Organization Flashcards
HR’s Administrative Role
Managing compliance issues and record keeping
HR Administrative Role: using technology to capture and analyze data
HRIS. Facilitates that can drive HR’s role as a consultant to the organization’s leaders. HR data can be integrated into an enterprise management tool that enables more timely access to shared data throughout the organization. HR to analyze data, identify issues and developing trends, and begin planning.
HR Administrative Role: Using technology to reduce transactional time
HRIS manage HR data (eg employee records) and create compliance reports.
HR Administrative Role: Focusing on core capabilities
Tasks that are low in strategic value and are necessarily considered core HR functions can be outsourced to allow HR to focus on strategic activities.
HR’s Operational Role
Recruiting and hiring, resolution of employment issues, employee communication-attend to the day-to-day management of people. Requires HR to develop performance assessment and improvement processes and design effective reward systems
Operational Role: Knowledge management
Can help the organization capture and share the wisdom and experience of all its members. HR can show leaders what and where talent and specialized knowledge reside in the organization so that it can be deployed toward attaining strategic objectives.
Operational Role Targeted talent acquisition in development
HR can use data and its organizational skills (job analysis, consultative skills) to identify potential disconnects between current job descriptions and actual job competencies
Operational Role Incentive systems
Rewarding increased customer satisfaction rather than decreased call time; Rewarding the size of single sales rather than the number of smaller sales
Operational Role Employee engagement programs
Target increased productivity and retention-
Which characteristic separates a profession from an occupation
Credentialing organization
Primary responsibilities of executive management are to:
- Develop and communicate strategy to the organization’s components
- Monitor and control implementation of strategic and operational activities through control of financial resources.
Primary responsibilities of executive management are to:
- Be the primary interface with the organization’s stakeholders, from investors and regulators to customers and communities
- Lead the organization through a shared vision and the values they model in all interactions.
Primary responsibilities of finance
Focuses on how the organization uses its financial assets to operate in the short and long term.
Primary responsibilities of finance
Supporting operations and strategic initiatives through the creation and monitoring of operating and capital expenditure budgets.
Primary responsibilities of finance
Involved in decisions regarding global expansion, technology investments, and structuring strategic alliances.
Primary responsibilities of finance
Managing the organization’s treasury through short-and long-term investments and borrowing
Primary responsibilities of accounting
Focuses on tracking financial transactions and reporting financial information to finance
Accounting activities include
Tracking revenue and expenses through accounting. Must comply with International Financial Reporting Standards (IFRS) and the generally accepted accounting principles (GAAP)
Marketing and sales
This brings in revenue. Responsibility of marketing is managing the 4 Ps: Price, Product, Promotion, and Place
marketing strategy: Push strategy
Focuses on getting products/services in front of customers. Companies may have showrooms
marketing strategy: pull strategy
Attracts customers to the product. Ex: carbonated drinks industry, invests heavily in advertising and promotion to create brands and boost sales
Research and development (R&D)
Responsible for future revenue. Focuses on performing theoretical research (as opposed to applied research), promoting science and new technologies, performing public-interest scientific research.
Operations
Develops, produces, and delivers products and services to customers.
Information Technology
Manages the storage, access, exchange, and analysis of information across the enterprise through hardware and software systems.
Information Technology
Support integration of data from different organizational processes through an enterprise resource planning (ERP) system.
HR is well positioned to serve as a cross-functional bridge
Facilitate the high degree of cross-functional understanding an collaboration required to deliver results.
Use its mission to advise core functions on how to align with the organization’s strategy.
HR is well positioned to serve as a cross-functional bridge
Identify and support the need for additional resources or training
Locate necessary talent resources dispersed throughout the organization.
HR with executive management
Recruiting executive candidates in highly competitive markets.
negotiating attractive compensation packages that are responsible and comply with regulatory restrictions.
HR with executive management
Consulting on strategic issues such as talent management, organizational effectiveness, or culture
Finance and Accounting with HR
Coordinating requirements of different markets in terms of currency, taxation, benefits, reporting. Selecting an external auditor.
Marketing and sales with HR
Aligning incentives/compensation programs with strategies and local cultures and practices.
Research and Development with HR
Developing talent pool with requisite expertise. Promote processes that allow R&D personnel to devote more time to the task of innovation. ensuring security of patents and intellectual property.
Operations with HR
Ensuring physical security of operations, coordinating with local, legal, regulatory, and cultural requirements.
Managing labor relations in different markets
Information Technology with HR
Selecting the HR information system and implementing it
Using database analysis to support decision making and strategic initiatives
Using internet and extranet to foster better communication, knowledge sharing, and coordination among internal and external stakeholders.
The role of an HR leader
Bring information about strengths, weaknesses, opportunities, and threats to the organization’s strategy to other leaders and participate in the development of overall strategy.
The role of an HR manager
Responsible for employee relations, talent acquisition, and organizational development. Plan, direct, and coordinate the activities for their unit and provide input to the leader for HR strategy
The role of an HR specialists
expertise in specific areas such as compensation and benefits design, talent management, metrics, IT, occupational health and safety, organizational development, and workforce relations.
The role of HR Generalists
Familiar with all of HR’s varied services. May have expertise in one or more specialty areas of HR but are generally proficient enough in each area to provide sound advice and direction to employees and managers. Work closely with their specialist coworkers to ensure that the information and programs they are providing to their employees are accurate and complete.
HR business partners
More experienced generalists who are assigned to represent HR services directly to other business functions. Use a deeper understanding of the business- both the organization and the function- to find ways that HR can help functions achieve their goals.
Centralized HR
Characterized by having all HR personnel located within the HR department and from there delivering services to all parts of the organization. Headquarters (or corporate) makes all HR policy and strategy decisions and coordinates all HR activities and programs.
Decentralized HR
Each part of the organization controls its own HR issues. Strategy and policy may still be made at headquarters, with HR staff within each function, business unit, or location carrying out the required activities.
Functional HR Structure
Headquarters HR is staffed with specialists who craft policies. HR generalists, who may be located within divisions or other locales, implement these policies adapt them as needed, and interact with employees.
Dedicated HR Structure
Allows organizations with different strategies in multiple units to apply HR expertise to each unit’s specific strategic needs. This is in some ways a “corporatized” HR, with an HR function at headquarters and separate HR functions located (or “embedded”) in separate business units.
Shared services model
Frequently used in organizations with multiple business units. Rather than having to develop its own expertise in every area, each unit can supplement its resources by selecting what it needs from a menu of shared services.
Common processes folded into shared service centers include
payroll, procurement, accounts payable/receivable, travel expenses, health benefits enrollment, and pension administration.
Top 4 positive outcomes for organizations that have implemented the shared services concept are:
Reduced staff time spent on administrative tasks
Reduced administrative costs
Consolidation of redundant functions
Better tracking of employee data
Outsourcing
Third-party vendor provides selected activites
Cosourcing
A third party provides dedicated services to HR, often locating contractors within HR’s organization
Human Resource outsourcing (HRO) Can administer or implement
Payroll, employee benefits programs, employee self-service centers, learning and development systems, including training and knowledge management, employee data retention and analytics, recruitment programs
The outsourcing process includes 9 steps
- Analyze needs and define goals
- Define the budget
- Create a request for proposal (RFP)
- Send RFPs to the chosen contractors
- Evaluate contractor proposals
- Choose a contractor
- Negotiate a contract
- Implement the project and monitor the schedule
- Evaluate the project
Parts of a request for proposal
Executive summary: Contains a synopsis of the vendor’s product or service and usually includes an understanding of the client’s needs.
Parts of a request for proposal
Company information: Provides information on the vendor company’s size, financial stability, business viability, and experience in the field
Parts of a request for proposal
Project team/resources: Explains who will be involved in the project from both the client and vendor companies.
Parts of a request for proposal
Deliverables: Outlines how the vendor will meet client needs/objectives
Parts of a request for proposal
References: Lists previous clients for whom the vendor has performed similar work.
Parts of a request for proposal
Outlined development process: Includes a detailed description of the project plan, with the objectives, scope of the effort, and a time line.
Parts of a request for proposal
Cost: Lists potential charges and prices for all products and services involved in the project
Types of HR Audits
Compliance: Focuses on how well the organization is complying with current employment laws and regulations
Types of HR Audits
Best practices: Helps the organization maintain or improve a competitive advantage by comparing its practices to those of employers identified as having exceptional HR practices
Types of HR Audits
Strategic: Focuses on the strengths and weaknesses of systems and processes to determine whether they align with the HR departmental and/or the organizational strategic plan.
Types of HR Audits
Function-specific: Focuses on a specific area in the HR function (payroll, performance management, records retention, etc.)
Steps to perform the audit: determine the scope and type of audit
Identification of exactly what areas should be targeted for review (example: comprehensive review of all practice areas or a limited review of those adequacy of a specific process or policy)
Steps to perform the audit: Develop the audit questionnaire
Development of a comprehensive document that elicits information during the inquiry (example: a list of specific questions)
Steps to perform the audit: Collect the data
use of the audit questionnaire as a “road map” to collect information
Steps to perform the audit: benchmark the findings
Comparison of the audit findings with HR benchmarks (Example: results for other similarly sized employers, national standards, or internal organizational data)
Steps to perform the audit: Provide feedback about the results
Review of data and presentation of summarized findings and recommendations (Example a written report and discussions) for the organization’s HR professionals and senior management team.
Talk about the risk level (high, medium, and low)
Steps to perform the audit: Create action plans
Development of action plans for implementing the changes suggested by the audit, with the findings separated by order of importance: high, medium, and low
Steps to perform the audit: Foster a climate of continuous improvement
Constant observation and continuous improvement of the organization’s policies, procedures, and practices (Continuous monitoring of HR systems to ensure that they are up-to-date and have follow-up mechanisms
What is the most important characteristic of an effective metric?
Strategic alignment
Organizational effectiveness and development (OED)
process or tool to identify and clear away internal obstacles to an organization’s drive toward its strategic goals and continuous improvement.
Organizational development (OD)
Defined as the process of enhancing the effectiveness and efficiency of an organization and the well-being of its members through planned interventions
Organizational Development (OD) Efficiency in using resources to create value
A common metric is the ratio of revenue or income to cost of sales and goods Could also be measured by the number of hours or full-time employees it takes to produce a good or service.
Organizational Development (OD) Effectiveness in achieving its strategic goals
This may include a much broader range of metrics that evaluate, for example, the organization’s ability to: Attain its targets
Develop key competencies (innovation, customer focus, quality)
Create the internal environment leaders envision (collaborative work, distributed decision making, diverse teams, ethical decision making)
Proactive OED Interventions
Identify and correct potential problems before they begin affecting performance.
Proactive OED Interventions can help organizations that must compete in a rapidly changing marketplace to develop:
Communication networks that allow critical information to be exchanged quickly, free of hierarchical structures that slow communication.
Proactive OED Interventions can help organizations that must compete in a rapidly changing marketplace to develop:
Iterative work processes (Developing a product through increasingly functional versions) that control the costs of mistakes while allowing continuous learning and improvement.
Proactive OED Interventions can help organizations that must compete in a rapidly changing marketplace to develop:
Structures that allow employees to make decisions quickly and independently.
Proactive OED Interventions can help organizations that must compete in a rapidly changing marketplace to develop:
Intrinsically motivated employees who feel they can try new ideas without being punished for worthy failures
Remedial interventions
Make changes that bring an organization back on course toward its strategic goals.
Remedial interventions: long-term problems: Diminished capacity, capability, and agility
The organization no longer has a the quality or quantity of HR to remain competitve
Remedial Interventions: long-term problems:Misaligned organizational structure
Employees may be forced to perform duties for which they are not equipped. Managers may be neglecting strategic work to accomplish immediate tactical tasks
Remedial Interventions: long-term problems: Broken work processes
Processes are not redesigned to the conditions. Rather, they work around current limitations and grow less efficient and effective
Remedial Interventions: long-term problems: Declining workforce engagement
Feeling stressed and underpaid for their increased workloads, employee productivity may decline. If the economy has improved, valued employees may leave.
OED requires a distinct set of competencies
- Relationship management, including the ability to build trust, emotional intelligence, political awareness, and influencing, negotiation, and conflict management skills
OED requires a distinct set of competencies
- personal characteristics, including honesty, openness to differences, objectivity, willingness to take risks, consistency, and imagination
OED requires a distinct set of competencies
- Professional skills, such as communicating results orally and in writing
OED requires a distinct set of competencies
- Critical evaluation: The ability to gather and analyze data
OED requires a distinct set of competencies
- Consulting: diagnostic and design abilities and managing the OED project
OED requires a distinct set of competencies
Business acumen, spans the perspectives within the organization and includes awareness of the organization’s environment
OED requires a distinct set of competencies
Expertise in various interventions, including quality management, team building, coaching and mentoring, restructuring, and business process analysis
OED Model: Define Problem
The OED team collects data to define the gap between desired and actual performance and identify possible causes for the gap Data should be collected from all levels: decision makers, managers, and staff.
OED Model: Design and Implement Solution
Objectives are defined and an appropriate tactic for development is chosen: For ex: job assignments or a mentoring program. Necessary changes in direction, scope, and resources are communicated to management and documented.
OED Model: Measure Effectiveness
The solution’s effects are measured to determine if the initiative’s objectives have been met and if the change has had the desired strategic impact. The team’s effectiveness is reviewed as well, and plans for improvement are made. Problems in implementation are identified and addressed.
OED Model: Sustain Improvement
The team monitors activity and provides guidance to leaders about ways in which new values, attitudes, or practices can become institutionalized.
Planning an intervention steps 1: Identifying and involving stakeholders
These individuals will be involved in or affected by changes that might result from the intervention.
Planning an intervention steps 2: Defining achievable intervention objectives
This will maintain the organization’s confidence in the OED process and demonstrate HR’s value.
Planning an intervention steps 3: Plan appropriate ways to gather information
The data set must be sufficiently large to support reliability and should reflect multiple perspectives to avoid bias.
Assessing Readiness for Change
What is the nature of the change?
What is the expected duration?
What key milestones are associated with the change?
Where is the organization in the change process?
Who will have primary responsibility for implementing the change?
Analyzing data for OED changes: Sort data into categories
Tools like affinity diagrams are useful here. An affinity diagram can be used to gather a large amount of data. Once collected, the data is grouped into similar categories.
Analyzing data for OED changes: Plot statistical data
This allows analysts to identify the most common issues as well as data that appears to be a statistical “outlier” - very rare reports of a certain behavior or event.
Analyzing data for OED changes: Conduct a root-cause analysis
Cause-effect diagram: The diagram begins with the effect and then works backward to identify contributing factors.
Analyzing data for OED changes: Determine if data is trending in a certain direction
The frequency and severity of events can be plotted against time. Addressing emerging and rapidly growing issues will be a priority.
5 characteristics that the intervention must consider the data and analysis
1: Relevance
2: Influence or manageable: Target conditions that can realistically be changed, given the organization’s environment and resources and given the attitudes of the organization and the receptiveness of its members to change.
5 characteristics that the intervention must consider the data and analysis
- Fact-based and objective:
- Selective: The report should recommend areas of focus,
- Sufficient and specific: Enough information should be provided to support action.
Common targets for team interventions
- New groups that must develop a team identity.
2. Dysfunctional groups that must identify and resolve conflicts that are hurting productivity
Common targets for team interventions
- Existing groups that must redefine processes and relationship to be more productive or to align with the needs of a new strategic direction.
Common targets for team interventions
- Virtual teams that must learn to trust each other and communicate and collaborate over distances and sometimes across different languages and cultures
Defined 4 stages of group or team development
- Forming - Individuals come together around common activity and shared goals. Members are polite, but there is little sense of trust, shared experience, or common values.
Defined 4 stages of group or team development
- Storming- Individuals move past politeness, and there may be higher levels of discord as perspectives, styles, and agendas clash.
Defined 4 stages of group or team development
- Norming - Over time, effective groups build trust and establish relationships. They create rules that guide behavior. They being to establish a group identity and to identify “outsiders” “Groupthink” occurs.
Defined 4 stages of group or team development
- Performing - The group becomes fully productive, collaborative, and mutually supportive.
3 basic roles individuals play within group: Task roles
Helps get the work done. Propose solutions or collaborate in group problem solving. Share task information and perform their assigned tasks
3 basic roles individuals play within group: Social Roles
Help maintain relationships and positive group function.. Recognizes the importance of social and interpersonal ties within a group. promote harmony, conflict resolution, and involvement of all group members
3 basic roles individuals play within group: Dysfunctional Roles
Weaken the group and reduce its productivity. may attack others, dominate discussions, resist others’ ideas
Team-building activities
Goals and priorities: The OED team may facilitate team meetings in which mission, vision, values, and norms are developed. Meetings could also focus on understanding the team’s stakeholders better and developing better processes for engaging stakeholders.
Team-building activities
Role and responsibility: of each team member. In new, merged, or existing teams, unclear roles can create conflict and loss of productivity.
Team-building activities
Processes: The OED team can help diagram processes in terms of inputs, requirements, and outputs. These diagrams can be used to sequence activities more efficiently, identify potential obstacles, and solutions, define communication requirements and channels, identify organizational systems that can support the team, and make sure all team members have what they need to perform their assigned tasks.
Team-building activities
The OED team can advise team leaders on changes that can build trust (Non-work team events that allow team members to learn about each other as human beings), facilitate workshops in which team members confront their disagreements, and guide them safely to effective solutions.
Organizational interventions are required when an organization:
- Is failing to meet its strategic objectives because its structure is inefficient and/or ineffective. The organization’s structure no longer meets its needs.
Organizational interventions are required when an organization:
Has changed its competitive strategies and needs to develop new skills and traits- for example, skills needed to respond to market changes quickly. The organizational design must be focused in a new direction.
Refers to the degree to which tasks are performed as separate jobs.
Work Specialization
Describes how decisions are made within the organization.
Decision-making authority
The hierarchical layers of an organization range from the chief executive officer to the employee in a function. The ratio of direct to indirect employees (people doing the work as opposed to people supporting those doing the work) is a key metric of organizational efficiency.
Layers of hierarchy
Line of authority within an organization. Today the chain of command is growing less distinct in many organizations. As organizations push decision-making authority downward or become matrixed, and as ad hoc or permanent work teams become more common, the line of authority can appear lateral or web-like
Chain of command
Refers to the number of individuals who report to a supervisor. Organizations in which many subordinates report to a few supervisors are referred to as “flat”.
Span of control
This principle refers to the extent to which rules, policies, and procedures govern the behavior of employees in the organization.
Formalization
Tends to be highly specialized, hierarchical, and formal
Mechanistic
Job boundaries are less distinct and there are fewer levels of decision makers and a more flexible approach to structures and rules
Organic
Refers to the way an organization groups its jobs and aligns effort.
Departmentalization
Departments are defined by the services they contribute to the organization’s overall mission, such as marketing and sales, operations, and HR.
Functional Structure
Work groups that conduct the major business of the organization, such as the production or marketing functions
Line units
Assist the line units by performing specialized services for the organization, such as accounting or HR
Staff units
Combine elements of the functional, product, and geographic structures. Changes are constantly being made based on market needs, efficiencies, and product development resources.
Hybrid structures
The organization is divided in two types of functions:
“Front” functions, defined by geographic locations or customer types.
“Back” functions, defined by product or business unit
Front-back structure
Combines departmentalization by division and function to gain the benefits of both. Some employees report to two managers rather than one, with neither manager assuming a superior role.
Matrix structure
RACI matrix (R) Responsible, (A) Accountable, (C) Consult, and (I) Inform.
RACI Matrix
Technology Requirements
Inadequate technology can prevent employees from performing efficiently.
Process Requirements
Processes must be routinely audited for efficiency and the need for updating and then redesigned and tested.
Organizational Culture Requirements
As a result of organizational evolution or a change in strategic focus, the organization’s culture may no longer support the organization’s vision of its future and its values
Intervention aimed at cultural transformation includes the following steps
Describe the current culture:Observing language (the expressions and metaphors commonly used) and leadership and decision-making styles ( autocratic, participative decision making). mapping communication paths and choices; identifying meaningful objects, stories, people, and behaviors (rituals);
Intervention aimed at cultural transformation includes the following steps
Identify the aspirational culture: The OED team researches existing data and interviews key leaders to define the desired cultural traits.
Intervention aimed at cultural transformation includes the following steps
Identify gaps and conflicts: Leadership must acknowledge these discrepancies and decide that the aspirational culture is in fact what they need and want. The OED team can help leaders understand how culture is affecting factors such as performance, employee engagement, and employer brand.
Intervention aimed at cultural transformation includes the following steps
Develop change initiatives: Correcting managers who do not support necessary cultural traits (employee involvement and decision making), and punishing or replacing those managers if necessary.
Intervention aimed at cultural transformation includes the following steps
Develop change initatives continued: Aligning reward systems with desired behaviors and values.
Replacing old cultural artifacts, which may require creating new rituals and identifying new heroes.
Greater emphasis on leader behavior-on communicating and modeling desired values and actions
SWOT Analysis
Tool is used to identify strengths, weaknesses, opportunities, and threats associated with an action or an entity. It is a qualitative analysis and does not provide a numerical score.
Multi-criteria decision analysis (MCDA)
The team determines critical characteristics of a successful decision (ability to meet project requirements, likelihood of success, or least chance of causing secondary risks). A matrix is used to score each alternative and compare results
Cost-benefit analysis (CBA)
The quantifiable and nonquantifiable benefits are divided by the direct and indirect costs of implementing each alternative. To use the tool properly is to capture all costs, especially indirect costs, and to value nonquantifiable benefits accurately.
Force-field analysis
May be used to process some of the issues raised during a brainstorming session. It was designed to analyze the forces favoring and opposing a particular change. The factors that could influence an outcome in either a negative or positive manner are listed and then assigned weights to indicate their relative strengths.
SMARTER
Specific, measurable, attainable, relevant, timebound, evaluated, and revised
Communication pitfalls and possible remedies for OED changes
Leadership does not get involved: Decisions about major organizational changes are made at the top management level and then news is allowed to trickle down to employees. As a result, why and how the organization is changing may be unclear.
Communication pitfalls and possible remedies for OED changes
The wrong messengers are used: Understanding the organization’s culture will indicate who is the best messenger for change - the manager, the senior executive team, or HR.
Communication pitfalls and possible remedies for OED changes
Communication is too sudden: Leaders and managers need to prepare employees for change, allow time for the message to sink in, and give them an opportunity to provide feedback before a change is initiated.
Communication pitfalls and possible remedies for OED changes
Communication is too late: while the solution is being developed, HR needs to develop a plan for communicating the program to the organization-both the content of the message and the way in which it will be communicated.
Communication pitfalls and possible remedies for OED changes
Communication is not aligned with organizational realities: Messages should be honest and include the reasons behind the change and the projected outcomes.
Communication pitfalls and possible remedies for OED changes
Communication is too narrow: If communication focuses too much on detail and technicalities and does not link change to the organization’s goals, it will not resonate with employees.
HR professionals can support change created as a result of OED interventions
Involving everyone: Effective change recognizes that people are more likely to accept what they themselves have participated in creating-solutions they have helped develop, new roles they have defined, processes they have designed.
HR professionals can support change created as a result of OED interventions
Using their communication competency: Make sure that information is delivered truthfully and completely and is fully understood.
HR professionals can support change created as a result of OED interventions
Recognizing emotional reactions to change: People cannot be hurried through the change process. They need time to master their own fears and develop their own strategies for coping with the new normal.
HR professionals can support change created as a result of OED interventions
Creating a vision: Provide specific examples of how the change will improve the organization and the employees own situations.
HR professionals can support change created as a result of OED interventions
Building support: Find champions for the change and influential allies- can help change their coworkers’ perceptions.
HR professionals can support change created as a result of OED interventions
Making sure that the change is fair: No one group should be made to bear a larger share of the inconvenience and loss associated with the change.
HR professionals can support change created as a result of OED interventions
Building required performance: For permanent change, employees need to begin to perform as required. They need to be equipped to succeed, supported with needed skills, knowledge, tools, resources, processes.
What is the key concept behind organizational design?
Organizations are integrated systems
Examples of ROI: Sample returns
Average value of increased production or service units; Increased quality of units; proficiency; reduced occurrence of errors, accidents, waste, damage, repetition, and downtown; reduced absenteeism. Reduced time spent by other employees instructing or waiting for others.
Examples of ROI: Sample investments
Finances ( costs of delivery and lost opportunities) reputation; relationships
HR professionals can help leaders and managers develop the skills they need to sustain: Maintain continuous vigilance and reinforcement of the new behaviors
The tendency to return to better-understood and more comfortable behaviors and attitudes must be detected and corrected.
HR professionals can help leaders and managers develop the skills they need to sustain: Model a positive approach to problem solving
There will be issues as changes take root. Revised processes may need revision. Managers should view these issues as simple challenges that can be resolved through teamwork and creativity.
HR professionals can help leaders and managers develop the skills they need to sustain: Identify and resolve unanticipated conflicts with existing systems and processes
As the new norms take hold, the organization may discover poor fits between the changed and unchanged ways of doing things.
7 practices by which HR professionals can help their organizations sustain changes achieved through OED interventions: Periodic team meetings
Support problem solving
Reinforce institutional character of initiative
7 practices by which HR professionals can help their organizations sustain changes achieved through OED interventions: Sensing meetings
Monitor reactions and attitudes throughout organization
7 practices by which HR professionals can help their organizations sustain changes achieved through OED interventions: Periodic intergroup meetings
Evaluate and improve new collaborative processes
7 practices by which HR professionals can help their organizations sustain changes achieved through OED interventions: Dedicated renewal conferences
Allow leaders to evaluate and discuss orgnaizational interventions from a strategic perspective
7 practices by which HR professionals can help their organizations sustain changes achieved through OED interventions: Goal-directed performance reviews
Provide clarity in expectations
Institutionalize change in performance expectations for work groups and individuals
7 practices by which HR professionals can help their organizations sustain changes achieved through OED interventions: Periodic third-party assessments
Provide objective assessment of the effectiveness of change
Motivate organization by providing external recognition of success and achievements
7 practices by which HR professionals can help their organizations sustain changes achieved through OED interventions: Rewards
Align rewards and recognition with new performance goals
Workforce management
Encompasses all the activities needs to ensure that the workforce competencies-knowledge, skills, abilities, and other characteristics meet current and future organizational and individual needs.
Workforce planning
Process of analyzing the organization’s workforce and determining steps required to prepare for future needs. it strategically aligns an organization’s human capital with its business direction.
Workforce analysis
Gathers data about the current workforce and forecasts future workforce needs. Forecasting involves projecting future conditions based on information about the past and the present. It is used to estimate future workforce supply and demand. Sound forecasting requires environmental scanning - example, the age of the current workforce or availability of certain skills in the market.
Workforce analysis includes 4 areas:
Supply analysis, demand analysis, gap analysis, and solution analysis
Workforce analysis: supply analysis
Where are we now? What do we have? What types of competencies do we have in our workforce? Where and at what levels is talent located within the organization?
Workforce analysis: Demand analysis
Where do we want to be? What do we need? What workforce competencies will be required to meet anticipated external demand and conditions?
How many employees will be required to meet demand? In what time frame and in what areas of the organization?
Workforce Analysis: Gap Analysis
What is lacking? What knowledge, skills, or abilities currently exist and are needed in the future? What necessary competencies do not currently exist in the workforce? What parts of the organization are most vulnerable to gaps in competency and/or staffing level?
Workforce Analysis: Solution analysis
What can we afford? How will we get what we need? how much money will be allocated to staffing future competencies? Should we build, buy, or borrow the talent? Will we look internally or externally to fill vacancies?
The workforce analysis process begins by analyzing
Supply: the skill mix in the organization as it exists now and the organization’s future needs based on attrition and strategic growth or adjustment.
Supply analysis should start with
HR professional should consult with line managers and identify how many hours of each type of skilled work are needed to meet current needs.
Supply analysis: Planners may consider possible areas of waste:
- Overstaffing that results in a poor ratio of revenue per employee.
- Inadequate skills that cause lower productivity levels and/or high error rates and need for rework.
- Inappropriate use of employee skills and/or time
- Inefficient work processes
- Inability to flex to changing production requirements
Turnover
Defined as the act of replacing employees leaving an organization or the attrition or loss of employees.
Turnover rate
Tracks the number of separations and the total number of workforce employees per month
Flow analysis method 1
Analyze the career development plans for employees on an aggregate basis by job function, division, or other organizational classification. Using the target positions for employees and their rating of readiness for the positions (immediately, one year, two years), the availability of talent for positions can be projected.
Flow Analysis Method 2:
Obtain estimates from each division of transfers and promotions into, out of, and within the divisions. These estimates may be aggregate and may reflect the subjective probability of movement based on historical data.
Flow Analysis Method 3:
Project future movement through statistical analysis. Models of employee flows project the numbers of employees who will remain in an organizational classification based on past transition rates or probabilities.
Workforce Analysis: Demand Analysis
Considers the model organization of the future and its human capital needs. Data can be compared to the demand analysis projections and gaps can be identified, including number of employees and gaps in skills.
Judgmental forecasts
Apply expert judgment to information from the past and present to predict future conditions and staffing needs and to understand opportunities and threats that can affect the staffing plan.
To effectively use judgmental forecasting, HR needs estimates of:
- New positions or skill sets needed
- Positions to be changed, eliminated, or left unfilled
- Job sharing
- job design needs or organizational structure changes
- Costs of changes
- Adjustments in overhead, contracted labor, and supervision.
Statistical Forecasts
- Regression analysis
2. Simulations
Regression Analysis:
Subdivided into 2 types:
Simple linear regression: Is a projection of future demand based on a past relationship between employment level and a single variable related to employment
Example of simple linear regression
A statistical relationship between gross sales and number of employees. Might be useful in forecasting the number of employees needed in the future if sales increase by 25%
Example of multiple linear regression
Operates the same as simple linear regression, except that several variables are utilized to project future demand. Example: ABC medical might add hours of operation to gross sales to determine the number of employees needed.
Simulations
Representations of real situations in abstract form; they are often referred to as “what if” scenarios.
Gap Analysis: 3rd step in workforce analysis
Process of comparing the supply analysis to the demand analysis to identify the differences in staffing levels and competencies needed for the future.
Examples of staffing Gaps
Skill gap: New skills are needed to perform new jobs
Abilities gap: New behaviors are needed to be successful
Distribution gap: Talent is not properly spread throughout the enterprise
Examples of staffing Gaps
Diversity gap: The organization is too homogeneous
Deployment gap: Talent cannot be sent where it is needed most.
Time gap: It takes too long to achieve results
Examples of staffing Gaps
Cost gap: Too much money is being spent on talent acquisition and development activities
Knowledge-sharing gap: Organizational learning is not occurring
Succession gap: It is not clear where the next generation of leaders will come from.
Examples of staffing Gaps
Retention gap: The best talent is leaving the organization
Prioritizing gaps
1: Permanence: Does the problem identified in the gap analysis occur on an ongoing basis, or is it due to some temporary factor that may be resolved without having to take any action?
Prioritizing gaps
2: Impact: How significant is the impact of this gap on the organization compared to other identified gaps?
Prioritizing gaps
3: Control: To what extent is the problem reflected in this gap controllable with a reasonable expenditure of resources, or is the solution likely to be more expensive than the problem itself?
Evidence gaps
How certain is the quality of the data? Does the evidence provide a clear indication that the gap is a serious problem, or is more evidence required?
Prioritizing gaps
Root cause: To the extent that the gap indicates a problem that needs to be addressed, is it the root cause of the problem? or is there a deeper problem that must be fixed to eliminate this gap permanently?
Final stage of workforce analysis
Solution analysis
Solution analysis
Examination of hwo the organization can get what it needs to meet the tactical objectives within budget constraints
Staffing plan
how the tactical objectives are going to be achieved through the delegation of tasks and the application of resources
Elements of a staffing plan: statement of purpose
It documents the staffing gaps that were derived from comparing the future vision with the current state and becomes the basis for the tactical objectives.
Elements of a staffing plan: Stakeholders
These are the people that will be affected by the implementation of the staffing plan or whose support will be needed for its success.
Elements of a staffing plan: Activities and Tasks
Focused on the objectives of the plan. Talent Acquisition: The process by which the organization generates a pool of qualified candidates.
Selection
Elements of a staffing plan: Activities and Tasks
Relocation: Process of moving people throughout the organization.
Orientation and onboarding: Processes through which employees become familiar with a new location, job, or culture and, longer-term, become a committed member of the organizational team.
Elements of a staffing plan: Activities and Tasks
Redeployment: Process by which an organization moves an employee out of a position.
Elements of a staffing plan: Team members
This includes all those who will participate in the planning, implementation, and evaluation of the staffing plan.
Elements of a staffing plan: Resources
The nonbudgeted time requirements of those who must implement or support the plan. The knowledge required to shape the plan to specific stakeholder circumstances
Elements of a staffing plan: Resources
Equipment, facilities, and materials
Internal and external knowledge resources
logistical support
Elements of a Staffing plan: communication Plan
Components of a communication plan: Audience- Who requires information about the plan or its implementation for it to be successful by country and function?
Elements of a Staffing plan: communication Plan
Objectives: What specific outcomes are to be achieved through communication, and how will these ensure the success of the staffing plan?
Elements of a Staffing plan: communication Plan
Required Information: Exactly what information must be communicated to the various audiences?
Who will provide the information?
How does the required information vary by country?
Elements of a Staffing plan: communication Plan
Modes of communication: What type of communication will be most effective (face to face, formal announcements, training programs, frequent email updates)?
Elements of a Staffing plan: communication Plan
Resources: What financial and nonfinancial resources must be committed to communications for the plan to be successful?
Elements of a Staffing plan: communication Plan
Timing: What schedule is required to achieve the objectives of the communication plan?
Elements of a Staffing plan: communication Plan
Responsibility and accountability: Who will actually develop and deliver the required communications?
Elements of a Staffing plan: Continuous Improvement
Identify opportunities for improvement as soon as possible, document lessons learned from the experience, and to ensure that they are used to enhance ongoing and future staffing initiatives
Flexible staffing
Uses alternative recruiting sources and workers who are not regular employees.
Examples of situations where flexible staffing alternatives occur
Shortages of available workers for open positions.
Seasonal peak demands for operations.
Operational upturns and downturns that make permanent head count impractical.
Special projects that demand specific skills.
Types of Flexible Staff: Temporary assignments
Employees hired to work on a specified job to supplement the regular workforce on a short-term basis or for a specific period of time.
Types of Flexible Staff: Temporary employees
Employees hired to work directly on the organization’s payroll on a short-term basis for a specific period of time to rotate among several positions or departments as needed.
Types of Flexible Staff: On-call workers
Employees who report to work only when needed.
Types of Flexible Staff: Part-time employees
Employees scheduled to work less than a regular workweek on an ongoing basis; benefits eligibility may depend on various factors (number of hours worked)
Types of Flexible Staff: Job sharing
Two different employees performing the tasks of one full-time position. Each of the job-sharing partners works a part-time schedule, but together account for one Full time position.
Types of Flexible Staff: Seasonal workers
Part-time or “casual” workers hired to perform seasonal work in a variety of industries. ( agriculture, construction, tourism, and recreation)
Types of Flexible Staff: Phased retirement
Any work arrangement that falls somewhere in between full-time retirement and working full-time; these types of programs allow mature employees to work on a reduced or modified basis as they approach retirement
types of flexible staffing arrangements: payrolling
An organization identifies specific people and refers them to a staffing firm, which employs them and assigns them to work at the organization; arrangement is usually at a lower cost than traditional (finite) temporary help.
Types of Flexible Staff: Employee leasing or professional employer organization (PEO)
In an explicit joint venture, an organization transfers all or substantially all employees at a discrete site or facility to the payroll of an employee leasing firm; the PEO leases employees back to the organization while handling most of the HR administrative functions (example payroll, benefits)
Types of Flexible Staff: Temp to lease programs
An organization contracts with two staffing firms- generally a temporary service and a PEO; the temporary firm assigns long-term temporaries to a client organization and, after a period of time, the employees are promoted to lease status and become eligible for benefits from the PEO.
Types of Flexible Staff: Outsourcing or managed services
An independent organization with expertise in operating a specific function contracts with an organization to assume full responsibility for the function (as opposed to just supplying personnel); functions may be peripheral to the core business (ex; security, food services) or closer operations (such as managing all flexible staffing programs or the IT function).
Co-employment (joint employment)
Describes a situation in which an organization shares responsibility and liability for their alternative workers with the alternative staffing supplier.
Independent contractors (AKA consultants or freelancers)
Rather than employees to gain greater workplace flexibility or manage uncertainty associated with entering a new market. A related concept is dependent worker or self-employed
Drivers of restructuring: Strategy
When organizations change their strategy, they may create new divisions to facilitate new products or services or to move into new markets. The new strategy may mean staff increases in some areas and decreases in others.
Drivers of restructuring: Structure
Organizations may rearrange their structure to follow a new business model, improve efficiency, or reduce costs. Restructuring is then required to meet the needs of the new organization.
Drivers of restructuring: Downsizing
Organizations commonly downsize to remain functional during a loss of revenue.
Drivers of restructuring: Expansion
New departments may be required to accommodate new products or facilities
HR role in merger and acquisition
Structural issues- duplication of work processes and personnel, differences in organizational culture, conflicts in HR policies and practices, arrangement of reporting relationships,titles, the design of how the organizations interact with customers/clients
HR role in merger and acquisition
technological considerations: direct product/service provisions; mechanisms for communication and data tracking; the use and impact of each organization’s enterprise management tools; ability for integration of the technology
HR role in merger and acquisition
Financial considerations, compensation structure, union contracts, obligations to a union pension fund, stock options, incentive plans, full range of benefits admin
HR role in merger and acquisition
Legal issues, such as reporting requirements that differ by jurisdiction or type of business, legal constraints on the closing of facilities or elimination of redundant personnel
Merger and Acquisition: Planning for integration of workforces: HR integration plan should include:
- Designating integration leaders
- Securing management support and resources.
- Developing integration and communication plans, setting measurable objectives for integration, and establishing a realistic time line
Merger and Acquisition: Planning for integration of workforces: HR implementing integration plan should include:
HR focuses on:
- Communicating honestly and quickly.
- . Making required changes quickly, workforce terminations, and job reassignments.
- Provide training in new jobs and processes
Reduction in force(RIF)
Refers to the termination of employment of individual employees and groups of employees for reasons other than performance example - economic necessity or restructuring
HR can follow measures after RIF
Clearly communicate the rationale for new goals and structures.
Provides employees with specific examples of behaviors that are appreciated as well as what will not be tolerated
HR can follow measures after RIF
Clearly define job definitions and responsibilities
Realign rewards as necessary to support organizational goals.
Talent management
Refers to the development and integration of HR processes that attract, develop, engage, and retain the knowledge, skills, or abilities of employees that will meet current and future organizational needs.
talent management strategy is shaped by an organization
- Expectations regarding the differentiation of talent
- Overall philosophy regarding integration versus local differentiation
- View of the role that line leaders have int he development of people
talent management strategy is shaped by an organization
- Philosophy regarding the movement of people across borders, businesses, and functions
- View of the role of diversity in staffing strategy
- Beliefs about hiring for potential versus hiring for position
