Human Resource Management Programmes (Workshop)
COURSE OVERVIEW
How effective is HR in your organization? This course focuses on how to position and write HR business cases that prove the true value of HRM projects in terms of their return on investment (ROI) for the business. The course includes methods of researching, developing and presenting a business case, addressing a gap many HR professionals find in terms of gaining the attention and endorsement of senior management and other stakeholders with respect to HR initiatives. Managing stakeholders and operating in an ethical manner are also important skills in being an effective HR professional. In today’s economy, training of employees is more important than ever as organizations cope with needing to increase revenue and maintain quality and capacity with a lean workforce. Most organizations must accomplish their training goals with a limited training budget, making the return on investment of every amount of money spent on training even more critical. This course is therefore aimed at helping each delegate acquire the components needed to implement and measure continuous performance improvement in the workforce aligned with achieving the business goals of each organization
LEARNING OUTCOMES
- Identify key metrics that support an HR business case
- Identify key stakeholder influence and power relationships that impact on support for business case initiatives
- Use both qualitative and quantitative measures to influence decisions
- Understand the concept of return on investment (ROI) and its practical application in determining and proposing value
- Developing insight into various facts of HR Audit and thus make the HRM function business oriented
- Build the skills participants would require to do HR Audit independently
- Understanding the various aspects of Balanced Scorecard
- Using the Balance Scorecard as a strategy execution tool for enhancing the overall productivity of the organization
- Understanding the organisational performance models and diagnose the reasons for the lack of performance in an organization
COURSE OUTLINE
Section 1 – The importance of ROI and its use to analyze performance
- Understand how owners view profitability
- Compare the profitability of two companies
- Calculate a ROI using information about profit and investment
- Understand the role of profit margin and asset turnover in profit planning
- Understand the relationship between return on equity and return on investment
- Understand how leverage affects the return on equity
- Understand the advantages and disadvantages of RO
- Understand the impact on segments of using target ROIs
Section 2 – ROI and decision making and variations of ROI
- Understand how managers make decisions based on ROI and cost of capital
- Understand how managers might use variations of the ROI to improve decision making
- Understand the contribution of ROI in budgeting
- Understand the differences in assessing segment performance and assessing manager performance using ROI
- Understand issues regarding how to define the asset base, the relevant liabilities to deduct, and the appropriate value of assets
- Understand the gross margin return on investment (GMROI)
- Understand the components of the GMROI
- Understand the differences between the GMROI and the ROI
- Understand how to improve the GMROI
- Understand the contribution margin return on investment (CMROI)
- Understand the nature of fixed costs and variable costs
- Understand the difference in the contribution margin income statement and the gross profit income statement
- Be able to compare the CMROI and the GMROI to the ROI
- Understand the relationship between cash flow and quality of earnings
- Understand the cash return on investment
Section 3 – Analyzing sales revenues, costs and profits
- Understand how to analyze sales revenues
- Understand the effect of the market on sales revenue performance
- Understand the effect of market variance, market share variance, and sales price variance on sales
- Understand the impact of market variance, market share variance, sales price variance, and collection variance on profit
- Understand price and quantity variances
- Understand the cost behaviour of variable and fixed costs
- Understand budget variances
Section 4 – ROI and investment centers
- Understand the characteristics of an investment centres
- Understand the advantages and disadvantages of decentralized management versus centralized management
- Understand alternative means of setting transfer prices
Section 5 – Residual Performance Measures: RI and EVA
- Calculate residual income RI and residual income return on investment
- Understand how RI overcomes one problem associated with ROI
- Understand the determination of a company’s minimum expected rate of return and be able to calculate the weighted average costs of capital
- Understand the rationale behind economic value added (EVA), Stern Stewart’s proprietary measure
- Understand the modifications made to operating earnings and how the cost of capital is determined using EVA
- Understand market value added and how it relates to EVA
Course Competencies
- A comprehensive understanding of English is essential in order to achieve a positive interaction with the instructor and among the attendees.
- Attendees must be fairly numerate in order to be able to undertake the calculations associated with the case studies.
- Attendees should be uninhibited and be sufficiently confident to ask questions and participate in debate.
PARTICIPANTS
- This program would suit HR professionals looking for an introductory course on measuring HR effectiveness.
- All managers who have an impact on investment and expense decisions
- Employees that are likely to take up above positions in the not too distant future
- Those persons who prepare corporate performance reports for management
