Management Consulting/Organizational Behaviour

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Question
1. If the organization had not invested in its employee, would they have developed ?

2. Is organizational development depended internally on employees and externally influenced by
customers?

3. Measurement has the power to focus attention on desired behavior and results," How it leads to
organizational development?

4. Discuss benchmarking techniques, are really helpful for succeeding in I today’s scenario?

Answer
Question:      If the organization had not invested in its employee, would they have developed ?
In  majority  of  the  cases, the  employees  would  not  have  developed   and  hence  the  organization  too  would  not  have  developed.

WHAT  THE  ORGANIZATION   NEEDS  IS    ‘HRD’


   A set of systematic and planned activities designed by an organization to provide its members with the necessary skills to meet current and future job demands.
   Emergence of HRD
   Employee needs extend beyond the training classroom
   Includes coaching, group work, and problem solving
   Need for basic employee development
   Need for structured career development
   Relationship Between HRM and HRD
   Human resource management (HRM) encompasses many functions
   Human resource development (HRD) is just one of the functions within HRM
   Primary Functions of HRM
   Human resource planning
   Equal employment opportunity
   Staffing (recruitment and selection)
   Compensation and benefits
   Employee and labor relations
   Health, safety, and security
   Human resource development
   Secondary HRM Functions
   Organization and job design
   Performance management/ performance appraisal systems
   Research and information systems
   HRD Functions
   Training and development (T&D)
   Organizational development
   Career development
   Training and Development (T&D)
   Training – improving the knowledge, skills and attitudes of employees for the short-term, particular to a specific job or task – e.g.,
   Employee orientation
   Skills & technical training
   Coaching
   Counseling
   Training and Development (T&D)
   Development – preparing for future responsibilities, while increasing the capacity to perform at a current job
   Management training
   Supervisor development
   Organizational Development
   The process of improving an organization’s effectiveness and member’s well-being through the application of behavioral science concepts
   Focuses on both macro- and micro-levels
   HRD plays the role of a change agent
   Career Development
   Ongoing process by which individuals progress through series of changes until they achieve their personal level of maximum achievement.
   Career planning
   Career management
   Learning & Performance
   Critical HRD Issues
   Strategic management and HRD
   The supervisor’s role in HRD
   Organizational structure of HRD
   Strategic Management & HRD
   Strategic management aims to ensure organizational effectiveness for the foreseeable future – e.g., maximizing profits in the next 3 to 5 years
   HRD aims to get managers and workers ready for new products, procedures, and materials
   Supervisor’s Role in HRD
   Implements HRD programs and procedures
   On-the-job training (OJT)
   Coaching/mentoring/counseling
   Career and employee development
   A “front-line participant” in HRD
   Organizational Structure of HRD Departments
   Depends on company size, industry and maturity
   No single structure used
   Depends in large part on how well the HRD manager becomes an institutional part of the company – i.e., a revenue contributor, not just a revenue user

   HRD Deliverables:
   Performance
   Capacity Building
   Problem solving/consulting
   Org. change and development
   Strategic HRD   
   Integration of HRD with strategy formulation and implementation
   Long-term view of HR policy
   Horizontal integration among HR functions
   Vertical integration with corporate strategy
   SHR as core competitive advantage
   Firm Capitals
   Human Capital
   Knowledge, skills, abilities of individuals
   Social Capital
   Relationships in social networks
   Structural, cognitive, relational dimensions
   Intellectual capital
   Knowledge and knowing capability of social collectivities
   Procedural/declarative; tacit/explicit; individual/social
   Value and Uniqueness of capitals
   HR and Sustainable Competitive Advantage
   In some industries, people are the most important factor in success
  - advertising and creative development
  - leisure and tourism
  - management consulting
  - hospitals and medical professions
   The adaptability of people to changing environments is an important skill
   “The ability to learn faster than your competitors may be the only sustainable advantage” – Arie De Geus, former head of planning at Royal Dutch Shell
   Challenges for HRD
   Changing workforce demographics
   Competing in global economy
   Eliminating the skills gap
   Need for lifelong learning
   Need for organizational learning
   Competing in the Global Economy
   New technologies
   Need for more skilled and educated workers
   Cultural sensitivity required
   Team involvement
   Problem solving
   Better communications skills
   Need for Lifelong Learning
   Organizations change
   Technologies change
   Products change
   Processes change
   PEOPLE must change!!
   Creating a learning organisation
   Need for Organizational Learning
   Organizations must be able to learn, adapt, and change
   Principles:
   Systems thinking
   Personal mastery
   Mental models
   Shared visions
   Team learning
   Creating a Learning Organization
suggests top managers follow several steps to build  in  learning:
   Personal Mastery: managers empower employees and allow them to create and explore.
   Mental Models: challenge employees to find new, better methods to perform a task.
   Team Learning: is more important than individual learning since most decisions are made in groups.
   Build a Shared Vision: people share a common mental model of the firm to evaluate opportunities.
   Systems Thinking: know that actions in one area of the firm impacts all others.
   A Framework for the HRD Process
  HRD efforts should use the following four phases (or stages):
   Needs assessment
   Design
   Implementation
   Evaluation
         
   Training & HRD Process Model
   Needs Assessment Phase
   Establishing HRD priorities
   Defining specific training and objectives
   Establishing evaluation criteria
   Design Phase
   Selecting who delivers program
   Selecting and developing program content
   Scheduling the training program
   Implementation Phase
   Implementing or delivering the program
   Evaluation Phase
Determining program effectiveness – e.g.,
   Keep or change providers?
   Offer it again?
   What are the true costs?
   Can we do it another way?
   Motivation, Reward and Recognition System Management
Reward Systems in most cases should be consistent with other HR systems.
The Reward System is a key driver of:
   HR Strategy
   Business Strategy
   Organization Culture
   Need for Consistency with Other HR Systems
   Financial Compensation: Performance Bonuses
Advantages
-   Organization can direct emphasis to what it considers important.
-   Bonuses are particularly useful for tying rewards to accomplishment of objectives.
Disadvantages
-   It may be difficult to determine a formula for calculating bonus achievement if the objective is expressed in subjective terms.
   Non-financial Compensation
Opportunity for Promotion:
   The ability to move up in an organization along one or more career paths
Sense of Accomplishment:
   The internal sense of satisfaction from successful performance
   Non-financial Compensation
Opportunity for Personal Growth:
   Access to programs that allow for personal development (e.g., tuition reimbursement, leadership development seminars)
Recognition:
   The informal or formal acknowledgement of a desired accomplishment
Job Security:
   A sense of being a desired employee that comes from consistent exceptional performance
   Understanding Reward & Recognition
Definitions:
   A reward is an item or experience with monetary value that is provided for a desired behavior or performance, often with accompanying recognition
   Recognition is a positive consequence provided to a person for a behavior or a result in the form of acknowledgement, approval or the expression of gratitude
   “Recognition” is more of an activity or an association (a social or interpersonal activity) while a “Reward” is more of a thing (Money, Merchandise, Trophy, Travel etc)
   Why Reward & Recognise employees
   By valuating and recognizing people, you harness the power of motivation, which is the single most powerful strategy used to promote performance and positive behaviors
   Drives Stretch in Performance
   Enhances aspirations and creates Motivation
   Feeling Valued
   Builds Self Esteem and sense of Belonging
   Improves Individual Attitudes
   Reward is a Right; Recognition is a Gift…..
Rewards at work
   Direct Financial (pay)
   Indirect Financial (benefits)
   Work Content (work)
   Careers (development)
   Affiliation (feeling of   
  belonging)
   Study results: Surprisingly, all 5 types of rewards were considered equally important….
Recognition
   Praise
   Time
   Toys, Trophies & Trinkets
   Fun, Freedom & Food
   Small Money
   Others
   Common thread – Genuine, positive, emotion
   What is Recognition?
“Recognition is any thought, word, or deed towards making someone feel appreciated for who they are and recognized for what they do.” 1
“Recognition can be a strategic tool for shaping behavior and moving an organization in a desired direction.” 2
“Recognition is something a manager should be doing all the time—it’s a running dialogue with people.” 3
   Why Focus on Recognition?   
   Employees identify recognition as one of the most effective motivators1
   Even small increases in supportive practices are associated with decreased turnover and increased sales/profitability2
   Employees who feel that their organization values them are more likely to value their customers2
   Appreciation and/or praise are among the top three drivers of employee motivation and engagement across a variety of industries and companies3
   Coaching and Mentoring
   Coaching and Mentoring
   These definitions indicate some overlap and some differences between Mentoring and Coaching. Mentoring is often seen as a longer term process, for example offering support during a career change such as induction or becoming a senior manager.
   Mentoring
   Mentoring is usually concerned with supporting practitioners whilst they make a significant career transition.
   Mentoring in intended to be supportive of the individual and occurs ‘at need’. Here the emphasis is on ready and confidential access to a ‘critical friend’ who can be used as a sounding board and who offers a free form of advice.
   Coaching
   Coaching is normally used to support the process of reviewing established or emerging practices. It is focused on innovation, change or specific skills.
   Coaching is conceived as a more structured learning process aimed at explicit professional development in an agreed area of performance.
   The learner (the personal dimension)
   The learning (the transformational dimension)
  In Mentoring and Coaching transformation or change comes about through the learning conversation. The conversation enables the process of Mentoring/Coaching in which there needs to be an explicit focus on learning.  Dennison and Kirk’s cycle of learning (1990) is useful for this purpose.
   What Mentoring and Coaching is not
  Mentoring and Coaching is not counseling although some counseling skills may be used by the Mentor/Coach. Learning conversations do not focus on personal problems.
  Neither is the learning conversation therapy although the outcome of the conversation may leave the person feeling up-lifted and may feel their emotions have changed. But learning is always the focus.
   Competency Modeling
   Competency
   It is derived from the Latin word ‘Competere’, which means to be suitable.
   The concept was originally developed in Psychology denoting Individual’s ability to respond to demand placed on them by the environment.
   Any underlying characteristic required performing a given task, activity, or role successfully can be considered as competency.
   Competencies defined
   A collection of characteristics (i.e. skills, knowledge and self-concept, traits, behaviour, motivation, etc.), that enables us to successfully complete a given task.
   Iceberg Model of Competencies
   Competencies in the Corporate World
   Communication – without offending others
   Critical Thinking – Seeing the Big picture
   Ethics / Social Responsibility – Ethical behaviour
   Information Technology – creativity optimization
   Interpersonal Diversity – Being non-judgmental
   Leadership
   Managing Change
   Self-managed Learning – self motivated
   Teamwork – collaboration & impact of self
   Technical know-how


   Why use competencies
   Competencies
   help individuals and organisations to improve their performance and deliver results
   can be quantified and communicated
   can be taught, learned, measured and monitored
   Benefits of competency-modeling
   Integrates fragmented management and practices
   Links individual or group performance to strategic direction
   Helps develop high value activities for the organisation
   Focusing on what people do, not what they are
   Leads to organisational flexibility and stability
   Leads to competitive advantage
   Is participatory and involving
   Is objective; therefore, can be geared to possible change in business future and to ensure relevance
    Benefits of competency-modeling – HR Delivery
   Matching of Individuals and Jobs
   Employee Selection
   Training and Development
   Professional and Personal Development
   Performance Measurement
   Succession Planning
   Who Identifies competencies?
   Competencies can be identified by one of more of the following category of people:
   Experts
   HR Specialists
   Job analysts
   Psychologists
   Industrial Engineers etc.
  in consultation with: Line Managers, Current & Past Role holders, Supervising Seniors, Reporting and Reviewing Officers, Internal Customers, Subordinates of the role holders and Other role set members of the role (those who have expectations from the role holder and who interact with him/her).
    What Methodology is used?
   The following methods are used in combination for competency mapping:
   Interviews
   Group work
   Task Forces
   Task Analysis workshops
   Questionnaire
   Use of Job descriptions
   Performance Appraisal Formats etc.
   How are they Identified?
   The process of identification is not very complex. One of the methods is given below:
   1. Simply ask each person who is currently performing the role to list the tasks to be performed by him one by one, and identify the Knowledge, Attitudes, and Skills required to perform each of these.
   Consolidate the list.
   Present it to a role set group or a special task force constituted for that role.
   Edit and Finalize.

   What Language to Use?
   Use Technical language for technical competencies. For example: knowledge of hydraulics.
   Use business language for business competencies. Example: Knowledge of markets for watch business or Strategic thinking.
   Use your own language or standard terms for Behavior competencies. Example: Ability to Negotiate, Interpersonal sensitivity, Sales techniques. Too technical and conceptual knowledge align to the organization and people may create more problems than help
   
   IT  IS  THROUGH   LEARNING, THE  PARTICIPANTS
   IMPROVE - DEVELOP  THEIR  CAREER  AND  THE
   OUTCOMES  OF  THE ORGANIZATION.
   
   
   
   1.HRD  Broadens  the participants'  interests  /  awareness.
   
   2. HRD  broadens  the  participants' business  perspectives.
   
   3.HRD  Exposes the  participants  to new avenues  of  practices  thoughts.
   
   4.HRD  Prepares the  participants  for  greater  responsibility.
   
   5.HRD Permits the  participants  to  greater interaction  internal/external channels.
   
   6.HRD Helps  to  prepare participants  for  promotions  within  the  organization.
   
   7.HRD Helps  to  prepare the  participants    for  additional  responsibilities.
   
   8.HRD Helps to  provide  the  participants   with modern  practices/ techniques.
   
   9. HR D Helps  the  participants     to  share  ideas concepts  with  others.
   
   10.HRD  Helps  the  participants    to  accept / manage  new technologies.
   
   11.HRD Helps  the  participants    to  accept / manage  new  processes.
   
   12.HR D Helps  the  participants    to  accepts / manage  new  culture.
   
    13.HR D Helps  the  participants    to  accepts / manage  new  OD programs.
   
   etc  etc.
   
How HRD  Benefits the Organization

•   Leads to improved profitability and/or more positive attitude towards profit orientation
•   Improves job knowledge and skills at all levels in the organisation
•   Improves workforce morale
•   Helps people and organisational alignment
•   Enhances corporate image
•   Fosters authenticity, openness and trust
•   Improves boss-subordinate relationships
•   Aids Organisational development
•   Learns from the trainee
•   Helps prepare guidelines for work
•   Aids implementation of organisational policies
•   Helps predict future needs
•   Enhances decision making and problem solving
•   Enhances “promotion” probability
•   Aids replicating “success” factors
•   Enhances productivity
•   Optimizes resources
•   Enhances “learning orientation”
•   Improves labour-management relations
•   Enhances internal expertise / reduces dependence on consultants
•   Helps transition from Q1 to Q2
•   Helps conflict management
•   Enhances communication
•   Helps “change management”
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2. Is organizational development depended internally on employees and externally influenced by
customers?

ORGANIZATIONAL DEVELOPMENT

Positive Environment
A critical internal force that influences employee behavior is the actions of colleagues. According to Entrepreneur.com, "creating an atmosphere of sharing and helping" was at the top of the list during a roundtable brainstorming session at the Metro Atlanta Chamber of Commerce when clients were asked to identify the primary forces that improve effective customer service. Companies that can effectively build an internal culture that is based on mutual respect, teamwork and support will notice increased productivity and a sharper focus on service to customers.
Technology
Technology is a significant factor that can have both positive and disruptive influences on employee behavior. While technology can often help streamline processes and make work easier for employees, learning how to use new technology while remaining productive can be stressful. Factor in the rapid advent of technology, in general, and employers seem to be faced with an almost ongoing need for new training, process improvement and documentation.
Customer Demands
Customer demands can be an external force that exerts pressure on organizations to continually stay ahead of the competitive curve. Lin Grensing-Pophal, a marketing consultant and author of "Marketing With the End in Mind," suggests that companies must always monitor the external environment to be alert to changes that can impact their operations—and their very existence. Employees must adapt to the changing needs of customers, the growing savvy of customers and the heightened expectations of customers, says Grensing-Pophal.
Locus of Control
Employees are influenced by both internal and external forces, but the impact of these forces depends a great deal on their own levels of internal and external locus of control, says Al Siebert, Ph.D., author of "The Resiliency Advantage," at ResiliencyCenter.com. Those who have an external locus of control are looking for people to tell them what to do. These are the employees who need a great deal of direction and expect managers to give clear and detailed feedback at all times. Those with an internal locus of control feel empowered to make decisions and act on their own---they feel in control of their destiny rather than at the mercy of external factors. These employees may sometimes act too independently and are not as concerned about the opinions or expectations of others.
Strategic Plans
Companies are wise to anticipate and plan for both internal and external changes, say the experts. According to a Medscape article on the impact of change on health-care organizations, "a thorough and ongoing assessment of external and internal factors exerting an influence on the organization is expected of senior leadership to define a proactive plan of action in anticipation of strategic threats." By remaining aware of how these internal and external factors could impact employees, organizations, their HR departments and managers can be prepared to respond to changing employee behavior. Negative behavior could be dictated by feelings of anger, confusion and depression.

Organizational development (OD) is a planned, ongoing effort by organizations to change in order to become more effective. The need for organizational change becomes apparent when a gap exists between what an organization is trying to do and what is actually being accomplished. OD processes include using a knowledge of behavioral science to encourage an organizational culture of continual examination and readiness for change. In that culture, emphasis is placed on interpersonal and group processes. The fact that OD links human processes such as leadership, decision making, and communication with organizational outcomes such as productivity and efficiency distinguishes it from other change strategies that may rely solely on the principles of accounting or finance.
The fact that OD is planned distinguishes it from the routine changes that occur in the organization, particularly through a more effective and collaborative management or organization culture with special emphasis on forming work teams. The focus on interpersonal and group processes to improve performance recognizes that organizational change affects all members and that their cooperation is necessary to implement change.
The forces compelling an organization to change can be found both inside and outside the organization. Internal forces toward change can affect changes in job technology, composition of the work force, organization structure, organizational culture, and goals of the organization. There are a variety of external forces that may require managerial action: changes in market conditions, changes in manufacturing technology, changes in laws governing current products or practices, and changes in resource availability.
An organization can focus OD change efforts in several areas: changes to structure, technology, and people using a variety of strategies for development. Some of the more common techniques for changing an organization's structure include changes in work design to permit more specialization or enrichment, clarification of job descriptions and job expectations, increase or decrease of the span of control, modification of policies or procedures, and changes in the power or authority structure. Another general approach to planned change involves modifications in the technology used as tools to accomplish work. The assumption behind enhancing technology is that improved technology or work methods will lead to more efficient operations, increased productivity, or improved working conditions. Examples of technological approaches to change include changing processes for doing work, introducing or updating computers or software, and modifying production methods. The third general approach to change focuses on the people in the organization. This approach is intended to improve employee skills, attitudes, or motivation and can take many forms, such as introducing training programs to enhance work skills, increasing communication effectiveness, developing decision-making skills, or modifying attitudes to increase work motivation.
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3. Measurement has the power to focus attention on desired behavior and results," How it leads to
organizational development?

PERFORMANCE MEASUREMENT/EVALUATION

Performance MEASUREMENT / Evaluation is defined as structured formal interaction between a subordinate and supervisor, where the work performance of the subordinate is to be taken into consideration, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills  development . EVALUATION  results are used to determine reward outcomes. That is, the appraisal results are used to identify the better performing employees who should get the majority of available merit pay increases, bonuses, and promotion .  Simultaneously appraisal results are also used to identify the poorer performers who may require some form of counseling, or in extreme cases, demotion, dismissal or decrease in pay.

Performance MEASUREMENT/ evaluation  is a part of   ORGANIZATIONAL   DEVELOPMENT   AND  career development.

THE  OBJECTIVES  ARE

1    Know what your employees have achieved and can achieve
2   Know what your employees’ weaknesses are
3   Understand how each employee’s role fits into the overall business
4   Compare the efficiency of different staff members
5   Set realistic goals
6   Identify ways your business can be expanded or enhanced
They allow your staff to:
1   Feel valued
2   Understand what is expected of them
3   Understand the business they are involved in
4   Understand their weaknesses
5   Identify their strengths
6   Identify areas they need further training in
Offer opinions and insights that may improve the business as a whole

A performance  evaluation   system links achievements at all levels of the organisation with corporate, business and unit's  objectives. It provides the framework for:
• clarifying expectations, roles, responsibilities and resources required to achieve goals;
• improving communication and understanding between managers and employees in terms of work requirements, expectations, performance criteria and achievements;
• linking individual, team or unit performance with quality assurance, continuous improvement and evaluation processes of the organisation;
• facilitating, encouraging and assessing performance;
• encouraging structured feedback from employees and supervisors on performance and career planning and from the community on organisational performance;
• introducing an outcomes focused culture and increasing motivation;
• collecting data and information needed for management decision making or external review ;
• increasing the organisation’s capability to meet future requirements and to improve outcomes for the community;
• identifying performance which requires improvement; and
• recognising and acknowledging performance.
======================================================
FOR  INDIVIDUAL  EMPLOYEES,

-an  opportunity  for  self  appraisal.

-an  opportunity  for  the  manager  to appraise  the  staff.

-helps  to  determine  the  strengths  of  the  employee.

-helps  to  determine  areas  for  improvements

-helps  to  determine  the  employee  training  needs.

-helps  to  determine  the  types  of  training  programs

-helps  to  determine  the  merit  rewards  for   the  employees.

-an  opportunity  to   acknowledge /  offer  recognition  for  performance

-an  opportunity  to  improve  the  employee's  capability/competencies.

-helps  to  develop  individual  development  plan.


Benefits of performance evaluation.
At a macro level performance  evaluation   assists organisations to match outcomes with organization objectives. It provides a system for improving organization  performance and outcomes, within the  organization's  policy framework, while maintaining good industrial relations. It generates benefits throughout organisational functions and processes.
Performance evaluation   recognises that people are the organisation’s most valuable resource, and that people are the key to an innovative, professional and service-oriented public service. Performance management emphasises the relationship between the management and development of people and an effective organisation, and provides a fair and equitable environment for improving performance.
A performance  evaluation   system links achievements at all levels of the organisation with corporate, business and unit's  objectives. It provides the framework for:
• clarifying expectations, roles, responsibilities and resources required to achieve goals;
• improving communication and understanding between managers and employees in terms of work requirements, expectations, performance criteria and achievements;
• linking individual, team or unit performance with quality assurance, continuous improvement and evaluation processes of the organisation;
• facilitating, encouraging and assessing performance;
• encouraging structured feedback from employees and supervisors on performance and career planning and from the community on organisational performance;
• introducing an outcomes focused culture and increasing motivation;
• collecting data and information needed for management decision making or external review ;
• increasing the organisation’s capability to meet future requirements and to improve outcomes for the community;
• identifying performance which requires improvement; and
• recognising and acknowledging performance.
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1. The objectives of the performance evaluation system are clearly defined

Objectives of the system, and its underlying principles, are clearly defined in terms of potential benefits to the organisation, its employees and its clients.  Guidelines are clear and unambiguous.


2. The system is aligned with corporate objectives, priorities and strategies

The system reflects the organisation's goals and priorities and is linked with corporate and business plans.  The system has a strong strategic focus, with recognition given to performance and achievements that advance corporate priorities.

The system is designed in full consultation with employees and their representatives as it needs to be supported at all levels of the organisation to be accepted and workable.


3.  The system is equitable

The system is equitable; open; free from gender, race and other bias; and fairly and consistently applied.


4.    The organisation focuses on performance improvement

The organisation fosters performance recognition and realisation of the individual’s potential by taking a positive approach to cultural change and focusing on outcomes, continuous improvement and training.  Performance management is not used as a primarily punitive means of dealing with unsatisfactory performance or disciplinary matters.



5.    Commitment and ownership of the process is demonstrated

Managers and supervisors perceive performance management as a fundamental and ongoing management function and a key planning and evaluation mechanism.  The organisation fosters ‘whole of organisation’ ownership of performance management processes rather than managerial or human resource specialist ownership.


6.    Comprehensive training is provided

Training and education needs are determined and all employees, including supervisors and managers, receive adequate training.  Follow up support and maintenance training is provided.  Managers and supervisors obtain the necessary interpersonal and communication skills required for providing quality feedback.


Performance criteria and standards are clearly defined in workplans and are objective, job related and based on performance over which the team or individual can exert control.  Outcomes are measurable in terms of individual, work group or team achievement and goals are challenging yet attainable.



7.  Confidentiality is assured

Employees are confident in the system’s ability to provide anonymity and confidentiality and appropriate safeguards against bias.  Agreement is reached on documentation to be produced and guidelines for its retention.



8.  Data generated is used appropriately

Performance data is analysed when decisions are being made on organisational improvement strategies and training and development initiatives.  Inappropriate generation and use of performance data does not occur.


9.  The system is linked to a sound grievance handling process

The performance management process includes a complaint mechanism, or link to the organisation’s existing grievance and harassment policy and procedures.



10.  The system is regularly reviewed

Review mechanisms are in place to ensure that the system is effective, relevant and that it remains in line with corporate objectives and priorities.  The system is compared with other performance indicators (such as absenteeism, turnover, productivity levels) in order to gauge its effectiveness.  Attitude surveys are used to measure levels of motivation, commitment and job satisfaction.    

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Performance management is the practice of actively using performance data to improve the organization's health. This practice involves strategic use of performance measures and standards to establish performance targets and goals, to prioritize and allocate resources, to inform managers about needed adjustments or changes in policy or program directions to meet goals, to frame reports on the success in meeting performance goals, and to improve the quality of management/organization practice.
Performance Management
is an ongoing dialogue between manager and employee that links expectations, ongoing feedback and coaching, performance evaluations, development planning, and follow-up.
Set Expectations
As a best practice, we encourage supervisors to define expectations for every position. These expectations and performance measurement standards should be communicated to new employees, and reviewed at least once a year with all employees. Expectations for each position can include: purpose of the position, key responsibilities - both tasks and duties, conduct expectations, and performance standards, as well as, measures such as quality, quantity, timeliness, initiative, and teamwork for each key responsibility.
Gather Data
Performance evaluations should not be a one time event. Supervisors are encouraged to gather data regarding employee performance in a systematic manner throughout the year. The Performance Record and the Coaching Log are guides that can be used by supervisors, in addition to their own best practices, to gather data throughout the year and provide ongoing feedback to employees regarding performance. This information will then be available to supervisors when drafting the Annual Performance Evaluation.
Performance Evaluations
As a supervisor, your role is to set expectations, gather data, and provide on going feedback to your employees to assist them in utilizing their skills, expertise and ideas to produce results. To provide this direction, you should communicate to employees what is expected of them, define satisfactory performance for those expectations, and then monitor and evaluate the performance on an on going basis.
The Annual Performance Evaluation should provide a comparison of actual on-the-job performance to established performance measurement standards. The Annual Performance Evaluation encourages periodic and structured communication between supervisors and employees about the job, and should take place continuously. While day-to-day evaluation is usually informal,
Annual performance evaluations are the final phase of an effective performance management system. As a best practice, we recommend that the process start with performance planning between the supervisor and the employee in which they discuss expectations, performance standards, and objectives for the next year. The performance management process both ends and begins anew with the Annual Performance Evaluation.
Feedback
Feedback is a process by which effective performance is reinforced and less-than-desirable performance is corrected. Feedback should be information that highlights the relationship between what is expected and what has been accomplished after the work is performed or the action is taken.
Feedback can take many forms; it can be informal or formal. It can be given as praise in the form of reward and recognition, or it can be corrective in the form of disciplinary or corrective action.
Development Planning
Development planning is the process of creating experiences for your employees that promote skills and knowledge related to the position, as well as to professional growth.
Development plans draw from the Performance Evaluation:
Performance goals or needs (deficiencies) to be addressed
The employee, with supervisor assistance, identifies ways to achieve those goals and/or address performance deficiencies in systematic ways
Address opportunities for professional growth
Agreement and/or commitment between employee and supervisor
Planned follow-up
Purpose
It is the policy to maintain a Performance Management System approved by the corporate management. Such a system includes several components:
a corporate / HR policy,
individual employee work plans,
work profile
development plans,
an education/training program,
a dispute resolution process, and
a performance management and pay history.
The organization views the Performance Management System as a communications system designed to help employees succeed. It is directed by managers and supervisors but requires active participation by employees. The Performance Management System ensures that employees:
are aware of their principal job functions,
understand the level of performance expected,
receive timely feedback about their performance,
have opportunities for education, training and development, and
receive performance ratings and rewards in a fair and consistent manner.
Performance appraisal information is one consideration in making other personnel decisions such as promotions, performance-based disciplinary actions, and salary increases. Proposed personnel actions must be consistent with overall evaluations. Although there is a relationship between performance appraisals and determining employee eligibility for performance-based salary increases and bonuses, the System's primary focus is on managing employee performance towards the successful achievement of expectations set forth in the employee's work plan.
Performance Management Cycle
The Performance Management Cycle includes the following elements:
Work Plan
Work Profile
Development Plan [ education /training/development programs]
Work Planning Conference
Interim Performance Review
Annual Performance Review

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THE HRD   HAS  BEEN   USED  IN   THIS   ORGANIZATION   IN  MANY  AREAS.

The HRD   is  used  to  address the development of individuals and organizations.
1   ASSESSMENT OF NEEDS -the first step. This sounds simple, but we are often in too much of a hurry. We implement a solution, sometimes the correct intervention but not always. But we plan, very carefully and cautiously, before making most other investments in process changes and in capital and operating expenditures. We need to do the same for HRD -- implement the appropriate planning. This needs assessment and planning will lead to several possible ways to improve performance. (Of course, one of these is to do nothing! -- we may decide to focus on other activities with greater impact and greater value.)
2   PROGRAM DESIGN, DEVELOPMENT & EVALUATION. We need to consider the benefits of any HRD intervention before we just go and do it: What learning will be accomplished? What changes in behavior and performance are expected? Will we get them? And of prime importance -- what is the expected economic cost/benefit of any projected solutions?
3   TRAINING & DEVELOPMENT-- acquiring knowledge, developing competencies and skills, and adopting behaviors that improve performance in current jobs, including: adult learning theory and applications, instructional systems design, train-the-trainer programs, and instructional strategies and methods.
4   ORGANIZATION DEVELOPMENT -- the diagnosis and design of systems to assist an organization with planning change. OD activities include: change management, team building, learning organizations, management development, quality of work life, management by objectives, strategic planning, participative management. organizational restructuring, job redesign, job enrichment, centralization vs. decentralization, changes in the organization's reward structure, process consultation, executive development, action research, third party interventions, and more.
5   CAREER DEVELOPMENT  -- activities and processes for mutual career planning and management between employees and organizations. Changes in our organizations (including downsizing, restructuring, and outsourcing) are resulting in more empowerment for employees. The responsibility for our own career development is downloaded to us. (Translation: career ladders are gone; career development is now the responsibility of the individual.)
6   ORGANIZATION RESEARCH & PROGRAM EVALUATION -- an exploration of methods to evaluate, justify, and improve on HRD offerings.
HRD can give you the tools you need to manage and operate your organizations. Everything -- production, management, marketing, sales, research & development, you-name-it -- everything may be more productive IF your people are sufficiently motivated, trained, informed, managed, utilized and empowered.





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4. Discuss benchmarking techniques, are really helpful for succeeding in I today’s scenario?
Benchmarking can used to improve efficiency easily.  Benchmarking a competitor who is providing a product in a more efficient manner we can imitate their processes by adapting the base operation to our specific operation and thus produce our product more efficiently.  Improving our processes allows us to operate more efficiently.  Now that we are operating more efficiently we can do better things through efficient use of resources, higher quality products, and happy customers.

2. how an organization might benefit from benchmarking organizations in a completely different industry.
Benchmarking is a tool to achieve competitive advantage.  Benchmarking is the systematic search for best practices, innovative ideas, and highly effective operating procedures.  Benchmarking is also a process of comparing ourselves to the best-in-class processes and practices.  The best-in-class processes and practices may however be in use in a non-competitive industry.  This does not mean that we can not use this information.  We simply must use the knowledge gained by these processes and adapt it to our organization and our processes to provide improvement and hopefully advantage in our market.

3. the three main types of benchmarking.  In what circumstances would each type be most appropriate?
The three main types of benchmarking are internal, competitive, and process benchmarking.  Internal benchmarking is used within an organization to follow the practices of top performers in an organization.  Competitive benchmarking is primarily used within market competition.  To perform better than your competition you must know what your competition is doing and benchmarking provides this information.  You can then adapt what they are doing well to your own operations for continual improvement.  These types of benchmarking plans are usually done on specific processes and practices.  Finally we have process benchmarking and this more often used to benchmark non-competitive organizations who simply operate with highly efficient and effective processes.  All three types of benchmarking tools have specific uses and specific application.





4. difficulties are typically encountered when benchmarking direct competitors?  Describe several ways to work around these problems.
One of the most prominent difficulties would be that of gaining information.  Often what distinguishes one company from another is proprietary information.  This makes it difficult to obtain and thus benchmark.  Some information can be gained through public sources or third party sources while additional information can be gained through purchase and inspection of the competitor’s product.

5. the advantages to using benchmarking as an improvement tool?  What are the disadvantages?
Benchmarking has many advantages for improvement.  It allows for greater learning and understanding of our current processes while also making available information and methods not previously considered.  Using such ideas and knowledge can lead to noticeable improvement.  However, gaining the knowledge is often quite difficult.  Even prior to this stage it can be difficult to determine what and when to use benchmarking.  Along with this is the thought that using benchmarking is a continuous activity simply because the best-in-class processes and ideas are always changing and evolving.

6.  three different outcomes can benchmarking studies reveal? What course of action is appropriate for each outcome?
The three outcomes are:
1. External processes may be significantly better than internal processes which are considered a negative gap.
2. Process performance may be approximately equal which is considered parity.
3. Internal processes may be better than that found in an external organization which is a positive gap.
Each of these outcomes has a different action.  For option 1 internal process improvement must be made to remain competitive.  For option 2 further investigations is required to even determine if there is opportunity for improvement.  For option 3 no action is required but there should be recognition for the process.




7. Benchmarking studies are a search for two types of information – an understanding of best-in-class processes and the metrics that result.  In your opinion, which piece of information is more important? Why?
In my opinion the metrics that result from benchmarking studies are somewhat more important.  The main point for this stance is that the metrics used to perform the study will be based on not only our processes but also our critical success factors as discussed in question 6.  Studying the very best process known may not benefit our organization if the process does not produce information that is applicable in our organizational framework.  

9.  several methods for conducting a benchmarking study.  What are some of the considerations in choosing the method(s)?
Benchmarking studies are just that, a study.  The initial step in studying any topic is to define the topic.  Once defined we can then use many different types of resources and information to gain knowledge which is what study is for.  Knowledge can be obtained by using the Internet, Interviews, Site visits, Internal resources, Questionnaires, focus groups, and public domain documents.  Choosing the right methods is often determined by what questions you are trying to answer with your benchmark study.  Common questions are which process are causing you the most trouble, which processes contribute most to customer satisfaction and which are not performing up to expectations, what are the competitive pressures impacting the organization, and what processes or functions have the most potential for differentiating our organization from the competition.  Determining the need within our organizational framework determines what methods will be used to conduct the study.  Another key element is that of time and cost to gather and analyze the needed information.
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Leo Lingham

Expertise

management consulting process, management consulting career, management development, human resource planning and development, strategic planning in human resources, marketing, careers in management, product management etc

Experience

18 years working managerial experience covering business planning, strategic planning, corporate planning, management service, organization development, marketing, sales management etc

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24 years in management consulting which includes business planning, strategic planning, marketing , product management,
human resource management, management training, business coaching,
counseling etc

Organizations
PRINCIPAL -- BESTBUSICON Pty Ltd

Education/Credentials
MASTERS IN SCIENCE

MASTERS IN BUSINESS ADMINSTRATION

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