Strategic Human Resource metrics: a perspective of the general systems theory

Abstract

Measurement and quantification of strategic human resource outcomes in relation to key performance criteria is essential to develop value-adding metrics. Objectives This paper posits (using a general systems lens) that strategic human resource metrics should interpret the relationship between attitudinal human resource outcomes and performance criteria such as profitability, quality or customer service. Approach Using the general systems model as underpinning theory, the study assesses the variation in response to a Likert type questionnaire with twenty-four (24) items measuring the major attitudinal dispositions of HRM outcomes (employee commitment, satisfaction, engagement and embeddedness). Results A chi square test (chi-square test statistic = 54.898, p=0.173) showed that variation in responses to the attitudinal statements occurred due to chance. This was interpreted to mean that attitudinal human resource outcomes influence performance as a unit of system components. The neutral response was found to be associated with the ‘reject’ response than the ‘acceptance’ response. Value The study offers suggestion on the determination of strategic HR metrics and recommends the use of systems theory in HRM related studies. Implications This study provides another dimension to human resource metrics by arguing that strategic human resource metrics should measure the relationship between attitudinal human resource outcomes and performance using a systems perspective.