What Does HR Manage? Workforce Measurement and Control

Abstract

According to the long-standing axiom of management, one cannot manage what cannot be measured. Two questions emerge that are applicable to the Human Resource (HR) function. What does it manage? What should it measure? Prior answers recommend that HR should manage its functional activities, the organization’s human capital, or certain strategically important factors in a balanced scorecare, none of which are fully satisfactory. This paper argues that the HR function should manage the organization’s workforce. To do that, one must measure aspects of that workforce. This paper provides a generic framework of measures for that purpose. The foundation measures focus on the structure of jobs in the organization, the demographic characteristics of the workforce, their attitudes, the flow of personnel, and certain moderating variables. Measures for special segments of the workforce, such as sales and service personnel and leaders, are also noted.