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While there are no “universal” models of best HRM practice that apply to all organizations, one can discern, from research sources and experience within the CGIAR System, a set of good practices that can be considered when evaluating the HR function in a Center. Applying a “best fit” approach, these benchmarks need to be considered against the particular realities of a Center to determine their applicability.
Values, Principles and Policies
The process of documenting an underlying philosophy and approach to HR management helps management focus attention on areas of existing practice that may be out of line with what is currently desired. Engaging staff in the process of documenting HR values and principles and disseminating the end results to all staff helps ensure that those values and principles best reflect the organization's mission and helps build commitment to those values and principles among staff.
The various manuals and documents that contain HR policies, job requirements, and performance criteria should be readily available to all staff. Increasingly, Centers are making these available on line, via their intranets. This helps ensure that any changes are quickly reflected in the published versions. Changes in policies should also be carefully explained, along with the rationale. Referencing changes to the overall values and principles of HR management will be desirable. This reduces uncertainty and builds confidence among staff as to the commitment of management to adhering to the overall values and principles.
CGIAR Centers have multiple categories of staff based on the markets in which they are recruited. All Centers have internationally and nationally recruited staff categories, some Centers have regionally recruited staff categories, and within these categories, there may be sub-categories. Over time, differences in the terms and conditions of employment for these categories create class differences, manifested in rigidly stratified professional (and sometimes social) environments. The resulting perceived and real inequities could promote dysfunctional behavior ranging from a lack of motivation to antagonistic attitudes between different groups. This can impact on the attractiveness of the Center in competitive employment markets and negatively affect teamwork within the Center-ever more critical as Centers must do more with less staff and rely increasingly on multi disciplinary teams drawn from across staff groups
SAS-HR notes the following steps to manage such risks:
• Having a single policy applicable to all staff, supported by small attachments that describe additional conditions or differences applicable to different employment categories
• Developing a compensation system and packages that do not have any explicit or inherent bias based on non professional considerations
• Providing the same compensation to staff members with the same competencies doing the same jobs
• Emphasizing similarities in policies and practices that apply to all staff, rather than on few differences in conditions of employment
• Progressively standardizing social benefits such as insurance and occupational health programs
• Making available to all staff benefits that are not dependent on differences in employment markets or job requirements
• Providing equal access to social and welfare services
Efficient and effective Human Resource management is a challenge to all HR professionals. Staffing, training and helping to manage people so that the organization is likely to increase the performance level is imperative to work in a productive manner. Normally, human resource functions are tracking data points on each employee. These might include experiences, capabilities, skills, data, personal histories and payroll records. In the most general sense businesses carry out different activities dealing with managing their approaches to employee benefits and compensation, as well as employee records and personnel policies.
Among the core HR activities there are payroll, time and labour management, benefit administration and HR management. These activities correlate with the HR objectives which are largely the responsibility of Human Resources.
The foremost objectives of Personnel services are an efficient and effective personnel and payroll system responsive to staff needs together with the flexible remuneration system. These objectives can be attained by implementation of different modules, such as budgets and commencements module, applicant tracking module, occupational health and safety module, etc.
None the less important HR objective is the industrial relations services implying establishing effective relationships between the employer and the staff. Complete and comprehensive policy framework should be established for risk management, safety and health issues. Staff should be well informed about safety and health issues in the workplace. What is required to gain this objective is the staff's participation in a wide range of training and awareness programs in the area of safety and health. Staff development objective can be realized through different skills development courses designed to encourage further skills development necessary to carry out their responsibilities.
Some organizations consider equity and diversity services as their objective and provide information about the procedures for sexual harassment, racial harassment and equity grievances, thus making the staff well aware of the policies. The initiatives include awareness programs in relation to equity and diversity. In the long run it leads to an increase in the number of staff who have attended the training sessions and know the issues.
Human Resource services provision is closely connected with strategic policies, planning and coordination of an organization. A wide range of human resource strategies aimed at more flexible planning can include improved links between performance and remuneration, improved performance measurement procedures for all staff, improved recruitment and retention strategies, and encouragement of skills development. One more objective results in consultancy support provided on the basis of improved information about both the employer and HR staff needs and working requirements.
HR objectives stimulate the development of people to be their best in order to meet the needs of an organization. A successful performance management system including department, team and individual business objectives, personal development plans, performance appraisal, career planning, etc., aims at enhancing the personnel's commitment to developing the business long-term and can give challenges which will enhance the staff personal growth. Moreover, if an organization can assess the workforce changes needed by business, implement the necessary optimization and measure the results using up-to-date technology systems, it will get data having a critical role in monitoring and controlling overall performance.
There are two famous HRM models that exist today. One of these is the Michigan School Model which was developed by and (1984). This is also referred to as the hard HRM which emphasizes on treating employees as a means to achieving the organization's strategy. Organizations that practice this model monitor investment in employee training and development to ensure to ensure it fits with the firm's business strategy. The management's principal reason for improving the effectiveness of HRM in this model is increasing productivity. The Michigan model also assumes that HRM will respond to the external and internal environment appropriately and a contingency approach to HRM. The Michigan model is hard HRM because it is based on strategic control, organizational structure and systems for managing people. Although it acknowledges the importance of motivating and rewarding people, it concentrates most on managing human assets to achieve strategic goals (2000).
Another HRM model was developed by a group of academics from the thus it was called the Harvard Model. The Harvard Model (1984) proposes that people can be dealt with within four human resource categories. The first category is the employee-influence which refers to the amount of authority, responsibility and power voluntarily delegated by and is compatible with the purpose and interests of the management. The second is the element of human resource flow, which refers to decisions on recruitment, selection promotion, exit, job security, career development, advancement and fair treatment. The reward systems is concerned with intrinsic and extrinsic rewards such as the work itself, sense of purpose, achievement and challenge, pay, bonuses, insurances and flexible working hours. The reward system should always be aligned with the overall business strategy and management philosophy. The last category is that of work systems which deals with the arrangement of people, information activities and technology (2006). This is a highly prescriptive model of HRM which emphasizes a number of presumed long-term benefits of acting on stakeholder interests and situational factors, assuming that there is a set of predetermined and superior human resource policy choices ( 1994). Organizations adopting this model would ensure that employees were involved in work, have opportunities
The Michigan School Model emphasizes the strategic resource aspect of human resources and is considered to be the ‘hard' variant of HRM ( 2006) which considers employees as one of the key resources of organizations, arguing that human resource should be used effectively in order to achieve organizational goals. On the other hand, the Harvard model stresses the human element in the human resources formulation (2006) and is considered as the ‘soft' variant in HRM. The soft version of HRM is linked to the human relations school while the hard HRM version is seen as emerging from the strategic and business policy thoughts (1989).
These two models are the most commonly use HRM models in businesses today aside from other models that has been theorized and formulated by some academics. Based on the definitions and explanation of each model, it can be concluded that the soft model is more advisable to be practiced by industries within the service sector while the manufacturing sector would be better to use the Michigan Model of HRM for increased production.
HR planning and development methods
HR Strategic Planning
HR strategic planning is the process by which, an organization as it develops, ensures that it has the right number of people with the right skills in the right positions at the right time to meet its operational and business needs.
It deals with strategic choices associated with the use of labor in an organization. Making choices about the levels and type of staffing, remuneration and benefit policies, and recruitment efforts to be initiated will be guided by such issues as
• the need to maintain a sufficient core intellectual capital within the Center
• opportunities and risks related to donor-seconded or-sponsored staff; postdoctoral, visiting scientist or fellowship assignments; and short-term consultants
• changes in the Center's business strategy e.g., expansion or contraction of particular research lines; greater geographic decentralization of staff, development of business in certain geographic zones
• changes in the Center's operating modes, in response to quality improvement efforts or recommendations from external and internal reviews
• attracting staff (and families) to locations with security problems and/or amenity issues;
• a desire to expand the workforce diversity (e.g. gender, nationality, representation from developingas well as developed countries)
The level of investment of effort in HR strategic planning that is deemed appropriate to the organization's circumstances will vary from organization to organization and from time to time.
Changes in research focus and technology and uncertainty of medium-and longer term levels of donor funding for publicly funded scientific research mean that CGIAR Centers need to approach HR strategic planning with considerable flexibility. Nonetheless, there is a compelling business case for Centers to proactively engage in an HR strategic planning process to facilitate orderly and timely implementation of operational and financial plans.
HR strategic planning is, by its nature, an iterative process. Limited investment in the initial stages may be quite appropriate to the level of uncertainty about inputs and other conditions. However, provided the resource planning process—assumptions, developments, and consistency with associated strategies—are reviewed periodically by management, the process overall will make a significant contribution to the operations and success of the organization.
As organizations focus their efforts on implementing more strategic management of human capital, they also place more importance on the development of HR metrics to benchmark the or ganization's HR performance in key areas and monitor changes as a result of the implementation of various HR initiatives. These (or a key subset) can be presented in an integrated format with an organization's other performance metrics in such formats as balanced scorecards or “dashboards”.
Examples of HR metrics, which are or may be relevant to CGIAR Centers for benchmarking and then monitoring trends, are:
• Staff turnover/retention
• Staff “headroom” - proportion of filled positions to total positions; proportion of positions filled by long-term staff versus temporary staff and consultants
• Staff qualifications and experience
• Numbers and types of applicants for advertised vacancies
• Staff diversity
• Staff satisfaction
• Staff performance ratings
• Professional development hours achieved
• Overtime and (where Centers implement time tracking systems) unbilled time
• Health and safety statistics
Many of these metrics can be efficiently captured through good HR management information systems. Staff satisfaction is usually measured as a composite of various submetrics captured through Centerwide confidential staff surveys. They may be supplemented at unit or location level by self assessment exercises using anonymous polling technology.
Organizational design can be defined as the “process of managing the organizational structure” (Wagner and Hollenbeck, 1998). The organization's structure is not only a tool for managing the workforce but also a means of communicating priorities and responsibilities, enabling management to focus employees' and stakeholders' attention on particular aspects of the business (Davenport and Beck,2002). Organizational design should support strategy implementation, facilitate the flow of work, permit effective managerial control, and create reasonable and measurable jobs (Nadler and Tushman,1992).
According to Galbraith (2003), the problem of organizational design occurs when there are many employees in a number of specialist groups, which need to be integrated around the completion of a global task.
The national center for vocational and educational research Ltd, in its reort “Research at a Glance: Returns on Investment in Training”, draws a number of conclusions regarding the returns to training investments
• Returns on training are nearly always positive and can be very high, depending on the nature of the training and its relevance to the business needs of the organization;
• Returns come in many forms, not just labor productivity and profitability, but also value-added activities, which may arise as a result of greater employee skills, increased flexibility, reduced overhead and a greater ability to innovate;
• The immediate returns from training are highest when the training is highly focused on a clear business problem;
• Measuring returns is not always an easy task and may be achieved through productivity studies or cost-benefit analysis:
• Training acts as a mechanism for other changes in the organization. It does not act alone to improve the performance of an organization, but allows the organization, to introduce change more successfully
• Returns from training can be enhanced by other human resource policies that encourage employees to remain with the organization after training.
The Investors in People Standard from the United Kingdom provides useful structure for considering the planning, organizing, and evaluating dimensions of staff development at the organizational, group and individual levels. Key elements of the standard are
• management commitment
• encouragement of staff
• equality of development opportunities
• clear organizational objectives to which staff can orient their efforts and development activities can be linked
• managers are equipped to support staff development
• development activities have clear learning outcomes
• the impact of development activities are assessed
An objective is a long-range purpose this is not quantified and not limited to any time period. Example increasing the return on shareholder's equity
• Market share.
• Customer satisfaction.
• Employee satisfaction.
• Returns to shareholders.
• Cutting pollution.
• Reducing waste.
Here are lists of business objectives.
1. A supermarket chain has set itself the objective of increasing market share from 20% to 80% within three years.
2. A leisure centre has set itself the objective of becoming the 'best' in the field.
3. A cinema chain has the objective of increasing sales revenue by 2% this year.
5. A football club has set itself the objective of improving its future performance.
6. A telecommunications company has set itself the target of reducing consumer complaints from 5% to 4% within the next twelve months.
Human Resource at Tesco
Implementing strategic HR and its role in the organization has increased in importance. The challenge is always present and revolves around the work, skills of the whole employees, and performance of the management; all are targeting the business's goals. Tesco ensures that each and every employee has the opportunity to understand his or her individual role in contributing to the Tesco core purpose and values. This requires an innovative induction program that caters for different cultures, styles of learning and varying commitments to the job. The frontline employees are considered the ultimate reflection of Tesco to its customers, but all employees have a very important role to play in turning core values and customer commitment into reality on a daily basis.1
Ensuring all of Tesco's employees, wherever they work or what role they are playing, is a big challenge. The training creates a graphical journey through the history of Tesco, its core purpose, values, business goals, financial aims, operations and marketing strategy and its commitment to customers. All employees are receiving more training than before.2
Future concentrates on providing a clear way of defining roles, responsibilities and activities. The system guarantees that all employees are responsible, accountable, consulted and informed. The Tesco intends to continue its emphasis on increasing the skills of its workforce. The integrate HR had strategically included in the plans and can gradually affect the decision making aspect.
The increase in training priority has been supported by a rise in Human Resource Management. This practice emphasizes that increased growth can only be maintained in the long run; by equipping the work force with the skills they need to complete their tasks.3
The focus on HR for developing the employees through continuous training is vital to the success of the organization, without commitment, it would amount to a waste of resources.
As the UK's largest retailer, with more than 470,000 employees across 14 countries making the challenges arise in managing such a large workforce.4
Through the Tesco's corporate values: “No one tries harder for customers" and "Treat people how we like to be treated". The enthusiasm in creating new and even in work is always important in any aspect of working industry. Because of the proper deployment of many HR programs, the effectiveness can be seen in attitude of the workers.
These apply both to customers and staff, and for the latter focus on teamwork, trust and respect, listening, supporting and saying thank you, and sharing knowledge and experience. There's a deeper understanding in the values of the company that were once blurred in the employees.
Tesco can claim an undying support from the employees although; the company faces a challenge regarding the diversion that includes financial services. The company also expanded internationally, but the answer in economic downturn is enough to keep the company's values.
The Tesco's HR practices are so deeply ingrained that they are sure to be seen as key to both short-term survival and longer term growth. The company is creating 11,000 new jobs in 2009, and will target the long-term unemployed. Another key value is the commitment to offer all staff an 'opportunity to get on', with vacancies advertised internally, and front-line managers trained to manage talent.
Tesco also boasts the best employee benefits package in the food retail sector, with an award-winning pension scheme. Some 170,000 staff own shares or are members of share schemes, and there is discounted dental, health and life insurance on offer.
The well-trained employees and a good vibe in the organization will endure any critical insight about their companies. Therefore, the company's response is to point to its responsible action towards the community.
Additional information on how to make improvement in the HR of Tesco is summarized as a suggestion. The improvements can be experience when the activities were followed:5
1) Decide the composition of the audit team: There has to be a representative from the HR function and from among senior line managers if the exercise has to have any credibility.
2) Identify the function's main customers: The key decision is to clarify who makes the final decision to buy the services provided by the function. In a decentralized multi-divisional organization, this is likely to be the general managers of the strategic business units.
3) Review the HR function's mission statement: This statement describes the reason for the HR function's existence, it's principal activities and it's most important values.
4) Review the function's role in formulating and implementing the organization's strategy: This step is critical to establishing the link between HR policy and practices, on the one hand, and the organization's overall business strategy, on the other.
5) Review the HR function's role in developing relevant HR policies and practices
6) Review the delivery of HR policy and practices: The advantage of this approach is that line managers can go elsewhere if they are not happy with the service they receive from the HR function within the organization.
7) Make internal comparisons to establish ‘best' practice: The organization need to build and constantly update a unique database of HR practices that gives an overview of developments within the world's largest organizations today.
8) Review the outcome of analysis: Performance gaps need to be identified and the policy implications need to be discussed with the customer. The commitment for implementing the necessary improvements should be gained.
9) Implement the agreed improvements and measure the progress against pre-set targets: The metrics selected should be the agreed upon true indicators of the HR function's performance and compare the results with industry averages, competitors, ‘best' practice firms, and/or with set targets or previous performance ratings.
Theoretical Models of HRM
To examine some theoretical models that are relevant to the field can help the whole alliance of HR Department and even the students to understand the human resource in a deeper sense. In previous years, many writers complained about the lack of any theoretical foundation for describing the HRM function in organizations.6 Now, unveiling the two main models in the HRM function can make a bridge towards the complexity and mobility of the department in a company and their purpose.
Human Resource Planning
The right number of people with right skills at right place at right time to implement organizational strategies in order to achieve organizational objectives. In light of the organization's objectives, corporate and business level strategies, HRP is the process of analyzing an organization's human resource needs and developing plans, policies, and systems to satisfy the needs.7
1. Assurance that the right people are in the right place at the right time.
2. The improvement in the short-term outcomes such as attracting applicants, maximizing performance, and minimizing dissatisfaction and stress is made in order to retain valued employees.
3. Human resource planning will serve as a thread that ties together all other human resource activities and integrates these with the rest of the organization.
4. Balancing current needs-of organizations and their employees-with those of the future.
5. The adaptation of the employees to different activities when organizational change is needed and their readiness to engage in the new activities needed to face the challenges of the future as the criteria against which they evaluate their own performance.
Human Resource Development
A definition of HRD is "organized learning activities arranged within an organization in order to improve performance and/or personal growth for the purpose of improving the job, the individual, and/or the organization". HRD includes the areas of training and development, career development, and organization development. This is related to Human Resource Management -- a field which includes HR research and information systems, union/labor relations, employee assistance, compensation/benefits, selection and staffing, performance management systems, HR planning, and organization/job design.8
The need for development is important to learn new skills and develop new abilities, to respond to these changes in our lives, our careers, and our organizations. We can deal with these constructively, using change for our competitive advantage and as opportunities for personal and organizational growth, or we can be overwhelmed by them.
The goal of HRD is to improve the performance of our organizations by maximizing the efficiency and performance of our people. We are going to develop our knowledge and skills, our actions and standards, our motivation, incentives, attitudes and work environment.
The effectiveness of the development can be determine if the following are successfully faced and made a quality response.9
1. The changing balance between physical resources and intangibles in the production process;
2. Increasingly rapid change in markets that requires constant updating of knowledge and skills, as well as changing attitudes;
3. Growing polyvalence of staff in more efficient organizations;
4. Globalization, whose opportunities can be grasped only through special competence and innovation,
5. HRD must ensure not just that personnel acquire greater competence, but that they can use this competence.
6. HRD must enable the personnel to contribute fully to outputs and growth.
The importance of the human resource management in a company or organization is immeasurable. The duty of the human resource manager and his staff is to give the employee the proper guidance and keeping their eye on them from the beginning of their first day. Human resource department is like a nursery station, where they need to give the employees the orientation and briefing in the work that assigned to them. The continuous planning and development will create a difference in the company.
Human resource department is like a small community inside the organization but they work in many functions. It is part of their knowledge to control and evaluate the employees according to their assessment. And through them, the development of an individual into his best can be reveal.