Writing Business Plans/Management of Human Resources
Expert: Leo Lingham - 8/8/2009
QuestionQUESTION: Questions:-
1. Discuss the challenges of Human Resource Management in the present business scenario. Explain why HRM has become more important than ever. Explain with respect to the organization you know about, while describing the organization as well.
2. Explain the importance and the process of job Analysis. Describe the methods of job analysis being practiced in an organization you are familiar with. Briefly describe the organization you are referring to.
3. Discuss the concept of competency mapping. How does it help development of an organization? Explain with the help of examples from the organization you are familiar with. Briefly describe the organization you are referring to.
4. Explain the concept of Human Resource Development. Discuss the principle in designing HRD system in any organization you may be familiar with. Briefly describe the organization you are referring to.
5. Explain the basic principles of compensation policies and its objectives. Discuss the executive compensation system of any organization you are familiar with. Does compensation system motivate the executives, explain with examples?
ANSWER: TRIBHUVAN,
HERE THE ANSWERS FOR Qs 1,2,3.
THE ANSWERS FOR Qs 4,5 ARE READY,
BUT COULD NOT FIT INTO THE SPACE PROVIDED ON THIS SITE.
PLEASE SEND THE Qs 4,5 AGAIN, I'LL LOAD THE ANSWERS IMMEDIATELY.
REGARDS
LEO LINGHAM
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1.Discuss the challenges of Human Resource Management in the present business scenario. Explain why HRM has become more important than ever. Explain with respect to the organization you know about, while describing the organization as well.
SEVEN IMPORTANT ENVIRONMENTAL CHANGES, WHICH HAS
AFFECTED THE HRM STYLE.
1.GLOBALIZATION OF BUSINESS.
- creating a global mind-set within the HR group, creating
practices that will be consistently applied in different
locations/offices while also maintaining the various
local cultures and practices, and communicating a
consistent corporate culture across the entire
organization.
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2. BUSINESS ALIGNMENT
-considering the HR function not as just an
administrative service but as a strategic business
partner.
Companies are involving the human resources
department in developing and implementing both
business and people strategies.
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3.MOBILE CULTURE
- Communicate to all locations about a common
corporate culture.
- Allow local cultures to maintain their identity
in the context of the corporate culture.
- Establish common systems (e.g., accounting,
marketing, MIS).
- Provide management with education outlining
how the company does business.
- Create an organizational mission with input
from all locations.
- Create a written strategy outlining the
corporate culture.
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4.NEW TECHNOLOGY IMPACT ON SKILLS REQUIREMENTS
Technology-related skills
• Skills in identifying new applications of technologies
• Skills in developing new technologies, or advancing existing technologies
• Skills in identifying technological solutions to problems
Operative/Technical skills
• Skills in operating new tools or equipment, or applying new methods/processes
• Skills in applying new processes or tools to existing work
• Skills in installing and maintaining new products, and
• Skills in manufacturing new products.
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5.BUSINESS INNOVATION DEMAND ON MANAGMENT
Management skills
• Skills in identifying which innovation outcomes are appropriate for commercialisation
• Skills in knowing when and how to market a new product, tool or process (or other innovation outcome) successfully
• Skills in securing intellectual property rights over innovation outcomes
• Skills in setting up efficient manufacturing processes for new products
• Skills in negotiating appropriate training provision with education and training providers
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6.DEMAND FOR INNOVATION THROUGH TRAINING/DEVELOPMENT :
* Building an educated and highly skilled workforce.
*Becoming a leader in knowledge creation and innovation.
*Developing linkages, clusters and networks to become a more integrated and networked local economy.
*Fostering high levels of enterprise formation and business growth.
*Becoming a globally focused and internationally integrated economy.
*Creating a business environment and infrastructure base that facilitates business success.
establishing a culture of innovations THRU
#Co-operative Research Centres
#Knowledge and Technology Diffusion
#Technology, Research Parks and Precincts
#Education
#Commercialisation
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7.IT TECHNOLOGY DEVELOPMENT.
-more systems / more software for the business means
different methods of working, which affect the working human resources.
HRM have to face / meet/ manage the human resources to deliver the results.
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8.OUTSOURCING OPPORTUNITIES
-the demand for cheaper labor forced the companies to
seek more destinations in the underdeveloped countries.
This created an enormous challenge to the HRM
to seek/develop/manage overseas HR.
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9.DEVELOPING ECONOMIES GROWTH RATE
-MAJOR ECONOMIC REFORMS
-the rapid development of underdeveloped countries
forced many companies to shift their production base
overseas.This created an enormous challenge to the HRM
to seek/develop/manage overseas HR.
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10.RISE IN PER CAPITA INCOME
-the rise in per capita income created more educated
human resources.
FOR HRM, IT WAS A CHALLENGE TO
MAINTAIN/ MANAGE TALENTS.
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Explain the scope and importance of Human Resource Management
============================================
What is the SCOPE of HRManagement in an organization.
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Establish , direct, administer and coordinate the overall HR PROGRAMS
for all the departments of the company.
Strategically plan for, develop and efficiently/effectively operate
the services and capabilities of the company , in alignment with the
corporate objectives / strategies. These activities include
-studying economic indicators
-tracking changes in supply and demand of labor
-identifying departments and their current and future needs
-monitoring the HR performance.
============================================
HRM covers FUNCTIONS LIKE
-human resource auditing
-human resource strategic planning
-human resource planning
-manpower panning
-recruitment / selection
-induction
-orientation
-training
-management development
-compensation development
-performance appraisals
-performance management
-career planning / development
-coaching
-counsellinges
-staff amenities planning
-event management
-succession planning
-talent management
-safety management
-staff communication
etc
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Why Is HRM Important to THE ORGANIZATION ?
It costs approximately three times more to recruit and train a new employee than it does to retain and develop an existing employee. And this doesn't even take into account the hidden costs associated with misdirected management time spent on recruiting activities rather than effectively managing existing staff.
The fact is, employees are the lifeblood of every organization. The better they are—the better qualified, trained, and managed—the more effective and profitable your organization will be.
HRM management solutions can help you manage your employees for greater profit with processes that help ensure:
-HRM can align itself with the organization objectives/strategies.
-HRM can make contribution to the organization's effectiveness
-HRM can make contribution to the organization's efficiency
-HRM can make contribution to the organization's productivity improvements
-HRM can help to set up/ manage the succession planning program.
-HRM can help to set up/ manage the talent management program.
-HRM can help to set up/ manage the career planning/ development program.
-HRM can manage the organization development programs
-HRM can manage the organization change management programs.
-HRM can a vital role in mergers/acquisitions programs of the company.
-HRM can offer a market oriented compensation advice.
-HRM can develop the organization's core competencies.
-HRM can help to set up/ manage the organization's performance management programs
-HRM can lead the way in changing the organization culture
-HRM can help to set up / manage the organizations training/ management development programs
================================================
The future for HR is
-CHALLENGING
-VERY MOBILE
-EVER CHANGING
-MORE DYNAMIC
-ACTION ORIENTED
-INNOVATIVE
-VERY GLOBALIZED
ETC ETC.
THE HR MANAGERS CONCERNS ABOUT THE ISSUE OF
NEW DEVELOPING TECHNOLOGY IS AT TWO LEVELS.
LEVEL ONE
-the introduction of new processes in business / production.
-the introduction of innovated systems in business/ production
-the heavy usage of IT TECHNOLOGY in business / production
WHICH AFFECTS THE FUNCTIONS/ PERFORMANCE OF
HUMAN RESOURCE.
THIS HUMAN RESOURCE NEEDS TRAINING / DEVELOPMENT
TO USE THE NEW PROCESSES/ TECHNOLOGY ON THE JOB.
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LEVEL TWO
THE AVAILABILITY / USE OF HEAVY IT TECHNOLOGY
IN THE MANAGEMENT OF HUMAN RESOURCES LIKE
-recruitment/ selection
-online recruitment
-selection tests
-e learning
-human resource information system usage.
-computer based training
-computer based HR SCORECARD
-USE OF METRICS
ETC ETC
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THESE ARE SOME OF THE CHALLENGES FACING HR
IN THE FUTURE.
Online technology has radically changed the way employees and managers access human resource data, and the use of online HR solutions has expanded rapidly over the past year.
Self-service and online tools have become important in the continuing effort to improve the management of HR functions and to drive competitive advantage. "As the lines blur between HR data and that used by the rest of the enterprise, organizations find it makes sense to consolidate all employee data using a corporate portal''.
Overall, the importance of HR self-service is increasing, especially those applications that improve employee performance.
The strongest growth among applications focused on managing and enhancing worker skills and productivity.
There is a dramatic increase in measuring return on investment for HR self-service programs.
The number of organizations collecting metrics on this topic also increased .
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How can HR systems meet the challenges of innovation and
new skill requirements?
There is a need for more informed policy formulation and implementation. The HR education and training systems can only be adequately understood with reference to the set of inter-relationships between the education system, industrial training system, the organizational structure of industry, the industrial relations system and the class and status relations of the wider society as reflected in its political system.
Key aims of the new HR skill system
Skill systems are communities of interrelated and interacting organisations working as a coherent entity to increase opportunities for sustainability, innovation and growth.
Skill systems offer a vehicle for two key functions, economic and workforce development. Economic sustainability is as important to partner companies as it is to HR goals of addressing industry needs and building new capacity.
Types of Skill systems
Current funding and data collection arrangements have difficulty capturing information that reflects versatile activities such as collaboration building activities. The current system rewards prescribed outcomes, one size fits all (with some customisation) in an increasingly complex and changing work environment. Data collection of this kind is important for accountability purposes and for providing readily understood information to the general population. The funding and data collection system reinforces the paradigm of large companies who require standardised occupational skills with one best method for performing particular tasks.
The system emphasises national qualification outcomes that may not be required by the companies involved in skill systems. Current realities however, see companies drawing on two formerly opposed logics - one of deskilled routinised low discretionary jobs and the other of skilled, autonomous, high discretionary jobs. New work organisation models highlight the complex realities of competition. HR data collection systems need to be expanded to capture more broadly demanded side issues. Currently there is little recognition of time and resources spent developing relationships, negotiating roles and services and administration of workplace training. The shifting role of the HR professional is in direct response to industry need, yet the effort is not receiving any recognition in data collection and funding systems. An added bonus of broadening data collection systems to reflect business realities may result in a paradigm shift within HR organisations as people naturally focus on their key performance areas.
There is a misguided belief that meeting industry requirements only involves delivering Training Packages. Unfortunately, changing business complexity, innovation and competitive realities means effort needs to be more targeted and focused on the specific context. Skill systems pose several challenges for the HR system. Global business development shifts are creating emergent challenges regardless of the implementation of skill systems. More companies are looking for holistic services, which require greater sophistication in the solutions offered. Driving the impetus for new HR delivery models is the necessity for precise workforce development strategies and accurate planning through inter-government coordination to underpin economic development strategies. Skill systems offer HR organisations multiple and changing roles in workforce development with opportunities for partnerships across facilities, government departments, HR organisations, higher education and business.
HRM organisations are not immune to the pressures facing industry. The need to be flexible in structure and service/ product roles are as important to the success of HRM as they are to the survival of industry. Yet HR accountability systems as they stand are dragging HR backwards. Skill systems are useful when the two key functions of economic and workforce development are pursued. Economic development and capacity building are just as important to business as they are to the HRM sector.
ideas and practice suggested that might be considered more widely include:
• initiatives connecting HRM and industry policies so that training implications are considered as a matter of course
• initiatives which consider the implications for HRM of the innovations they are supporting – e.g. industry clusters
• initiatives incorporating collaboration across COUNTRY borders
• efficient use of the worldwide web to disseminate information and collect data
• initiatives which demonstrate learning from previous experience
• attention to resourcing issues
• initiatives which enable HRM staff to increase their expertise in new areas
• initiatives which build on established expertise in HRM , and
• initiatives which seek to develop new specialisations in HRM.
Technology-related skills
• Skills in identifying new applications of technologies
• Skills in developing new technologies, or advancing existing technologies
• Skills in identifying technological solutions to problems
Management skills
• Skills in identifying which innovation outcomes are appropriate for commercialisation
• Skills in knowing when and how to market a new product, tool or process (or other innovation outcome) successfully
• Skills in securing intellectual property rights over innovation outcomes
• Skills in setting up efficient manufacturing processes for new products
• Skills in negotiating appropriate training provision with education and training providers
Operative/Technical skills
• Skills in operating new tools or equipment, or applying new methods/processes
• Skills in applying new processes or tools to existing work
• Skills in installing and maintaining new products, and
• Skills in manufacturing new products.
If new and changed skill needs are to be met, access to appropriate education and training is essential. Access must also be provided in a timely fashion so that the skills required for an innovation to be implemented effectively are available when needed. An enterprise will not gain the benefits from installing new equipment if its workers do not have the skills to operate it properly. Finding or providing the right training, in time, can present a challenge. The difficulties some employers are facing in finding effective ways of keeping workers up to date with technological changes – especially the ‘convergence of technologies’
The HRM system should play a primary role in providing education and training to meet the skill needs of industry. HRM organisations should engage in substantial innovation. The HRM provides innovation for reasons including: to meet the needs of WORKERS and industry be tter; to support their staff; to improve their existing practice; and to increase their capacity to gain new business, particularly in the fee-for-service area. Many HRM also have strong relationships with industries and enterprises (particularly at local levels) that enable them to gain early access to information about innovations and their likely implications for skills needs – though resource pressures, together with the length of time taken to revise training packages, may delay or hinder the development of appropriate training.
It is useful if the HRM SYSTEM adopt an Innovation Policy aimed at driving innovation by:
?? Building an educated and highly skilled workforce.
?? Becoming a leader in knowledge creation and innovation.
?? Developing linkages, clusters and networks to become a more integrated and networked local economy.
?? Fostering high levels of enterprise formation and business growth.
?? Becoming a globally focused and internationally integrated economy.
?? Creating a business environment and infrastructure base that facilitates business success.
establishing a culture of innovations. Based on these building blocks it provides support for a range of initiatives under the headings:
?? Co-operative Research Centres
?? Knowledge and Technology Diffusion
?? Technology, Research Parks and Precincts
?? Education
?? Commercialisation
?? Awareness and Promotion
?? Innovation in the Public Sector.
# Partner with innovative, high performance enterprises to develop and deliver programs integrated with new products and services.
# Make available training in foundation computer skills for the people who need it .
# Assist traditional industries to develop the capacity to adapt to change and to innovate.
# Build strategic partnerships with professional associations, other education sectors and businesses in order to increase skills development in:
• emerging industry areas
• growth business service areas
• high skill areas where opportunities for career development training exist.
# Expand diploma level traineeships.
Increase retraining opportunities for people in those middle-skill level occupations where employment is declining.
?? Undertake research into the vocational education and training needs of client and supplier groups.
?? Develop long-range planning cycles which take account of industry, business, government and community sector trends.
?? Support and facilitate the establishment of collaborative partnerships/strategic alliances between industry, providers and the community, and cross-sectoral alliances between higher education and including schools, to enhance vocational education and training outcomes for clients.
?? Encourage TRAINING UNITS to improve their online training delivery.
?? Improve arrangements to recognise existing skills within the community.
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In the current scenario explain the HR department’s functions in your organisation or an organisation you are familiar with. Describe the organisation you are referring to
The organization, I am familiar with is a
-a large manufacturer/ marketer of safety products
-the products are used as [personal protection safety] [ industrial safety]
-the products are distributed through the distributors as well as sold directly
-the products are sold to various industries like mining/fireservices/defence/
as well as to various manufacturing companies.
-the company employs about 235 people.
-the company has the following functional departments
*marketing
*manufacturing
*sales
*finance/ administration
*human resource
*customer service
*distribution
*warehousing/ transportation
*TQM
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THE FOLLOWING FUNCTIONS ARE PERFORMED
BY THE HR DEPARTMENT
IN A DAY-TO-DAY BASIS,
1.human resource auditing
[on an annual basis audits the organization to determine
the organization gaps and the needs]
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2.human resource strategic planning
[on an annual basis , develops a hr strategic plan to
align itself with the corporate strategic plan]
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3.human resource planning
[on an annual basis, develops a hr plan to identify
the various departments hr requirements/ action plan
to implement them]
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4.manpower planning
[on a regular basis/ or as required , the hr develops the
manpower requirements within specific areas]
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5.recruitment / selection
[on a regular basis develops a program of recruitment
and selection of staff for various departments ]
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6. induction
7. orientation
[coordinates / conducts the organization's induction /orientation
programs regularly]
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8. training
[on a regular basis, conducts training needs for the organization
and based on the needs, coordinates/ conducts the required training
programs]
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9. management development
[on a regular basis, conducts training needs/ asssessments for the organization's
management requirements and based on the needs, coordinates/ conducts the required
development programs]
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10.compensation development
[based on the market informations/ benchmarking, determine the
compensation packages for the organization.
manages the administration of salaries/wages/payroll]
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11. performance appraisals
-performance management
[coordinates/ conducts the regular performance appraisals
and manages the performance planning/development system]
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12. career planning / development
-succession planning
-talent management
[as part of the career planning/ talent management, coordiantes
and manages all the above listed activities]
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2.Explain the importance and the process of job Analysis. Describe the methods of job analysis being practiced in an organization you are familiar with. Briefly describe the organization you are referring to.
JOB ANALYSIS CONCEPT
Overview
Job Analysis is a process to identify and determine in detail the particular job duties and requirements and the relative importance of these duties for a given job. Job Analysis is a process where judgements are made about data collected on a job.
The Job; not the person
An important concept of Job Analysis is that the analysis is conducted of the Job, not the person. While Job Analysis data may be collected from incumbents through interviews or questionnaires, the product of the analysis is a description or specifications of the job, not a description of the person.
Purpose of Job Analysis
The purpose of Job Analysis is to establish and document the 'job relatedness' of employment procedures such as training, selection, compensation, and performance appraisal.
Determining Training Needs
Job Analysis can be used in training/"needs assessment" to identify or develop:
training content
assessment tests to measure effectiveness of training
equipment to be used in delivering the training
methods of training (i.e., small group, computer-based, video, classroom...)
COMPENSATION
Job Analysis can be used in compensation to identify or determine:
skill levels
compensable job factors
work environment (e.g., hazards; attention; physical effort)
responsibilities (e.g., fiscal; supervisory)
required level of education (indirectly related to salary level)
SELECTION PROCEDURES
Job Analysis can be used in selection procedures to identify or develop:
job duties that should be included in advertisements of vacant positions;
appropriate salary level for the position to help determine what salary should be offered to a candidate;
minimum requirements (education and/or experience) for screening applicants;
interview questions;
selection tests/instruments (e.g., written tests; oral tests; job simulations);
applicant appraisal/evaluation forms;
orientation materials for applicants/new hires
Performance Review
Job Analysis can be used in performance review to identify or develop:
goals and objectives
performance standards
evaluation criteria
length of probationary periods
duties to be evaluated
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Job Analysis is a process to identify and determine in detail the particular job duties and requirements and the relative importance of these duties for a given job. Job Analysis is a process where judgements are made about data collected on a job.
There are two key elements of a job analysis:
1. Identification of major job requirements (MJRs) which are the most important duties and responsibilities of the position to be filled. They are the main purpose or primary reasons the position exists. The primary source of MJRs is the most current, official position description.
2. Identification of knowledge, skills and abilities (KSAs) required to accomplish each MJR and the quality level and amount of the KSAs needed. Most job analyses deal with KSAs that are measurable, that can be documented, and produce meaningful differences between candidates. Typically, possession of KSAs is demonstrated by experience, education, or training. The goal of KSAs is to identify those candidates who are potentially best qualified to perform the position to be filled; they are most useful when they provide meaningful distinctions among qualified candidates. Source documents for KSAs may be the position description, HRM standard qualifications and job classification standards.
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FIRST STEP --CLASSIFY THE JOB
STANDARD OCCUPATIONAL CLASSIFICATIONS
THIS IS USA BASED . CHECK THE INDIAN SIC [ standard INDIAN classifications]
The Occupational Classification System manual was created for Bureau of STATISTICS field economists to help ensure correct occupational matches when collecting compensation data. Available to the public, this manual allows the user to lookup job descriptions for occupations and is used by field economists in the classification of thousands of occupations.
Major Occupational Groups (MOGs)
MOG A Professional, Technical and Related Occupations
MOG B Executive, Administrative, and Managerial Occupations
MOG C Sales Occupations
MOG D Administrative Support Occupations, Including Clerical
MOG E Precision Production, Craft, and Repair Occupations
MOG F Machine Operators, Assemblers, and Inspectors
MOG G Transportation and Material Moving Occupations
MOG H Handlers, Equipment Cleaners, Helpers, and Laborers
MOG K Service Occupations, Except Private Household
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SECOND STEP- CONDUCTING INTERVIEWS
Interview Methods
Structured Interviews A structured interview may assume a definite format involving:
charting a job-holder's sequence of activities in performance
an inventory or questionnaire may be used
Care is needed to set up such interactions. A specialist analyst is not involved and participants need to know what they are doing, why and what is expected as a result. They may be intrained as interviewers and not structure the interview as recommended. Notes and records may be needed for subsequent analysis.
A structured interview may be akin to a staff appraisal or job evaluation interview carried out by a manager with a subordinate. The manager is the analyst.
Interview Outcomes
Interviewing is a flexible method for all levels and types of job. An interview may focus on what a hypothetical job might involve.
Interviews generate descriptive data and enable job-holders to interpret their activities. A good interviewer can probe sensitive areas in more depth. Structured questionnaires cannot easily do this. Jobholders can give overviews of their work and offer their perceptions and feelings about their job and the environment. Rigid questionnaires tend to be less effective where the more affective aspects of work are concerned.
However information from different interviews can be
hard to bring together
there is potential for interviewer bias
certain areas of the work may fail to be picked up
an interview may stress one area and neglect others.
there are problems in interpretation and analysis with the possibility of distorted impressions
the subjectivity of the data captured needs to be considered
Interviewing as the sole method of job analysis in any particular project has disadvantages. Interviews are time consuming and training is needed. Co-counselling may remove the analyst and enable jobholders to discuss work between themselves. Through inexperience however they may miss items and there is the natural problem of people not establishing and maintaining rapport with each other during an interview.
Methods of Job Analysis
Several methods exist that may be used individually or in combination. These include:
review of job classification systems
incumbent interview
supervisor/direct boss interviews
expert panels [ direct boss/HRM/ others]
structured questionnaires
task inventories
check lists
open-ended questionnaires
job observations
incumbent work logs
A typical method of Job Analysis would be to give the incumbent a simple questionnaire to identify job duties, responsibilities, equipment used, work relationships, and work environment. The completed questionnaire would then be used to assist the Job Analyst who would then conduct an interview of the incumbent(s). A draft of the identified job duties, responsibilities, equipment, relationships, and work environment would be reviewed with the supervisor for accuracy. The Job Analyst would then prepare a job description and/or job specifications.
The method that you may use in Job Analysis will depend on practical concerns such as type of job, number of jobs, number of incumbents, and location of jobs.
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THIRD STEP ---ANALYSIS OF THE JOB.
What Aspects of a Job Are Analyzed?
Job Analysis should collect information on the following areas:
Duties and Tasks The basic unit of a job is the performance of specific tasks and duties. Information to be collected about these items may include: frequency, duration, effort, skill, complexity, equipment, standards, etc.
Environment This may have a significant impact on the physical requirements to be able to perform a job. The work environment may include unpleasant conditions such as offensive odors and temperature extremes. There may also be definite risks to the incumbent such as noxious fumes, radioactive substances, hostile and aggressive people, and dangerous explosives.
Tools and Equipment Some duties and tasks are performed using specific equipment and tools. Equipment may include protective clothing. These items need to be specified in a Job Analysis.
Relationships Supervision given and received. Relationships with internal or external people.
Requirements The knowledges, skills, and abilities (KSA's) required to perform the job. While an incumbent may have higher KSA's than those required for the job, a Job Analysis typically only states the minimum requirements to perform the job.
What does or should the person do?
What knowledge, skill, and abilities does it take to perform this job?
What is the result of the person performing the job?
How does this job fit in with other jobs in the organization?
What is the job’s contribution toward the organization’s goals?
The process may seek to obtain information about the:
work
worker
context within which the job exists
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FOURTH STEP - DEVELOPING JOB DESCRIPTORS
Worker Functions. The relationship of the worker to data, people, and things.
Work Fields. The techniques used to complete the tasks of the job. Over 100 such fields have been identified. This descriptor also includes the machines, tools, equipment, and work aids that are used in the job.
Materials, Products, Subject Matter, and/or Services. The outcomes of the job or the purpose of performing the job.
Worker Traits. The aptitudes, educational and vocational training, and personal traits required of the worker.
Physical Demands. Job requirements such as strength, observation, and talking. This descriptor also includes the physical environment of the work.
skills
abilities
knowledge
tasks
work activities
work context
experience levels required
job interests
work values/needs
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FIFTH STEP -- DEVELOPING JOB DESCRIPTIONS/JOB SPECIFICATIONS
There are as many different formats for job descriptions as there are jobs, but there are some basic pieces of information that most job descriptions have. Include them in yours, if you feel they are appropriate.
Job Scope . This section should contain a brief summary of the information found in more detail elsewhere in the description. A summary shouldn't be more than a few sentences long and should explain the main purposes and functions of the job.
Detailed duties and responsibilities. This is a more detailed description of the duties involved and separates the essential functions of the job from the incidental job functions for purposes of the ADA.
Accountabilities. A list of outcomes, the position is responsible for.
Skills required to perform the job. This can include compensable factors such as education, experience, and abilities.
Importance of job duties and tasks. Ranking the duties from most important to least important is a good way to convey this information since the task that consumes the most time is not necessarily the most important task. You can rank on a scale of one to 10, for example.
When and how often the tasks are performed. You might want to mention that certain tasks are only done once a month, quarter, year etc.
Job environment. Job environments can impact significantly on workers' motivation and job satisfaction. For example, it's a good idea to include in job descriptions factors like the fact that the work is done off-premises, or mention the existence of hazards, noises, physical proximity of other employees, and opportunities to communicate with other employees. Including these factors in the job description helps job applicants better understand the requirements of the job and helps you select the best candidate for the position.
Working Relationship. should include 1] direct reporting 2] dotted line communication 3]others.
Competencies.
KRA [ Key responsible areas]
KPA [ Key performance areas]
KPI [ Key performance indicators]
KPC [ Key performance criteria]
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THE JOB ANALYSIS CAN BE USED FOR
-analysis of the job itself, at any time.
-developing job description.
-developing job position specification
-job evaluation
-job enlargement
-job enrichment.
etc
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The organisation I am referring to
The organization, I am familiar with is a
-a large manufacturer/ marketer of safety products
-the products are used as [personal protection safety] [ industrial safety]
-the products are distributed through the distributors as well as sold directly
-the products are sold to various industries like mining/fireservices/defence/
as well as to various manufacturing companies.
-the company employs about 235 people.
-the company has the following functional departments
*marketing
*manufacturing
*sales
*finance/ administration
*human resource
*customer service
*distribution
*warehousing/ transportation
*TQM
==============================================
In the above organization, the job analysis is conducted
when
-a new position is created.
-the job is enlarged
-the jobs are merged.
QUESTIONNAIRE FILLING / INTERVIEWS
THE JOB ANALYSIS PROCESS INCLUDES
-THE MANAGER/ SUPERVISOR completes the questionnaire.
-the manager / supervisor is interviewed
-the employee is interviewed.
ONCE THIS IS COMPLETED,
-THE JOB DESCRIPTION IS COMPLETED.
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3.Discuss the concept of competency mapping. How does it help development of an organization? Explain with the help of examples from the organization you are familiar with. Briefly describe the organization you are referring to.
Competency profiling is typically a method for identifying specified skills, knowledge, attitudes and behaviour necessary to fulfilling a task, activity or career. In most organisations its ultimate purpose is to provide value to the external customer.
Profiling results are used for training purposes mostly.
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In categorising competence, some organisations make distinctions between competencies,
1. which refer to desired personal attributes and behaviours, and
2.competences, which are the knowledge and skill required .
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what is competency mapping?
Competencies IS the collection of success factors necessary for achieving important results in a specific job or work role in a particular organization. Success factors are combinations of knowledge, skills, and attributes that are described in terms of specific behaviors, and are demonstrated by superior performers in those jobs or work roles. Attributes include: personal characteristics, traits, motives, values or ways of thinking that impact an individual’s behavior.
Competencies in organizations tend to fall into two broad categories:
- Personal Functioning Competencies. These competencies include broad success factors not tied to a specific work function or industry (often focusing on leadership or emotional intelligence behaviors).
- Functional/Technical Competencies. These competencies include specific success factors within a given work function or industry.
Three other definitions are needed:
• Competency Map. A competency map is a list of an individual’s competencies that represent the factors most critical to success in given jobs, departments, organizations, or industries that are part of the individual’s current career plan.
• Competency Mapping. Competency mapping is a process an individual uses to identify and describe competencies that are the most critical to success in a work situation or work role.
• Top Competencies. Top competencies are the vital few competencies (four to seven, on average) that are the most important to an individual in their ongoing career management process. “Importance to the individual” is an intuitive decision based on a combination of three factors: past demonstrated excellence in using the competency, inner passion for using the competency, and the current or likely future demand for the competency in the individual’s current position or targeted career field.
Although the definition above for “competency mapping” refers to individual employees, organizations also “map” competencies, but from a different perspective. Organizations describe, or map, competencies using one or more of the following four strategies:
1. Organization-Wide (often called “core competencies” or those required for organization success)
2. Job Family or Business Unit Competency Sets
3. Position-Specific Competency Sets
4. Competency Sets Defined Relative to the Level of Employee Contribution (i.e. Individual Contributor, Manager, or Organizational Leader)
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MAPPING PROCESS
First stage of mapping requires understanding the vision and mission of the organization.
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Second stage requires understanding from the superior performers the behavioural as well as the functional aspects required to perform job effectively.
· Tool for the first and second stage: BEI/ Structured Interview
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Third stage involves thorough study of the BEI Reports/ Structured Interview Reports
a) Identification of the competency based on competency frame work
b) Measurement of competency
c) Required levels of competency for each job family
d) Development of dictionary which involves detail description of the competency based on the indicators. Care should be taken that the indicators should be measurable and gives objective judgment.
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Fourth Stage requires preparation for assessment.
a) Methods of assessment can be either through assessment centres or 360 Degree Feedback
b) If assessment centre is the choice for assessment then tools has to be ready beforehand
i. Tools should objectively measure the entire competency required.
ii. Determine the type of the tools for measuring competency
iii. Prepare the schedule for assessment
iv. Training to the assessor should indicate their thorough understanding of the competencies and the tools and also as to how the behaviour has to be documented.
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Fifth Stage involves conducting assessment centre. Usually it is a two day program which would involve giving a brief feedback to the participant about the competencies that has been assessed and where they stands to.
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Sixth stage involves detailed report of the competencies assessed and also the development plan for the developmental areas.
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how can it help the overall HR process of an organization?discuss various aspects of competency mapping and critically evaluate its utility for any organization with an example.
COMPETENCY is a vehicle for organizational HR applications such as:
• Defining the factors for success in jobs (i.e., work) and work roles within the organization
• Assessing the current performance and future development needs of persons holding jobs and roles
• Mapping succession possibilities for employees within the organization
• Assigning compensation grades and levels to particular jobs and roles
• Selecting applicants for open positions, using competency-based interviewing techniques
ETC.
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Why Should Individual Employees Map Their Competencies?
A list of compelling reasons includes, at a minimum, the following. An individual:
• Gains a clearer sense of true marketability in today’s job market; once the individual knows how his/her competencies compare to those that are asked for by the job market in key positions of interest.
• Projects an appearance as a “cutting-edge” and well-prepared candidate, who has taken the time to learn about competencies, investigate those in demand, and map his/her own competencies prior to interviewing.
• Demonstrates self-confidence that comes from knowing one’s competitive advantages more convincingly, and from being able to articulate those advantages in specific language.
• Secures essential input to resume development - a set of important terms to use in describing expertise derived from prior career experience.
• Gains advanced preparation for interviews, many of which may be delivered using a competency-based approach called “structured behavioral interviewing” or “behavioral event interviewing.” (See the section below titled “How Does Competency-Based Interviewing and Selection Work?”)
• Develops the capability to compare one’s actual competencies to an organization or position’s required/preferred competencies, in order to create an Individual Development Plan.
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Although the definition above for “competency mapping” refers to individual employees, organizations also “map” competencies, but from a different perspective. Organizations describe, or map, competencies using one or more of the following four strategies:
1. Organization-Wide (often called “core competencies” or those required for organization success)
2. Job Family or Business Unit Competency Sets
3. Position-Specific Competency Sets
4. Competency Sets Defined Relative to the Level of Employee Contribution (i.e. Individual Contributor, Manager, or Organizational Leader)
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Competency Mapping & Assessments is a process designed to consistently measure and assess staff performance as it relates to the expectations of the organization.
A competency map is made up of four areas of competence attributes:
I. Personal Attributes - The characteristics which enable the employee to attract others to well reasoned and logical points of view, to effectively communicate, and to relate to others. These include:
A. Insight and Judgment
B. Integrity and Ethics
C. Continuous Personal Improvement
D. Commitment and Performance Stability
E. Interpersonal Orientation
F. Project Management Skills
G. Innovative/Creative Thinking
H. Presenting/Speaking
I. Business Writing
J. Professional Demeanor
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II. Leadership Qualities - The skills that allow the employee to assume a position of influence by assembling and leveraging a variety of resources that address problems and opportunities throughout the organization. These include:
A. Strategic Thinking and Planning
B. Facilitating
C. Negotiating and Persuading
D. Teamwork
E. Coaching and Empowerment
F. Problem Solving
G. Decision Making
H. Cross-Functional Perspective
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III. Broad Business Perspective - The body of knowledge that encompasses an understanding of the organization and its industry. These include:
A. The Organization and Industry Knowledge
B. Internal and External Consulting
C. Business Relationships/Partnerships
D. Current and Emerging Management Practices
E. Best Practices
F. Risk Management
G. Mergers, Acquisitions and Strategic Alliances
H. Management Accounting
I. Organizational Systems and Processes
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IV. Functional Expertise - The traditional technical skills that the employee should possess and which form the basis for their unique ability to understand an organization from a perspective that others cannot. For eg. A finance professional should have knowledge in the following:
A. Financial Analysis
B. Treasury Management
C. Cost Management
D. Human Resources
E. Taxation
F. Information Technology
G. Control Environment
H. Financial and Statutory Reporting and Accounting Principles
I. Internal Audit
J. Budgeting, Forecasting and Business Planning
Once a competency map has been developed and validated, it can be used as a tool to manage, evaluate, and develop employee performance; recruit and select individuals that possess the skills required in the position; and compensate individuals based on their demonstrated performance.
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Competency Mapping & Assessments consists of six steps:
Specification Determination - Positions to be mapped are identified. A preliminary project plan is developed during this step to ensure that all the key stakeholders are involved in the process and that the appropriate activities and communication plans are established to support the development of the maps.
Data Collection - Information is gathered to identify the attributes and competencies required for each position. Data is collected to determine the skills, abilities, and personal traits required for success in the position being mapped. This data can be collected through one-on-one interviews with job content experts and their managers, focus groups with incumbents and managers and internal and external customer interviews.
Competency Development - All information gathered in the data collection phase is analyzed. Attributes and competencies are identified and behavioral descriptions are created for each. In addition, optimal areas of performance are identified according to organizational and market requirements. The result of this step is a first draft of the competency map.
Validation - The map is then reviewed to ensure it meets the current and future needs of the organization. Competencies, attributes, and their corresponding descriptions are evaluated for how accurately they describe performance requirements and to ensure they are aligned with and support the organisation’s objectives.
Implementation - After the maps have been validated and finalized, they are presented to the team with an action plan for the implementation and use of the maps. Gaps in competency levels, if any, are identified and appropriate training and learning action plans are evolved for developing those lacking competencies in the employees.
Use of the Tool
The Tool will continually evolve. As needs change and new concepts and practices emerge, the model can be updated to reflect the constantly changing world in which we live and work. The models can be personalized for individual or corporate use. Different attributes may be selected or omitted by the employee based on his or her role in the particular organization. Upon review of the various models, you will find that the first two competency categories (personal attributes, leadership qualities) as well as part of the third competency category (broad business perspective) are common to almost all employees. The competencies within the fourth competency category, functional expertise, vary based on the functional area in which the employee works.
The Tool is to be used
by Employees:
· to take charge of their careers by focusing attention on skills needed to remain relevant, competitive and forward thinking,
· to design a personalized career development plan that ensures that they reach their highest professional standing and economic potential,
· as a guide for selecting educational programs.
by Employers:
· to assist in identifying qualities and competencies that are relevant to their organization,
· in conjunction with the self-assessment tool, to identify gaps between employee competencies and employer needs,
· to design employee career development plans aligned to corporate needs,
· as a guide for selecting educational programs to close the gaps between competencies and needs.
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When we conduct competency mapping, we include
the total core competencies.
Core Competencies anchor the professional and personal competencies. These core competencies are absolutely essential for every professional.
Personal Competencies represent a set of attitudes, behaviors, skills and values that enable practitioners to work effectively and contribute positively to their organizations, clients and profession.
Professional Competencies relate to the professional's knowledge , access, technology and management, and the ability to use this knowledge as a basis for providing the highest quality professional services.
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THIS IS THE ORGANIZATION, I CONSULTED WITH ON
THE SUBJECT OF HRM/ COMP. MAPPING.
The organization, I am familiar with is a
-a large manufacturer/ marketer of safety products
-the products are used as [personal protection safety] [ industrial safety]
-the products are distributed through the distributors as well as sold directly
-the products are sold to various industries like mining/fireservices/defence/
as well as to various manufacturing companies.
-the company employs about 235 people.
-the company has the following functional departments
*marketing
*manufacturing
*sales
*finance/ administration
*human resource
*customer service
*distribution
*warehousing/ transportation
*TQM
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This organizations also “map” competencies, but from a different perspective. Organizations describe, or map, competencies using one or more of the following four strategies:
1. Organization-Wide (often called “core competencies” or those required for organization success)
2. Job Family or Business Unit Competency Sets
3. Position-Specific Competency Sets
4. Competency Sets Defined Relative to the Level of Employee Contribution (i.e. Individual Contributor, Manager, or Organizational Leader)
This organization uses Competencies to Relate to MANPOWER PLANNING.
COMPETENCE MAPPING PROVIDES THE MANPOWER PROFILE
-1. Organization-Wide (often called “core competencies” or those required for organization success)
2. Job Family or Business Unit Competency PROFILE
3. Position-Specific Competency PROFILE
4. INDIVIDUAL profile.
THE ANALYSIS OF THESE INDICATES TO THE MANPOWER PLANNERS
-required manpower / competency profiles
-current availability of manpower / competency profiles
-estimated gap in manpower / competency .
THIS INFORMATION [ COMPETENCY] IS USED BY MANPOWER PLANNERS IN
-RECRUITMENT/SECTION PROCESS
-TRAINING
-DEVELOPMENT.
SINCE COMPETENCY MAPPING PROVIDES THE DATABASE
INFORMATION FOR THE MANPOWER PLANNING,
THEY ARE CLOSELY LINKED
-WITHOUT COMPETENCY MAPPING, IT IS NOT POSSIBLE
TO COMPLETE A SUCCESSFUL/ EFFECTIVE MANPOWER
PLANNING.
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THIS ORGANIZATION ALSO USES Competency FOR Interviewing and Selection.
Competency-based interviewing and selection presupposes that a set of organization-wide, job family/department, or position-specific competencies have been identified by the organization. Interviewers are then trained in the art of Structured Behavioral Interviewing, which has several hallmarks:
A structured set of questions is used to interview all candidates. Each question is designed to elicit behavioral examples from the candidate which demonstrate the use of one or more key behaviors underlying each competency that is accounted for in the interview.
A team of interviewers is usually used and they typically divide the list of competencies among themselves so that each interviewer can focus on asking the related detailed behavioral questions and documenting candidate responses.
Interviewers typically ask open-ended and situation-based questions such as, “Think of a specific time when you faced ____________? How did you handle the situation? How did it turn out?”
Interviewers record evidence of behaviors that the candidate relates, and they ask probing questions to gather complete behavioral evidence that includes details of the circumstance, the actions taken by the candidate, and the results achieved. This process is called the CAR (circumstance, action, results) Model.
At the conclusion of the interview, all interviewers of a particular candidate meet and compare the behaviors they heard from the candidate that support the assertion that the candidate possesses a specific competency. If the candidate did not offer specific examples with relevant behaviors, after additional attempts at rephrasing the question or asking different but related questions, then the determination is made that the candidate does not possess the competency. (The underlying philosophy here is that the best predictor of future performance is past performance that was demonstrated by concrete, observable behavior.
A final hiring decision is made based on the total strength of competencies demonstrated by each candidate, compared with those competencies that are considered essential for success in the position and in the organization, and as compared with the competency strengths of the remaining candidates for the same position.
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COMPETENCY MAPPING TOOL IS ALSO USED IN
-training/ development
-performance management
-career planning/development
-succession planning
-human resource development
-human resource planning
-HR strategic planning.
etc.
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---------- FOLLOW-UP ----------
QUESTION: Questions:-
4. Explain the concept of Human Resource Development. Discuss the principle in designing HRD system in any organization you may be familiar with. Briefly describe the organization you are referring to.
5. Explain the basic principles of compensation policies and its objectives. Discuss the executive compensation system of any organization you are familiar with. Does compensation system motivate the executives, explain with examples?
Answer
TRIBHUVAN,
HERE IS SOME USEFUL MATERIAL.
REGARDS
LEO LINGHAM
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4.Explain the concept of Human Resource Development. Discuss the principle in designing HRD system in any organization you may be familiar with. Briefly describe the organization you are referring to.
HRD is described as:
an omnivorous discipline, incorporating over the years almost any theory or practice that would serve the goal of learning in the context of work. Like an amoeba, it has ingested and taken nourishment from whatever it deemed expedient in the social and behavioural SCIENCES , in learning theory and business.
Three assumptions on which it is based:
1.HRD is based on the research and theories drawn from the field of adult education and is different from the learning that occurs in children. Learning is based on creating the arrmpriate circumstances in which adults can learn and thereby change behaviour.
2. HRD is concerned with improved performance within the work environment. It is not concerned with improving people's health or their personal relations with their family.
3. HRD utilizes the theories of change and how these relate to the organization. Change affects individuals, groups and the organization and HRD is predominantly concerned with the change of individuals.
definition of HRD:
Human resource development is the study and practice of increasing the learning capacity of individuals, groups, collectives, and organisations through the development and application of learning‑based interventions for the purpose of optimising human and organisational growth and effectiveness.
HRD is the integrated use of training and development, career development, and organisation development to improve individual and organisational effectiveness.
The people placed the following subjects under the umbrella HRD : training and development, organizational development, human resource planning, and career planning.
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A number of strategic pressures have contributed to the increasing importance and Strategic role of HRD and these mducle:
*accelerated rate of change;
* focus on quality;
*globalization of business;
*increased flexibility and responsiveness of organizations;
*increased pressure to demonstrate the contribution of human resources;
*new competitive structures;
*new technology.
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Yet, today's business environment requires that HRD not only supports the business strategies or organisations, but that it assumes a pivotal role in the shaping of business strategy. ... As a primary means of sustaining an organisation's competitive edge, HRD serves a strategic role by assuring the competence of employees to meet the organisation's present performance demands. Along with meeting present organisational needs, HRD also serves a vital role in shaping strategy and enabling organisations to take full advantage of emergent business strategies.
Strategic HRD can be viewed as a proactive, system‑wide intervention, with it linked to strategic planning and cultural change. This contrasts with the traditional view of training and development as consisting of reactive, piecemeal interventions in response to specific problems. HRD can only be strategic if it is incorporated into the overall corporate business strategy. It is in this way that the HRD function attains the status it needs to survive and to have a long term impact on overall business performance and respond to significant competitive and technological pressures.
. Strategic HRD enables:
• the organization to respond to challenges and opportunities through the identification and delivery of HRD interventions;
• individuals, supervisors, line managers and top managers to be informed of their roles and participate in HRD delivery;
• management to have operational guidelines which explain the reasons for investment in HRD;
• information to be disseminated which explains the training, education, development and learning opportunities available for employees;
• a policy statement to explicitly describe the relationship between the objectives of the organization and the HRD function;
• a positive public relations awareness for new and potential employees to know that skills deficiencies will be provided for;
• the continuous assessment of learning and development opportunities for its employees and thereby enabling them to advance their careers and support organizational growth;
• clearly specified objectives and targets that enable the HRD function to be evaluated against strategic requirements;
• policies which relate the HRD function to the other operating functions;
• training, education, development and learning opportunities to have a coordinated role within a systematic process.
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COMPETENCIES AND HRD
Technical Competencies
1. Adult Learning Understanding*
2. Career Development Theories and Techniques Understanding
3. Competency Identification Skill*
4. Computer Competence
5. Electronic Systems Skill
6. Facilities Skill
7. Objectives Preparation Skill*
8. Performance Observation Skill
9. Subject Matter Understanding
10. Training and Development Theories and Techniques Understanding
11. Research Skill
Business Competencies
12. Business Understanding*
13. Cost‑benefit Analysis Skill
14. Delegation Skill
15. Industry Understanding
16. Organizational Behaviour Understanding*
17. Organizational Development Theories and Techniques Understanding
18. Organization Understanding
19. Project Management Skill
20. Records Management Skill
Interpersonal Competencies
21. Coaching Skill
22. Feedback Skill*
23. Group Process Skill
24. Negotiation Skill
25. Presentation Skill*
26. Questioning Skill*
27. Relationship Building Skill
28. Writing Skill*
Intellectual Competencies
29. Data Reduction Skill
30. Information Search Skill*
31. Intellectual Versatility*
32. Model Building Skill
33. Observing Skill*
34. Self‑knowledge
35. Visioning Skill
*core competency
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HRD SYSTEMS/ SUBSYSTEMS INCLUDE
-org. learning
-training
-education
-development
-Training evaluation
-e learning
-management development
-career planning
-career development.
-induction
-orientation
-performance management
-personal development
-KNOWLEDGE MANAGEMENT
-WORKLIFE PROGRAMS
etc etc
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THE HRD HAS BE USED/ IS USEFUL IN MANY AREAS.
The broad scope of HRD, to introduce methods to address the development of individuals and organizations.
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.)
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?
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.
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.
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.)
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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THE HRD HAS BEEN USED IN THIS ORGANIZATION IN MANY AREAS.
The HRS is used to address the development of individuals and organizations.
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.)
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?
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.
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.
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.)
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.
The organization, I am familiar with is a
-a large manufacturer/ marketer of safety products
-the products are used as [personal protection safety] [ industrial safety]
-the products are distributed through the distributors as well as sold directly
-the products are sold to various industries like mining/fireservices/defence/
as well as to various manufacturing companies.
-the company employs about 235 people.
-the company has the following functional departments
*marketing
*manufacturing
*sales
*finance/ administration
*human resource
*customer service
*distribution
*warehousing/ transportation
*TQM
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THE BEST WAY OF MEASURING THE IMPACT OF HRD
ON THE ORGANIZATION IS ---THE FINAL OUTCOME.
THE CLIENT IS GROWING AT THE RATE OF 20% OVER
THE LAST 4 YEARS , ANNUALLY.
THE ROI HAS MAINTAINED A STEADY 18% OVER THE LAST
4 YEARS.
ON THE QUALITATIVE SIDE, THE MIDDLE/ SENIOR MANAGERS
ARE EARNING THEIR BONUS---15% OF THEIR ANNUAL INCOME
THROUGH THEIR EFFECTIVENESS/ EFFICIENCY.
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5.Explain the basic principles of compensation policies and its objectives. Discuss the executive compensation system of any organization you are familiar with. Does compensation system motivate the executives, explain with examples?
COMPENSATION system usually mean the financial reward on organization gives its employees in return for their labour. While the term COMPENSATION system, not only includes material rewards, but also non-material rewards. The components of a COMPENSATION system consist of financial rewards (basic and performance pay) and employee benefits, which together comprise total remuneration. They also include non-financial rewards (recognition, promotion, praise, achievement responsibility and personal growth) and in many case a system of performance management. Pay arrangements are central to the cultural initiative as they are the most tangible expression of the working relationship between employer and employee.
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Compensation philosophy is the set of values and beliefs that an organization has in regards to compensation
decision-making. This often is combined with a set of guiding principles that further assist in compensation administration.
The collection of decisions that the firm has
made over a period of time constitutes a compensation set of beliefs and values — a compensation philosophy —
regardless of whether or not the firm has actually committed those ideas to a formal document. Compensation strategy is
used to guide the design of specific compensation decisions.
Differences in compensation philosophies are widespread. Thus, some organizations believe in the widespread use of
incentive compensation, while others only apply incentive compensation to a very narrow group of employees who are
believed to affect the bottom line. Another illustration may be found in the examination of the behavior of firms who seek to apply compensation levels “at the midpoint.” These firms differ philosophically from those firms that seek to pay at the top of the market, thus enabling them to attract the highest caliber employees that they can find. Business settings often explain these differences. Some
firms are proportionally more generous to certain levels of exempt employees, while others believe in principles of
achieving widespread equity across all employees. The openness with which compensation decisions are made, and the
degree of stakeholder involvement in those decisions, is yet another example of philosophical differences that may exist
between organization.
Needless to say, compensation is a key issue for the high performance organization, as the employee and management
systems utilized by the organization must be reinforced through the rewards structure. Again, our experience is
telling in avoiding making compensation unduly controversial, thus adversely affecting the very heart of the high
performance system.
Compensation administration includes a collection of activities required to sustain the effectiveness of a compensation
strategy. Thus issues ranging from labor market surveying to performance management to skill certification and peer
review come under this umbrella. Involving stakeholders in compensation administration can reinforce the values and
beliefs underlying the compensation philosophy and strategy.
AS PART OF THE ALIGNING PROCESS, THE FOLLOWING
FACTORS ARE TAKEN INTO CONSIDERATION.
1.Employee Inputs and Preferences
• Perceptions of external pay equity
• Perceptions of internal pay equity
• Pay delivery beliefs
— Form (cash, gainsharing, benefits)
— Method (individual, small group, large group)
• Risk tolerance
• Trust in management
2.Business and Operating Inputs
• Operations and Manufacturing strategy
• Sales development strategy
• Percentage of compensation costs to total product/
service costs
• Percentage of compensation costs to controllable
product/service cost
• Existing markets/products
• Potential markets/products
• Anticipated volume
• Reinforce/enhance work design
• Maintain cultural change processes
• Other operating issues
3.Industry and Labor Market Practices
and Trends
• Availability and quality of work force
• Industry practices
• Retention of work force
• Retention of key contributors
• Wage/salary levels and movement
• Wage/salary delivery charges
4.Compensation Philosophy and Objectives
• How much emphasis should be placed on rewards to
drive organization
• What issues are to be driven by compensation as
opposed to management practices
• Market definition (exempt and non-exempt)
• Method of delivery
• Targeted position in labor market
• Targeted position in product market
• Relationship within total company
• Relationship to selection and retention
• Portion of pay guaranteed and at risk
• Percentage of workforce bonus eligible
5.Base Pay Delivery
• Method of delivery — Job-based vs. individual-based
• Number of levels
• Structure of levels
• Pricing strategies
• Adjustment method
• Weighting of individual performance
6.Organization Performance or Variable Pay
• Role in total compensation strategy
• Structure
• Measures
• Targets
• Tolerance for pay at risk
• Risk - reward ratios
• Use of other monetary rewards
• Use of non-monetary rewards
• Individual performance recognition
7.Fringe Benefits
• Usually determined at corporate level; limited scope at
other levels
• Tie to business and human resource objectives
• Coverage
• Cost
• Communications (Purpose - Coverage - Value)
8.Compensation Administration
• Stakeholder role in compensation administration
• Performance management & evaluation
• Overtime policy (exempt & non-exempt)
• Shift differentials
• Attendance policynce
• Role of seniority
Compensation decisions should be fully integrated into the organization’s business and operations strategy, through
its compensation philosophy. The design of compensation systems should be subsequent to, and not precede, this key
analysis and decision point. For the high performance firm, an appropriate level of employee involvement can further
reinforce the organization’s general beliefs and values.
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The integrated COMPENSATION system includes:
Job evaluation and profiling
· Defining key performance indicators
· Analysis and modification of pay levels and structures to reflect both internal and market relativities
· Designing of performance evaluation processes
· Structuring of individual, team and corporate performance bonuses
Social climate surveys with focus on remuneration
· Designing flexible benefits plans
· Implementation of new reward components in compensation package
· Implementation and assistance in change communications
· Training for internal specialists in reward structure planning and maintenance
Performance Based COMPENSATION is based on the definition of key performance indicators identified as part of job evaluation, and linking these indicators with reward components. A combination of performance measuring system and additional motivational components delivers an integrated performance-based COMPENSATION system.
Flexible Benefit Schemes are a modern approach to the management of budgets for staff remuneration. Employee benefits constitute a considerable portion of staff costs, but they are often expended without the desired effect since employees do not perceive the full value of benefits. This system increases the effectiveness and enable better control.
Why COMPENSATION system is required?
These components will be designed, developed and maintained on the basis of strategies and policies which will be created within the context of the organizations between strategies, culture and environment: they will be expected to fulfill the following broad aims;
1. Improve Organizational Effectiveness: Support the attainment of the organization's mission, strategies, and help to achieve sustainable, competitive advantage.
2. Support and change culture: Under pin and as necessary help to change the 'organizational culture' as expressed through its values for performance innovation, risks taking, quality, flexibility and team working.
3. Achieve Integration: Be an integrated part of the management process of the organization. This involves playing a key role in a mutually reinforcing and coherent range of personal policies and process.
4. Supportive Managers: Support individual managers in the achievement of their goals.
5. Motivate Employees : Motivate employees to achieve high levels of quality performance.
6. Compete in the Labour Market: Attract and retain high quality people.
7. Increased Commitment: Enhance the commitment of employees to the organization that will a) want to remain members of it, b) develop a strong belief in and acceptance of the values and goals of the organization and c) be ready and willing to exert considerable effort on its behalf.
8. Fairness and Equity: Reward people fairly and consistently according to their contribution and values to the organization.
9. Improved Skills : Upgrade competence and encourage personal development.
10. Improved Quality: Help to achieve continuous improvement in levels of quality and customer service.
11. Develop team working : Improve co-operation and effective team working at all level.
12. Value for money: Pride value for the money for the organization.
13. Manageable: Be easily manageable so that undue administrative burdens are not imposed on managers and members of the personal department.
14. Controllable: Be easily controllable so that the policies can be implemented consistently and costs can be contained within the budget.
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HR must play key role in executive pay.
“But HR should clearly be part of this EXECUTIVE COMPENSATION
because we are talking about human capital.”
By not getting involved in executive compensation, HR executives are losing the opportunity to influence company strategy in a key area that they should understand completely: leadership development and succession planning.
REMEMBER, AND SHARE CONCERN .
“The typical pattern is that a company pays an executive a big package to come in and take over and promises to pay them if it doesn't work out.”
''Companies with strong succession planning and leadership development, however, can deflect this problem by promoting from within. But HR needs to help management see this link.''
“A lot of companies are very concerned about disclosure,”
''Companies are concerned about disclosing specific performance targets, like market share in a new area or business unit goals, that could reveal their business plans to competitors.''
HR executives can help their companies determine the executive package.
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the organisation I am referring to
The organization, I am familiar with is a
-a large manufacturer/ marketer of safety products
-the products are used as [personal protection safety] [ industrial safety]
-the products are distributed through the distributors as well as sold directly
-the products are sold to various industries like mining/fireservices/defence/
as well as to various manufacturing companies.
-the company employs about 235 people.
-the company has the following functional departments
*marketing
*manufacturing
*sales
*finance/ administration
*human resource
*customer service
*distribution
*warehousing/ transportation
*TQM
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THE ORGANIZATION , I ASSOCIATED WITH
HAVE THE FOLLOWING SYSTEM
The compensation systems focus on positive reinforcement. Positive reinforcement is the most effective tool for encouraging desired behavior because it stimulates people to take actions because they want to because they get something of value (internally or externally) for doing it. An effectively designed and managed program can drive an organization's change process by positively reinforcing desired behaviors.
The SMART criteria.
These criteria used when designing and evaluating programs. Programs should be:
Specific. A line of sight should be maintained between rewards and actions.
Meaningful. The achievements rewarded should provide an important return on investment to both the performer and the organization.
Achievable. The employee's or group's goals should be within the reach of the performers.
Reliable. The program should operate according to its principles and purpose.
*Timely. The recognition/rewards should be provided frequently enough to make performers feel valued for their efforts
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Performance Management.
The process of performance management reflects how the work gets done and creates the environment in which people feel valued for their achievements. The performance management process includes four critical components:
Focus on what is important to change or be improved.
Measures to determine whether and how much progress is being achieved.
Feedback so that performers will know whether and how much progress is being achieved.
Reinforcement so that everyone celebrates achievements as they are unfolding.
Indicators of successful performance management include the following:
All measures are understood by the employees, who can describe the importance of their activities to the agency. Measures address results and behaviors/processes.
A tracking system is used to monitor performance in the areas identified.
The performance measures and progress are displayed in a public area.
Data on the performance charts is current.
The team leaders/managers are actively engaged in coaching staff members and providing assistance to improve performance.
Periodic celebrations mark achievements as they are realized. These celebrations are regarded positively by employees.
Data indicate performance is improving.
Recommend that organizations:
focus on variables critical to success;
create timely, chart-oriented feedback;
create celebrations that mean something to the performers;
use performance reviews as an opportunity to reflect "how we won" and "how we lost" make them as often as necessary to cement the learning;
anchor the memory of achievements achievement-oriented firms measure a lot, accomplish milestones frequently, and do much celebrating;
don't rely on annual performance appraisals as the sole source of feedback;
when designing programs, avoid copying programs used by other organizations; and
don't make the design process into the "let's make a form" game.
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THE COMPANY'S APPROACH IS AS FOLLOWS
APPOINT A
HUMAN RESOURCES AND COMPENSATION COMMITTEE
WHICH could comprise
*CEO OR EXECUTIVE DIRECTOR
*FINANCE PERSON
*HR PERSON-----the secretary / coordinator of the committee
and involve another functional person as required like
marketing director or manufacturing director.
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1. ROLE OF THE COMMITTEE
The Human Resources and Compensation Committee shall have
broad responsibility for overseeing the development of management succession plans, for
assisting the board in the discharge of its responsibilities relating to the development and
implementation of compensation policies and programs.
2. MEETINGS
The committee shall meet as required. It may invite such members of management to its
meetings as it may deem desirable or appropriate, subject to the maintenance of
confidentiality where required. The committee shall produce written minutes of its
meetings and shall provide the board with a report of its activities and proceedings at the
next regularly scheduled meeting of the board.
3. RESOURCES AND AUTHORITY OF THE COMMITTEE
The committee shall have the resources and authority appropriate to discharge its duties
and responsibilities, including the authority to retain counsel or other experts, as it deems
appropriate, without seeking approval of the board or management. The committee shall
have the authority to set and pay the compensation of any advisors it engages.
THE HR PERSON WILL ORGANIZE THE FOLLOWING
-current compensation packages, as it exists in the organization.
-current market surveys on salaries.
-benchmark of the competitive situation.
-metrics used for the current situation.
-metrics trend in the market.
-demand and supply in the job market.
-skills, knowledge and competencies required for positions.
-current succession plan.
-current performance management systems/ reviews
etc etc
4. DUTIES AND RESPONSIBILITIES OF THE COMMITTEE
Succession Planning and Compensation
1. To ensure that processes are in place to deal with the development of and
succession plans for executive and senior managers and to review reports thereon
regularly as required.
2. To consider the annual review of the executives' performance as jointly performed by
the Chair of the committee and to subsequently review
this evaluation with the full board.
3. To oversee on behalf of the board the executive succession planning process.
4. To establish the corporation’s general executive compensation philosophy and oversee the
development and implementation of compensation policies and programs for
executive and senior managers.
5. To make recommendations to the board on any new equity-based compensation
plan or on any material changes to existing plans.
6. To review annually and recommend for board approval (i) the corporate goals and
objectives related to annual incentive compensation for the executives; (ii) annual
incentive bonus payments to the executives;
7. To review and approve management recommendations related to salary increases
and annual incentive payments to executive and senior managers.
8. To review and recommend for board approval any employment, change of
control, or similar agreements; to approve any severance or similar termination
payments proposed to be made to any current or former executive or senior
managers and to recommend for board approval any such payments proposed to
be made to the executives.
9. To prepare and issue an annual report of the committee on Executive
Compensation for inclusion for the BOARD MEETING.
10. To make recommendations to the board on EXECUTIVE appointments.
11. To provide advice in respect of general personnel policy and employee wage and
benefit programs, including recommending for board approval any proposed
changes to the benefits.
14. To perform such other functions as are assigned to it to assist the board in its
oversight and monitoring of compensation policies and practices.
Responsibilities of the HR include the following:
1. SUPPORT the chair at all meetings of the committee.
2. Facilitate the effective operation and management of, and provide leadership to,
the committee.
3. Develop the agenda for each meeting of the committee and bring forward for
consideration matters within the mandate of the committee.
4. Take all reasonable steps to ensure that committee decisions are implemented.
5. Facilitate the committee’s interaction with management, the board and other
committees of the board.
6. Report to the Board on committee activities and issues.
7. Evaluate, along with the Chair the current executives' performance.
8. Perform such other duties and responsibilities as may be delegated to the Chair by
the committee from time to time.
ANNUAL REVIEW
The committee will review this charter at least annually and recommend any changes to
the full board of directors.
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THE COMPENSATION SYSTEM IS TWO-FOLD
1.RECOGNITION FOR PERFORMANCE.
2.PAYMENT. WHICH INCLUDES
-base pay
-cost of living rise
-merit INCREASE , which is based on
*performance against the KEY PERFORMANCE INDICATORS.
*bonus for exceptional performance with the scope of the job position
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