HUMAN RESOURCE MANAGEMENT MODEL OF THE NATIONAL BANK OF THE REPUBLIC OF MACEDONIA

Master’s Thesis presentation

Mentor: PhD Nada Zupan

Candidate: Hristina Lozanoska

Skopje, September, 2014

HR analysts across EuropeBCG/EAPM, Creating people advantage

Importance of HRM for the organizational success

- Main highlights of the Boston Consulting Group, BCG and EAPM, European association for people management Creating people advantage Report 2013, are:

The need of the company to align their HR Strategy with the overall company's strategy, developing long-term strategic workforce planning, recruiting, performance management, and employee development.

The need of clear governance and structured HR MODEL, and eventually, they should continually monitor their HR activities and improve HR controlling and HR analytics.

Modern approach to HRMNew functions of HRM

• Entrepreneurial function“It has a significant contribution in achieving economic success of organizations. Its contribution is reflected in the success to meet the diverse interests of the most important interest groups such as owners, managers, employees, customers, suppliers, trade unions and employers' associations, public authorities” (Barret & Mayson, 2008)

• Managerial function“We are witnessing a continuously-increasing total knowledge of this discipline, which becomes quite complex and multidisciplinary, because the line managers must have professional help in the management of human resources. Without these professional services provided by the HRM department is inevitable emergence of serious problems in the operation”(Lang, 2006).

HRM Practices

- HRM Models:• The Harvard Model =by Beer ,1984 (Soft HRM Model) analytical

framework for HRM• The Michigan Model = by Fombrun, Tichy and

Devanna ,1984(the Matching Model) The basic cycle of HRM• Guest’s Model = by David Guest,1997( Integration of “hard” and

“soft” HR Models) provides differences between Personnel Management and HRM

• The Warwick model= by Hanry a nd Pettigrew, 1990 ( The model of strategic change and HRM), inner context, business context, HRM context and HRM content

• Dave Ulrich Model= by Ulrich 1997, (HR Business Partner Model, Definition of HR roles: business partner, change agent, employee advocate, administrative expert)

The National Bank of The Republic of Macedonia from HRM Perspective

Internal HRM aspects of NBRM- present situation:- No tradition in HRM and Predominant administrative role of HRM- Lack of integration of existing HR processes and Lack of HR policy- Recently established separated HRM Department and need of building

capacity of its staff- Regulatory framework constrains- Low turnover rate per year- Continues improvement of qualification structure of staff- Introduction of Strategic planning in the organization - Solid IT technology support- HRM Software (need of better utilization of the

it technologies)- To much formal internal communication- Resistance to change and development of Change agent role of HRM

Benchmarking with other Central banks

HR Operating Model of the Central Bank of Ireland

HR Stability in Times of Changes, Central Bank of Netherland

Reinforcing and Improving

DNB's Performance

RESEARCH on efficacy of human resources in the NBRM

PURPOSE of the research is trough anonymous survey to obtain employees opinions and attitudes regarding their employment relationship with NBRM and job satisfaction level.

Main research questions:Research question 1: What is the employees' opinion about the NBRM as an

employer?

Research question 2: How are the employees satisfied about the internal cooperation, teamwork and communication in the NBRM?

Research question 3: What is the employee’s attitude towards the working environment and atmosphere at the NBRM?

Research question 4: Are there convenient conditions for upgrading the employees’ expertise and their involvement in training?

Research question 5: How are the employees satisfied with their own workplace and what are their attitudes regarding their personal contribution towards the workplace?

Research question 6: How do the employees assess the evaluation of the performance, pay and advancement system?

Research Methodology and responsiveness

• The research about the employees’ opinions and attitudes regarding their employment relationship at the NBRM and job satisfaction, was conducted through anonymous questionnaire.

• RESPONSIVENESS: The survey was answered by 159 employees of the NBRM, out of 424 employees, and the responsiveness rate is 37.5%. They gave their valuable input by providing 650 comments and suggestions.

Employee’s areas of interest

Positive Net Percentage in all of the questions with variations of the value

Recommendations

Strategic approach to HRM for Integrating the existing HR processes and developing new HR processes

Develop integrated HRM Model that will consist of three basic elements:- HR environment, (Fundamental frame)

• HR policy, Organizational structure, Job evaluation, Competency model and Salary system

- HR processes, (HRM tools)• Employment staffing, Performance management, Training and

development, Management development, Talent development, Succession planning of Key experts, Mobility and career development

- HR services, (HRM approach)• HR consultancy, HR reporting and Change management

Integrated HRM Model of the NBRM

HR PROCESSES

Employment Staffing,

Performance Management, Training and Development, Management Development,

Talent Management,

Succession Planning of Key Experts, Mobility and Career Development

HR ENVIRONMENT

HR PoliciesOrganizational

StructureJob Evaluation

Competency Model

Salary System

HR SERVICESHR Consultancy

HR Reporting

Change Management

Thank You