. x Development checklists: Every organisation has a roadmap for each employee for their exhibited behaviour and development. Sustaining a checklist for development is one of the most straightforward performance evaluation methods. This checklist has many dichotomous questions, the answers to which must be positive. If not, then employees need developmental training in areas requiring enhancement. x 360-degree method: In this method, employees are rated regarding their progression within and with external teams. Inputs from supervisors of various departments and evaluations done by direct supervisors and peers are considered. Therefore, in 360-degree feedback, each employee is rated for the job done, explaining their job and the work done in association with other teams.

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x Demanding events checklist: There are events in each employee's career with an organisation where they must represent immense expertise and skill. An intelligent manager always retains a demand events list where employees represent good or bad qualities. ("Performance Evaluation - Definition, Method, Survey and Example", 2019)

Performance Instruments and Indicators Performance indicators are signals that indicate the level of performance. A device that displays a value or changes in level, speed, etc. is an indicator of how a condition changes. A tool or gadget used to measure performance is called an instrument. Measurement is a systematic process of determining the attributes of an object. It establishes an object's weight, speed, width, and density. One can only make measurements of physical attributes if one has to measure those attributes, which cannot be measured with tools. Thus, there is a need for evaluation. It helps in passing judgement about the performance. ("Difference between Measurement and Evaluation (with Examples and Comparison Chart)", 2020) Due to diverse thoughts and attitudes towards employee performance measurement, there can be three broad categories of measuring employee performance: conventional, modern, and potential. Measuring employee performance is a tool through which employee performance is measured. For this purpose, there is a need to identify all the independent variables that impact employee performance. Conventional Instruments: These are the oldest instruments to measure employee performance, which are productivity, profitability, market share, output, and employee devotion. Modern Instruments: Employee motivation, employee satisfaction, employee retention, employee commitment, employee engagement and involvement, and employee participation are the modern instruments. Potential Instruments: Potential instruments can be internal customer orientation, internal communication, internal service quality, internal

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promotional activities, internal marketing through digital networks, employee relationships, and employee empowerment.

Key Performance Indicators 1) KPI KPIs are also called key success indicators (KSIs). It varies in companies and between industries, depending on performance criteria. For example, a software company determined to achieve the fastest growth in its industry may consider year-over-year revenue growth as its chief performance indicator. Equally, a retail chain might place more value on similar store sales as the best KPI metric for evaluating growth. Key performance indicators (KPI) measure a company's output against objectives, targets, or industry peers. (Twin 2023)

Kinds of KPI Most KPIs fall into various categories: features, users, and timeframe. There are strategic KPIs, operational KPIs, functional KPIs, and lagging KPIs. Strategic KPIs are generally the highest level. These KPIs may show how a company works, although they only offer information beyond a highlevel snapshot. Executives are most likely to use strategic KPIs, and examples of strategic KPIs include the return on investment, total company revenue, and profit margin. Operational KPIs are focused on a much tighter timeframe. These KPIs measure how a company performs month over month (or even day over day) by examining various processes, segments, or geographic locations. These operational KPIs are usually used by managing staff and are usually used to analyse questions that are derived from examining strategic KPIs. For example, if an executive notices company-wide revenue has reduced, they may investigate which product lines are struggling. Functional KPI It is in one particular department or function within an organisation. For example, the finance department may track how many new vendors they register within their accounting information system each month, while the marketing department measures how many clicks each email distribution receives. These kinds of KPIs may be strategic or

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operational but offer the most outstanding value to one particular set of users. Leading or lagging KPIs explain the nature of the data being examined and whether it signals something has already happened. Consider two KPIs: the overtime hours worked and the profit margin for a flagship product. The number of overtime hours performed may increase, and the organisation should notice poorer manufacturing quality. Otherwise, profit margins are a consequence of operations and are considered a lagging indicator. (Twin 2023)

Financial Metrics and KPIs Key performance indicators tied to the financials characteristically focus on revenue and profit margins. Net profit, the most tried and true of profitbased measurements, shows the amount of revenue that remains as profit for a given period after accounting for all the company's expenses, interest payments, and taxes for a similar period. Examples of financial KPIs comprise: Liquidity ratios (i.e., the current ratio, which divides current assets by current liabilities): These KPIs measure how well a company will manage short-term debt obligations based on the short-term assets it has on hand. Profitability ratios (i.e., net profit margin): These kinds of KPIs measure how well an organisation is working to produce sales while keeping expenses low. Solvency ratios (i.e., the total debt to total assets ratio): These kinds of KPIs measure the long-term financial health of a company by measuring how well it will be able to pay the long-term debt. Turnover ratios (i.e., inventory turnover): These KPIs measure how fast a company can work on a specific task. For example, inventory turnover measures how fast a company can transform an item from inventory to a sale. Companies strive to raise turnover to generate a speedy churn of investing cash to recover that cash through revenue later. (Twin 2023)

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Customer Experience Metrics and KPI Customer-focused KPIs usually focus on customer efficiency, retention, and satisfaction. Customer service teams use these metrics to understand the service that customers have been receiving. Examples of customercentric metrics are: Several novel ticket requests: This KPI counts customer service needs and measures how many novel and open matters there are with the customers. Several resolved tickets: This KPI counts the number of completed requests. By comparing the number of requests to the number of resolutions, a company can evaluate its success rate in getting through customer requests. Average resolution time: This KPI is the average time required to assist a customer. Companies may select to segment average resolution time across various requests (i.e., technical matters requests vs. new account requests). Average response time: This KPI is the average time required for a customer service agent to first link with a customer after the customer has submitted a request. Though the starting agent may need to gain acknowledgement or expertise to offer a solution, a company may value reducing the time a customer waits for assistance. Top customer service agent: This KPI is a blend of any metric above, cross-referenced by customer service representatives. For example, a company can regulate the three fastest and slowest responses in addition to the company-wide average response time. Type of request: This KPI is a count of various requests. This KPI assists a company in understanding the customer problems (i.e., the company's websites give inaccurate directions) that need to be resolved by the company. Customer satisfaction rating: This KPI is an unclear measurement, though companies may perform surveys or post-interaction questionnaires to collect additional information on the customer's experience.

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KPIs are generally not externally needed; they are simple internal measurements management uses to measure a company's performance (Twin, 2023)

Process Metrics and KPI Process metrics aim to evaluate and monitor operational performance across the organisation. These KPIs examine how tasks are performed and whether quality, procedure, or performance matter. These metrics are helpful for companies with repetitive processes, such as manufacturing firms or companies in cyclical industries. Examples of process performance include: x Production efficiency: This KPI is usually measured as the production time for each phase divided by the total processing time. A company may strive to invest only 2% of its time in soliciting raw materials. The company may strive for solicitation enhancements if it identifies that it takes five percent of the total proceeds. x Total cycle time: This KPI is the total time required to finish a procedure from start to finish. It may be converted to average cycle time if management wishes to examine a procedure over some time. x Throughput: This KPI is the number of units generated divided by the production time per unit and measuring the speed of the manufacturing process. x Error rate: This KPI is the total number of errors divided by the total number of units generated. A company focussing on decreasing waste can better comprehend the number of items failing quality control testing. x Quality rate: This KPI stresses the positive items generated instead of the negative. By dividing the fruitful units finished by the total number of units produced, this percentage updates management of its accomplishment rate in meeting quality standards. (Twin 2023)

Marketing KPIs Marketing KPIs attempt to better understand how effective marketing and promotional campaigns are. These metrics usually measure conversation rates based on how often potential customers perform specific actions in response to a given marketing medium. Examples;

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x Website traffic: This KPI pathway is the number of people who visit various pages of a company's website. Management can utilise this KPI to better comprehend whether online traffic is being pushed down potential sales channels and if customers need to be channelled appropriately. x Social media traffic: This KPI tracks the views, likes, follows, shares, engagement, and other measurable interactions between customers and the company's social media profiles. (Twin 2023) x Conversation rate on call-to-action content: This KPI centres around focused promotional activities that ask customers to perform actions. For example, a particular campaign may motivate customers to perform before a specific sale date ends. A company can divide the number of successful engagements by the total number of content distributions to determine what percentage of customers responded to the call to action. x Blog articles: This KPI counts the number of blog posts a company prints monthly. x Click-through rates: This KPI measures the number of particular clicks performed on e-mail distributions. For example, specific programmes may track how many customers opened an e-mail distribution, clicked on a link, and subsequently went through with a sale. (Twin 2023)

IT KPIs A company may want operational excellence; in this case, it may want to determine how its internal technology department works. These KPIs may motivate a better understanding of employee satisfaction or whether the IT department is being sufficiently staffed. Examples of IT KPIs comprise: x Total system downtime: This KPI measures how many systems must be offline for updates or repairs. While systems are down, customers may be incapable of placing orders, or employees may be unable to perform specific duties (i.e., when the accounting information system is down). x Number of tickets or resolutions: This KPI is the same as the customer service KPIs. These tickets and resolutions relate to internal staff requests such as software and hardware requirements, network problems, or other internal technology problems. x Number of developed characteristics: This KPI measures internal product development by measuring the number of product changes.

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x Count of critical bugs: This KPI counts the number of critical difficulties within systems or programs. A company must have internal standards for establishing a minor or significant bug. x Back-up frequency: This KPI counts how usually critical data is repeated and stored in a safe location. Management may set various targets for various information. The management may set the following records (Twin, 2023)

Sales KPIs The ultimate aim of a company is to produce revenue through sales. However, revenue is usually measured through financial KPIs; sales KPIs take a more granular approach by leveraging non-financial data to understand the sales procedure. Examples of sales KPIs comprise: x Customer lifetime value (CLV): This KPI shows the total money a customer is predicted to invest in products over the entire business relationship. x Customer acquisition cost (CAC): This KPI shows the total sales and marketing costs needed to land a novel customer. By comparing CAC to CLC, businesses can measure the effectiveness of their customer acquisition efforts. x Average dollar value for novel contracts: This KPI measures the average size of novel agreements. A company may have a desired threshold for larger or smaller customers. x Average conversion time: This KPI measures the time from contacting a prospecting client to safeguarding a signed contract to perform business. x Number of involved leads: This KPI counts how numerous potential leads have been communicated with or met. This metric can be divided into e-mails, visits, phone calls, or customer contacts. x Management may draw bonuses from KPIs. Salespeople and their commission rate may rest on whether they meet anticipated conversion rates or involve a fair number of leads. (Twin 2023)

Human Resource and Staffing KPIs Companies identify and discover valuable analysis of KPIs particular to their employees. From employee turnover to employee retention and

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satisfaction, a company may already have a wealth of information accessible about its staff. Examples of human resource or staffing KPIs comprise: x Absenteeism Rate: This KPI counts how many dates per year or period employees call in sick or missing shifts. This KPI may be a leading indicator for disengaged or unhappy employees. x Number of Overtime Hours Worked: This KPI tracks the number of overtime hours worked to gauge whether employees are potentially facing burnout or if staffing levels are suitable. x Employee Satisfaction: This KPI often needs a company-wide survey to gauge how employees feel about the company's numerous features. To get the best value from this KPI, companies should conduct a similar survey every year to track changes from one year to the next concerning the exact same questions. x Employee Turnover Rate: This KPI measures how frequently and rapidly employees leave their positions. Companies can also break down this KPI across departments to regulate why some positions may leave quicker than others. x Number of Applicants: This KPI retains the count of how many applications are submitted to open job positions. This KPI aids in evaluating whether job listings are sufficiently reaching a wide enough audience to capture interest and get strong candidates. (Twin 2023)

Develop a KPI report With organisations seemingly generating more data daily, it can become devastating to sort through the information and determine the most valuable and impactful KPIs for decision-making. When starting the procedure of pulling together KPI dashboards or reports, consider the subsequent steps: 1. Deliberate goals and intentions with business partners: KPIs are only as valuable as the users make them. Before pulling together any KPI reports, comprehend what business partners are trying to attain. 2. Draft SMART KPI needs: KPIs should have limits and be tied to particular, measurable, realistic, and attainable metrics. Vague, unrealistic, and hard to ascertain, little to no value In its place,

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focus on what information is accessible and meets what the SMART acronym needs. 3. Be flexible: As a pull-together, KPI reports are developed for novel business problems and additional attention to other areas. As business and customer requirements change, KPIs should adapt to specific numbers, metrics, and goals and align with operational evolutions. 4. Avoid devastating users: It may be alluring to overload report users with as many KPIs as can fit on a report. At a certain point, KPIs become problematic to understand, and it may become difficult to determine which metrics are vital to use. Five Key Performance Indicators KPIs differ from business to business; some are more appropriate for specific organisations than others. Generally, five commonly used KPIs comprise (Fig. 6-4); 1. 2. 3. 4. 5.

Revenue growth Profit margin Revenue per client Customer satisfaction Client retention rate

Fig. 6-4: Key Performance Indicator

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Measure KPIs KPI measurement relies on various factors. Usually, businesses track and measure KPIs through business analytics software and reporting tools. It comprises everything from gathering data via reliable sources, the safe storage of information, and the cleaning of data to regulating its format for analysis and the actual number crunching. Lastly, KPIs are often reported using visualisation or reporting software. Good KPI A KPI aims to assist management in making more acknowledged decisions, and a good KPI offers objective and transparent information on progress towards an end goal. It measures and tracks factors such as quality, efficiency, performance, and timeliness while offering a way to measure performance over time. KPI provides an effective way to measure and track a company's performance on various metrics. By comprehending exactly what KPIs are and how to implement them correctly, managers can better optimise the business for long-term success. Open a trading account in under five minutes. Open a trading account in under five minutes and join 900,000 other globally trading gold, copper, silver and 1,000 other CFD products over assets like indices, forex, and shares with an award-winning broker. Trade gold from 0.0 spreads on Vantage's raw account and access free education and trading tools with phone support. (Twin 2023)

Employee Performance Indicators Conventional Performance Indicator 1) Cost centres: Standard costing variance analysis is generally used to measure cost centre performance. It provides a detailed description of why costs may have been excluded from the standard. However, it has suffered from problems. It emphasises short-term cost minimisation, which may be at odds with other objectives, for example, quality or delivery time. Also, it is essential to be clear about who is responsible for which variance. Is the production manager, the purchasing manager, or both

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responsible for raw material price variances? There is also the problem with setting standards in the first place. Variances can only be as good as the standards on which they are based. (“Decentralisation and the Need for Performance Measurement | ACCA Qualification | Students | ACCA Global,” n.d.) 2) Profit centres: Controllable profit statements are commonly used in profit centres. The primary issue with such statements is difficulty deciding what is controllable or traceable. When assessing a manager's performance, we should only consider costs and revenues under the control of that manager and, hence, judge the manager on controllable profit. In assessing the division's success, we should focus on costs and revenues that are traceable to the division and judge the division on traceable profit. For example, depreciation on divisional machinery would not be a controllable cost in a profit centre. This is because the manager has no control over investment in fixed assets. It would, however, be included as a traceable fixed cost in assessing the division's performance. (“Decentralisation and the Need for Performance Measurement | ACCA Qualification | Students | ACCA Global,” n.d.) 3) Investment centres: In an investment centre, managers have the responsibilities of a profit centre plus responsibility for capital investment. Two divisional performance measures are commonly used. (“Decentralisation and the Need for Performance Measurement | ACCA Qualification | Students | ACCA Global,” n.d.) Return on investment (ROI) % = profit/controllable (traceable) investment.

controllable

(traceable)

Residual income = controllable (traceable) profit – an imputed interest charge on controllable (traceable) investment.

Measurement and Performance Evaluation System There are two types of measurement: 1. Physical measurement: The measurement of an object in which materials exist. From the human resource aspect, For example, the height and weight of an individual. 2. Mental measurement: It is a psychological measurement. It is not explained in absolute terms but is relative and based on individuals'

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responses or observations. Human resource aspects are, for example, measuring the amount of work done by an individual. ("Difference between Measurement and Evaluation (with Examples and Comparison Chart)", 2020) Evaluation can be explained as the act of assigning value to the measure. It is a continuous and systematic procedure where the analysis of the outcome derived from the measurement of the features of the object, the activity or the person is determined based on the feature. Judgment is passed based on suitability, value, or desirable in the evaluation. From a human resource perspective, equation for evaluation: Evaluation= Quantitative outcome +Qualitative outcome explanation +value judgement Quantitative includes facts and figures on human resources. Qualitative explanation comprises ranking, value, weightage, and quality outcome. So, in evaluation, the learner's knowledge is not the only measured feature. Instead, all the features which are essential for his or her development are taken into consideration. Thus, employee evaluation can comprise four objective features: experience, performance appraisal and feedback. Human resource professionals comprehend the idea of performance measurement and evaluation; elucidating the difference between measurement and evaluation is vital. x Measurement can be comprehended as explaining the attributes and dimensions of a physical object. Conversely, evaluation is an ongoing procedure of assigning and measuring qualitative meaning by passing value judgements. x Measurement accounts for the observations which can be represented numerically, i.e. quantitative observations. On the other hand, evaluation comprises both quantitative and qualitative observations.

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x Measurement involves the assignment of numerals to the person or object per the specific rules. Evaluation involves the assignment of grades, levels or symbols according to established standards. x While measurement focuses on one or more qualities or traits of a person or object, evaluation covers all the features with cognitive, affective and psychomotor learning. x Measurement analyses focus on how much, how tall, how fast, how far or how small somewhat is and that too in numerical terms. If we look at differences, evaluation answers how well somewhat is, which is done by adding meaning or value judgment to the measurement. x One cannot make rational assumptions about the learner with measurement, but this is not the case with evaluation. x Measurement consumes less time and energy as it uses tools or measuring devices to serve the purpose. Evaluation requires observation and passes value judgment, which consumes time and energy. x The scope of the measurement is limited because it considers only several dimensions of personality or attributes. Nevertheless, evaluation covers all the dimensions before passing value judgment. The evaluation process includes measurement, and therefore, it has a broader scope. x Measurement is content-oriented, whereas evaluation is objectiveoriented. (“Difference between Measurement and Evaluation (with Examples and Comparison Chart)” 2020) An employee performance evaluation, also known as a 'performance review, is a procedure organisations use to provide employee feedback on their job performance and formally document that performance (Jotform, n.d.). Performance evaluations vary significantly in structure and format across industries and companies. They include rating scales, selfassessment checklists, formal observations, or performance tasks. Typically, at least a portion of an employee's performance evaluation includes a review of outcome metrics or progress against previously identified goals. Some companies conduct evaluations when employees end their initial probationary period. Those who perform well on that evaluation are typically removed from probationary employment status. Evaluation information is stored in the employee's file and may be requested by future employers or institutions of higher education.

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In the corporate sector, for example, part of an employee's performance evaluation might include a review of sales generated or company growth targets. Students' academic performance in a specific class is included as an evaluation component in a school setting. (Williams, 2023) All organisations that have learned the art of 'winning from within' by stressing inward on their employees depend on a systematic performance evaluation procedure to measure and evaluate employee performance frequently. Preferably, employees are classified based on their work anniversaries, based on which they are either promoted or given an appropriate distribution of salary raises. Performance evaluation directly provides periodic feedback to employees, so they are more aware of their performance measurement system. It is a formal and productive process to measure employee performance and consequences based on job responsibilities. It is used to determine the value an employee adds in terms of enhanced business revenue related to industry standards and overall employee return on investment (ROI). Performance evaluation measures an individual or organisation's job performance to determine how well they fulfil their responsibilities. Regular performance evaluations assist the employee in knowing their level of performance and the scope for improvement. An employer helps to provide feedback on employees' strengths for improvement in the areas that the employees require to work. Therefore, it is an integrated platform for both the employee and employer to attain common ground on what both think is becoming quality performance. There can be three levels of employee performance: standard performance, above standard performance and below standard performance. Individual performance standard performance =need to maintain performance, High-level reward Individual performance < standard performance=Need for improvement, train employees Individual performance = standard performance =Maintain employee performance, standard reward.

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The above three level of employee performance measurement helps to decide what to do next to improve employees' performance. It helps improve communication, which usually leads to better and more accurate team metrics and, therefore, improved performance results. This procedure helps the team or an organisation attain higher levels of internal and external customer motivation and satisfaction. A manager needs to measure employee performance regularly. In this way, the team can overcome novel and unexpected obstacles with constant work to improve efficiency and competence. An organisation's management can train and improve employees' skills and develop them after the performance evaluation. The management can effectively manage a team and perform productive resource allocation. Periodic performance evaluation can help determine the scope of growth in an employee's motivation and career, which he or she contributes to organisational success. There are various advantages of employee performance evaluation, such as improved communication, building a career pathway, resource planning, getting feedback, resource planning, etc.

Study on Health Care Performance Measurement Healthcare performance measurements are quantified, aggregated, and analysed based on data on a specific healthcare-related activity. The purpose is to discover opportunities for decreasing costs, enhancing healthcare quality, and increasing care delivery efficiency. These measurement initiatives are typically operated and developed with the active participation of the hospital staff and physicians whose performance is being measured, as well as the government and another third party, to confirm that the measures are meaningful and that the data are correct. (“Healthcare Performance Measurements | Healthcare Outcome Measures | IBM,” n.d.) Types of Health Care Performance Measurement Types of healthcare performance measurements comprise; x Quality and efficiency of patient care x Care outcomes x Cost of healthcare services

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x Disparities in performance (“Healthcare Performance Measurements | Healthcare Outcome Measures | IBM,” n.d.) Causes of Measuring Health Care Performance Good health care is more vital to people than most other goods or services. Society has a strong interest in getting good health care. Governments and individuals invest a lot in healthcare. Not only do people collectively and individually invest significant dollars in healthcare or healthcare insurance, The objective is to provide good healthcare services so that people can compare them. For the effectiveness and efficiencies of hospital functioning and the health system, there is a need to evaluate and measure the facility that is provided, identify gaps in the health care system, particularly where the performance is low, reward and recognise the above standard performance, and use these examples to develop best practices, securing ongoing data to check information about changes in quality of care. (“Healthcare Performance Measurements | Healthcare Outcome Measures | IBM,” n.d.)

Conclusion Measurement helps provide a solid base for an evaluation system. Evaluation plays a vital role in improving organisational performance and development. Workforce performance management is a way for companies and organisations to measure their employees and work processes to improve productivity and profitability. Performance evaluation measures an individual's or organisation's job performance to determine how well they fulfil their responsibilities. Regular performance evaluations assist the employee in knowing their level of performance and the scope for improvement. An employer helps to provide feedback for further enhancement. KPIs are also called key success indicators (KSIs). It varies in companies and between industries, relying on performance criteria. For example, a software company determined to achieve the fastest growth in its industry may consider year-over-year revenue growth as its chief performance indicator. Performance assessment and evaluation are critical for the growth and development of an organisation. Employees are crucial players in organisational performance; consequently, it is necessary to assess and enhance their performance in the future. Understanding the effectiveness

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and efficiency of organisational initiatives, programmes, and projects in achieving organisational goals is helpful. On the other hand, internal marketing directs and measures employee performance to motivate and reward them, which benefits organisational performance. Recent human resource trends emphasise a continuous performance measurement process that achieves individual and organisational goals while keeping employees engaged and pleased. This chapter delves into the idea of performance measurement and evaluation. It is related to other notions because of its practical orientation and also considers how to increase the organisation's efficiency and effectiveness.

References Decentralisation and the Need for Performance Measurement | ACCA Qualification | Students | ACCA Global.” n.d. Www.accaglobal.com. https://www.accaglobal.com/gb/en/student/exam-supportresources/fundamentals-exams-study-resources/f5/technicalarticles/performance-measurement.html Difference between Measurement and Evaluation (with Examples and Comparison Chart).” 2020. Key Differences. December 3, 2020. https://keydifferences.com/difference-between-measurement-andevaluation.html. Healthcare Performance Measurements | Healthcare Outcome Measures |IBM.” n.d. Www.ibm.com. https://www.ibm.com/in-en/topics/healthcare-performancemeasurements. Jotform. n.d. “The Performance Evaluation Process.” The Jotform Blog. https://www.jotform.com/blog/performance-evaluation-process/. Measuring in SAP Application Performance Standard (SAPS).” 2017. SAP. 2017. https://www.sap.com/about/benchmark/measuring.html. Ontario. (2022). "What Is Performance Measurement?” Ontario.ca. 2022. https://www.ontario.ca/document/performance-measurementagriculture-agri-food-and-economic-development-organizations/whatperformance-measurement. Peek, Sean. 2019. “How to Write Effective Employee Performance Reviews.” Business News Daily. April 2019. https://www.businessnewsdaily.com/5760-write-good-performancereview.html.

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Performance Evaluation - Definition, Method, Survey and Example.” 2019. QuestionPro. September 6, 2019. https://www.questionpro.com/blog/performance-evaluation/. Performance Measurement and Management | Urban Institute.” n.d. Www.urban.org. Accessed June 29, 2023. https://www.urban.org/research-methods/performance-measurementand-management. Twin, Alexandra. 2023. “Understanding Key Performance Indicators (KPI).” Investopedia. May 10, 2023. https://www.investopedia.com/terms/k/kpi.asp. What Is Workforce Performance Management? (with Pictures).” n.d. Smart Capital Mind. https://www.smartcapitalmind.com/what-isworkforce-performance-management.htm. Williams, Cassandra. 2023. “Employee Performance Evaluation: Definition, Benefits and How to Prepare.” Indeed Career Guide. 2023. https://www.indeed.com/career-advice/career-development/employeeperformance-evaluation

CHAPTER SEVEN INTERNAL MARKETING METHODS AND TOOLS1

Abstract Internal marketing is a recent human resource practice focused on internal customers. There is no unifying way of implementing it due to its different dimensions. However, it is vital to comprehend its processes and tools and identify its flaws to improve them. Internal marketing approaches and tools can be studied using various studies. Internal marketing practice not only measures employee performance but also measures employer performance. It is possible to understand the exchange value of the internal market. Therefore, methods and tools of internal marketing practice are to evaluate the internal exchange process that produces value for the internal customers and benefits the employer or organisation. This chapter discussed various internal marketing methods and tools.

Introduction The main goal of internal marketing is to educate and inform employees about the company’s goals and objectives, including ensuring they are familiar with its projects, products, services, and any external promotions. Developing a strategy that considers the internal marketing environment is the first step. Depending on what that internal environment is like, including what existing marketing is being done or if there has been none in the past, it will help to build a strategy that can be implemented. (Duncan, n.d.)  1

IM Methods and Tools.

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The internal marketing strategy should specify the company's future orientation. The strategy should generally include a need analysis of the situation, goals, objectives, vision, a plan to achieve these goals, education and training needs, timeliness, responsibilities, communication needs, and resources needed to achieve goals and measurements. While some organisations assign this duty to HR departments or dedicated internal communications teams, involving multiple teams and departments is critical for a more diverse perspective. Employees of all levels and positions should be involved in developing an internal marketing plan. Zappos is an excellent example of a company that realises this concept. Zappos uses 'employee generated media' to involve employees in both internal and external marketing. Employees are encouraged to promote the brand from the inside out by posting, conversing, and commenting on Twitter and internal blogs. The company's internal brand voice, culture, and image represent the brands the employees deal with. Example: Jostle is an excellent example of an intranet platform. It is built on cloud system software, which helps to streamline office communication. (Mariya 2021) Internal marketing examples include hosting internal educational seminars and events, having different themes on different messages, finding innovative ways to have employees live up to values and provide encouragement, branding employees, incentivising and rewarding employees, employee participation and team building.

Internal and External Marketing There are two kinds of marketing: one is internal, and the other is external. External marketing refers to traditional marketing tactics, such as advertisements, to raise awareness among consumers unfamiliar with small businesses. Internal marketing reaches out to those unfamiliar with the business, such as employees and existing customers, and enlists their help in establishing a solid brand image in the internal market. The logic behind internal marketing is that a small business can use its personnel to promote the benefits of its products or services, which saves money on external marketing and promotes the overall brand. Internal launch campaigns, focused events, training, and influential workers are effective internal marketing tactics. (“Internal Marketing Tools,” n.d.) Internal campaigns are stages of marketing that employees target. These campaigns happen before the public disclosure of a similar campaign. It is a highly effective tactic since it generates enthusiasm for the campaign

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among the people in charge of handling it. As a result, momentum is in full flow when the campaign reaches the general public. Internal introductions allow organisations to iron out specific issues before launching consumer campaigns. (“Internal Marketing Tools,” n.d.) A model of internal and external marketing presented by Mishra, 2022, in which a link between internal and external marketing is presented that adds value to the internal and external customer. Employees are treated as internal customers; therefore, it is also vital to consider their needs. Organisations must link their internal and external marketing activities to add value to employees and the organisation. Table 7.1 represents the difference between internal and external marketing. Table 7-1: Internal and External Marketing S.NO

Internal Marketing

External Marketing

1

Internal marketing is to create internal market orientation

External marketing is to create market orientation

2

It is to add value to the internal customers

External marketing is to add value to the external customer and shareholders

3

It utilises to boost external marketing

IM makes an impact on external marketing

4

It is the exchange process between the employee and the employer

It is the exchange process between employees and external customers

5

The internal interactive process improves the IM

Interactive marketing improves external marketing

Communication of Internal Marketing Campaign Starbucks is an excellent example of a company with a clear vision and mission statement: "to inspire and nurture the human spirit—one person, one cup, and one neighbourhood at a time." Starbucks' mantra is imparted to customers and employees, referred to as 'partners' by the firm. This modest action reflects one of the brand's most essential values: community and collaboration. (Mariya 2021)

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After knowing the tactics and strategy of an internal marketing campaign, the next thing is to focus on how to deliver the message. Branding messages must be delivered more than once and use various channels to increase effectiveness. Repetition is the key to delivering the message. The "rule of seven" states that the message must be heard at least seven times before the listener takes action. Industry 4.0 denotes a new industrial revolution characterised by a progressive physical and digital space convergence fueled by revolutionary technologies such as physical Internet of Things (IoT) systems and artificial intelligence (AI). Traditional manufacturing resources have been turned into intelligent objects with better identification, scanning, and networking capabilities to serve these new technologies. Hyper-connection, digitalisation, and sharing have the potential to revolutionise or affect the way industrial operations are carried out and, hence, how operations should be managed in the context of Industry 4.0. (Guo cited in Michulek and Križanová 2022) New technology and digitalisation speed up the communication process. It brought several changes in the internal marketing process. The internal exchange process is boosted due to the digital era. However, the attitude and perception of the organisation play a vital role in developing the strategy. The workforce can not be compared with digital tools. Man is the only resource with feelings, perception, attitude, personality and social well-being. Therefore, there is a need for human resources who can think about digital tools and utilise them efficiently. It all depends on the organisation's intention and what they want to achieve; they want to reduce costs or add value. It is a short-term profit if they reduce human resource value to reduce the cost. Focusing on successful internal exchange procedures is necessary to attain a competitive advantage and bring sustainability.

Internal Marketing Tools Due to diverse meanings and interpretations, various internal marketing tools exist to implement. Some of the essential tools are discussed here: Companies with influential employees: Influential people in an organisation regularly serve as excellent internal marketing tools. These personnel are often non-managerial, admired, and apparent members of the organisation. A very gifted coder or salesperson is one example. Because these individuals frequently form opinions within the company,

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having their input on the marketing campaign before it goes out to the consumer typically encourages buy-in from other employees. (“Internal Marketing Tools,” n.d.) Events: Events that positively target employees are another well-known internal marketing tool. Events may highlight employees' abilities, such as the McDonald's. Voice of America competition, in which McDonald's employees worldwide compete to sing at the company's annual trade show conference and win a $25,000 grand prize. Such events have the twin purpose of rewarding staff and encouraging consumers' perceptions of the company (“Internal Marketing Tools,” n.d.) Training: Training programmes are another useful internal marketing tool. Employees who participate in shared learning experiences tend to form social assistance networks, which fosters the internal marketing goal of increasing employee engagement with the organisation and job satisfaction (Fig. 7-1). (“Internal Marketing Tools,” n.d.)

Figure 7.1: Digital tools, source: https://cdn.pixabay.com/photo/2021/10/11/13/12/website-6700615_1280.png

Some innovative internal communications tools are: x Video Content: Video helps to tell a branding story and strengthen the message. x Podcasts: Various people prefer audio as their learning style, and podcasts can quickly deliver information or messages.

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x Screen savers: To reach employees daily where they sit with mainly designed screen savers that strengthen values, branding and key messages. x Newsletters: Relying on what needs to be communicated, a newsletter includes branding and values in the current internal newsletter. x Digital Signage: It is possible to turn various screens within the organisation into moving billboards that broadcast their custom content. (Duncan, n.d.) One tool that will assist in delivering internal marketing notions is Deskalerts, an internal communication software solution with various features such as scrolling tape, pop-up alerts, corporate screen savers, newsletters, corporate wallpaper and more. Content can be sent to any tablet, computer or smartphone in the organisation and can be used scheduled in advance. It can be sent to every employee or custom audience wherever required. (Duncan, n.d.)

Internal Marketing Programs and Methods Employees who participate in effective internal marketing programmes become brand advocates. However, what does it take to implement a successful internal marketing strategy? When most people think of marketing, they think of selling items to customers. Marketing in the sense of promoting a company to its employees is rarely considered. Furthermore, both types of marketing are equally vital. The primary goal of internal manufacturing is to involve, inspire, and inform personnel so that they may excel in their roles. Internal marketing may help employer teams and improve business outcomes by promoting employee engagement and effective communication. Marketing is when a company aims to sell its brand from within as with external marketing, the goal is to promote services, products, and brand values. (Mariya 2021) (Fig. 7-2).

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Source: https://cdn.pixabay.com/photo/2017/01/07/07/51/man-1959859_1280.jpg

Advantages of the Internal Marketing Program The advantages of an internal marketing program are: 1. Enhanced employee engagement: Employees who are engaged are happy and 17 per cent more productive. Employee involvement is thus one of the most significant benefits of an internal marketing plan. Effective internal marketing stimulates employee participation by providing a compelling and clear vision of the company's objective. (Mariya, 2021) 2. Higher employee retention: Employees who are driven and invested in their jobs are less likely to be influenced by recruiters. Employees are reminded of the benefits of working for their company through successful internal marketing. They are told about professional development possibilities and encouraged to advance within the organisation. Employees with pride in their work and a vision for progress will stay with the company longer and perform better. (Mariya, 2021) 3. Boosting company culture: A successful internal marketing plan provides employees with consistent graphics, statements, and practises representing the internal brand. It is the basis for a thriving corporate culture. For example, Southwest Airlines adopted a successful internal marketing approach. Southwest Airlines is a beautiful example of this concept in action. The signature heart emblem of the corporation became an essential feature of its successful internal marketing campaign. As a result,

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employees get more engaged with the company's ideals and practices. (Mariya 2021) 4. Improved customer service/satisfaction: Customers are significantly more likely to believe a reference from a family member or friend about a product. Employees that are exposed to successful internal marketing get emotionally invested in the products and are more likely to suggest them to their peers. Employee services have improved due to the internal marketing strategy since they believe in the company's product and are motivated to accomplish their jobs. (Mariya 2021) Employee appreciation day, job promotion, employer branding, employee social media, internal contests, rewards, work-life balance, professional development, internal communication, company news, employee performance reviews, compensation and benefits are some examples of internal marketing activities and newsletter ideas.

Internal Marketing Methods There are different methods to measure internal marketing. Based on the different understandings and viewpoints, internal marketing methods can be categorised into the following (Fig. 7-3).:

Fig. 7-3: Various Internal Marketing Methods

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x Observation Method: This method is based on observations of internal market performance. Observing employees' attitudes and behaviours represents how employees work in the organisation. It is observing how the employer benefits the employees and how employees react in the organisation to perform their jobs. x Interview Method: In this method, an interview between employer and employee is conducted to reveal the organisational information. It is a face-to-face method that helps to get instant feedback. Internal marketing is an exchange phenomenon. Thus, the interview method helps to share information between employer and employee, superior and subordinates. x Employee Satisfaction Survey: Initially, internal marketing is found to motivate and satisfy employees. Based on that interpretation, an employee satisfaction survey can be conducted to identify employee satisfaction. x Service Quality Survey: This survey method will likely measure internal service quality and the organisation's service quality. x Employee Performance Measurement: Based on the notion that internal marketing improves employee performance. This method measures employee performance to identify internal marketing implementation. x Internal Customer Orientation Measurement: This method describes the level of internal customer orientation created in the organisation. x Expert Opinion Method: If it is challenging to reveal practical information, then the expert opinion method is the best. Expert views can be taken in this method to determine internal marketing practices. x Internal Marketing Survey Method: This method is better than the employee performance method and employee satisfaction. In this method, various dimensions of internal marketing can be selected. x Statistical and Mathematical Methods: This method is the selected model of internal marketing, and statistical analysis is performed to identify internal marketing practices. However, it is only theoretical and not in practice. There is a need for improvement in this area.

Methods of Internal Marketing Strategy Investing in human capital and establishing a successful internal marketing plan for the company can build the brand's reputation and retain personnel while increasing profitability. ("Internal Marketing: Everything You

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Needed to Know in 2022 | Testimonial Hero | Video Testimonial Service," n.d.) Internal marketing strategy gives direction to attain internal marketing goals. There are different ways to follow this process, which are: 1. Internal Marketing Objectives: The first step towards implementing an effective internal marketing plan. Internal marketing objectives include improving employee knowledge of professional development opportunities and increasing staff involvement and engagement. (Mariya 2021) 2. Scope: Defining the scale of intended outcomes is required when developing the scope of an internal marketing strategy. (Mariya 2021) 3. Chosen Internal Marketing Team: Once the outline of the internal marketing plan has been developed, choosing who will be accountable to direct the team is necessary. (Mariya 2021) 4. Effective Internal Communications: Internal communications are crucial to marketing strategy. Employee newsletters, leadership communications, and internal emails all serve to represent the brand's mission, beliefs, and ambitions, as well as to educate employees and solicit employee feedback. Internal communications establish the tone for the employer brand and give employees various information about the organisation. It is used as a toolset and provides employees with resources and equipment such as company employee forums, e-books, and newsletter updates. All of this adds up to a repository of firm knowledge that serves as the foundation for internal marketing activities. (Mariya 2021) Clarity Brand Vision: Communicating a value-driven vision is critical to internal marketing. Employees want to understand the brand's value proposition and their involvement in it. Fluid Dialogue between Employees: A brand vision must also be backed by debate and critical for effective internal marketing, a discourse about the brand, providing feedback, and exchanging ideas for internal marketing to be effective. Employee newsletters are excellent tools for increasing employee dialogue and collaborating with internal marketing strategies. Newsletters foster two-way conversation by allowing for idea exchange, commenting opportunities, and embedded polls. It increases

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employee engagement and makes them feel valued, which is essential for successful internal marketing. (Mariya 2021) On-brand Messaging: Regardless of the internal communication channels chosen, ensuring the message is always on-brand and consistent is critical. That entails matching the internal brand voice to the external brand across all internal communication platforms. Employees have a clear impression of the brand when internal communications are on brand and consistent as a focus in the internal marketing plan (Mariya 2021) Internal marketing Benchmarks: With well-established benchmarks, it will be easy to assess if the internal marketing plan is achieving the required results. Performance benchmarks can include achieving a high employee satisfaction score on a recent employee survey or achieving a high eNPS. (Employee et al.) Employee Net promoter score regulates the probability that employees would mention the business to others. 9. Internal Marketing Audit: It is critical for success to evaluate the performance of the internal marketing strategy. An internal marketing audit examines the analytics underlying employee emails and newsletters to determine the readiness of the activities. Using an e-learning platform like Contact Monkey helps to identify how many employees read important company messages and learn about product upgrades. 10. Consistent Input: A pulse survey instrument is required to collect feedback on internal marketing initiatives continuously. These basic and brief surveys are intended to provide a 'pulse check' of the workplace by asking a single focused question on the topic of choice.

Best Internal Marketing Tools Numerous components must be connected, from creating internal marketing objectives to collecting continuous feedback. Numerous solutions exist to establish an internal marketing plan and reap the benefits without performing over time. (Mariya 2021) There are various internal marketing tools. Some of the best internal marketing tools are (Fig. 7-4):

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1. Internal Email: Employees benefit from an email newsletter by learning about new internal marketing efforts, events, and everything. The company newsletter synchronises every other channel of internal communication. It includes podcasts, video messaging, and strong public relations to create a consistent brand image. (Mariya, 2021) 2. Employee Surveys Employers may learn how their employees perceive their brand's mission, goods, and values by asking the right questions. They can also determine whether a current plan is effective with their employees. (Mariya 2021)

Employee SMS: SMS enhances and expands the reach of corporate communications while ensuring that distant, frontline, and deskless workers remain engaged. SMS is a quick means to communicate information such as meetings, emergency notifications, and scheduling changes. However, it also promotes employee events, reminds employees about employee engagement surveys, and draws attention to other activities.

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3. Videos: Videos offer more creative possibilities than words alone. They enable the creation of compelling messages and vivid narratives via sound and animation. As a result, the audience has a more robust emotional response. (Mariya 2021) 5. Intranet Software: Intranet software gives employees access to news, internal training courses, company resources, employee chats, etc. An intranet offers significant rewards for internal marketing because of its multipurpose capabilities. Intranets bring together employees from diverse teams and levels on a single platform where they may converse, learn from one another, and share ideas. Video Conferencing: With the rise of remote work, video conferencing has emerged as a powerful tool for improving product knowledge and showing a solid business culture. Video conferencing platforms such as Microsoft and Zoom provide face-to-face engagement and cooperation, providing more significant opportunities for bonding and team building. (Mariya 2021)

Mechanism of Internal Marketing Strategy 1. Brand Education: Employees need to understand the company's history and mission. Employees are brand ambassadors. Thus, they feel they are part of something bigger and feel proud. For this to occur, the onboarding process must be precise and strategic. 2. Pre-onboarding: It is initiated by supporting new employees when completing all the required paperwork. It also provides adequate time and sends them a video or document describing the company and what they suppose. (“Internal Marketing: Everything You Need to Know in 2022 | Testimonial Hero | Video Testimonial Service,” n.d.) 3. Welcoming Them: Provide the new employees with an orientation stage (of a week or less) to assist them in familiarising the organisation. It helps them understand better how overall business procedures work and start them with their new teammates. 4. Position-specific Training: Take the employee through a welldrafted training plan that represents what it takes to thrive in their position. Employees should store the training materials where they can refer back to them at any time. 5. Clarity in Communication: Effective internal communication is the most vital factor in the internal marketing strategy. With it, employees will be clear and capable of enjoying their work. With

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the increase of the global pandemic, various businesses have started using marketing communication apps, such as Slack, to enhance employee engagement. With the apps, it is possible to inform employees about business developments and proceedings. ("Internal Marketing: Everything You Needed to Know in 2022 | Testimonial Hero | Video Testimonial Service," n.d.) 6. Employee Recognition: Employees want recognition for their work, and thus, they try to attain organisational goals. In various ways, appreciation and recognition of employees lead to organisational growth. The Work Institutes 2021 retention report represents that a mere 7 per cent of employees leave jobs due to compensation, whereas 18 per cent decided to leave due to lack of growth, recognition and job security. Therefore, businesses must have employee recognition programs. For example, small gifts, thank you letters, and awards. ("Internal Marketing: Everything You Needed to Know in 2022 | Testimonial Hero | Video Testimonial Service," n.d.) 7. Internal Bonding Activities: The internal marketing plan should comprise activities that assist employees in feeling like part of the team. These activities will allow employees to get to know one another outside the work setting, preparing them to be comfortable with each other and improving their communication levels. Activities include laser tag, mystery dinners, Board game tournaments, cook-offs, Karaoke nights, virtual team-building activities such as virtual dance parties, virtual escape rooms, virtual scavenger hunts, etc. The purpose of these activities is to get the employee to relax and have fun. ("Internal Marketing: Everything You Needed to Know in 2022 | Testimonial Hero | Video Testimonial Service," n.d.) 8. Learning and Development Programs Opportunity for growth is a significant factor in retaining employees and company growth. It helps the business offer better services to the customers. The second reason is that it assists in reducing staff turnover. (“Internal Marketing: Everything You Need to Know in 2022 | Testimonial Hero | Video Testimonial Service,” n.d.)

Internal Marketing Tools 1. Email Newsletter: Employees invest their time and energy in the organisational work and need to get information about the organisation

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occasionally. They also want to communicate in the internal market to provide information. They want updates about the organisation's events, news and information. With the aid of the company newsletter, employees get insights into recent company events, training programs, initiatives and more. In this manner, all internal marketing channels are coordinated, and employees feel they are always working in the loop. A newsletter can comprise company PR articles, podcasts, and videos to develop a unified brand image. Moreover, newsletters also serve to provide employee feedback. ("Internal Marketing: Everything You Needed to Know in 2022 | Testimonial Hero | Video Testimonial Service," n.d.) 2. Videos: Video marketing is a robust activity. It is so powerful that 87 per cent of marketers use video as one of the marketing tools for internal and external purposes. Video permits the development of powerful messages and compelling brand storytelling quickly. 3. Staff Surveys: It is vital to know how employees perceive and attitude towards the organisation. It comprises what they like and dislike and how they perceive organisational goals, products and services. Employee Engagement Surveys: These disengagement and determine how to fix it.

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Employee satisfaction surveys measure the employees' happiness with their benefits, performance evaluations and their managers and colleagues. Employee morale surveys determine whether employees feel identified and respected at work. Employee experience surveys determine whether employees are happy with their induction, hiring and training experiences. Work culture surveys: It determine whether employees feel positive towards the organisation. Furthermore, how they feel about the organisation's work culture is vital for organisational development.

Conclusion For utilising suitable methods and tools of internal marketing, the first step is to create an internal marketing plan or strategy. After that, the information or message that must be communicated to the internal market is identified. Developing employees to handle internal marketing

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campaigns is possible when the message is disseminated. Various internal marketing tools include videos, podcasts, newsletters, digital signage, etc. They are motivated to follow all the organisational activities to attain their goals. There is a need for employee and employer commitment to attain the organisation's objectives. The basis of various ways to explain internal marketing is that there can be various methods of internal marketing practices: observation, interview, employee satisfaction survey, survey quality, employee performance measurement, expert opinion method, internal customer orientation, etc. There are also modern methods that measure all the dimensions in one survey, such as the internal marketing survey method. Statistical methods help to analyse the data that is collected.

References Duncan, Caroline. n.d. “Why Does Your Company Need to Use Internal Marketing?” Www.alert-Software.com. https://www.alert-software.com/blog/internal-marketing. Internal Marketing Tools.” n.d. Small Business - Chron.com. https://smallbusiness.chron.com/internal-marketing-tools-45136.html Internal Marketing: Everything You Need to Know in 2022 | Testimonial Hero | Video Testimonial Service.” n.d. Www.testimonialhero.com. https://www.testimonialhero.com/blog/internal-marketing-everythingyou-need-to-know-in-2022. Internal Marketing: Everything You Need to Know in 2022 | Testimonial Hero | Video Testimonial Service.” n.d. Www.testimonialhero.com. https://www.testimonialhero.com/blog/internal-marketing-everythingyou-need-to-know-in-2022. Mariya. 2021. “Internal Marketing: A Guide to Implementing an Effective Strategy.” ContactMonkey. June 15, 2021. https://www.contactmonkey.com/blog/internal-marketing-strategy. Michulek, Jakub, and Anna Križanová. 2022. “Analysis of Internal Marketing Communication Tools of a Selected Company in Industry 4.0 Using McKinsey 7S Analysis.” Management Dynamics in the Knowledge Economy 10 (2): 154–66. https://doi.org/10.2478/mdke2022-0011.

CHAPTER EIGHT CASE STUDIES ON HUMAN RESOURCE PRACTICES AND MEASUREMENT1

Abstract The organisation employs a variety of human resource practices and techniques. The organisational system does not follow any standard practices. There are disparities in how they adhere to human resource practices. As a result, measurement differs due to the various organisational structures, systems, policies, missions, and visions. Everything depends on how they evaluate the cost and worth of their personnel. Employees are the most important asset of the organisation. Organisations do not consider employees' value enough to pay huge losses in the long run. If they focus on employees, employees gain benefits, and it works as a win-win approach. Organisations that hesitate to consider employees' value suffer direct or indirect losses in the long run. In this way, they deprive themselves of competitive advantage. Now, the question is how to measure human resources and the best methodology for it. The organisations recognise employees' efforts and provide rewards to reinforce their behaviours. If there are proper measurement tools to measure their efforts, then it helps to develop the right reward system. Successful businesses frequently highlight how their employees' efforts contributed to their success. Human resource management aims to empower employees to make the best decisions at the appropriate times and locations. Organisations are moving towards internal marketing concepts in the current environment because they recognise that this is the only method to depict internal exchange phenomena. It boosts the value of internal customers and leads  1

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to successful organisations. This chapter discusses measurement techniques for human resources.

Introduction In the previous chapters, we discussed human resource practices and internal marketing practices adopted in various organisations. However, there needs to be a unified process for implementing it. Therefore, every measurement technique is followed in the organisation. However, the organisation is still trying to measure employee performance and focus on attaining the organisational goal. For this reason, it is vital to focus on recent developments in human resource practices to gain a competitive advantage. Recent human resource and organisational developments include strategic human resource management and internal marketing practices. There needs to be a consensus on what constitutes acceptable human resource practices. There are numerous different practices, and it is an ongoing process that must be combated with organisational change. (ElDirani, Houssein, and Hejase 2020) Several practices still serve as the foundation for many organisations, including recruitment, selection, managing performance, providing for continual learning, and implementing rewards programmes. (Abubakar and Abubakar 2013) According to Boselie, other concepts like employee involvement and job design are more erratic and have yet to gain more understanding in the human resource literature. (Boselie, Dietz, and Boon 2005) Human resource practices lead to employee performance, which various authors have extensively researched. (AL Qudah et al. 2014) Specifically, it is supposed to comply with employees' needs, which enhances favourable attitudes and improves performance outcomes. (Dysvik and Kuvaas, 2008) It has been extensively researched that employee participation leads to job satisfaction, productivity, and commitment, and they can develop a competitive advantage for the organisation. Khalid, who studied oil and gas, banking, and telecommunication sectors, was contacted. It has been found that employee participation increases employee satisfaction, commitment, and productivity. Increasing employee participation is a long-term process that demands attention from both management and employees. (Khalid et al. 2007)

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Guest (2002) studied work-life balance, which has become an essential topic for research and policy, and presented a model. The topic is connected to the field of work, organisational psychology, and several conceptual and theoretical matters relevant to the research. Various other studies prove that human resource practice is vital to organisational growth and development. Due to increasing competition and dynamic changes in the business environment, there are also emerging concepts that are more advanced human resource practices, for example, human resource accounting, employee empowerment, employee engagement and participation, internal communication, internal marketing, etc. Let us understand recent trends in human resource practices.

Recent Trends in Human Resource Practices Various trends in human resource practices can vary from organisation to organisation. Some of the key practices are discussed here (Fig. 8-1):

Fig.8-1: Recent Trends in Human Resource Practices

x Usage of IT Technology Information technology has changed the way we do work. In the current human resource practice, it has brought revolution. It has a significant impact on human resource practice. Human resources and line managers are primarily concerned with the company's success. The primary job of human resources is to assist the organisation's workforce needs. Strategic

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planning between human resource managers and line managers is essential for revising projections of future business demands to determine whether to train current employees, develop them for promotion, or recruit candidates with higher-level skills to supplement the current employee knowledge database. If trained in information technology tools, line managers will be prepared for various leadership roles. (Niaz 2020) There are various approaches to human resource practices, and information technology communication is a recent trend to work effectively and efficiently for all approaches. In a dynamic context, information technology may have a more significant impact on the organisation. It will result in increased human resource efficiency and effectiveness. Thus, utilising IT applications for database administration and advanced recruitment systems would improve business productivity. Information technology not only helps in the attainment of company objectives but also in the enhancement of work operations. Human resource management includes recruitment, development, training, and rewarding employees. Human resource management aims to attain competitiveness in the field of human resources. It is also providing continuous training programmes and educational development for employees. It has long been represented that information and communication technologies such as the internet, mobile communication, new media, and the internet can significantly work towards fulfilling an organisation's policy. The advent of technology plays a vital role in human resource development. It enables the organisation to enhance various internal procedures, core capabilities, relevant markets, and overall organisational structure. (Niaz 2020) Human resources must be focused on the organisation's strategic goals. These initiatives must be directed at integrating the organisation's information technology strategy. These are activities related to any advancement in the organisation's technological systems, such as IT systems and product design. (Niaz 2020) Human capital is a set of tools that can augment management and improve efficiency and effectiveness, ultimately achieving the organisation's overall aim. For example, success factors have created an HR IT talent management platform with a global operational capacity for Hilton worldwide. Organisations worldwide strive to improve organisational performance, regardless of industry or size. Managers within an organisation sometimes evaluate performance by comparing it to a

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benchmark. They assess and analyse their findings before designing controls to improve the organisation's performance. (Niaz 2020) x Innovations in Human Resource Management Human resource management innovation can manifest itself in a variety of ways: 1. To discover answers quickly and flexibly during a discussion 2. To generate new product and service ideas 3. To discover new markets Such innovations are accompanied by information technology to have a favourable impact on human resources. According to Rosabeth Moss Kanter, the regeneration and success of commercial organisations will depend on innovation, which includes developing new goods and methods of operation and introducing services. (Niaz 2020) Various studies prove that internal marketing is vital in the banking industry (Mishra, 2022). This sector works tremendously well on following the best human resource practices. It focuses on integrating human resource management strategies into the business strategy and includes managing the workforce by developing commitment to and better quality of services for consumers. Meanwhile, as Farid et al. (2014) demonstrated, critical HRM practices in the banking context include selection and recruiting, motivation, salary and wage adjustments, salaries, performance evaluation, audit promotion programmes, and internal communication. x Adoption of Internal Marketing Practices Various studies have proved that internal marketing is the best human resource practice driven towards internal customers. It is realised that it is insufficient to manage employees, but it is time to empower and keep them happy to attain organisational goals. Due to increasing competition, it takes work to retain competent employees. Therefore, motivating, training, empowering them, and providing suitable rewards help them attain organisational goals. Adopting internal marketing is not limited to employee motivation and retention but instead creates internal customer orientation to improve service quality and gain a competitive advantage. (Mishra, 2022)

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x Green Human Resource Management Practices The term 'green HR' is most often used to mention the contribution of people management practices and policies towards the broader corporate agenda. Green activities include video recruiting online and video interviews to reduce travel needs. Green rewards involve using lifestyle and workplace benefits to engage people in the green agenda while continuing to identify their contribution. The standard practices of green HRM have been shown in much of the literature. The previous studies stressed only a few functions of integrating environmental and human resource management. In addition, measuring green human resource management practices still calls for empirical validation. (Rajasshrie Pillai, 2014)

Human Resource Measurement and Evaluation Return on Investment: Hundreds of organisations generate ROI calculations for various programmes. There is a necessity for expenditure accountability, and an investment payout is desired; the ROI will be utilised to measure significant investments in HR. There has been some discussion over calculating the return on investment in human resources. Some people regard return on investment as improper, while others see it as the solution to their accountability concerns. The reality is that understanding the reasons for the ROI method and the inherent weaknesses and benefits allows us to take a critical approach to the topic and deploy an appropriate combination of evaluation strategies. (Phillips 2007) The 75th-anniversary issue of Harvard Business Review (HBR) examined the instruments used to assess organisational performance. During the 1920s, ROI was a developing method for calculating the return on investment. In recent years, the concept's application has been broadened to include all types of investment, including human resources, change initiatives, training, and education. (Phillips 2007) HR measurement and evaluation have come a long way in the HR field. Various measurement systems have been utilised since the 1960s, and the approaches have evolved. Few people claim that human resources functions should not be measured, but choosing the best approach is challenging. Twelve diverse approaches are recognised. There are overlapping processes and techniques. (Phillips 2007)

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Measurement Approaches Yeung and Berman (1997) concentrated on three aspects of human resource measurement. The first is the impact of human resource practises on business outcomes; the second is the value added to businesses through human resource practises; and the third is the various human resource measures that can drive business performance. They investigated a case study of Eastman Kodak to determine three paths of human resource practises that contribute to corporate performance by growing skills, improving employee satisfaction, and increasing customer and shareholder satisfaction. For using human resource measurement, the following steps should be taken: 1. Ongoing and timely collection of accurate data on desirable HR measures. 2. HR metrics are scrutinised, and feedback is provided promptly. 3. HR metrics aim to motivate people to improve and change. 4. HR and line managers are both held accountable for HR metrics (Yeung and Berman, 1997) Human resource management is critical in establishing successful organisational performance management and measurement. P. Garengo, Sardi, and S. Nudurupati (2021) emphasised the organisation's transition from static to dynamic performance assessment and management methods, which are expected to be more relevant to current and future situations. Human resource professionals have made progress with measurement and evaluation. Since 1960, various measurement schemes have been used, and the approaches have altered over time. (Phillips 2007) Various measurement approaches are discussed here; Early approaches have evolved, often focusing on subjective measures or simply implementing strategies. Various methodologies are introduced into the measurement mix to keep the momentum going. (Phillips 2007) x Measuring Progress towards HR Performance: It became popular in the 1960s due to the widespread usage of management by objectives (MBO). The HR department establishes specific objectives and measures performance against those objectives using this approach. The objectives are based on what the management

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wishes to achieve or what is required to reach an appropriate performance level, including budget performance. x HR Case Studies: Case studies are precious and can be demonstrated cheaply. They are created using data on HR performance, interview responses, or persons who have participated in HR programmes or services. x Employee Attitude Survey: Employee attitude surveys are commonly used to assess the efficacy of the HR function. Employee satisfaction is measured through surveys. In recent years, surveys have been investigated to include critical metrics of organisational communication and their relationship to organisational performance. x HR Auditing: A human resource audit is a technique that analyses, investigates, and compares the efficacy of the HR function. It begins a methodical search to gather, analyse, and prepare official and informal reports. Solid value-added approaches: The four tactics shown in the timeline's centre group are well-thought-out, sound approaches to introducing responsibility to the Human Resources function. Most forward-thinking organisations use these tactics regularly. (Phillips 2007) x HR key Indicators: A collection of quantitative measurements, such as accident frequency rate, turnover rate, absenteeism rate, and average time to fill requisitions, has been designed to replicate the critical efforts of the HR function. Key metrics for recruiting and staffing, salary, education and training, compliance, and employee relations are developed. x HR Cost Monitoring: Although most CEOs are aware of the whole cost of employee remuneration, they need to be aware that adjustments to HR practices may result in a large rise in costs. Most CEOs are aware of the total cost of employee remuneration, but many are unaware that changes to HR practices can result in significant cost increases. One technique to measure HR performance is establishing and comparing HR costs to benchmark cost data, such as expenditures per new hire, absenteeism, and training. x Human Resource Reputation: According to some HR professionals, the effectiveness of the HR function should be assessed by feedback from individuals it is supposed to serve, often known as a constituency. Objective criteria are only one step away from

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subjectivity. Someone must determine what level of objective performance is effective and ineffective. With the continuous emphasis on customer satisfaction, it is vital to measure the perception of the HR function in the thoughts of its consumers. x Competitive HR Benchmarking: Few organisations create critical measurements that demonstrate the output of the human resource function and compare them to organisations as a best human resource practice. Competitive benchmarking began as an essential breakthrough in the quality movement, but despite a spike in interest, only some human resource departments do a benchmarketing study. Leading Edge Approaches: The latter four strategies are frequently regarded as cutting-edge. While some organisations have implemented these strategies, most are still in the early stages of development. (Phillips 2007) x HR Profit Centre: The profit centre approach, according to some practitioners and experts, is the ultimate strategy for evaluation. This notion requires a shift from the traditional view of the HR department as an investment centre where expenses are collected to a view of HR as an investment that may contribute to the bottom line and, in some situations, function as a profit centre. x HR Effectiveness Index: A few organisations have attempted to develop a single composite index of HR effectiveness. In the 1950s, the General Electric Company produced and used one of the first examples of such an index. x Employee Relation Index: The employee relations index was created using eight variables from rigorous employee behaviour research. Initial dispensary visits, absenteeism, terminations, work stoppages, and grievances were all indicators. An index is desirable because it is simple to compute and comprehend. It should be beneficial for comparing one organisation to another, as well as goal formulation and internal control, despite index creation being still in its early stages. x Human Capital Measurement: Human resource accounting (HRA) was developed in the early 1970s and 1960s as a new approach to evaluation. In the early 1980s, interest in this method was expected to diminish. However, recently, HRA has increased attention. This concept, called human capital measurement, endeavours to assign a monetary value to employee qualities and talents.

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x Return on Investment: The most persuasive method for HR evaluations may be to compare the expense of HR programmes to their monetary benefits. In most cases, the cost of human resource programmes may be easily tracked or produced. The ROI method is a massive success in the HR arena in both the public and private sectors. The procedure is based on the fundamental and financial equation of earnings divided by investment or net benefits divided by costs. The ROI technique has the most promise as a measurement tool for today's organisations compared to the other approaches.

Selection of HR Measurement There are diverse approaches to raising accountability, and any HR function still needs to improve and attain success with current approaches. More success stories about a comprehensive understanding of HR measurement exist inappropriately. Most evaluation approaches have yet to be capable of delivering what top management and even HR practitioners want them to deliver: objective data representing the involvement of the HR function in organisational effectiveness. (Phillips 2007) The difficult challenge is determining the organisation's appropriate blend of measurement approaches. In most cases, five factors will influence the decision to select the appropriate combination, and they are as follows (Phillips 2007): x There is a need for a top management team. It is a critical issue because any measurement system for critical services like human resources must suit the needs of the senior management team. Their ideas and desires can be developed in various ways, often through formal meetings or specific sessions emphasising HR's strategic role. x The specific drivers for improved measurement in the organisation are required. Various reasons are causing increased accountability for human resources to be produced. These drivers determine the measures taken and the various data types presented to organisational stakeholders. The organisation's measurement and evaluation culture must be developed to interpret employees' effectiveness and efficiency.

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x Some organisations rely heavily on measurement, whereas others do not. The types of data collection systems used, the requirement for data-driven choices, the desire to provide feedback, and the data-gathering devices are all used to determine the organisation's measurement culture. A high measurement and evaluation culture will necessitate more HR measurement than a low measurement culture. (Phillips 2007)

Case Studies

Fig. 8-2: https://cdn.pixabay.com/photo/2017/09/07/08/35/human-resources2724191_1280.png

Case 1: Ghana Commercial Bank Human resource practices and their impact on employee performance have created interest in the organisation's development. Antwi examined five HRM practices and assessed their impact on employee performance. The study's primary goal was to examine the influence of these HRM practices on employee performance at four Ghana Commercial Bank (GCB) branches. Performance appraisal, training and development, motivation, internal communication, and reward are the independent variables employed in HRM practices, with employee performance as the dependent variable. All of the independent variables together explained 98 percent of the variance in employee performance. Internal communication has the most vital relationship with employee performance of any independent variable. It has a high proportion of 41 participants to describe the variation in employee performance. Regarding

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the individual contributions of the measuring dimensions, performance appraisal ranked second in importance. It accounts for 26.6% of the link between the chosen HRM practices and employee performance. Motivation ranked third in importance, accounting for 22.9 percent of the overall variance in employee performance when the study's performance assessment factors were chosen. Finally, reward and compensation explain 21% of the variance in overall impact and 15.1% of employee performance. (Antwi et al., 2016) Similarly, GCB internal reports, job postings, job advertisement design, training and development, recruitment and selection, employee motivation, job placement, internal communication, promotions, performance appraisal, promotions, internal communication, social security contributions, and rewards are all essential aspects of HRM practices. However, this study aims to assess the effects of five essential HRM practices on employee performance in a Ghanaian commercial bank. An internal examination discovered that the bank's central HRM practices include motivation, training and development, performance appraisal, internal communication, and reward. These practices are also being assessed for the study due to their measurability and significance. Designing and implementing staff training and development programmes, preparing for career succession, drawing out career trajectories, and ensuring employees have development opportunities are all part of training and development. Employees' motivational packages, for instance, include increased salaries, a housing loan scheme, a car loan scheme, fringe benefits, promotion and recognition, and an appraisal system with seven levels and a mechanism for evaluating employees' performance. It includes front-line supervisors who want to streamline the procedures for getting accurate findings from their employees' performance evaluations. The initial stage of internal communication is to create a conducive environment for everyday face-to-face interaction among employees, between employees and managers, and vice versa. The second stage consists of top-level management communicating with line managers. It extends to the transmission of such knowledge to lower-level personnel. Finally, the third step considers departmental or unit meetings with line managers and staff to keep everyone current on assignments and responsibilities. (Antwi et al., 2016)

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Human Resource Analytics Tools Human resource analytics tools provide organisations of all sizes with insight into functioning, retention rates, and hiring decisions. At the same time, it also turns all complex human resource data into valuable reports and easy-to-understand information. (Fica 2020) This tool is ideal for all organisational sizes and works in any industry. Large organisations like Google use HR analytics to measure department effectiveness and productivity. Retailers, for example, Walmart, utilise them to evaluate the new programs and procedures being implemented in the stores across the country to identify new career paths for employees to grow. Microsoft and other tech organisations use analytics to improve retention and identify areas of their organisations that are working hard to attract talent. Examples of various human resource professionals who followed this practice are; Jennifer Fisher, Director of People and Culture Jennifer Fisher utilises performance management reporting from Bamboo Human Resources to utilise time. Identify opportunities for improvement and boost participation. If every person is moving in the right direction, the organisation is probably attaining its goals. By following HR metrics such as goal progress, employee performance, and employee involvement, Jennifer and the team were able to identify points of employee disengagement and misalignment as well as potential development opportunities. (Fica 2020) Jessica Neal, HR Manager Jessia Neal, Human Resource Manager of Amercia Cedar and Millwork, utilises time tracking reports to retain managers and employees on a similar page with overtime and scheduling, which is vital for an organisation. Millwork has found a 25–30% reduction in overtime hours as clock-in/clock-out tracking has become more accurate. (Fica 2020) Nielsen Retaining Key talent at Nielsen developed. The first predictive model only comprised 20 variables, comprising age, manager rating, and tenure. Over time, more variables were added. This workout provided multiple insights,

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including that the first year signified the most. ("15 HR Analytics Case Studies with Business Impact", 2019) Reduction in Road Traffic Accidents In Zimbabwe, a study was conducted on local transport businesses to reduce the cost of road accidents caused by their drivers. A local consultancy researched whether psychometric tests could forecast if some people were more likely to be included in a traffic accident than others. If these factors could be recognised, they could be used as selection standards for novel hires. They recognised several functional understandings. First, it turned out that a popular defensive driving certificate (DDC) that drivers had to get had no impact on their profitability to be included in an accident. ("15 HR Analytics Case Studies with Business Impact", 2019) Dutch FMCG Retailer The organisation used people analytics to explain the impact of training. The analyst found that training store personnel positively impacts the store's financial performance. It was measured with the aid of A/B testing. ("15 HR Analytics Case Studies with Business Impact", 2019) Shell At Shell, engagement was connected to superior business performance with improved safety practices. Safety performance was, in turn, directly related to business performance. ("15 HR Analytics Case Studies with Business Impact", 2019) HR Driving Store Performance The following excellent case study of people analytics occurred in a large restaurant chain in a downward spiral. The management team had yet to learn why. They had some information but were unable to put it into action. A team was formed to investigate and provide insight using data. Due to a shortage of data, the team opted to conduct their survey. Customer count, employee retention, and happiness were highlighted as critical factors. If these three measures improved, business performance would improve. ("15 HR Analytics Case Studies with Business Impact", 2019)

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The organisation then implemented a business-focused involvement and engagement strategy in which they linked employee outcomes to business outcomes, prioritised the factors that had the most significant impact on business outcomes, demonstrated the business impact of improving these factors, and focused on front-line managers on the factors that had the most significant impact. By tracking these elements' scores and their impact on business results, the team can quickly see which drivers are most important to company performance and which drivers front-line managers should focus on it. ("15 HR Analytics Case Studies with Business Impact", 2019) Compensation and Advantages at Clarks Clarks optimised employee reward packages through salary and benefit analyses. Offering someone a small sum of money to invest in their development could enhance satisfaction by up to 15%. Employees also desired the ability to sell their vacation days, which assisted the organisation in saving money. ("15 HR Analytics Case Studies with Business Impact", 2019) A New Office Starting by Cisco Cisco used demographic information to select the best sites for new offices. They expanded in locations with fewer competitors fighting for similar skills by combining a range of data, including current occupancy rates of office space and cost and access to crucial talent and graduates from institutions. Furthermore, while deciding on a new office location, Cisco examined similar data to discover places with a high concentration of employees with the required skills. ("15 HR Analytics Case Studies with Business Impact", 2019) Unilevers Workforce When Kraft Heinz launched an aggressive takeover approach in early 2017, Unilever's workforce analytics team demonstrated that analytics could also be organised during a crisis. The team described networks as constructing models to identify potential cost savings throughout the organisation. Furthermore, the team could monitor the employees' moods and attitudes. It allowed them to observe how employees reacted to Unilever's defence

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strategies. During the crisis, these understandings directly aided decisionmaking. ("15 HR Analytics Case Studies with Business Impact", 2019) Bonus at a Small Organisation This case study demonstrates that HR analytics may also benefit smaller businesses. Intracorp, a real estate developer, has a maximum of a hundred employees. The dispersed teams struggled with communication, resulting in mishaps, misunderstandings, and missed deadlines. Intracorp wanted to train their leaders and team members during their workday. ("15 HR Analytics Case Studies with Business Impact", 2019) They accomplished this by focusing on the most critical development areas. These areas were diagnosed, and procedures were tracked, which improved the perception of how team members and leaders performed. It allows us to calculate the reduced cost of lost production. Productivity increased by 10% as a result of this assessment system. For every dollar invested in training, $3.20 in lost productivity would be restored. Furthermore, once a week, 60-minute live virtual content sessions boost information interchange and retention by 128%. Following the programme, people would discuss it and share their experiences and learnings in the coffee shop. Leadership coaching was 50% more successful in improving retention and meeting deficits after 30 days. This example shows how goal-specific training and diligent goal-following are practical. ("15 HR Analytics Case Studies with Business Impact", 2019) Improve Health Outcomes through a Proper Human Resource System From measurement and planning to performance for enhanced health outcomes, Gupta et al. (2011) studied health. In countries and globally, there is improving attention to monitoring and addressing the health systems and human resources input, outputs and processes that hinder or enable progress towards gaining the millennium development goals for child health and maternal. (Gupta et al. 2011) reviewed the situations of human resources for health in 68 low and middle-income countries that collectively account for over 95% of all child deaths. It is analysed and collected cross-nationally data on HRH availability, distributions, functions, and roles from new and existing sources and

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information from country reviews of HRH interventions connected with positive impacts on health service delivery and population health outcomes. (Gupta et al. 2011) Findings from 68 countries represent that the accessibility of doctors, nurses, and midwives is positively related to coverage of skilled birth attendance. Most 78 of the target countries face severe scarcity of highly skilled health personnel, and enormous variations continue within and across countries in workforce distribution, skill utilisation and skill mix. More countries need to have appropriate plans for authorising and helping nurses, community health workers, and midwives to provide necessary maternal and child health care and newborn interventions that could save lives. (Gupta et al. 2011) Artificial Intelligence and HR Technology Artificial intelligence is an umbrella term that includes areas such as machine learning and cognitive computing. Artificial is a branch of computer science that arranges the simulation of intelligent behaviour in computers. Artificial intelligence has been effectively used in visual perception, speech recognition, natural language processing, speech-totext conversion, tone analysis, language translation and other areas. . Why should AI be used in HR? Artificial intelligence is being used to enlarge business operations and consumer solutions—reasons for implementing Artificial intelligence in Human Resources. ƒ To tackle business challenges ƒ AI allows HR organisations to deliver new understandings and services at scale without ballooning headcount or cost. ƒ Insistent challenges like having the people resources to deliver on the business strategy and assigning financial resources can be addressed through the considerate application of AI solutions. ƒ To develop and attract new skills. ƒ The business world is constantly being interrupted. In order to handle this disruption, businesses are required to respond faster to opportunities and to perform in an agile way to stay ahead of competitors. It means identifying an effective manner to compete for the skills needed to innovate in this novel operating environment.

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ƒ AI applications enable HR departments to obtain and develop employees' skills in lockstep with moving market demand. ƒ To enhance the employee experience, people have initiated to expect something diverse when they come to perform; ƒ To offer a robust decision support system. ƒ The speed of change and rate at which information is produced means that business decisions today are best made systematically. ƒ To use HR budgets efficiently as Artificial intelligence can enable Human resources to become efficient with its funding. Artificial intelligence is an HR technology step to alter HR departments that were once mainly administrative functions. It is mentioned as a personnel department; the primary responsibilities were clerical, and work in the HR department stressed record keeping about the workforce. However, the interpretation of human resources has evolved significantly in the last 30 years. Research has represented that how organisations manage their workers has important implications for how well the organisation works. Currently, the phrase 'strategic HR' denotes HR practices that offer a competitive advantage to organisations. 2. The strategic Human resource movement has seen a movement in HR focus from administrative practices to high-performance HR practices, for example, performance management and teamwork, that focus on main jobs rather than every job and on groups of critical workers rather than every worker. The primary advantage of technology is to provide efficiency gains; it permits us to do similar things that they have done but faster and cost-effectively. For example, previously, technology permitted us to recruit people faster over the internet, but presently, artificial intelligence lets us recruit the right people faster by measuring skill matches for roles, forecasting the likelihood of future success and estimating the time to fill any given role. It is an example of how artificial intelligence alters the situation so that technology enables HR to resolve critical business challenges, structuring on earlier contributions from workforce analytics. Where previous HR initiatives led to incremental change, artificial intelligence provides the opportunity for exponential performance enhancements in Human resources. (“The Business Case for AI in HR,” n.d.) Home Health Agency Case Study In the current market, home healthcare agencies have significant expansion prospects. However, given low margins, expansion requires

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careful management. This case study explains how the workforce helped a for-profit home health firm with 30 employees improve its labour procedure. As a result, they improved both their CMS rating and employee morale. Challenges of Labour Management The owner resolved to raise the rating to five stars during the next valuation period. They were sure that more excellent management would improve care quality. As a result, patient outcomes improve. A consultant was engaged to review management procedures and provide recommendations. The consultant suggested purchasing a platform to manage personnel scheduling, certification monitoring, and timekeeping. Solution: After reviewing several human resource software demos, the owner chose WorkforceHub, which automates and streamlines numerous mission-important labour management procedures. Workforce Hub makes staff scheduling easy and also automates staff timekeeping. Third, the platform keeps track of certificates. Finally, employee self-service (ESS) makes time card management quick and straightforward for managers and employees. Timekeeping and PTO management were planned. Stop shift coverage gaps: The virtual trade board can also help fill gaps in the timetable. Previously, the manager sent out shift change requests via text message and recirculated them when employees decided to take the open shifts. All schedules are viewable on mobile devices, and managers can track employee shift preferences, which increases job satisfaction. Time card management: Employee self-service (ESS) aids clock in and out using a mobile device, handle timecards, submit time off requests and monitor accruals. The agency reduces time card inaccuracies by using an intelligent clock. For the next assessment period, the agency receives a five-star rating (Swipeclock 2023). Dell Technology Dell Technologies is a worldwide technology company with approximately 150,000 people across 180 sites. Dell began with computers, but it was continuously working in this direction. Dell is currently assisting customers in their transition to the future with multicloud, AI, and machine learning with the most advanced technology and

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services portfolio for the data era. Dell technology has emerged as a global leader in digital transformation and the development of inclusive cultures. Dell Technologies collaborated with Stories Inc. to capture culture and replicate the employee experience globally and nationally. Their employer brand team recognised that a story-based and employee-driven methodology would be the most effective way to communicate the employee experience globally. Stories Inc. provided a content repository for usage by all recruitment marketing stakeholders. This content creates and fills channels aimed at potential candidates with captivating and pertinent staff stories. Content can be searched by topic, talent category, location, candidate-facing channel, and other criteria (Stories Incorporated, 2021).

Conclusion There is a need for a specific way to follow human resource practices. Various case studies have proven the success of different dimensions of human resource practices, such as increasing employee performance. With the advent of internal marketing, it has been clarified that employees need to be treated as internal customers. The logic behind this is to provide value to them so that they will give the best services to the organisation. It provides a direction to create internal customer orientation in the organisation. Thus, only one shotgun approach is needed to hit the proper human resource practice. Therefore, it is necessary to follow measurement and evaluation procedures so that proper feedback can be taken for the success of human resource practice. There are many ways to attain the best human resource practices. Various case studies have demonstrated the efficacy of human resource practices, such as those that improve employee performance. With the introduction of internal marketing, it has become clear that employees must be treated as internal customers. The logic behind this is to provide value to them by providing the finest services to the organisation. It provides a framework for developing internal customer orientation within the organisation. As a result, there is no right method to find the best human resource practices. This chapter discusses many human resource case studies, such as those of Dell, Unilever, Health Care, Cisco, and Shell. Everyone has a different problem to solve. As a result, adequate measurement and evaluation procedures must be followed to ensure the effectiveness of human resource practice. Digitalisation,

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artificial intelligence, and other modern technology in human resources will rise, leading to techno-human resource practice. Whatever approaches or tactics are employed, the most important thing is to first understand the organisation and then focus on both the people and the organisation. Various organisations must adopt a single human resource practice and a suitable measurement technique. Organisations are measuring their employee performance to attain an organisational goal or using modern performance appraisal techniques that are a mutual discussion to attain the organisational goal. It is one of the human resources practices. However, other human resource practices need to look for measurement and evaluation techniques like recruitment, job analysis, training, human resource planning, career development, communication, employee empowerment and engagement, communication, career planning, reward, and compensation that need measurement techniques. There is a need to bring objectivity to the technique so that employees develop trust and commitment towards the organisation. Internal marketing is one of the human resource practices that provides direction for all internal activities. Due to the increasing number of modern human resource activities, it is necessary to follow an employee-focused direction. It is time to provide value to internal customers, and organisations need to remove irreverent human resource costs but always add value-added human resource practices. The organisation is facing drastic change; thus, it is vital to follow practices that assist in organisational development to manage change. Therefore, to manage change, there is a need to follow human resource practices that help overcome resistance to change. The organisation's short-term and long-term objectives must be communicated and linked to employee goals. Thus, internal communication becomes the priority of human resource practice. Due to increasing competition, globalisation, and dynamic changes, organisations need to follow an internal communication process. It is the time of digitalisation, which speeds up the communication process and also adds to the learning and development of the employees. In traditional human resource practice, there is a concept of career development, but today, employees demand learning and development. Thus, whatever the practice is adopting represents the attitude and intention of the organisation they want to attain. Human resource practice plays a crucial role in organisational success if it is adopted according to the employee's and employer's requirements and business situations. If it is measured correctly, there is a possibility of improving it.

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GLOSSARY

Human Resource Management: The process of managing human resource activities (managerial and development) in the organization. Human Resource Digitalization: Inculcating digital technology in the human resource activities. Strategic Human Resource Management: The process of creating effective plans for hiring and managing personnel to attain organizations long term goals Holistic Approach: It is the integrated approach in the dynamic situations to attain organisational goals. Internal Marketing: It is the process of integrating human resource and marketing activities to provide value to the internal customers in the organization to attain long term goals. Social Responsibility: Business taking the responsibility of society welfare. Scientific Management: The process to use scientific methods to improve efficiency of the employees in the organization. Trade Union: It is the union that works for the betterment of employees. Human Relation Approach: Maintaining relationship with the people in the organization. Human Capital Management: It is the human resource management approach in which employees are considered as valuable resource. Artificial Intelligence: Developing machines, robots or other intelligent device that can perform task and activities that typically perform by human beings. Internal brand management:It is process of identification of internal products and services and develop perception and attitude towards them. HR Analytics: Collecting and analyzing HR HR metrics: track and measure performance HR effectiveness: Improving the quality of employee performance HR efficiency: Increasing output with minimum resources. Business decisions: Selecting best alternative among various option to perform business activities. Absenteeism: Absent from the work

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Innovation: finding new way of performing activities or identify new idea to peform activities. Performance Measurement: It is the measurement of employee performance. Performance Evaluation. It is a way of gathering, analysing, and assessing data to determine how "on track" a project or plan is to accomplish its intended results, objectives, and goals

ENDNOTE

I am very thankful to Cambridge Press for completing this book, ‘A mathematical approach to human resources’, which allowed me to disseminate knowledge on human resource practices and measurement methods. It is possible due to Mr Rebecca and Helen and other staff of Cambridge who are involved in this project. However, it is very tricky to measure intangible assets. No one is right, and No one is wrong. It all depends on the priority and needs of the organisation. Modern methods develop due to increasing competition, globalisation, and liberalised economy. Thus, change is desirable, but it should always focus on sustainable competitive advantage. When we face environmental disturbances, we must engage employees in every field and keep them motivated and pleased.

INDEX

allocating resources, 37, 68, 80 allocating human resource, 67, 68,79 Apps, 7, 100. 101, 106, 169, 196 artificial intelligence 5, 58, 81, 159, 188, 189, 192, 206 artificial intelligence technology, 58 assets, 2, 11, 16, 29-32, 34, 35, 3942, 46, 52, 55, 68, 80, 121, 140, 147, 148 Automation, 11, 19, 75 brand values, 161 branding, 15, 95-96, 106, 157, 159163 business efficiency, 71 career planning, 192 case studies, 172-191 commodity approach, 13-16, 26 competencies, 11-40, 52, 60, 72, 82, 105, 120 Core competencies, 120 cost benefit analysis, 38 creativity and innovation, 10 decision making, 11, 20, 38, 43, 44, 57, 60, 62, 63, 73, 79, 82, 130, 131, 145 digital technology, 62 effectiveness, 1, 10, 12, 30, 32, 37, 38, 40, 57, 58, 61, 69, 76, 82, 95, 96, 99-102, 104, 106, 111, 112, 115, 116, 120, 122, 126, 128, 130, 131, 144, 153, 154, 159, 175, 179-181, 184, 191 efficiency, 5, 10, 32, 37, 38, 40, 44, 54, 57, 60, 61, 66-69, 71, 72, 76, 82, 96, 104, 105, 115, 118-121, 128, 130, 141, 142, 147, 152, 154, 175, 181, 189 employee allocation , 49

employee retention, 37, 63, 64, 78, 98, 104, 106, 114, 162, 185 employee turnover, 63, 64, 78, 101, 113, 114, 126, 144, 145 empowerment, 9, 20, 124, 125, 139, 174, 192 engagement, 8, 11, 18, 22, 86, 8894, 98, 100, 102, 104, 106, 113115, 118, 119, 121, 123, 133, 136, 138, 143, 160-162, 165170, 174, 184-186, 192 feedback , 54, 62, 100, 101, 113, 116, 124, 125, 129, 130, 132137, 149, 150, 151, 152, 153, 164-166, 170, 178, 179, 182, 191 financial accounts, 30, 32, 40 globalisation, 1, 7, 11, 24, 192, 208 green human resource management practices, 177 Hard HRM, 20, 26 holistic approach, 2, 19 HR analytical tools, 104 HR departments, 15, 18, 48, 119, 123, 178, 180, 189 HR efficiency, 118, 206 HR forecasting, 73 HR philosphy, 13, 18 HR technology, 5, 92, 188, 189 human behaviour, 3 human capital , 3, 9, 11, 16-18, 30, 31, 33, 42, 46, 52, 54, 96, 102, 103, 106, 120, 121, 164, 175, 180, 206 Human capital management , 11, 16-18, 102, 206 Human capital metrics, 121 Human relations, 2, 4, 5, 32

210 Human resource accounting, 29-39, 40, 41, 44-46, 50, 51-55, 174, 180 human resource activities, 35, 36, 54, 83, 104-106, 111, 112, 114, 119, 122, 126, 192 Human resource allocation, 49, 57, 67, 69, 70, 79, 80, 82 Human resource approach, 18, 26 Human resource audit 179 human resource cost, 48, 49, 117 Human resource costing, 105 Human resource digitalisation, 5 Human resource effectiveness, 96, 111, 112, 120 Human resource experts, 109 Human resource information system (HRIS), 5, 50 Human resource management system, 5, 26, 50, 81 Human resource measurement, 109, 177, 178 Human resource metrics, 91, 96, 97, 104, 106, 110, 119, 122, 126 Human resouce philosophy, 12 human resource planning, 48, 55, 57, 59-61, 65, 77, 82, 192 Human Resource Practice, 1, 25, 38, 44, 52, 54, 57, 59, 82, 86, 87, 91, 107, 109, 111, 120, 121, 156, 172-176, 180, 182, 191, 192 Human resource value, 35, 36, 41, 42, 45, 159 Humanistic approach, 13 Industry 4.0, 19, 159 intellectual capital, 2, 9, 57, 71, 72, 81, 82 internal branding, 96, 106 Internal communication, 86, 87, 91, 94, 95, 100-102, 106, 110, 124, 138, 157, 160, 161, 163, 165168, 174, 176, 182, 183, 192 Internal customers, 1, 2, 85, 87, 88, 94, 121, 156, 158, 172, 191, 192 effectiveness, 1, 10, 12, 30, 32, 3740, 57, 58, 61, 69, 76, 82, 95, 96,

Index 99-102,104, 106, 111, 112, 115, 116, 120, 122, 126, 128, 130, 131, 144, 153, 154, 159, 175, 179-181, 184, 191 Internal efficiency, 104 Internal marketing, 2, 11, 21, 26, 30, 59, 77, 85-89, 90-96, 106 Internal marketing campaign, 87,90, 95, 158, 159, 162, Internal marketing dimensions, 59, 124 Internal marketing implementation, 2, 88, 125, 164 Internal marketing measurement, 110, 111 Internal marketing methods, 156, 163 Internal marketing plan, 90, 110, 157, 162, 164-166, 169, 170 Internal marketing practices, 86, 88, 164, 171, 173, 176 Internal marketing tools, 159, 166, 169, 171 Internet of things, 159 inter-personal relationships, 63- 65, 77 job happiness, 64, 78 job satisfaction, 63-65, 77-79, 124, 125, 160, 173, 190 Key performance indicators KPI, 63, 100, 104, 121, 139, 140-147 knowledge based economy, 10 labour equity 41, 45 leadership, 6, 16, 20, 72, 88, 91, 99, 100, 106, 119, 124, 125, 126, 136, 165, 175, 187 legal, 2, 12, 24, 25, 38, 40, 105 management approach, 15, 16, 22, 26, 85 market demand, 66, 69, 189 market share, 10, 138 mathematical approach, 1, 2, 22, 26 Mathematical modelling, 71 measurement of internal marketing, 90 measurement scale, 89, 106

A Mathematical Approach to Human Resources measurement technique, 26, 35, 110, 173, 192 HR effectiveness, 180 modern human resource, 59, 126, 192 motivation, 10, 13, 20, 21, 23, 24, 48, 73, 76, 86, 89, operations, 3, 7, 32, 50, 53, 60, 77, 87, 96, 106, 111, 122, 126, 130, 140, 159, 175, 188 organisational performance, 10, 11, 22, 24, 78, 83, 96, 109, 125, 128, 153, 154, 175, 177, 178, 179 organisations profitability, 125 orientation, 21, 25, 59, 85, 86, 93, 94, 96, 110, 124, 125, 128, 129, 138, 154, 157, 158, 164, 168, 171, 176, 191 performance appraisal, 18, 57, 62, 63, 72, 73, 109, 123, 132, 134, 149, 182, 183, 192 Performance evaluation, 24, 38, 40, 116, 128, 129, 130, 132-134, 136, 137, 148, 150-153, 170, 176, 183 Performance instruments, 138 Performance management, 5, 57, 61, 62, 82, 99, 104, 106, 109, 111, 119, 132, 134, 153, 178, 184, 189 Performance measurement, 128, 130, 131, 138, 149, 151, 152, 154 Performance review, 116, 129, 132, 134-136, 150, 163 policy,12, 13, 25, 59, 115, 174, 175 proactive, 19, 26, 122 productivity, 4,5, 17, 24, 29, 37, 63, 66, 67, 72, 75, 78, 80, 97, 103, 111, 114-116, 119, 138, 153, 173, 175, 184, 187 qualitative, 8, 149 quantitative, 8, 22,57, 66, 149, 179 reactive, 19, 26 reengineer, 35, 36, 41, 45, 159

211

retention, 19, 32, 37, 38, 41, 54, 63, 64, 78, 93, 96, 98, 104, 106, 114, 119, 122, 138, 141, 144, 146, 162, 169, 176, 184, 185, 187 Return on investment (ROI), 17,21, 43, 44, 49, 98,103, 112, 116, 117, 118, 120, 126, 139, 148, 151, 177, 181 rewards, 9, 11, 20-,22, 24, 26, 49, 55, 57, 72, 73, 94, 110, 124, 125, 128, 151, 153, 154, 163, 168, 172, 173, 176, 177, 183 salary design, 49 satisfaction, 24, 63-65, 72, 76-78, 88, 93, 98, 100, 101, 106, 116, 124-126, 136, 138, 141, 143, 145, 152, 160, 163, 164, 166, 170, 171, 173, 178-180, 186, 190 Scientific management, 63-65, 67 Skill Management approach, 22 social media, 7, 91,102, 143, 163 social responsibility, 4, 5, 86, 87, 91, 94, 95, 100, 101, 102, 106, 110, 124, 138, 161, 163, 166, 167, 168, 174, 176, 182, 183, 192 Soft HRM, 19-21 software, 2 5, 8, 9, 70, 82, 91, 98, 99, 104, 106, 118, 123, 126, 134, 139, 143, 147, 153, 157, 168, 190 standard performance, 151, 153 Strategic Human Resource Management, 2, 26, 50, 173 strategic workforce planning, 65 supply chain, 15 9, 20, 21, 24, 49, 55, 72, 110, 124, 163, 168, 172, 173, 176, 177, 183 sustainable competitive advantage, 3 System approach, 21, 23 talents, 9, 25, 58, 65, 75, 180 trade union ,4, 206 training and development, 5, 22, 23, 37, 44, 48, 49, 65, 68, 80, 99, 104, 106, 109, 120, 124, 125, 182, 183