Managing HR Issues Relating to Reforms

Dr. Elijah EzenduFIMC, FCCM, FIIAN, FBDI, FAAFM, FSSM, MIMIS, MIAP, MITD, ACIArb, ACIPM,

PhD, DocM, MBA, CWM, CBDA, CMA, MPM, PME, CSOL, CCIP, CMC, CMgr

HR Responsibilities During Reform

A survey of some organisations prove that during reform HR departments focus the utmost attention on employee issues, and as a result fail to align corporate issues besides paying little or no attention to HR issues.

The primary course of action in managing HR issues relating to reform focus on identification and delineation of established objectives earmarked for that reform.

Mapping Corporate Objectives to Componental HR Value Propositions

ContributionAscertainment

StructuredDisaggregation

• Functional OfferingsReverse Engineering

Source: Elijah Ezendu, The Business of HR

What are the reform objectives?

What are the implications of each objective?

HR Contribution Ascertainment

HR contribution ascertainment involves multi-layered review of specified corporate objectives for purpose of identifying the most fitting set of human resources objectives that their accomplishment would provide the required level of HR business values for achieving those corporate objectives.

Success of Reform Versus Contributable HR Business Values

The success of a corporate reform programme depends on the level of contributable HR Business Values. If Contributable HR Business Values < Requirement, the corporate reform = failure.If Contributable HR Business Values ≥ Requirement, then the corporate reform would proceed successfully on condition that additional requirement such as finance had been fulfilled.

Value Chain

The value chain concept was developed by Prof. Michael Porter for describing activities that occur within and around an organisation and relating them to its competitive strength.

• It differentiates primary activities from non-core that are regarded as support activities.

• It provides for identification of key activities in every functional silo as part of the value chain of an organisation.

Value Chain Concept

Source: M.E. Porter, Competitive Advantage, Creating and Sustaining Superior Performance

Value Chain Snapshot

In a scenario where the value chain snapshot of an organisation highlights some key activities in HR function as part of the value chain, whereas they are non-value adding activities; they would crystallize as invalid links in the value chain, and indicate quandary, dissonance, nonconforming focus, miscarriage of resources, in addition to systemic blunder.

Where Business Value Shows UpFortunately, there are only five places in a business where we can see the value of our work. These are the same for any type of organization, whether it’s a commercial enterprise, a government entity, or a non-profit group (similar to how accounting practices are essentially the same across each type).We can identify business value by asking the following questions about the end results of our project:•Will it increase revenue?•Will it decrease expenses?•Will it bring in new customers?•Will it bring in more money from existing customers?•Will it increase shareholder/taxpayer value?Depending on the nature of our business, a given project could affect any of these value areas. It could increase revenues or decrease expenses. In fact, sometimes a project could affect two or three simultaneously, such as increase revenues, bring in more new customers, and increase revenue from existing customers.

Source: Jared Spool, Identifying Business Value of What We Do

Business Alignment

Business Alignment is occasioned by placement of key activities with content and direction that are geared for achievement of organisational goals.Effective Business Alignment of HR Function shall occur when every activity output from each section of HR contributes fittingly to organisational pool of output earmarked for generating product or service.

HR Value vs. Business Goal

Contemporary HR Value had been self-centred and somewhat disconnected from business goal orientated perspective. That’s why such output is not identified as ‘value adding result’ in corporate strategic outlay.

HR Thrust

Effective Business Alignment of HR Function implies every component of HR system, structure, policy, procedures, initiatives, objectives and strategy must be focused on provisioning of excellent enablement for achievement of organisational goals. This should be the HR Thrust.

Best Practices – How to Bridge the Business Divide

•Evaluate current opportunity with the business# Bringing insight to investment decisions# Building future value through today’s forums# Bridging the people visibility gap# Removing barriers and optimize performance•Develop platforms for strategic conversation•Transform HR Business Partners into strategic advisors•Report Links

Source: Amy Wilson, Wilson Insight

The Top 10 Best Practices of High Impact HR Organisations

1. Structured governance and business case development2. Developing advanced workforce planning capabilities3. Implementing the “right” HR philosophies4. Reducing administrative work for HR Business Partners5. Implementing flexible HR organisation design6. Improving employee-facing HR systems7. Measuring both HR operational and business metrics8. Developing internal HR skills9. Improving line manager capabilities10. Outsourcing HR services strategically

Source: John Hollon, TLNT- The Business of HR

Current Changes in Nature of Work

• Content• Structure• Process• System• Flow Dynamics• Applicable Technology

Major Drivers for Changing Nature of Work• Customer Values• Competition• Transitory Technology• Organizational Agility• Innovation• Expansive Career Thrust• Financial Leverage• Operational Mobility• Global Labour Convergence• Advancement in Capacity Management• Advancement in Lean Enterprise• Advancement in Process Based Management

Impact of Changing Nature of Work on Organisation

• Flatter Structures• Increase in Project Groups• More Emphasis on Cross-Functional Teams• Rise of Kaizen Philosophy that Quickens Reform• More Complex Reporting Relationships• Increase in Interactive Bonds Between Top and

Bottom thereby boosting holistic performance initiative

• Indistinct Boundaries

The corporate reform implementation will not meet a static work environment but a fleeting pattern in the nature of work. All the dynamic components of work must be aligned for optimal achievement of stated reform objectives.

Competency Framework can be applied in ensuring that every position in the organisation shall be effectively manned by a worker who possesses the fitting competence, thus guaranteeing required performance. Implications: •Up-skilling•Right-sourcing

What is Competency?

“Observable performance dimensions, including individual knowledge, skills, attitudes, and behaviours, as well as collective team, process, and organizational capabilities, that are linked to high performance, and provide the organization with sustainable competitive advantage”(Arvy & Orth).

Competence vs. Competency

In the past, HR professionals have tended to draw a clear distinction between 'competences' and 'competencies'. The term ‘competence’ (competences) was used to describe what people need to do to perform a job and was concerned with effect and output rather than effort and input. ‘Competency’ (competencies) described the behaviour that lies behind competent performance, such as critical thinking or analytical skills, and described what people bring to the job. However, in recent years, there has been growing awareness that job performance requires a mix of behaviour, attitude and action and hence the two terms are now more often used interchangeably.

Source: CIPD

Competency Framework

A ‘competency framework’ is a structure that sets out and defines each individual competency (such as problem-solving or people management) required by individuals working in an organisation or part of an organisation.

Source: CIPD

Components of a Competency FrameworkA competency framework consists of Behavioural indicators, Competencies and Competency clusters.

Behavioural Indicators: These are examples of behaviours that would be observed when someone demonstrates competence. They are the building blocks of the competency framework. For example behavioural indicators for the competency “Teamwork Work and Collaboration” are:Identifies when team members need support and provide it.Shares knowledge and information willingly with others.Collaborates effectively in meetings and informal interactions.

A Competency:This is a set of behaviours, which demonstrates that a person has the abilities, knowledge, skills and personal attributes to do the job competently.

The best way to describe competencies is to use behavioural language that describes the actions needed to achieve the organisation’s goals. For example the competency “Teamwork” is described as “Works with others to cooperatively accomplish objectives”.

Competency Clusters:These are individual competencies that are grouped into competency clusters. For example the competency “Teamwork” forms part of the competency cluster “Working With Others”. Other competencies that would form part of this cluster are, “Influencing and Persuading”, “Building Relationships”, “Managing Others”, etc.

Source: AssessSystems

Progression in Competency

Progression in competency depends on the following:•Scope•Context•Autonomy

Competency Mastery Levels

Configuration of Mastery LevelsSize of Mastery Levels depends on the following:•Organisational Structure•Hierarchical Layer Variance•Organisational Dynamics Philosophy

Progress from one Mastery Level to another is characterised by calibrated increase in proficiency which synchronises with performance requirement at that level for effective contribution to business goals.

Causal Mode of Organisational Performance & Change

ExternalEnvironment

Individual and OrganisationalPerformance

Mission & Strategy

Motivation

Work Unit Climate

Management Practices

Organisational Culture

Leadership

Task and Ind. Skills

Structure

Individual Needs and Values

Systems (Policies & Procedures)

Adapted from Burke and Litwin

Performance in Change

In accordance with Burke-Litwin Model, change occurs in response to external environment and affects transformational factors that in turn impact transactional factors thereby influencing motivation and finally determines performance.

Dr. Elijah Ezendu is Award-Winning Business Expert & Certified Management Consultant with expertise in HR, OD, Competitive Intelligence, Strategy, Restructuring, Business Development, Sales & Marketing, Interim Management, CSR, Leadership, Project & Programme Management, Cost Management, Outsourcing, Franchising, Intellectual Capital, eBusiness, Social Media, Software Architecture, Cloud Computing, eLearning & International Business. He holds proprietary rights of various systems. He is currently CEO, Rubiini (UAE); Hon. President, Worldwide Independent Inventors Association; Special Advisor, RTEAN; Director, MMNA Investments Limited. He had functioned as Chair, International Board of GCC Business Council (UAE); Senior Partner, Shevach Consulting; Chairman (Certification & Training), Coordinator (Board of Fellows), Lead Assessor & Governing Council Member, Institute of Management Consultants, Nigeria; Lead Resource, Centre for Competitive Intelligence Development; Turnaround Project Director, Consolidated Business Holdings Limited; Lead Consultant/ Partner, JK Michaels; Technical Director, Gestalt; Chief Operating Officer, Rohan Group; Executive Director (Various Roles), Fortuna, Gambia & Malta; Director, The Greens; Chief Advisor/Partner, D & E; Vice Chairman, Refined Shipping; Director of Programmes & Governing Council Member, Institute of Business Development, Nigeria; Member of TDD Committee, International Association of Software Architects, USA; Member of Strategic Planning and Implementation Committee, Chartered Institute of Personnel Management of Nigeria; Adjunct Faculty, Regent Business School, South Africa; Adjunct Faculty, Ladoke Akintola University of Technology, Nigeria; Editor-in-Chief & Chairman of Editorial Board, Cost Management Journal; National Executive Council Member, Institute of Internal Auditors of Nigeria; Member, Board of Directors (Several Organizations). He holds Doctoral Degree in Management, Master of Business Administration and Fellowship of Several Professional Institutes in North America, UK & Nigeria. He is an author & widely featured speaker in workshops, conferences & retreats. He was involved in developing Specialist Master’s Degree Course Content for Ladoke Akintola University of Technology (Nigeria) and Jones International University (USA). He holds Interim Management Assignments on Boards of Companies as Non-Executive Director.

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