Keywords

The Evaluation of Human Resources, Decision Making, Economic Institution, Strategic Plans, Business Managers.

Introduction

Today's economic institutions are facing many challenges, especially after the global economic openness, as its primary role has become to provide the market with adequate products of outstanding quality. To achieve this, the decision makers had to pay attention to human resources and evaluate their real performance as it has become one of the contributing factors in correcting deviations for rational decision making. The evaluation of the performance of human resources is a very important mechanism through which the correct path that the organization should follow is determined according to measurable scientific methods, and through which the level of quality of human resources performance and therefore the overall performance of the institution is revealed; which reflects by its various standards the ambitions, directions and strategic policies of the institution, as well as its objectives such as achieving the highest surplus in production or maximizing the business number and gaining a local or international market share.

Research Issue

The research issue of the study can be formulated as follows:

1. Is the evaluation of human resource performance an important tool in making strategic decisions for the economic institution?

2. According to this question , there are many questions that should be answered, among them:

3. How can the organization make its strategic decisions, drawing on the performance evaluation of its human resources?

4. Is there an impact of job evaluation on strategic decision-making in the economic institution?

5. The main hypothesis:

6. There is a statistically significant effect between assessing job performance and making a strategic decision for an economic institution.

Previous Studies

To clarify the picture more about the subject of our study, we took some previous studies to highlight the role of evaluating the performance of the human resource and its relationship to decision-making in the economic institution.

Oluwayomi Olota et al., study in 2019, at university of Ilorin and Lead City University, titled “Human Resource Strategy and Production Management: A Resource Based View Approach”.

The study aims to review human resource strategies and determine how to apply these strategies to production. This research adopted the survey research design. Simple random sampling technique used to select 100 staff of the production department and human resource department in LUBCON Nigeria Ltd. Questionnaires were used as the instrument of primary data, the results of the research concluded that job design and work planning by the strategic human resource manager will increase the production process in the enterprise and increase worker productivity.

JokoMartanto & Hady Efendy, study in 2018 at university of Jakarta, Indonesia titled“Implementation of Performance Management in Inspectorate General of the Ministry of Law and Human Rights”.

This research aims to show that success in achieving the goals and ambitions of the organization requires effective management, skill and competitiveness in managing human resources through excellent performance at work within the organization, Thus, the institution can manage the performance of human resources and control more in order to achieve the desired goals of the efforts of the General Inspectorate at the Ministry of Law and Human Rights in order to create efficiency and effectiveness within the institution. Thus, the institution can manage the performance of human resources and control more in order to achieve the desired goals of the efforts of the General Inspectorate at the Ministry of Law and Human Rights in order to create efficiency and effectiveness within the institution.

Md Yusuf Hossein Khan, study in 2018, at International University of Business Agriculture and Technology, Bangladesh, titled “Strategic Human Resource Practices and its Impact on Performance towards Achieving Organizational Goals”.

The aim of the study is to find out the possibilities of the skills, knowledge and competencies of the employees in the Strategic Human Resource Practices and its Impact on Performance towards Achieving Organizational Goalsonomic institution, considering that they help in improving the performance of human resources, as the value of strategic human resources management in business and economics cannot be denied, the organization must define its future tasks and be ready to achieve them, as it depends on the employees, who represent the key to performing the necessary performance that strives towards achieving the organizational goal and success. And defining long-term human resource practices and what role they play in organizational performance, this paper will form awareness among employees and institutions in both the private and public sectors regarding human resources for strategic management.

Jackson Nickerson, Nicholas Argyre, study in 2018, at Washington University in St. Loui, titled “Strategizing before Strategic Decision Making”.

The study aimed to formulate the strategic problem of strategic decision-making, due to the importance of this decision in a competitive reality after highlighting the important features; several methods were explored in which a problem could be formulated for the situation. The picture becomes clear in how to build a strategic decision that affects decision-making within the organization problem formulation; the formulation of the problem at hand is closely related to the development of theories, especially at the level of teamwork for human resources. Thus, we suggest that the processes of developing strategies be understood in a manner consistent with decision-making.

Jordi Surroca Josep A. Tribo and Sandra Waddock, study in 2009, at university of Carlos III de Madrid, Department of Business Administration, Madrid, Spain and Carroll School of Management, Boston College, Chestnut Hill, Massachusetts, U.S.A, titled “Corporate responsibility and financial performance the role of intangible resources”.

This study included (599) companies from 28 countries, where the rating platform was used to measure Sustainalytics, using the dependent variables represented in both the financial performance and the performance of the company's responsibility, while the independent variables were represented by both intangible resources and this study on the effects of the company's intangible resources in mediating the relationship between corporate responsibility and financial performance, and the results indicate that there is no direct relationship between corporate responsibility and its financial performance.

Kristen Ringdal and Emma Parry, study in 2008, at University of Cranfield School of Management Department of Sociology and Political Science, Paul Good erham, titled “Norwegian School of Economics & Business Administration (NHH)”, the Impact of Bundles of Strategic Human Resource Management Practices on the Performance of European Firms.

This study dealt with 3281 companies located in the European Union, the study on cross-sectional data derived from the 1999 Cranet Questionnaire for Human Resources Management in 16 European countries. The factors were saved using the Anderson-Rubin method of the SPSS program, and with regard to the variables, Factor analysis from 80 companies resulted in different human resource management practices in 15 groups of human resource management practices that were then classified as either 'computational', 'collaborative' or 'intermediate'.

Why Performance Measurement?

Performance measurement provides a structured approach for focusing on a program’s strategic plan, goals, and performance.

1. Performance measurement provides a structured approach for focusing on a program’s strategic plan, goals, and performance.

2. Measurements focus attention on what is to be accomplished and compels organizations to concentrate time, resources, and energy on achievement of objectives. Measurements provide feedback on progress toward objectives.

3. Performance measurement improves communications internally among employees, as well as externally between the organization and its customers and stakeholders. The emphasis on measuring and improving performance (results-oriented management) creates a new climate affecting all the organizations aspects.

4. Performance measurement helps justify programs and their costs. Measurements provide the demonstration of a program’s good performance and sustainable impacts with positive results, in order to support the decision making process. (Franceschini, 2007).

Human Capital Measurement

In the early 1960s and 1970s a novel approach to evaluation was taken: Human Resources Accounting (HRA). Interest in this approach seemed to diminish in the early 1980s; however, it has recently obtained renewed emphasis. This concept, currently labelled human capital measurement, attempts to place a value on employees as assets in an organization and to measure improvements or changes in these values using standard accounting principles. It is an extension of the accounting principles of matching cost and revenues and of organizing data to communicate relevant information in financial terms. Human resources are viewed as assets or investments of the organization. Methods of measuring these assets are similar to those for measuring other assets (Phillips et al., 2012).

Measurement, Analysis and Improvement of Organizational Performance

This Item looks at the processes associated with data collection, information and measures (including comparative data) for planning, decision making improving performance, and supporting action plans and operations The Item also looks at the analytical processes used to make sense out of the data to ensure decision makers draw valid conclusions. In addition, it looks at how these analyses are deployed throughout the organization and used to support organization-level review, decision-making, planning, and process improvement.

Management of Information, Knowledge, and Information

This Item examines how your organization ensures the quality and availability of needed data and information. The data system must provide for and ensure data integrity (completeness), reliability (consistency), accuracy (correctness), timeliness (available when needed), security (freeform attack), and confidentiality (free from inappropriate release).

This Item looks at how the organization ensures that data and information are accessible to workers, suppliers and partners, and customers as needed and appropriate to support decision-making. This Item also seeks to ensure that hardware and software are reliable and user-friendly throughout the organization. In many organizations, people with minimal computer skills must be able to access and use data to support decision making (Blazey, 2011).

Strategic Management Systems

For some organizations it is sufficient for successful functioning to have rules and structures and to adhere to them accordingly; think, for example, of public institutions, schools or associations. However, as soon as a company has to assert itself in a dynamic market environment, mere compliance with rules and structures will no longer be enough. And this probably applies to all companies today.

Even small companies find themselves in a dynamic and competitive environment, often experiencing it even more intensively than their large competitors. But they can act faster and more directly, not least because of the presence of the founder Larger companies in a dynamic environment, on the other hand, add another level to existing (mostly static) rules and structures. Strategic management systems emerge (Trost, 2020).

Strategy Development and Patterns

One area that has not been particularly well addressed through patterns revolves around the development and delivery of organizational strategy. The majority of strategies fail to be implemented and deliver the benefits envisaged at the outset. Put plainly, most strategies are not fit for purpose. Using Alexander’s terminology, strategy development is failing to find the harmony between a form, which is yet to be planned and delivered, and a context, which has not yet been defined, and is bound to change before the form is even delivered. Moreover, strategies cannot be devised in isolation from the world surrounding them. Indeed, observing the same tensions, French general and statesman, Charles de Gaulle, noted that you have to be fast on your feet and adaptive, or else your strategy becomes useless. Christopher Alexander was concerned about the duality embedded in refining the balance needed for the organic order, encompassing the importance of the part, in the context of the wider environment (Dalcher, 2018).

Comparing program evaluation and performance measurement systems: Because core program evaluation knowledge and skills can be adapted to the design and implementation of performance measurement systems, it is clear that there is substantial overlap between these two evaluation approaches. However there are important differences between program evaluation and performance measurement, By contrasting performance measurement with program evaluation, it is possible to offer an extended definition of performance measurement as an approach to evaluation. We believe that the core knowledge and skills that are integral to becoming a competent program evaluator are necessary to designing and implementing effective performance measurement systems.

If evaluators do not understand and know how to work with these basic concepts, expectations and indeed the designs of performance measurement systems will be inappropriate and less likely to be useful, used, and sustainable(McDavid et al.,2018).

Decision making: Before beginning the investigation of how decisions rationally ought to be made, it will be useful to reflect on what goes on in actual decision making. In a particularly simple case, I may just be deciding whether to perform some action A. For instance, I may be deciding whether to order the south western quiche for lunch. This often involves comparing A to a number of other alternatives. For instance should I instead order the chicken salad sandwich? In a particularly simple case, my choice could just be between A-ing and not A-ing. It is important to realize that decisions are always made in advance of acting. You cannot literally decide to do something now, if by “now” you mean “at this very moment”, then either you are already performing the action or you are not performing the action. It is too late to decide. Of course, your decision might be about what to do within the next second or two. But we often have to make decisions far in advance of the time they are to be carried out. This is for at least three reasons. First, I may have to do other things before I can carry out a decision. For instance, if I decide to paint my bedroom, I may have to buy the paint. Second decisions can involve a whole course of actions rather than a single action. I may decide to paint two rooms, doing the bedroom last. The decision has to be made early enough that I can paint the first room before painting the bedroom, and hence the painting of the bedroom may not occur until sometime after the decision is made. When we decide to perform a whole sequence of actions, we are adopting a plan (Pollock, 2006).

Means and ways: practical approaches to impact adversary decision-making processes: The needs and means to target and adversely impact organizations are not new to human conflicts. In particular, warfare has always targeted the perception, decision-making performance, operational effectiveness, and ultimately the will of the organizations of national governments, their security services, and militaries. The advent of ubiquitous communication, computation, and sensing used by adversary organizations has enabled new methods and mechanisms to influence these targets providing access to human decision-makers at all levels of the organization through the sensing and information systems that provide perception, the communication nets that enable collaboration and shared awareness, and the networks that distribute organization intent and commands. These channels and the dependencies of organization on the information they provide offer the potential for more sophisticated technical means to impact adversary organization (Kott, 2006).

Good strategies, good decisions: One answer is very simple: a good decision is one that leads to your getting what you want. Or, just a little more carefully, to your getting more of what you want than you would have got if you had taken one of the other options open to you. The value of a decision, judged this way, depends a lot on luck: a carefully and lucidly thought out decision can lead to disaster, and an impulsive, misinformed, mad act can have great success, if the wind changes suddenly. Luck plays a smaller role if we ask what makes a good decision-making method or policy. (We can then judge decisions by the polides that prompted them, acknowledging that good policies sometimes produce disastrous results). We can take a particular conception of rational decision, for example one of the patterns of probabilistic reasoning described by a standard decision theory, and we can ask for its advantages and disadvantages. We can ask - to give a crude approximation to a range of different questions - how often people will get more of what they want if their decisions are formed in this way, than they would have had they reasoned differently(Morton, 1991).

Results of the Study

After reviewing the theoretical frameworks, through which we clarified the major role of evaluating the performance of human resources in the economic institution and the extent of its contribution to the effectiveness of the strategic decision in addition to highlighting the complementary relationship between them, However, this is not sufficient because the theoretical aspect must be dropped on what is realistic and practical, and this is with the aim of more scrutiny in determining the nature of the relational relationship and the impact of evaluating the performance of human resources on making the strategic decision in the Algerian economic institution. In order to be familiar with the topic and the answer to the problem at hand, we conducted our field study for the S.C.I.S Cement Corporation in Saida. We can determine the mathematical form of the model, which will allow us to facilitate the study process as it takes the form of the following mathematical function:

CA = (C + ENST + ENSVA + DSPR+ DF+NOA+NABS)

We can determine the mathematical form of the model, which will allow us to facilitate the study process as it takes the form of the following mathematical function:

CA =B0+B1 ENSTi+B2 ENSVA i +B3 DSPRi +B4 DFi+ B5 NOA i+B6 NABS i+ui

CA: It represents the turnover achieved annually.

EN : represents the total number of permanent workers per year.

ENSVA : Represents the total number of temporary workers per year.

DSPR: represents the cost-effectiveness stimulus expenditures, which are estimated in KD.

DF: represents training expenses, which are estimated in KD

NOA: represents the number of work accidents, which are estimated in kilo KD

NABS : It represents the percentage of annual absences.

(B0, B1, B2, B3, B4, B5) represent the parameters of the standard model.

Express the time, the value of the variable during period i.

Estimate the Standard Model

After the process of formulating the standard model and identifying the dependent variable and the independent variables, we estimate economic standard models based on the least squares method, which is the most appropriate in our study as it is one of the best methods for estimating linear mathematical models.

After reviewing the theoretical frameworks, through which we clarified the major role of evaluating the performance of human resources in the economic institution and the extent of its contribution to the effectiveness of the strategic decision in addition to highlighting the complementary relationship between them, However, this is not sufficient because the theoretical aspect must be dropped on what is realistic and practical, and this is with the aim of more scrutiny in determining the nature of the relational relationship and the impact of evaluating the performance of human resources on making the strategic decision in the Algerian economic institution. In order to be familiar with the topic and the answer to the problem at hand, we conducted our field study for the S.C.I.S Cement Corporation in Saida.

After the process of formulating the standard model and identifying the dependent variable and the independent variables, we estimate economic standard models based on the least squares method, which is the most appropriate in our study as it is one of the best methods for estimating linear mathematical models.

After reviewing the theoretical frameworks, through which we clarified the major role of evaluating the performance of human resources in the economic institution and the extent of its contribution to the effectiveness of the strategic decision in addition to highlighting the complementary relationship between them, However, this is not sufficient because the theoretical aspect must be dropped on what is realistic and practical, and this is with the aim of more scrutiny in determining the nature of the relational relationship and the impact of evaluating the performance of human resources on making the strategic decision in the Algerian economic institution. In order to be familiar with the topic and the answer to the problem at hand, we conducted our field study for the S.C.I.S Cement Corporation in Saida. We can determine the mathematical form of the model, which will allow us to facilitate the study process as it takes the form of the following mathematical function:

CA = (C + ENST + ENSVA + DSPR+ DF+NOA+NABS)

We can determine the mathematical form of the model, which will allow us to facilitate the study process as it takes the form of the following mathematical function:

CA =B0+B1 ENSTi+B2 ENSVA i +B3 DSPRi +B4 DFi+ B5 NOA i+B6 NABS i+ui

CA: It represents the turnover achieved annually.

EN : represents the total number of permanent workers per year.

ENSVA : Represents the total number of temporary workers per year.

DSPR: represents the cost-effectiveness stimulus expenditures, which are estimated in KD.

DF: represents training expenses, which are estimated in KD

NOA: represents the number of work accidents, which are estimated in kilo KD

NABS : It represents the percentage of annual absences.

(B0, B1, B2, B3, B4, B5) represent the parameters of the standard model.

(i) Express the time, the value of the variable during period i.

After the process of formulating the standard model and identifying the dependent variable and the independent variables, we estimate economic standard models based on the least squares method, which is the most appropriate in our study as it is one of the best methods for estimating linear mathematical models Table 1.

Table 1 Represents the Output from the Results after the Process of Entering the Information Necessary to Build the Model
Varibale	Confficient	Std.Error	t- Statistic	Prob
C	2814.987	969.9927	2.90207	0.0124
ENST	-7.2475	2.107041	-3.43966	0.0044
ENSVA	4.679662	8.370392	0.559073	0.5856
DSPR	34.74881	8.046733	4.318375	0.0008
DF	0.011026	0.01974	0.558538	0.586
NOA	-22.5944	11.16196	-2.02423	0.064
NABS	-4.58323	3.423289	-1.33884	0.2036
R- sauqred	0.831946	Mean dependent Var		2236.65
Adjusted R-squared	0.754383	S.D. dependent.var		607.9954
S.E. of regression	301.3212	Akalke info criterion		14.52345
Sum squared resid	1180328	Schwarz  criterion		14.87195
Log likelihood	-138.235	Hannan- Quinn criter.		14.59148
F- statistic	10.72603	Durbin – Watson sat		2.049992
Prob(F-statistic)	0.000215

In this table and through the information extracted from the program, we can estimate the results of the model as follows:

CA = (2814.987)+(-7.247) ENST+(4.679)ENSVA+(34.748)DSPR+(0.011) DF+(-22.594) NOA+(-4.583)NABS.

After removing the variables that are not statistically significant, we obtain the following model Table 2.

Table 2 Represents an Estimate of the Linear Model
Varibale	Confficient	Std.Error	t- Statistic	Prob
C	2500.014	602.9543	4.14275	0.0007
ENST	-5.40631	1.478379	-3.65691	0.002
DSPR	23.20463	4.421984	5.24756	0.0001
R- sauqred	0.760542	Mean dependent Var		2236.654
Adjusted R-squared	0.732371	S.D. dependent.var		607.9954
S.E. of regression	314.5336	Akalke info criterion		14.47754
Sum squared resid	1681834	Schwarz  criterion		14.6269
Log likelihood	-141.775	Hannan- Quinn criter.		14.5067
F- statistic	26.99687	Durbin – Watson sat		1.465893
Prob(F-statistic)	0.000005

Through the results provided by the program, we can formulate the following model:

CA=(2500.014)+(-5.406)*ENST+(23.204)*DSPR

t1 =4.146275

t 2 = -3.656914

t 3 = 5.247560

R squared (R2)=76.05 % , F-statistic=26.99687, N=20, K=3

DW =1.465893

Analyzing the Model in Statistical and Standard Term

Student T statistic is used to assess the significance of the model coefficients, and then evaluate the effect of the interpreted variables on the dependent variable by testing the hypotheses of the estimated coefficients, where Tcal is compared with T tab and this will be done in the following way Table 3.

Table 3 Demonstrates Student Test Results for The Estimated Model
variable	Transactions	Tcal	Ttab	Prob
Fixed c	B0	4.146275	2.11	0.0007
ENST	B1	-3.656914	2.11	0.002
DSPR	B3	5.24756	2.11	0.0001

For the parameter of the constant variable B0, we find that Ttab>Tcal and therefore we reject the null hypothesis H0 and accept the alternative hypothesis That is, the variable has a statistical significance, in addition to that, we find that the error probability is almost zero, and therefore we will accept the existence of the variable in the model without any error at the level of significance 5 %.

1. For the variable B1 coefficient, the permanent number of workers: Tab<TCAL so we reject the equation H0 and accept the alternative hypothesis, meaning that the variable ENST has a statistical meaning, plus the probability of the error Prob 0.0020 so we accept the variable in the model at a level of 5% significance.

2. For the B3 variable factor, the number of permanent workers: Tab<TCAL so we reject the equation H0 and accept the alternative hypothesis, i.e. the variable DSPR has a statistical meaning, and therefore the probability of the error Prob 0.0001and therefore accept the variable in the model at a given level of 5%.

Analysis of the Overall Significance of the Model

This is done using the coefficient of determination R2 and the Fisher statistic, F. Using the coefficient of determination R2, we find from the model R2 equal to 76.05, meaning that the internal independent variables in the model explain 76.05 of the changes occurring in the dependent variable.

It is a significant percentage and therefore the model is strong, which means that there is a strong correlation between the explained variables and the dependent variable, while the rest of the effect is 23.95%. It comes from the rest of the variables not included in the model

Using the Fisher statistic F to test the significance of the regression as a whole through the following two hypotheses:

The null hypothesis H0 : B0= B1= B2= B3= 0

Alternative hypothesis, H1: B0≠0, B1≠ 0, B2 ≠ 0, B3≠ 0

That is, there is at least one non-zero parameter.

The calculated value Fcal estimated at 26.99687 is compared from the model, with the tabular value, Ftab as it is extracted from Fisher's table F and at the level of significance of 5 and the degree of freedom for the numerator and denominator as shown in the following relationship:

F_17^2= 3.592

From it we notice that the calculated value Fcal is greater than the tabular value and therefore we reject the null hypothesis H0 which states that all coefficients are equal to zero except for the constant, and we accept the alternative hypothesis H1 which states that there is at least one parameter that is not equal to zero

What indicates the existence of a significant linear relationship between the dependent variable and the explained variables, so the model as a whole has a statistical significance.Self-correlation test for errors :

The existence of two basic hypotheses (Test de Durbin -aston) assumes the Deren Watson test.

1. The null hypothesis states the autocorrelation H0 : p =0

2. An alternative hypothesis states the existence of H1 :p≠ 0 autocorrelation

Where through this selection we compare the calculated DW value equal to DW=1.465893 and the DW value extracted from the last model, taking into account the number of observations n=20 and the number of independent variables. K= 3, we find each of the values of DU=1.54 and dl=1.1 which define an area between 0 and 4 Table 4.

Table 4 Shows Acceptance and Rejection Zones for Darbin Watson
4	2.9	2.46	2	DU=1.54	dl=1.1
p<0	؟	p=0	p=0	؟	p>0
Negative autocorrelation	No correlation	No correlation	No correlation	Unspecified area	Autocorrelation

Discussion

Stop increasing employment in the institution and develop a strategy to study the volume of labor in the institution and try to exploit the available energies, and reopen industrial workshops for other products required by cement material (diversification in production such as the manufacture of cement columns, bridges and reinforced roofs, sewage channels ,to exploit workers in the production of other goods.

Work not to focus on temporary workers and use them only when necessary, such as the desire of the institution to increase production capacity.

Reducing the training budget and allocating it to other expenses, because the training in the enterprise is constantly repeated, as the study proved that the training is useless, and is only in cases of necessity such as the formation of new workers or in the case of the institution buying new machines that require high technology, or training in the maintenance of machines because it is important and necessary for such activity.

Conclusion

The evaluation of the performance of human resources is one of the prominent topics that have occupied many academic and intellectual studies, and in the research of the social and economic sciences, because it represents a challenge that the institution cannot do without regardless of the type of activity or size, especially at the present time when the scope of competition has expanded. In this study, the importance of human resources assessment was clarified, as a system that contributes to guiding and determining the right path that the decision maker should follow to become a rational decision that enables the organization to implement its strategic plans and options and achieve its vision and mission, The future of the organization depends on the strategic decision taken by the administrative leader, who should be based on the results of performance measurement, which is a reference that provides the management with an important base of sufficient and accurate information about the real and realistic activity of the institution, and through that information the manager is able to make the necessary adjustments and issue interval orders to achieve the planned results and goals, and he corrects deviations in a timely manner and this avoids the organization from falling into losses and risks, Or committing errors in appointing, promoting, motivating, or placing employees in positions that they do not deserve, and the process of evaluating human resources allows the comprehensive internal and external environmental survey of all the activities of the institution, and knowing the strengths that must be strengthened and weaknesses that must be removed, The evaluation methods differ according to the nature and activity of the institution, and the administrative leader must be careful in choosing the appropriate method that helps him in accurate and appropriate diagnosis. It is better for those in charge of the performance measurement process to use quantitative methods because they are the most appropriate in rationalizing decisions because of their advantages in providing effort, time and detailed data on the differences between what he planned and the fulfillment of the tasks, because traditional methods are no longer sufficient on their own because they are based on intuition and And self -provisions, experience, appreciation, etc., and this is what constitutes a shortage in the evaluation that the leader needs decision-making.

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Received: 03-Nov-2023, Manuscript No. ASMJ-23-13157; Editor assigned: 06-Nov-2023, PreQC No. ASMJ-23-13157(PQ); Reviewed: 20-Nov-2023, QC No. ASMJ-23-13157; Revised: 24-Nov-2023, Manuscript No. ASMJ-23-13157(R); Published: 30-Nov-2023