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    OE - Ashutosh Sharma

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    Ashutosh Sharma
    This document discusses metrics that Mahindra Group uses to measure organizational effectiveness. It focuses on five key metrics: 1) the percentage of high performers among employees, 2) the percentage of managers rated highly in performance evaluations, 3) calculating return on investment for human capital by considering revenue, expenses and human capital costs, 4) measuring HR expenses against budget, and 5) attrition rate which is the percentage of employees leaving the organization. Mahindra believes that effective organizational strategies and culture help employees transform themselves rather than the company transforming people.

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    OE - Ashutosh Sharma

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    Ashutosh Sharma
    27 views3 pages
    This document discusses metrics that Mahindra Group uses to measure organizational effectiveness. It focuses on five key metrics: 1) the percentage of high performers among employees, 2) the percentage of managers rated highly in performance evaluations, 3) calculating return on investment for human capital by considering revenue, expenses and human capital costs, 4) measuring HR expenses against budget, and 5) attrition rate which is the percentage of employees leaving the organization. Mahindra believes that effective organizational strategies and culture help employees transform themselves rather than the company transforming people.

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    OE_Ashutosh Sharma

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    This document discusses metrics that Mahindra Group uses to measure organizational effectiveness. It focuses on five key metrics: 1) the percentage of high performers among employees, 2) the percentage of managers rated highly in performance evaluations, 3) calculating return on investment for human capital by considering revenue, expenses and human capital costs, 4) measuring HR expenses against budget, and 5) attrition rate which is the percentage of employees leaving the organization. Mahindra believes that effective organizational strategies and culture help employees transform themselves rather than the company transforming people.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    27 views3 pages

    OE - Ashutosh Sharma

    Uploaded by

    Ashutosh Sharma
    This document discusses metrics that Mahindra Group uses to measure organizational effectiveness. It focuses on five key metrics: 1) the percentage of high performers among employees, 2) the percentage of managers rated highly in performance evaluations, 3) calculating return on investment for human capital by considering revenue, expenses and human capital costs, 4) measuring HR expenses against budget, and 5) attrition rate which is the percentage of employees leaving the organization. Mahindra believes that effective organizational strategies and culture help employees transform themselves rather than the company transforming people.

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    © All Rights Reserved
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    of 3

    Organizational Effectiveness-

    In Human Resource, when we talk about organizational effectiveness, it is a structured


    method for increasing the productivity of a company and its workers by organized initiatives.
    Such behavior may concentrate on team success, employee growth, organizational
    effectiveness, structure of the organization and productivity. Organizational Effectiveness &
    Development efforts include some kind of adjustment to policies, strategies, culture and
    organizational structures in order to bring people and processes in sync with organizational
    objectives and goals.
    “Measuring Organizational effectiveness is not a matter of either/or. ” Instead, it's about taking
    different viewpoints and seeing if the organisation's objectives and its potential are being met.

    At Mahindra, the company doesn’t believe in transforming people, rather they believe that
    the people tranform themselves due to their effective organizational strategies and culture
    across all sectors and units. Their EVP(Employee Value Proposition) of ‘CAPable People-
    REAL experience’ helps in enhancing the growth which drives them towards Organizational
    Effectiveness.
    The company uses Descriptive analytics in this verticals through a range of metrics. Few of
    them are-
    1) “Employees with High Performance”- “Percentage of high performers in comparison
    to total no of employees(FTE)”

    This metrics helps to understand how much of an organization’s workforce can help in
    driving innovation and change.

    2) Leadership Excellence developed-


    Through this metric, the company tries to identify or measure the effectivenss of their
    leaders. It is calculated as a “percentage of managers who are rated in higher
    categories of the performance evaluation measurement scale.”

    3) Human Capital ROI-


    It is simply the measure of Return on Investment for employees.It is one of the most
    important metrics that is now considered by most of the organizations and Mahindra
    Group is no different.However, that doesn’t mean it is easy to measure.It is rightly
    said that “Not everything that’s worth measuring can be measured, and not everything
    that is measured is worth measuring.”
    We are all aware that traditionally employees were generally classified as costs and
    liabilities because businesses see how much they have to spend on staff, like any other
    material expense, to function and gain profits. Here, like any other resources, the
    treatment is similar to that used to extract value from their work.
    While calculating, Human capital Return on Investment, the company needs to take
    into consideration the Revenue, Operating expenses, Human Capital expenses. It is
    calculated as below-

    4) HR Expense factor-
    It is used to measure the HR expenses against the budget.It is calculated as-

    5) Attrition Rate-
    This is another important metric which organization has to focus on to maintain the
    organizational effectiveness.
    Attrition with respect to HR refers to no of employees leaving the organization. It is
    measured with a metric called Attrition rate, which simply “measures the no of
    employees moving out of the company (voluntary resigning or laid off by the
    company). Attrition Rate is also referred as churn rate or turnover.”
    The Mahindra HR team focuses on controlling the attrition rate by motivating and
    recognizing their employees from time to time.
    Attrition rate is calculated as-

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