Sunday, May 25, 2014

How can HR act towards changing global environment?


Most of the companies now use better analytics for finding the skill sets of an employee. According to the global change, employees tend to have transformation in their knowledge, ability and skillsets.
What Can Be Done To Analyze Employee Performance Towards Changing Global Environment?
We can use Hay point analysis. The hay point has three major components for analyzing employee performance as below:

·        1. Knowledge
·         2.Ability
·         3.skills
This was introduced in mid-19th century, and has undergone various transformation for analyzing skills of employee in changing global environment.
They had five point scaling, then seven followed by thirteen. Current trend uses 11 point scaling technique, these are again transformed to find control points, compensation ratio for each individual employees according to the scores obtained on their Knowledge Ability and skills.
In 11 point rating scale, the employees are rated on the basis of Problem solving capability and Skills. A graph is plotted with the obtained score in x axis and actual wage in y axis.
The slope of this curve gives the control points. Compensation ratio is given by wages divided by control points.
Compensation ratio lies between 60 and 140, employees having compensation ratio above 120 are considered to be high performers. Incentive are given according to the ratio.
This method of analyzing employees are dynamic as they tend to change according to exterior global changes. 
By using the above method, we can to relate employee performance to his knowledge, ability, skills and also dynamic global environment.