Criticality analysis of human resource functions using failure mode effect analysis: a case study

The role of human resource functions in running, sustaining and constantly growing an organisation has immensely increased. Hence, the failures in HR functions, which cost heavily in terms of money, efforts and loss of goodwill, need to be minimised. Presently, the HR malfunction problems are identified by observing the indicators like poor performances, lack of motivation, employee turnover, absenteeism, low productivity and tarnished market goodwill. These observations are grossly subjective and have a limitation of scope, hence the requirement of today's organisations is to employ a scientific tool that enables management to monitor and quantitatively analyse the failure modes in HR functioning. The paper discusses the criticality analysis of HR functions using failure mode effect analysis which is a tool that examines potential product or process failures, evaluates risk priorities and helps determine remedial actions to avoid identified problems by assigning the quantitative ranks for criticality of function failures.