Comment this discussionin few paragraph? Key Performance Measures and the Busine
ID: 393522 • Letter: C
Question
Comment this discussionin few paragraph?
Key Performance Measures and the Business Culture
Three examples of key performance measures that are forward looking and more predictive are employee retention and turnover; leadership development; and customer satisfaction (McKinney Rogers, 2010). Human resource management is the aspect of the value chain measured by employee retention and turnover and leadership development. The aspect of the value chain measured by customer satisfaction is service, which includes the activities related to maintaining the value of the product or service to customers once it's been purchased (MindTools, n.d.).
These measures tie to specific strategies in a business unit as employees have great importance in a company. How well a company recruits, hires, trains, motivates, rewards, and retains its workers can greatly influence how well a company performs. Therefore, employees are a significant source of value, and a company can create a clear advantage with good human resource practices (MindTools, n.d.). As to the measure of customer satisfaction, it is an important metric for a company to use to improve its business. It can indicate consumer loyalty and repurchase intentions. It can also act as a key differentiator, especially in today’s marketplace where each and every business competes for customers. Moreover, it can reduce negative word of mouth and increase customer lifetime value (Avemfly Technology, 2017).
A business’ culture can either enable or block its business strategy and can have an effect on financial performance in the value chain. For example, an organization with a customer-centric culture means that customer focused values and principles are embedded into the day-to-day lives of the employees and processes, which can then lead to increased profitability, employee retention, and revenue growth (Katsabaris, 2017).
The cultural norms that govern the organization are the attitudes and behaviors that are considered normal, typical, or average within a company. Organizational culture sets the context for everything a company does. At the heart of organizations' cultures are commonly shared values. There is no right or wrong but a company needs to decide which values they will emphasize. These common values are outcome orientation, team orientation, attention to detail, stability, innovation, and aggressiveness (SHRM, 2018).
Explanation / Answer
Human resource management is the function of organizational management in which we determine the factors , process , policies and procedures to achieve the success in the marketplace . There are sevral factors to gain competitive advantage with the help of Strategic intervention of HRM . There are three crucial elements of HRM to gain competitive advantage i.e. employee retention and turnover; leadership development; and customer satisfaction .
An organization can create value to its value chain activities by introducing best HR practices at the workplace. A sound culture, stress management, change management and employee relationship must be given due care to win the race of competition .
HR brings innovation, values and team spirits within the organization which can not be easily copied by the competitors in the industry. It should be given highest priorities among other management functions.