Utility based Tool to Assess Overall Effectiveness of HRD Instruments

Abstract

Humans practically measure everything in life. For any business, they measure revenue, sales, profits, earning per share, stake holders value and so forth. In HR management they measure staff attrition, cost of training per candidate, rating awarded in performance management system etc. Measurement of Effectiveness of HRD instruments namely training and development, compensation, feedback and coaching, job design, career planning etc. are required for any organization, regardless of size, industry, location or success. In this paper an attempt has been made to analyze prominent HR instruments to determine their individual measure of effectiveness and the Total Expected Utility Measure based on Multiple-Attribute Utility analysis, from both the employees' and employers' view point. To assign relative importance to each HRD instrument, Analytical Hierarchical Process has been used. The methodology adopted was questionnaire, to a random sample of teaching faculty in a large private university in north India. The findings indicate that the total expected utility measure is an important measure and facilitates comparing firms in the same industry, region, size, etc.