Ceos Guide to Hr-management

GUIDE TO

HR-MANAGEMENT

Concept

Assessment Systems International,

MITTE Communications

Graphic Design

MITTE Communications

Published by

Assessment Systems International,

Budapest, 2016

Publisher

Fehér Zsolt

ISBN 978-963-12-5318-4

CEO's Guide to HR-management, Assessment Systems Hungary Kft.

Personnel decisions can determine the

long-term success of a company, thus

they are extremely important to the

leadership process. According to a study1

sponsored by ORACLE, 63% of the CEOs

surveyed believe that human resource

management is one of the factors which

primarily define business success.

PREFACE

AN HR COMPASS

1 Oracle 2012: http://www.oracle.com/us/products/applications/peoplesoft-enterprise/talent-mg-mt-role-bus-strategy-1891829.pdf – p. 16.

SELECTION1

2

3

DEVELOPMENT

LEADERSHIP

How to identify the ideal candidate?

How to help your employees reach their

maximum potential?

How to help your key managers provide the best,

most effective leadership?

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Finding the best candidates, keeping and developing key people, and

forming leaders are objectives with a common foundation in effec-

tive HR management.

How can we make HR decisions in the most professional way?

What tools are available and how should we use them?

The CEO’s guide to HR management presents three chapters provid-

ing guidance to company leaders and HR specialists.

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Based on the examples of multinational companies, we see the

growing importance of HR so that in addition to the CEO and CFO, the

CHRO is the third member of the leadership “triumvirate” and can

also be a part of the informal top management. The CHRO, as a partner,

may support the development of changing business models, deci-

sions and target indicators 2 by using quantifiable information.

These personality-based, measurable, and data-driven solutions

contribute in various ways to the strategic approach of HR in busi-

ness practice.

In The CEO’s guide we present research data regarding a variety of

HR topics: regional leadership differences; gender based leadership

analysis; and, the use of Big Data in HR. We will offer practical ex-

amples to help understand how an IT specialist can become a good

leader, how creative people can function well in a business environ-

ment, what the criteria are for good and bad leaders, or what the 21st

century leadership toolbar looks like.

Warren Buffet famously said: “Predicting rain doesn’t count; building

arks does”. We provide the wood.

2 Harvard Business Review 2015: https://hbr.org/resources/pdfs/comm/ey/19297_HBR_Report_EY_webview.pdf - p. 1.

When searching for new employees, more than 90% of companies

rely on the CV and the unstructured interview to understand their

candidates and to make their employment decisions. Research

shows that these are the least effective tools with which to assess

the candidate’s successful employment and integration potential:

Other tools allow us to radically reduce both the cost of selection and

the fluctuation caused by employee separation.

Experience shows that in most cases we hire employees due to their

hard skills (expertise) and we dismiss them due to a lack of appro-

priate soft skills (target competencies). Therefore, it is no surprise

that new HR methods have recently been implemented by large

companies, to support the contribution of HR in achieving corporate

objectives in addition to the selection of ideal professionals.

As per a study by the Harvard Business Review and Ernst & Young,

the strategic role of HR is becoming more and more important

to employers owing to extensive changes brought about by the

growth of technology as well as the changing business environment.

The driving force in the increase of corporate competitiveness is to

find and develop exceptional talent. In addition, there is a consid-

erable need for the effective use of HR information and predictions

when creating a winning business strategy and an effective manage-

ment decision-making.

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Tabl

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After finding the bests, start developing them!

How to get from good to great?

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02 - DEVELOPMENT

03 - LEADERSHIP

Competent employees are a company's brand

21st century employer challenges and solutions

Leadership toolkit for HR-development

Good leaders/bad leaders: from self-mastery

to emotional intelligence

Leadership characteristics, abilities and challenges

Leadership training toolkit

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Table of Content

How to choose the bestcandidate for the job? 15

01 - SELECTION

Best selection practicies

Finding the ideal coworker

Leadership selection tools

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How to choose the best candidate for the job?

SELECTION

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This is how much the cost could be of a bad selection decision

10.000 EUR

01

Best selection practices

Finding theideal coworker

Leadershipselection tools

While choosing the best talent may seem an easy task, it actually is

a more complex process requiring an investment in a thorough ana-

lytic process, which produces a valid data-driven decision.

The following chapter will provide information on the structuring,

articulation and measurement of selection requirements, as well as

indicating typical pitfalls and how they can be avoided.

HOW TO CHOOSE THE BEST CANDIDATE FOR THE JOB?

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WHAT ARE AN IDEAL CANDIDATE'S FEATURES?

1 - Knowledge of their tasks.

2 - The ability to perform these tasks repeatedly, and competently.

3 - Is motivated to engage in these tasks in the corporate environment.

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The selection process entails at least three assessments:

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Investigation of

professional skills,

Aptitude

and competence

Organizational

compatibility

One of the main challenges in the selection process is the brief win-

dow of time in which to undertake a long-term assessment of a can-

didate's future performance.

Typically the first solutions that come to mind are a CV and unstruc-

tured interview, and these are the techniques we use over 90% of the

time. However, statistically these are the least effective methods

on which to base a prediction, as they leave too much space for as-

sumptions and the impact of charisma.

Best selection practices

WHICH METHOD SHOULD WE USE FOR

CHOOSING JOB CANDIDATES?

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The first step is an in-house assessment of these factors, by observing

highly-performing coworkers.

All other methods are speculative, while data evaluation is a prerequi-

site to a solid decision. The data here is relevant to the skills, personal-

ities and motivation of excellent workers, and can be used to formulate

an ideal employee profile.

Knowledge

Skills

Familiarity with corporate

or departmental culture

Conditions of tsuccessful selection:

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sKnowing the candidate personally is not in itself sufficient!

(And can be a source of bias.)

Familiarity with a candidate's professional knowledge (hard skills)

and interpersonal competence (soft skills). Hiring a new employee

for their hard skills does not preclude their eventual drop out due to

a lack of soft skills. An analysis of insufficient skills finds one-third

hard skills and two-thirds soft.

Why do new employees ultimately fail?3

26% Are unable to accept feedback

23% Are unable to recognize and cope with emotions

17% Are unmotivated to work, and

11% Lack appropriate technical skills

3 Leadership IQ 2015: http://www.leadershipiq.com/blogs/leadershipiq/35354241-why-new-hires-fail-emotional-intelligence-vs-skills

WHAT ARE THE SKILLS REQUIRED

FOR MAKING SUCCESSFUL CHOICES?

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Overstating key features:

Most positions are focused on a single key requirement, and so we

tend to overlook other features once a candidate fitting that one re-

quirement is found. Contrarily, basing a decision on one aspect is

never adequate.

DURING A SELECTION PROCESS NOT ONLY THE COMPANY "BUYS" THE CANDIDATE, BUT THE

CANDIDATE ALSO "BUYS" THE ORGANIZATION.

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Individual profile bias:

People tend to consider similar people more suitable than candidates

who are dissimilar, even when profiling candidates for a different

position from their own. “Cloning” ourselves is counterproductive.

First impression bias:

Many candidates will be skilled at appearing ideal in all situations

regardless of their true abilities. Only experienced interviewers or a

strong test application can effectively recognize and filter out this ir-

regularity.

Mutuality:

During the candidate selection process, the organization itself will

also become invested in the candidate. One issue to investigate is

whether the organization can satisfy the candidate's needs.

Conducting a study of 19700 employees, Leigh Branham found that

the main reason employees leave their workplace is that the reality

of their working environment contrasted negatively with what they

had been pitched during the interview.4

4ASAE – The Center for Association Leadership 2015:http://www.asaecenter.org/Resources/EUArticle.cfm?ItemNumber=11514

WHAT ARE THE HAZARDS TO AVOID IN ORDER

TO ENSURE A SUCCESSFUL SELECTION?

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The ensuing losses amounted to 155 million dollars per week ac-

cording to an estimate by Businessweek, 30 million in lost stock value

and several hundred million in legal settlements and repair costs.

Determining competence sounds easy, but in fact it's easy to get

wrong; for example by a failure to define requirements such as “ex-

emplary conduct”.5

A job description without competence is like a car without a body.

Even if it's powered by professional know-how, nobody would want

to drive it.

5 ERE - Recruiting Intelligence 2010:http://www.eremedia.com/ere/a-think-piece-how-hr-caused-toyota-to-crash/

THE BETTER THE CANDIDATE'S COMPETENCIES CORRELATE WITH THE JOB REQUIREMENTS, THE BETTER HIS/HER PERFORMANCE AND

ENGAGEMENT WILL BE.

From an organizational point of view, competencies are the knowl-

edge, skills, attitudes and behaviors required to fulfill the functions

needed in the workplace. These requirements help us outline the

complex behaviors the organization would like to see candidates

perform.

According to Dr. John Sullivan, HR specialist, professor and speak-

er, the main cause of Toyota's 2009-2010 scandal was inadequate

HR policy and the resulting lack of competence. Despite applying

the refined Six Sigma system, the company developed a long history

of quality issues. These issues came about due to a combination of

conflicting incentives, a lack of appropriate management skills and

employee learning competence, as well as the absence of construc-

tive criticism and feedback, all HR responsibilities. Following a series

of fatal accidents caused by a faulty brake system and the resulting

worldwide scandal, Toyota was forced to recall nine million vehicles.

Finding the ideal coworker

HOW TO MEASURE COMPETENCIES

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Top leadership competencies:

Social intelligence

Interpersonal skillsPersuasive power

Emotional

intelligence

Logical thinking

Strategic

thinking

Decision making

Conflict resolution

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Identifying and measuring competence not only clarify job tasks to

both employers and employees, but more importantly the way they

are to be performed.

Both parties will benefit from using a realistic list to determine the

most suitable candidate, and the degree of compatibility with re-

quirements. This also clarifies performance assessment and devel-

opmen.in order to rule out surprises.

Measuring competence therefore requires exact definitions, as well

as a precisely calibrated measuring instrument. The latter may be an

Assessment Center, interviews or a test application.

WHAT ARE THE BENEFITS

OF COMPETENCE ASSESSMENT

TO AN EMPLOYER?

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Sales fit:

Job requirement Low fit Medium fit High fit

Self-regulation 0-10 1-15; 95-100 15-95

Ambition 0-19 19-57 57-100

Interpersonal skills 0-10 10-20, 73-100 20-73

Logical thinking 0-12 12-30 30-100

Researchers at Hogan Assessment use seven scales to measure

competence resulting in a test data based, methodically sound, mod-

el profile defining the appropriate competencies for each job.

Thus the Sales Fit Model Profile example shows that on a compe-

tence scale of 0-100, an excellent sales rep would score 30-100 for

Problem solving.

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A competence is most useful when defined in clear, easily under-

standable behavioral patterns, whereby we obtain a clear idea of

how a person will behave in light of that particular competence.

A clear definition must not contain irrelevant adjectives like “normal”,

“good”, “and appropriate”. For clarity's sake the competence defini-

tion should come complete with descriptions of acceptable as well as

unacceptable behavior.

An optimal definition enables measuring the competence, by means

of personality assessment tools.

A competence can best be modeled as a dimension. The issue isn't

whether a candidate has the feature, but to what degree that feature

is useful.

WHAT MAKES

A STRONG COMPETENCE?

COMPETENCIES SHOULD BE RATHER CONSIDERED AS DIMENSIONS. THE QUESTION IS NOT THAT WE HAVE THEM OR NOT, BUT TO

WHAT EXTENT WE HAVE THEM.

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WHAT MAKES A GOOD

MEASUREMENT TOOL?

Personality assessment procedures provide an unbiased method for

evaluating the level of candidate competencies. However, these tools

must conform to some basic psychometric criteria.

International studies and expert opinions show that a typical fault in

personality assessment systems, such as Myers-Briggs or INFJ, is

that results are not in a direct cause-effect relation to the candidate's

actual abilities and performance, leading to ill-founded decisions

which reduce competitiveness.7 Structured questions and hidden fil-

ter settings used by companies can even result in ethnic or religious

discrimination. The U.S. Equal Employment Opportunity Commission

received nearly 100,000 complaints between 2011-2012. One of the

most extreme was the case of Leprino Foods Inc. of Denver, whose

test and procedure based rejection of 253 candidates resulted in

compensation totaling more than a half million dollars.

7 The Business Journals 2015: http://www.bizjournals.com/bizjournals/how-to/marketing/2015/03/how-useful-is-pre-employment-personality-testing.html?page=all

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Research by Hogan Assessment shows that becoming an excellent

sales rep requires poise and confidence, while excessive stability

compromises efficiency by dulling sensitivity toward the client's sub-

liminal gestures and signals. Another interesting result shows that

extremely high scoring interpersonal skills may also prove to be a li-

ability for a sales rep, indicating a tendency for altruism and favors,

as well as conflict avoidance.

Sales software developer Velocify reached a similar conclusion in

their 2013 study. As a companion to a firm background in technology

and methodology, applying emotion, improvisation and persuasion in

a systematic way are the preferred criteria for working in the world

of sales.6

6 Velocify blog 2013: http://velocify.com/blog/infographic-science-overtaking-art-of-selling/

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THERE ARE OVER 1200 REGISTERED PERSONALITY TESTS ON THE MARKET, MAKING IT EASY TO LOSE ONE'S BEARINGS.

The structuresof competencies

SOLUTION:

OBJECTIVE

ASSESSMENT

METHODS

Observable behaviour

Knowledge

Skills

Characteristics

Motivations

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8 abc NEWS 2012: http://abcnews.go.com/Business/personality-tests-workplace-bogus/story?id=17349051

9 The British Psychological Society: https://ptc.bps.org.uk/test-registration-test-reviews/search-test-reviews

Indicators of good working order for a measurement tool:

Validity:

the tool measures the concept we are assessing;

Reliability:

the measurement doesn't pertain to mood, and is replicable;

Norm enforcement:

average value and mean deviation are accounted for by national or

international reference indicators.8

In case we're unsure if the measuring tool of our choice has these

indicators, it is best to consult the public database on measuring tool

assessment of a recognized independent professional agency such

as the British Psychological Society9, via the internet.

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Relation of personality assessment tools and candidate suitability:

0.2

0.54

0.4

0.6

Unstructured interview

Mental ability test

Structured interview

Personality test

correlation value

correlation value

correlation value

correlation value

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Using personality assessment tools does more than promote objec-

tivity. A profound knowledge of these measurement procedures con-

tributes a familiarity with “personality types”, that is, a knowledge of

which behavioral patterns are in synergy, and which are mutually

incompatible. We may thus avoid posing unrealistic and unreason-

able requirements toward candidates. We will also gain a sense of

how each job requires a different personality profile, and that each

strength is unavoidably paired with a weakness that needs development.

Comparing the efficiency of different methods, the Hogan study

found that mental ability and personality testing to be most efficient

when corresponding tests produce a correlation of 0,5 – 0,6 for can-

didate suitability.10

WHY USE PERSONALITY

ASSESSMENT TOOLS?

10 Hogan Certification Training workbook

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Competencies are useful not only to the selection process, but play

a role in practically every HR-related procedure.

A well operated competence system will boost organizational soft

skill development, team building, performance evaluation, succes-

sion planning, and talent nurturing to greater efficiency.

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Using a valid, reliable and verified measuring tool can produce

a solid prediction of work performance over a period of several

years, which in turn boosts selection efficiency, and improved re-

sults that will reduce fluctuation. Overall your long term expenses

will be cut by selecting the most suitable coworkers.

Companies on the Fortune 100 list have saved an estimated total of

8 million dollars in relation to improved selection of their financial

consultants. The business consulting companies listed had even

reduced fluctuation by 30% in the space of a single year.11

HOW TO UTILIZE FURTHER OPPORTUNITIES IN

COMPETENCE ASSESSMENT

11 Hogan Business Outcome Highlights 2011:http://www.hoganassessments.com/sites/default/files/brochures/Hogan_ROI_0.pdf

USING THE RIGHT MEASURING TOOL MAY PRODUCE A DEPENDABLE PREDICTION OF WORK

PERFORMANCE OVER THE LONG TERM.

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In their book How Google Works, former Google managers Eric

Schmidt and Jonathan Rosenberg reveal that recruiting and de-

veloping creative talent for the popular search engine required

strenuous effort. Iconic of the creative and independent-thinking

organizational culture are TGIF (Thank God It's Friday) brainstorm

sessions which are basically open calls for ideas for the entire com-

Creative People

Tend to be more creative, if they score high in the following

Tend to be less creative, if they score high in the following:

Ambition

Excitable

Cautious

Diligent

Dutiful

Security

Sociability

Inquistive

Bold

Mischiveous

Colorful

Power

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Despite the current strategic trend which highlights innovation and

creative people, we mustn't forget that even the most creative work-

force requires certain basic competencies. Whether a colleague

or a startup founder comes up with a revolutionary idea, without

logical thinking they will not be able to convey that idea to others.

A lack of result oriented thinking would result in shortcomings of

development and growth. Therefore competence assessment and

respective development is no less important for our most creative

colleagues.

Studies show that creative personalities are easy to describe as so-

ciable and inquisitive, ambitious and power motivated, all reliable

indicators of a creative profile. However, certain competences do not

correlate with creativity, including the need for security, precautions

and precision, as well as accommodating the needs of others – after

all, creativity needs to “soar”!

Creative workers can use the support of critical, but cooperative

colleagues in a team setting efficiently comprising creative and de-

tail-sensitive, procedure oriented, workers. Brainstorming sessions

and team building will also provide alternative channels for cowork-

ers' creative ideas.

CREATIVE PERSONALITIES IN

A BUSINESS SETTING

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pany staff. Industry gossip has it that the idea for billion-dollar cash

cow Google AdSense first cropped up at an office pool table, while

the game was in full swing. Also worth mentioning is the company's

special practice for selecting experts: decisions are always made in

light of appropriate data (and never based on intuition alone), while

managers personally participate throughout the full selection pro-

cess to ensure the most able candidates are chosen, and assigned to

the most effective teams.12

12 Üzletrész 2015:http://www.uzletresz.hu/vallalkozas/20150929-google-konyv-igy-vezetunk-mi-vallalatvezetes-erich-schmidt-larry-page-jonathan-rosenberg.html

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The lower performing sales reps were overly impulsive (mischievous

scale), easily distractible (colorful scale), and deviate from traditional

solutions (imaginative scale).

Result:

Sales reps conforming to the profile produced 4 million USD income,

while those below criteria only produced 875 thousand USD in income.

The results of salespersons

$4,500,000

$3,000,000

$1,500,000

$4,000,000

$2,500,000

$1,000,000

$3,500,000

$2,000,000

$500,000

$0

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Background:

A leading international beauty industry player and distributor of

perfume and cosmetic products were developing their selection of

successful sales representatives. Reps were responsible for con-

tacting new and old clients and updating them on products, prices

and inventory.

Challenge:

In preparation for the selection process, a job analysis and criteria check

was performed. Sales management were invited to determine the crit-

ical competence dimensions, based on which the Hogan tests could be

used to distinguish excellent as well as below-average performance.

Solution:

Research and job analysis revealed that successful sales reps tend

to show control and confidence (high adjustment) and competitive-

ness (high ambition), enjoy social interaction (high sociability) and

problem solving (high inquisitive), and prioritized developing their

professional knowledge (high learning approach).

CASE STUDY | BEAUTY INDUSTRY

SALESPERSONS13

13 Source: Assessment Systems International

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TO SUPPORT LONG TERM COLLABORATION, IT IS WORTHWHILE TO MAP AIMS AND INTERESTS -THAT WILL

AFFECT WORKPLACE SATISFACTION- AND DEFINE A DIRECTION FOR CAREER ADVANCEMENT.

Hogan Personality Inventory:

Available in

THE FIRST PERSONALITY TEST ADAPTED TO A BUSINESS SETTING

LANGUAGES

Leadership selection tools

PERSONALITY ASSESSMENT AND

MOTIVATIONAL QUESTIONNAIRES

C

Personality assessment is one of the conventional selection methods,

revealing the candidate's competencies, strengths and weaknesses.

All this can be complemented with questionnaires on personal

motivation and values to give an effective indication of personal job

compatibility as well as organizational culture compatibility. Of course,

there are differences between similar tests. Therefore in order to reach

optimal efficiency we should strive to use verified and valid methods

that measure reputation. This ensures an objective measurement of

our candidate.

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AC methodology has the best predictive ability of all selection tools

– even considering the fact that there are certain competencies it

doesn't measure. Using a well-worded and realistic assignment, one

can observe behavior in a live setting, and vat the end of a full-day

session candidates will be tired and off-guard.

ASSESSMENT CENTER (AC)

A WELL-ORGANIZED DAYLONG AC WILL USUALLY REVEAL THE TRUE NATURE OF OUR CANDIDATES.

IT IS A POPULAR METHOD WITH CANDIDATES, GUARANTEEING INTERACTIVITY AND INVOLVEMENT.

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BEI and STAR techniques are simple, yet effective methods.

The concept behind them is that past actions are the best indicators

of future behavior. We should therefore ask candidates to provide

specific examples from their past during our interviews, to verify that

the competencies in question demonstrably exist.

Past actions are the best indicators of future behavior.

BEHAVIORAL EVENT INTERVIEW (BEI) AND SITUATION, TASK, ACTION, RESULT (STAR)

BESIDES SELECTION, THESE TOOLS CAN ALSO BE USED EFFECTIVELY IN JOB ANALYSIS

AND BUSINESS PROCESS REENGINEERING (BPR) PROJECTS.

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Counterproductive behavior can take a variety of forms in the workplace.

Some minor and insignificant misbehavior such as the appropriation

of office stationary have no negative consequence for the organization.

Yet with certain sectors and jobs we must proceed with caution, and

even during the selection process assess the risk of counterproduc-

tive behavior, even unconscious behavior, in our candidates.

Though these behaviors aren't clearly negative at first glance, some

people out of human orientation and firm belief will act out in this

way. This may in turn have a devastating effect on the company, and

it is therefore best to measure counterproductive workplace be-

havior as a precaution.

FILTERING OUT COUNTERPRODUCTIVE BEHAVIOR

MEASURING COUNTERPRODUCTIVE BEHAVIOR CAN PREVENT DAMAGE TO THE ORGANIZATION'S IMAGE.

IT IS A USEFUL TOOL IN PREDICTING THEFT, FRAUD AND FINANCIAL STATEMENT MANIPULATION.

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Measuring cognitive abilities in the context of HR usually means

measuring general mental ability (GMA) to think, to find relationships

and patterns in verbal, numerical and abstract/figural information.

GMA involves the ability to reason, plan, solve problems, think ab-

stractly, comprehend complex ideas, learn quickly and learn from

experience. According to research findings GMA represents the single

best predictor of job performance and performance in trainings

within wide range of job positions, but especially within more com-

plex ones.

COGNITIVE TESTING

IT IS RECOMMENDED TO USE A COGNITIVE MEASUREMENT TOOL THAT DIFFERENTIATES BETWEEN CANDIDATES WITH EXCEPTIONAL

GENERAL MENTAL ABILITY IN ORDER TO AVOID THE SO CALLED “CEILING EFFECT”, A LIMITATION OF

SEVERAL COGNITIVE MEASUREMENT TOOLS FOR MANAGERIAL AND EXPERT JOB POSITIONS.

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In our hectic, modern world there is an assumption that constant

development and adaptation is all that is needed to keep a product

or company in the market. Yet we tend to neglect the development

of one major factor in these market processes.

The following chapter is focused on the key area of Human Resource

Development. We offer an outlook on 21st century challenges, and

useful supporting examples so that your personnel development

program will keep you at the top of the game.

AFTER FINDING THE BESTS, START DEVELOPING THEM!

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Development Process

Individual personality

profile

Personalized development

plan

Satisfaction, market

advantage

Accurate diagnosis

Effective development

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In order to give our colleagues the best and most efficient support,

it is best to determine weaknesses on an individual level and come

up with personalized development plans. This will not only benefit

employee satisfaction and market value, but also lend the organiza-

tion a competitive edge.


WHY IS PERSONALITY-BASED

DEVELOPMENT WORTHWHILE?

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14 Roselinde Torres, TED 2014:http://www.ted.com/talks/roselinde_torres_what_it_takes_to_be_a_great_leader/tran-script?language=en

15 ManpowerGroup 2015: http://www.manpowergroup.com/wps/wcm/connect/db23c560-08b6-485f-9bf6-f5f38a-43c76a/2015_Talent_Shortage_Survey_US-lo_res.pdf?MOD=AJPERES – p. 27.

The importance of development and leadership training programs

were highlighted in a study by Rosalinde Torres, a partner of Boston

Consulting Group. Of the 4000 companies surveyed in the study, 58%

were unable to train staff to fill leading positions for managing com-

plex, 21st century scenarios, despite their corporate training, coaching

and development programs. One can conclude that at least some of

those corporate leadership training programs are due for a major

overhaul in the near future.14

Keeping and training our employees is an important aspect of hiring,

considering that 32% of European employers have a problem finding

new talent.15

EMPLOYERS WHO REPORT FACING DIFFICULTIES FILLING JOB VACANCIES IS PRESENTLY HIGHER

THAN AT ANY TIME SINCE 2008.

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Like a chain, a group is only as strong as the weakest member.

This shows that continuous development and training for employees

is an essential step toward success, both on an individual and corpo-

rate level.

There are other benefits to organizational development:

It contributes to a more harmonious and positive company atmos-

phere; promotes proactivity and increases employee satisfaction

and commitment. Personality development is a tool to keep your

company up-to-date and stable, which in turn improves client sat-

isfaction and financial indicators. The effect isn't instant; these are

long-term benefits.

In case you are harboring any doubts about employee development

as a potential loss through fluctuation (making your investment

'pointless') then ask yourself this question: What if you did not make

that investment and underdeveloped employees remained?

ADVANTAGES OF PERSONALITY DEVELOPMENT FOR COMPANIES AND EMPLOYERS

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Often excellent professional work is rewarded through promotion,

and typically the new leadership position might prove uncomfortable,

performance and team cohesion drop. What are the reasons behind

this phenomenon?

Based on a survey of nearly 300 IT-professionals, the following ex-

planations were deduced: The study17 showed that IT workers score

significantly higher than average on precision and diligence, typically

with introverted behavior and a team player attitude. These are

contributing factors to individual success in the field, yet success in

leadership requires the exact opposite. Leadership tasks demand

FROM IT EXPERT TO LEADER

16 ERE - Recruiting Intelligence 2010:http://www.eremedia.com/ere/a-think-piece-how-hr-caused-toyota-to-crash/

17Source: Assessment Systems International

LEARNING AND DEVELOPMENT HAPPENS 80% "ON THE JOB" FROM OUR COLLEAGUES AND LEADERS, WHICH IS WHY FORMING AN

INSPIRING AND APPROPRIATE TEAM IS VITAL.16

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What to look out for, and what to ignore

Leaders today are no longer limited to leading individual employees,

but primarily focused on organizing teams. Leading a team is a com-

plex process, requiring psychological insight and strategic thinking.

Leaders need to see the “big picture” as well as individual team

members. They need to find the way to unite the group and lead them

to success, with regard to individual needs as well as development.

Most importantly, leaders must recognize the needs of the team, in-

cluding how these needs can be harmonized with their shared goals.

Leaders not only instruct but show the way; they do not simply con-

trol but also support.

t


MANAGING AND LEADING TEAMS

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Of course IT experts can make good leaders too, with appropriate de-

velopment and support – in this case, through forming an ambitious

attitude and a balance in logical thinking. It is an attainable goal.

Average

Average

Average

Average

Above average Extreme high




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efficient delegation and prioritization skills, qualities that highly pre-

cise people might find problematic. Also requisite are a firm and out-

come oriented manner, deliberate career building and a drive toward

challenges, all contrary to the attitudes of successful team players.

The following diagram shows the relevant competencies that illus-

trate how an excellent professional does not necessarily make an

excellent leader.

Ambition Extreme Low

Extreme Low

Extreme Low

Extreme Low

Below average

Below average

Below average

Below average

Ambition

Prudence

Prudence

Leader

IT

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Solution:

Following these assessments, Hogan leadership development

coaches used test results to conduct 2 hour feedback sessions with

participants, revealing the personal competencies which bolster

leadership success – not only in their present positions, but as future

corporate leaders.

Result:

At the end of this process, participants evaluated each phase of the

talent support program, giving Hogan tests and their respective de-

velopment plan schemes an overall score of 96 out of 100. In con-

clusion, participant comments included “…this was a turning point

for my career.”, “…an eye-opener to some key issues.”, “…respectful

toward my present state, but gave powerful suggestions to what I

might yet become.”

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Background:

An American-based tech company with 80,000 employees world-

wide chose Hogan tools to find and develop high-potential talent.

This global need was driven by international expansion, market com-

petitiveness and HR resourcefulness.

Challenge:

A previous development program focused on the TOP 250 leaders,

and Talent Management faced a great challenge taking this process

to the next level, involving 2600 leaders. With ten times more par-

ticipants, preliminary assessments and individual development plan

feedback were provided using Hogan tests.

CASE STUDY | IT SECTOR

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ROI-growth via change management programs18

Recognition as a motivating force19

Companies with professional change management programs: 143%

Companies without, or with inadequate professional change man-

agement programs: 35%

Leaders with effective evaluation and feedback -

with recognition program: 55%

without recognition program: 36%

18 BMC Communities: https://communities.bmc.com/servlet/JiveServlet/showImage/38-6276-57015/change+infographic.png

19 ReviewSnap.com: http://www.reviewsnap.com/images/Reviewsnap_Infographic.jpg

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Various personality assessment procedures and reports serve to

highlight points requiring improvement, and provide effective sup-

port to leadership work throughout the process. They can be used

to define the strengths that deserve focus and will be assets to the

development process. Not only does this bring out areas requiring

development, we also get support for implementing the development

plan. Exploring individual characteristics will lead us to the most ef-

fective method to achieve personal development. Hogan reports spe-

cialize in offering specific suggestions and coaching tips to support

development processes.


PERSONALITY TESTS

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PERSONALITY TESTS MAP OUT AN IMAGE OF PERSON-

JOB AND PERSON-ORGANIZATION FIT. THIS ENABLES

THE GENERATION OF PERSONALIZED DEVELOPMENT

PLANS WHICH GUARANTEE PERSONAL SUCCESS.

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Training for various soft skills is generally effective in most fields.

With leaders it is not only efficient but indispensable. Developing

personality-specific abilities has recently gained key importance as

leaders seek to answer questions as “How can I motivate my em-

ployees?” “How should I lead my team toward success in today's

changing world?” or “What can propel me from being merely good, to

becoming excellent?”

It follows that 21st century training technique isn't about best prac-

tices, but rather complex abilities such as EQ, change management,

or developing and motivating others.

SOFT SKILL TRAINING

SOFT SKILL TRAINING SUPPORTS DEVELOPMENT THROUGH PERSONAL EXPERIENCE, WITH A 70-20-10 PROPORTION OF PRACTICE, INTERACTION AND

THEORY, RESPECTIVELY.

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Using personality tests we can set up a diagnosis as a solid founda-

tion for our long term development plan. The result is a personalized

development plan and an individually adaptable Talent Manage-

ment program. Further advantages of personality testing are the

easy competence assessment of young talent, even without direct

experience of their abilities. Using tests, we can determine existing

competencies at the very outset of the program, as well as areas for

improvement. This is a necessary step to start a genuine personal-

ized, value-added program. Personality based reports are available

to us not only during the diagnostic phase but support the work of

leaders and HR experts throughout the entire proces

TALENT MANAGEMENT

THE APPLICATION OF TALENT MANAGEMENT ARE ESSENTIAL IN IDENTIFYING HIGH-POTENTIAL

INDIVIDUALS, SUCCESSION PLANNING, DEVELOPMENT OF KEY PLAYERS AND STARTUP SUPPORT.

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360° SURVEYS CAN BE USED TO EVALUATE PERFORMANCE, AS PART OF A TALENT

MANAGEMENT PROGRAM, OR FOR POST-TRAINING EVALUATION AND ROI PROCESSES. Le

ader

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Leaders can best achieve development through continuous feed-

back, yet the higher their position, the more their power prevents

obtaining direct feedback. The most useful feedback will come from

360° surveys.

Processing a 360° survey is a lot like switching from paper maps to

GPS: while both are helpful at showing our goal, a GPS will also pin-

point where we are now in relation to our end goal.

Areas of use:

• Best used for developing personality and leadership skills rather

than evaluating performance,

• Most efficient when combined with detailed evaluation,

• Can be used for individual and group diagnostics and develop-

ment planning.

• Nearly 52% of companies use 360° evaluation on a comprehen-

sive corporate level. 75-80% of 360° reports are used for indi-

vidual, team or corporate development.

• Giving feedback also supports long term HR processes. 75%

of major corporations reported positive impact on profitability

indicators.20

360° SURVEY


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A powerful tool both for personal and professional development,

coaching is a flexible and custom-fit method. Participants may

choose the coach they wish to work with. The coaching toolkit is as

varied and versatile as needed to encompass all emerging leader-

ship-related and personal issues, and offer solutions. Coaching

helps leaders solve 21st century problems, find new opportunities for

adaptation and inspire further development.

COACHING

COACHING CAN BE USED EFFECTIVELY TO SUPPORT INDIVIDUAL DEVELOPMENT, PERSONAL BRANDING

AND CAREER PLANNING.

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DCs are excellent tools for observing the abilities of develop-

ment subjects in a controlled and corporate-specific environment.

Each exercise, as indeed the entire DC, is focused on relevant com-

petences in a transparent and user-friendly structure. This provides

observers an opportunity to view the candidate objectively. Both

strengths and areas for improvement are revealed using DC, which

enables a ranking order.

DEVELOPMENT CENTER

DEVELOPMENT CENTER GIVES EXCELLENT SUPPORT FOR STRATEGIC PLANNING, HELPING TO IDENTIFY DEVELOPMENT

POINTS THAT ARE IN LINE WITH YOUR GOALS.

LE ADERSHIP

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How to get from good to great?

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2,8x

Better financial performance

Higher customer satisfaction

Greaterproductivity

4,6x

4,7x

Effective leaders through indicators 21

21ACRASIO Change 2013:http://www.acrasio.com/display/infographic-leadership

03

Good leaders/bad leaders: from self-mastery to

emotional intelligence

Leadership characteristics,

abilities and challenges


To ensure organizational success, one must do more than pick out the

best talent for employment; it is equally important to identify leaders

and to develop leadership qualities in employees. The personal char-

acter and abilities of a leader garner a growing amount of attention.

Leaders have to face a broad range of challenges and their coping

methods are decisive to organizational success. The following section

will reflect on this fact, and explore leadership abilities and compe-

tencies as well as the tools needed to attain these qualities.

HOW TO GET FROM GOOD TO GREAT?

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Motivates others. Only 44% of employees report being recognized

and rewarded for their efforts.22

Leadership tasks include assembling and maintaining a high-per-

formance team. . Not only must leaders be excellent and seasoned

professionals, they also need to develop a set of specific skills.

Among the foremost leadership skills are prioritizing and delegat-

ing, outcome-oriented thinking, employee motivation and develop-

ment. What makes a good leader is not immediately apparent to the

outside observer. No matter how ambitious and eager, a candidate

will not make a good leader without adequate social skills. Someone

may have the potential for leadership but is not motivated to act on it.

Such people will often make effective project leaders, but would be

less successful leading larger groups.

Good leaders/bad leaders: from self-mastery to

emotional intelligence

WHAT MAKES A GOOD LEADER?

A

22Total Learning 2013:http://blogs.terrapinn.com/total-learning/files/2013/06/Effective-Employers-Infographic4.jpg

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Training and coaching efficiency in leadership development 24

68%continuous

coaching

63%coaching

38%of organizations

reported efficient

leader training

73%leaders found

efficient

development in

training

24ACRASIO Change 2013:http://www.acrasio.com/display/infographic-leadership

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While good leaders are not easily recognizable, a bad leader is easy to

spot. Poor leadership skills and incompetence are characterized by

employee dissatisfaction and decreased performance. Leaders also

display a range of symptoms, such as excessive confidence, conflict

avoidance, or perfectionism.

In 2012, employee dissatisfaction with leaders was found to be high-

est in the following countries: Italy, South Africa, Germany, Poland,

Denmark, Hong Kong, Sweden, Hungary, France and Switzerland.23

Poor leadership is most frequently based on poor or invalid selection

methods, poor leadership competence and a lack of stress manage-

ment methods.

Organizations frequently reward excellent employees with pro-

motions to leadership positions, and find that in the course of a few

months the new position doesn't fit, performance is down as is em-

ployee efficiency. The reason is professional performance is not an

indicator of leadership skills. Leadership requires specific personality

traits, which must be considered when selecting a leader.

WHAT MAKES A BAD LEADER?

23TALENT Technologies 2012:http://www.talent-technologies.com/new/wp-content/uploads/2012/09/leadership-infographic.jpg

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Mischievous

Reserved

They tend to be impulsive, limit-testing, and at times, devious.

If your boss is like that:

Reserved leaders are indifferent to the feelings of others.


Remember that for them

the truth is negotiable.

Remember that they

care about business

and not staff morale.

They don’t mean it when

they are being charming.

Won’t communicate,

so you need to do it

for them.

Don’t sign up for

any of their deals.

Won’t give you many

compliments.

1

1

2

2

3

3

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25 The Dark Side of Personality:http://www.hogandarkside.com/

HOW DO WE LEAD? 25

TOP 3 MANAGERIAL DERAILERS

Excitable

Display dramatic emotional peaks and

valleys regarding people and projects.


Remember that they

are easily upset.

Try to give them as much

good news as possible.

No surprises.

1 2 3

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According to the model developed by Dr Robert Hogan, emotional intelligence

consists of these six competencies:

Awareness:

The degree to which a person seems in touch with his or her emotions.

Regulation:

The degree to which a person seems able to maintain positive emo-

tional states.

Influence:

The degree to which a person seems able to intentionally affect oth-

ers' moods, thoughts and behaviors.

Detection:

The degree to which a person seems aware of others' emotions

and thoughts.

Expression:

The degree to which a person seems able to effectively communicate

desired emotional states to others.

Empathy:

The degree to which a person seems able to feel what others are feeling.

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The topic of emotional intelligence is unavoidable as it not only enables

efficient workplace behavior, but also conflict management, general

well-being, and the balance between the workplace and private life.

It follows that EQ is a paramount feature of leadership success.

According to a study, 95% of Canadian leaders surveyed report a

need for improvement in this area, and 65% said employee stress

management would improve their own work performance.26

EQ – EMOTIONAL INTELLIGENCE

26 The Great-West Life Centre for Mental Health in the Workplace 2012:http://www.greatwestlife.com/web5/groups/webassets/@public/documents/web_assets/s7_028858.jpg

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Male leaders' sociability scores were also higher, indicating that they

are somewhat better networkers, and may be more attention seek-

ing, often confusing activity with efficiency, unlike female leaders.

Interpersonal sensitivity showed definite female dominance, indi-

cating that women value quality relationships more, but only at the

expense of their task-orientation.

Finally, female leaders had elevated scores in prudence, demon-

strating a higher degree of thoroughness than male leaders who re-

quire more structure and pay more attention to details.

100

0

AdjustmentSociability

Prudence

Ambition

Male Female

Inquistive

Learning Approach

Interpersonal sensitivity

20

40

6065

78

61 58 53 596661 65

49

69 6451

6580

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Is there a difference between successful female and male leaders?

A study27 surveying 200 female and male leaders showed that sta-

tistically significant differences were manifest in four basic person-

ality areas. These are: ambition, sociability, interpersonal sensitivity

and prudence.

Ambition scored highest in male leaders, though female leaders also

scored above average in this trait.

Leadership characteristics, abilities and challenges

MALE AND FEMALE LEADERSHIP

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Competence in stress management was again common ground in

Hungarian and Romanian leaders, both tending to use confronta-

tional strategies, displaying high self-esteem and exhibitionism

scores. Slovakian leaders only retained the exhibitionism trait. Czech

leaders, contrarily, were set on managing uncertainty by distancing

themselves in a cautious and detached manner.

Another surprising find, contrary to our expectation of leaders typ-

ically scoring higher on status and/or financial needs, these orien-

tations were only apparent for Romania in terms of power (RO 62%,

SK 56%, CZ 53%, HU 53%) and Hungary in terms of profit (HU 56%,

CZ 50%, SK 52% RO 51%). Complementary high-scoring values were

tradition for Romanians, altruism for Hungarians, and above-aver-

age security scores for Czechs and Slovaks.

These disparities in regional leadership profiles indicate that though

leaders from all countries conformed to good leadership criteria ver-

ified with evaluations (high stability, ambition and logical thinking)

their employees must all adapt to different leadership styles, behavior,

demands and motivation techniques due to national diversity.

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Regional leaders – is there any difference?

It is widely believed that a good leader should be deliberate, pur-

poseful, profit-oriented and strategic minded. Do the facts back

up this belief? We used Hogan tests to survey 1000 leaders in the

Central Eastern European region.28 The study was conducted in

Romania, the Czech Republic, Slovakia and Hungary seeking to com-

pare the qualities of leaders in these respective countries.

Surveying basic personality, values and leadership pitfalls in a single

package, the overall reply to the starting question is: Yes, and no.

Leaders from all four nations seemed to have similar patterns in

their deviation from social average values. They shared a relatively

high level of ambition, being more competitive, definitive and per-

formance-oriented than the local average. But this is also the point

where their similarities end.

While Romanian (62), Slovakian (55) and Hungarian (62) leaders all

scored above average for persistence and composure, Czech (44)

leaders were actually more sensitive and temperamental than average.

LEADERS IN CENTRAL EASTERN EUROPE


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Professional talent management and HR analytics are rapidly ex-

panding in the business world. According to a study by Deloitte,

currently 39% of companies are planning to introduce pilot HR and

talent management techniques, while 27% already have an HR-tech-

nique specific strategy.29 Another study by Tower Watson30 found

that HR-related Big Data use and analytically allocated funding

were already among the top 3 corporate HR expense items for 2015,

amounting to almost 12 billion dollars in total over the last couple

of years.31

USING BIG DATA IN HR

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29 Deloitte In Harvard Business Review 2014:https://hbr.org/resources/pdfs/tools/17065_HBR_Workday_Whitepaper_online.pdf – p. 1.

30 Tower Watson 2014:https://www.towerswatson.com/DownloadMedia.aspx?media={B8B9A04C-7DB9-498F-9BAE-23FA41E6382F} – pp. 13., 15.

31 Deloitte 2014:http://www2.deloitte.com/content/dam/Deloitte/de/Documents/human-capital/race-to-the-cloud-ghc-trends-2014.pdf – p. 3.

Being a leader comes with challenges and a continued struggle

against stress, so being in control of one's own extreme and overcom-

pensating behaviors is a great contribution to efficiency. In order to

adapt to these situations, a leader needs self-knowledge, not only of

strengths but also of areas that need improvement, as well as certain

pitfalls. The Hogan Development Survey is a professional support tool

that helps identify our typical stress reactions. It meshes perfectly with

the leadership coaching process, to push beyond the comfort zone and

enable a more goal oriented focus for leaders and coaches.


UNCOVERING LEADERSHIP PITFALLS

C

THE HOGAN DEVELOPMENT SURVEY UNCOVERS THE REASONS FOR LEADERSHIP FAILURE, HELPING PREVENT NEGATIVE OUTCOMES.

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Level 4: Predictive AnalyticsDevelopment of predictive models, scenario planning

Risk analysis and mitigation, integration with strategic planning

Segmentation, statistical analysis, development of "people models"Analysis of dimensons to understand cause and delivery of actionable solutions

Level 3: Strategic Analytics

Operational reporting for benchmarking and decision makingMulti-dimensional analysis and dashboards

Level 2: Proactive - Advanced Reporting

Ad-Hoc Operation ReportingReactive to business demands, data in isolation and difficult to analyze

Level 1: Reactive - Operational Reporting

32Bersin by Deloitte:http://www.bersin.com/lexicon/details.aspx?id=15392

Talent Analytics Maturity Model

4%

10%

30%

56%

Predictive analysis is the most advanced level in HR Big Data,

moving beyond dry data crunching and solving current problems.

In a study done by Bersin by Deloitte, it was revealed that only 4% of

companies are currently using these technologies in predictive data

analysis and decision support.32

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A growing number of companies are reporting returns on HR busi-

ness psychometric data evaluation. Information available for sup-

porting the evaluation process is a multitude of diversified data

including:

DEMOGRAPHIC:

gender, age, education, Linkedin networks

PERFORMANCE:

project profitability, revenue, closed deals/projects statistic,

other KPI's

REPUTATION:

360° survey results

POTENTIAL:

personality and ability test scores

HR & BUSINESS:

vacation, innovation stats, overtime, complaint stats, client-dissatis-

faction, current position history, salary, promotions, training courses

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35 McKinsey, Aberdeen Group In Harvard Business Review 2014: https://hbr.org/resources/pdfs/tools/17065_HBR_Workday_Whitepaper_online.pdf – p. 1.

Using innovative talent management and HR analytical tools, analysis

can achieve impressive results even in the short term. Based on the

McKinsey study, companies using talent management realize up to

30% more profit. Aberdeen Group found 11% higher corporate re-

turns for companies using sophisticated HR analytics.35

33 BBC News 2015:http://www.bbc.com/news/education-34384668

34 Quartz 2015:http://qz.com/513028/deloitte-no-longer-wants-to-know-which-university-its-job-applicants-attended/

Predictive methods can foresee the probability of employees leav-

ing the company, the common qualities shared by top coworkers, as

well as how these methods can be integrated into the selection and

development system. Predictive methods also pinpoint the present

and future shortcomings of employees.

Intelligent Team Report is a predictive data mining HR tool that uses

all available data to support optimizing our human-related decisions,

thereby making the method more accessible to leaders.33

Recently HR Big Data was applied by consulting firms Deloitte, Ernst

and Young and Price WaterhouseCoopers in Great Britain to revolu-

tionize their recruitment systems. Deloitte used software from the

HR firm Rare to shift their selection focus from graduates of the

famous British elite universities to genuinely ambitious candidates.

They no longer consider university degrees in their selection proce-

dure, preferring to systematically assess candidates' personal back-

ground, achievements and experience.34

Lead

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Lead

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Lead

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Result:

One year after selection process recalibration, the project tested

successfully and employee turnover was initially reduced to 8, 64%,

followed by 6,57% two years on.

The Result16%

14% 13.10%

2003 2004 2005

8.64%

6.57%

12%

10%

8%

6%

4%

2%

0%

Lead

ersh

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oolk

itBackground:

In 2004, T-Mobile in the Czech Republic set out to reduce its call

center employee expenditure. Faced with extremely high employee

turnover, they needed a solution to maximize employee retention.

Challenge:

The project aimed to reduce turnover from 13, 10% to under 10%.

The problem was indisputably rooted in the selection process,

though evaluation showed that current recruitment and selection

were tuned to optimal efficiency.

Solution:

The only opportunity for development lay not in the process, but the

validated data. Evaluating HR-related, psychometric and business

data revealed the performance scores of call center staff, as well as

their relevant competencies, and the results were fed back into the

selection process.

CASE STUDY | T-MOBILE CZ 34


Assessment Systems International

2013

2016

2016 2011

2007

2001

2012

2009

8 COUNTRIES

MOSCOW

ASTANA

ZAGREB BELGRADE

BRATISLAVA

PRAGUE

WARSAW

15 YEARS

150.000

60+ consultants.

of experience.

assessments and consulting services.

More than

More than

99

Assessment Systems International is a HR service provider with

60 associates working in 8 Eastern European countries.

Assessment Systems International has over a decade of market

experience, with an annual turnover in excess of 4 million Euros.

Assessment Systems International having attained an excellent

professional background and highly qualified consultants has

conducted more than 150.000 assessments and delivered

consulting services based on them.

98