SOUTH AFRICA'S most widely distributed & read INDEPENDENT HUMAN RESOURCE PUBLICATION
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| Equity-Skills
News & Views SOUTH AFRICA'S most widely distributed & read INDEPENDENT HUMAN RESOURCE PUBLICATION
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| Equity Skills News & Views Volume 3, Issue 20, November 16, 2004 Registered as an electronic newspaper: ISSN 1684-5722 In This edition 1. Business-Led Human Resource Strategies Jeff Sacht: Publisher-editor 'A MUST TO PRINT & READ' 30,000+ AND STILL GROWING! ------------------------------------ LATEST RELEASE: MOVING HR INTO LINE e-TOOLKIT ------------------------------------ Stop talking about becoming a Line Partner. Start today, and master the practices required to reposition and transform your HR function with this tried and tested toolkit developed for the highly acclaimed workshop "Moving HR Into Line For The New Economy". The e-Toolkit is now available as an electronic download. The kit consists of a detailed 125 page manual, a project workbook, & 8 PowerPoint slide shows. Contact Jeff Sacht on jeffs@worldonline.co.za or call 082 4561049 for a preview pack and pricing details. Don't delay start today with your HR top team for the price of one download. ---------------------------------------------------------------------- 1. Business-Led Human Resource Strategies* By Mark Thomas who can be contacted at ---------------------------------------------------------------------- Can you say why your internal customers should use your services in no more than ten words? This is a critical question that all HR managers should be asking themselves in the face of relentless competitive pressures and organisational change. The continuous war of attrition being waged against excessive corporate costs means that all internal support functions have to demonstrate their worth. Whether you are in information technology, finance, internal audit or human resources, the name of the game is value added. Without it many traditional support functions will find the going tough as sooner or later they can expect to be asked some challenging questions about their activities and effectiveness. In this context the HR function has to be able to ensure that it is providing a business-led people management strategy. So how can a HR function, audit its performance and begin the process of ensuring that its efforts are business focused? The difficulty for many HR professionals is that they frequently do good things for their organisation but fail to market the fact. In effect they often work on the mistaken assumption that everyone else is aware of their contribution. So for a first step the HR function needs to think about its approach to marketing. Simply challenging a HR function to define what it is offering the organisation in terms of business value added can provoke a heated discussion. Indeed the fundamental questions that are posed when developing any marketing strategy can provide a very strong focus for developing a value-added function. A classic marketing failure for many HR functions is falling into the trap of confusing what they are offering or selling, with what their internal customers want to buy! It does of course happen in all functions. Witness the large IT departments that devote huge efforts and investment to systems that fail to deliver on the fundamentals. Or the finance department staffed by qualified professionals that runs a company into financial difficulty. HR is no different. It can very easily get caught up in debating the intricacies of competency frameworks or performance management systems and in so doing lose sight of the fundamental customer requirements. Being business led means a constant alertness and sensitivity to the customer and their needs. It requires line managers and the HR professional to work together to uncover and develop the people management processes needed to compete and succeed in the marketplace. As well as reviewing its service offerings the function also needs to examine its operating posture. What focus does the HR function have across the following dimensions: >> HR focused - technical prowess? >> Business performance focused? >> Business team member? >> Employee - welfare focused? Too often an overtly HR technical focus at the expense of a business strategy can lead to the danger of chasing fads and fashions. Such behaviour provokes line management to criticise the HR community for being "out of touch" and not delivering relevant and timely people management solutions. One of the more recent traps that HR people have fallen into has been the explosion of competency frameworks that have in some cases become far too complex and burdensome for organisations to manage. At the same time a lot of reinvention occurs as organisations create their own leadership competency profiles, when in fact a selection of some common profiles and dimensions would suffice. Too much focus or identification with employee welfare can also create an impression of a function that is overly concerned with making people happy or drowning the organisation in goodness, instead of focusing on creating a successful business. Clearly, motivating people and creating an exciting place in which to work is a real challenge and a vital role of the HR function. But HR also has to implement other tasks such as restructuring or downsizing, which may temporarily cut across those aims. Of course when the balance is well struck and you achieve a synergy between effective and innovative HR thinking and the business strategy, you ultimately get the best results i.e. people management solutions that help managers in their day-to-day tasks of delivering business performance through effective people management. But being technically complex is not always the right solution. There are organisations that focus on executing some core people management activities through the power of simplicity. Keeping processes transparent and easy to operate means that such companies achieve a strong business led HR strategy without reverting to the latest trends. I know of one US-based global company that has two key guidelines for its people management. Firstly, it is a business that really does love talent - if the HR function is attracting great people it's doing a great job. Secondly, it delivers outstanding business results by a superbly implemented performance management process. Indeed this process which is facilitated by the HR function, but owned by the most senior management groups, actually does drive the business. So these two key activities, talent attraction and performance management, provide the function with enormous focus and clarity for their day-to-day work. It does of course do lots of other interesting HR activities, but the HR managers focus on these key drivers as part of a process of continuous improvement. It may not be overly complex or state-of-the-art, but it works and that's what having a business-led HR strategy is all about. One other vital element in this equation is the role of the line manager. It is very easy to criticise the HR function for not delivering the right response but line managers also need to recognise their responsibilities to the business strategy and HR linkage debate. They also need to recognise the potential role and contribution that a strong HR function can make towards business performance. The relationship is quite clear - the business strategy is about setting the wider financial and market goals, whereas the HR strategy is concerned with fundamental questions about how the business wants to manage people in order to deliver these strategic goals. These questions are: >> What type of people do we need (skill sets, attitudes and motivation) to deliver the business or organisation goals? >> How and where do we attract these people? >> How then do we want to assess and measure the performance of our people? >> How do we want to reward them? >> How do we want to train and develop them? These high level questions need to be asked of any senior management team as part of developing the HR strategy. The responses set the context for the HR function to go away and, through the application of their technical competence, develop and deliver the various HR processes to the organisation. Clearly, now and in the future companies are going to be placing more emphasis on managing knowledge and talent. This is going to force many companies to develop a stronger linkage between their business strategies and people management. In some people-intensive businesses such as software, we are already seeing that the people equation is almost explicitly linked to continued business success. Financial markets in their valuations are showing everyday indications of the shift toward intellectual capital, and to a world where owning ideas is now becoming more important than owning physical assets. For both the HR professional and line manager the challenge is there - get smarter in your people management or die. To the enlightened the new world awaits. *Reprinted by permission of the editor MCE online. ------------------------------------ ADVERTISEMENT: EES-SIYAKHA WORKSHOPS AND CONFERENCES ON BEST SA BUSINESS TRANSFORMATION PRACTICES ------------------------------------ # ALL YOU NEED TO KNOW ABOUT BEE AND HOW TO DEAL WITH IT EFFECTIVELY Date: 25 November 2004 Venue: Houghton Boardroom, 17 5th Street, Houghton Estate Registration fee: 2200-00 (excl. VAT) To register click on: http://www.workinfo.com/workshops/work1.htm # EQUIPPING YOU AND YOUR COMPANY FOR THE CCMA Date: 29, 30 November and 1 December 2004 Venue: Gordon Institute of Business (GIBS), Illovo Registration fee: 6900-00 (excl. VAT) To register click on: http://www.workinfo.com/workshops/work1.htm # CONFERENCE: BEST SA BUSINESS TRANSFORMATION PRACTICE: MANAGING YOUR EE TO IMPROVE YOUR BEE SCORECARD SCORE AND INCREASE SUSTAINABILITY Date: 30 November - 1 December 2004 (+2 December optional workshop) Venue: Caesars Gauteng, Kempton Park Registration fee: 4800-00 (excl. VAT) or R7200-00 (excl. VAT) To register click on: http://www.workinfo.com/workshops/work1.htm # MANAGING DIVERSITY IN A COMPLEX ENVIRONMENT: AN EXPERIENTIAL APPROACH Date: 2 - 3 December 2004 Venue: Protea Hotel, Gold Reef City Registration fee: 4800-00 (excl. VAT) To register click on: http://www.workinfo.com/workshops/work1.htm ------------------------------------ ---------------------------------------------------------------------- 2. The Change Management Sweet Spot by Mike Norman, Phil Drouillard, and Marnie Smith who can be contacted at ---------------------------------------------------------------------- The information explosion and the rapid expansion of global markets that occurred during the 1990s led to a new and different competitive reality. To remain viable in this new environment, American companies needed to be fast, nimble and adaptive. The mantra for success became "be ready for change, or be left behind." Today, even though Corporate America faces a different set of economic conditions, many CEOs believe the same attributes are still absolutely essential. Corporate leaders struggling to navigate through an ever-changing business landscape continue to place a premium on change management capability. However, traditional change management methodologies are failing miserably. Windows of opportunity open and shut before organizations can respond appropriately. Without new ways of quickly engaging the workforce and building broad-based commitment to change efforts, today's companies are playing a perpetual game of catch-up. The result is unfulfilled performance expectations, shareholder disappointment and chronic change fatigue syndrome. Although it is a critical variable, speed has proved to be a double-edge sword. Innumerable articles and books have been written extolling the virtue of accelerating organization change efforts while at the same time advocating standardized, often bureaucratic project management processes. However, Corporate America has learned the hard way that espousing speed while clinging to cookie-cutter approaches does not work. Research shows that 75 percent of all attempted change initiatives fail within the first three years.1 Other studies have found high failure rates in specific types of large-scale change efforts, including efforts to integrate new technologies (more than 60 percent fail because of poor planning and implementation2) and acquisitions (61 percent of acquisition programs fail3). Further research shows that, of the 65 percent of Fortune 500 companies that have undertaken major change efforts since 1995, only a meager 30 percent believed that their investments actually produced the results anticipated.4 It is interesting to note that nearly 60 percent of respondents felt that their organizations had both a satisfactory business case and a sense of urgency, but that these proved insufficient to accomplish meaningful change. Political infighting, lack of explicit agreements across major functions, limited buy-in and unclear people engagement strategies often derailed their efforts. These findings indicate that standard change management practices coupled with speed have fallen short. New approaches are sorely needed. New methodologies must focus on attaining tangible business results that can be quantified, tested and verified over time. Speed is a positive by-product of a carefully crafted change strategy, but sustainable impact is the real desired outcome. Experience has shown that a keen concentration on business impact greatly accelerates the overall change process because it creates and/or revitalizes mutual stakeholder synergies that are often lost in day-to-day work activities. Sustainable impact is achieved through the introduction and implementation of three specific change management variables - business focus, leadership alignment and employee momentum. Each of these elements is necessary and are together sufficient to raise probability of creating sustainable impact through the change process. If any element is missing, the likelihood of success is improbable. # Business focus refers to the clarity and continuity of messages that leaders communicate to all stakeholders - customers, shareholders, employees, etc - in terms of value proposition. This variable provides the required credibility for the change effort to take hold. During times of tumultuous change, those affected will invariably question and compare new priorities to previous company initiatives and cultural norms to determine if the change will be worth the reward, and if leaders will stay the course. # Leadership alignment is the degree to which organization decision-makers and key influencers consistently articulate, model and reinforce the desired change. Alignment at the top of an organization is critical for sustainable impact, particularly when it comes to allocating resources and rewards. # Employee momentum is the result attained by building a critical mass of people who become fully knowledgeable and/or directly engaged in the change process itself. This variable is key for sustainable impact because employees' willingness to relinquish existing comfort zones and commit themselves to the new and unfamiliar is one of the first steps in breaking through normal patterns of resistance. # Time is the number of months required to define, design, implement and measure the change. In general, the longer the time required, the less the sustainable impact, because focus becomes diluted, leadership alignment becomes difficult to maintain, and employee momentum slows down. Thus, speed is actually vital to sustainable impact because moving slowly dilutes the key forces that create impact. The combination of focus, alignment and momentum provide the power for organization change initiatives to break through cultural inertia. When these variables operate in concert, a new organization gestalt is created - a different mindset enabling greater levels of performance. We call the successful combination of these variables the change management sweet spot. "Speed is a positive by-product of a carefully crafted change strategy, but sustainable impact is the real desired outcome." # Business Focus An old advertisement for IBM said, "We sell our customers a good night's sleep." At Ford Motors, the message was "Quality is Job #1." Each phrase was powerful in its own right because it created clarity of focus. Many vision statements miss this fundamental principle and resort to "fluffy" language describing ethereal management aspiration. Linkage to business strategy often gets lost. A good litmus test for clarity of focus is whether leadership messages can answer three important questions: 1) How will the new direction strengthen our position with our markets and customers? 2) How will the new direction improve our shareholder value? 3) How will the new direction pass the stakeholder WIIFM (what's in it for me) test? The answers to these questions determine whether the messages will be perceived as clear and compelling. The following anecdote can serve as an example. A major manufacturer and retailer of consumer electronics changed leadership at one of its major operating divisions. Faced with flat sales, a declining customer base and poor product distribution, the new leadership team didn't know where to begin. The first challenge was to create an organization-wide rallying cry. It was believed that an externally based business focus would help unify the division, thus setting the stage for across-the-board change. (Historically, division management tended to default to an internal perspective - what they already knew.) Asking customers to help define what "great performance" actually looked like, and what types of issues got in the way of delivering it created this new focus. During a series of Leadership Summit meetings, this new perspective was communicated to all levels of management. The purpose of these working sessions was to communicate the reality behind the customer data, ensure understanding of its importance and determine what could be done - quickly and profitably. The need was urgent. Unless the company stemmed customer losses and quickly executed a turnaround in sales, the survival of the division was in doubt. Several key outcomes emerged from the Leadership Summit meetings, including: 1. Satisfying customers' needs and wants is everyone's job. Performance incentive plans were quickly modified to drive and support the new focus. 2. Customers want to deal with providers who are "market leaders." The existing product introduction timeline was streamlined and product availability was guaranteed by means of an innovative replacement program. 3. Marketing and Sales material should be in the language of the customer. Sales material was reconfigured to demonstrate product "application" value versus standard features and functions. 4. Relish being number 1 - next year nobody will remember who ran second or third. Specific criteria outlining goals for attaining market leadership were defined and built into performance standards and performance expectations. The division president commented, "In retrospect, the Leadership Summits were a critical turning point for our business turnaround. We were able to capture everyone's attention with the customer and 'market leadership' data. However, it wasn't until we translated the data into meaningful performance standards that we got the necessary business focus across the ranks. That clarity of focus provided the horsepower for fundamental change to begin. As a result we were able to stem the tide of lost customers and resulting revenue loss within 90 days." There is inherent wisdom in the saying, "Leadership sets direction." However, direction without clarity of focus is analogous to using a pickaxe to carve a turkey. It is only when leadership can articulate direction in a clear and compelling way that critical resources rise to the challenge of implementing change. Experience shows that although focus is a key ingredient, additional variables also must come into play. # Leadership Alignment Another example involves a multi-national restaurateur that was experiencing a prolonged trend in declining revenue and operating profit. After two and half decades of unprecedented success, its market concept had become outdated and once-loyal customers were selecting other dining options. Corporate leaders knew not only that the company's brand needed to be re-vitalized, but that the entire operation needed to be re-invented as well. Time was of the essence, as market share was eroding each quarter. The first challenge was to build a strategic change plan that would be owned and driven by all levels of management. This was going to be difficult because, given the geographical dispersion of the individual restaurant stores, the company's operating culture had historically reinforced independent leadership styles. The COO felt strongly that alignment at the top-of-the-house would be key, and that success would depend on fundamental shifts in senior leadership behavior. This new behavior would provide the necessary credibility to revitalize the business model. Company executives began reflecting on their own collective and individual leadership styles. To set things in motion, they crafted a new vision, and tested the degree to which they agreed about key principles and behaviors for driving its execution. These discussions brought to the surface some fundamental differences in perspective. The senior leadership team realized that these differences, unless resolved, would slow progress and create confusion across the organization. Aligning strategy and style at all levels of management became the focus of the change planning process. In the end, executives concluded that this variable was critical for the change initiative to yield results quickly. The executives knew where the company needed to go, but basic questions surfaced regarding how to proceed effectively. The team designed a methodology that would help accelerate alignment throughout the management ranks. They then realized the approach could not be training-oriented or programmatic. It had to be designed in such a way that the content could be "internalized," then easily transferred to the organization by all levels of management. A set of strategic topic areas and support tools emerged that enabled managers to conduct focused conversations about the business case for change and achieving the vision. By facilitating these conversations, managers were able to break through normal "operating patterns" and gain additional insight about their own people and the challenges everyone was facing. In addition, new facilitation skills emerged that encouraged open and honest communication both horizontally and vertically - something the company had struggled with for years. During these sessions, business expectations were defined, challenges and opportunities identified, and resistance addressed. This was a new way for managers to lead. These strategic conversations resulted in alignment throughout the entire management population. "Having all leadership operating off the same song-sheet has greatly accelerated our change effort, and I never would have believed that we could get this far along by now," commented the COO in a recent interview. "It feels good to have our corporate and senior operations leaders pulling the rope in the same direction. Now we have to keep driving this alignment concept throughout the rest of the organization". "Having all leadership operating off the same song-sheet has greatly accelerated our change effort, and I never would have believed that we could get this far along by now." -COO, Hospitality Industry Although both are necessary, business focus and leadership alignment are insufficient by themselves to create sustainable impact. A broad base of employee awareness and understanding about the whys of change is also required. # Employee Momentum Our final example involves a medium-sized consumer goods company. An undeniable record of success and a highly talented management team helped make it the target of friendly acquisition. Once acquired, the focus became delivering higher productivity and financial performance during the integration process. Senior management had promised continued autonomy as a condition of the sale, to help mitigate potential employee turnover resulting from the buy-out. Higher financial contribution would help preserve the acquired company's status as an autonomous business unit within the new company. With sweeping infrastructure changes distracting focus from daily operations, however, hitting the new performance targets was going to be a stretch. Company leaders knew the transition had to be completed quickly if performance was to remain on an upward track. They had to get the entire workforce on board and actively contributing to the change process, to ensure critical momentum would not be lost. To help increase employee productivity, senior leadership designed a customized business literacy initiative. The intent was to help a broad population of core employees better understand the business and to engage them in actively striving to meet or exceed their new performance targets. The company could not afford to have a majority of the workforce waiting around for management to drive action. Yet, the leaders also acknowledged that if employees were to become directly involved, they had to be educated. Building business understanding throughout the organization became the strategic focus of the change plan. Using large-scale meeting formats (100-200 people), division leaders engaged all of their employees in a series of strategic conversations about the business-competitive environment, financial challenges, operational goals, shareholder expectations, etc. The process also included open discussion forums where employees could express their hopes and concerns about the acquisition. Leadership appreciated that employees had to vent about these types of issues before committing to the new direction of the company. These large-scale discussion forums were accomplished through a unique discovery learning methodology. The approach facilitated the delivery of critical messages and strategic information through visual aids, experiential learning techniques and highly interactive peer dialogue. Employees also received tools to help them continue business-based conversations with their peers back on the job. By boosting business literacy throughout the workforce, company leaders were able to accelerate the post-acquisition integration efforts. Cultural integration can be messy and time-consuming, especially if difficult people issues are on the table. In this case, the integration took comparatively little time because leaders used innovative ways to introduce it. As a result, productivity remained at pre-acquisition levels. More importantly, leaders gained broad-based buy-in to the strategic direction of the newly formed enterprise. These three client examples illustrate the real-world application of the critical variables-business focus, leadership alignment and employee momentum-required for change management to be successful in today's fast-paced environment. In each case, leaders realized that traditional change management efforts, which focus on process and dealing with resistance, could not mobilize employees to achieve sustainable impact. Instead, they chose an approach that deals with resistance as a natural part of the change management process, and emphasizes increased involvement, buy-in and commitment. Using innovative methodologies, including business focus, leadership alignment and employee momentum, significantly enhanced the sustainable impact of their change efforts. These companies were able to find their change management sweet spot. Finding that sweet spot is not an easy undertaking, nor is it for the fainthearted. It takes hard, purposeful work to introduce and build the three critical variables into a meaningful change strategy. Whereas traditional, process-driven methodologies can alienate those ultimately affected, deploying strategies that take these variables into account will help engage people and build a broader base of commitment to the change effort. Establishing clarity of business focus, aligning key leaders and generating employee momentum through direct involvement are essential to help mitigate the natural resistance that comes with change. The speed of the implementation is typically faster but, more importantly, the chance of creating sustainable impact is greatly enhanced. Are your change management initiatives hitting the sweet spot? *Reprinted by permission of the Segal Company, Sibson Consulting ------------------------------------ PERFORMANCE MANAGEMENT e-TOOLKIT ------------------------------------ The e-Toolkit takes the 'theory' and 'jargon' out of Performance Management. The kit contains all you need - a comprehensive set of line manager friendly policies, procedures, and paperwork. The e- manual has been developed in South Africa by South African Legal and HR professionals for companies to meet the requirements of the key labour Acts that stress the importance of fair & developmental people management practices. For a preview click on: http://www.workinfo.com/mall/pms.htm ---------------------------------------------------------------------- 3. Competency - What Is It And What's It Good For?* By Charles Handler who can be contacted at ---------------------------------------------------------------------- As the interest in measuring and predicting performance in the workplace has grown over the past decade, the term "competency" has become a staple part of every HR person's vocabulary. While it is among the most frequently used terms flying around the halls of HR, it is also one of the least understood. I have lost track of the number of times that clients and associates have asked me, "Just what is a competency anyway?" I don't pretend to have THE answer to this question. While I do have some opinions on the matter, it is hard to provide a direct answer to this question because there is very little standardization associated with this term. Different people define competencies in different ways, depending on what they are trying to accomplish and the approach they are using. One thing that everyone can agree on - the term describes something that has to do with an individual's ability to perform a certain job or role within an organization. This basic definition should reinforce the importance of the term because the ability to clearly define and measure the things about an individual that allow them to perform a job or role in the organization is essential for all HR functions. In an effort to share my two cents worth on this issue, the remainder of this article represents a brief opinion of what the term competency means. Why should we care about competencies? Before I start explaining my point of view, I think it is important to provide some context for why we even care about competencies in the first place. They are important because much of what we do as HR professionals relies on our ability to clearly describe humans relative to what they can contribute within the work environment. Think about it, in order for us to be even marginally effective in making hiring decisions, it is important that we are able to understand what an individual brings to the party relative to what they are going to be asked to do at that party. The ability to break job performance and human performance down into common elements is also critical for the effectiveness of other HR systems. For instance, competencies are necessary for providing measurement of performance in a job vs. the expectation that comes with that job (performance appraisal) and for helping create systems to help individuals learn and develop so they can expand their ability to further their careers while continuing to add value for the organization (training and development). Finally, competencies are critical for helping provide an understanding of what an individual's ability to make a contribution is worth in monetary terms (compensation). The bottom line is that we should care about competencies because they provide us with a common language or vocabulary that underlies all things that define people relative to the work they are asked to do. While this is important for ensuring the effectiveness of individual HR functions, the ability to use a common set of terms to describe people relative to work is also a critical ingredient if we are ever going to truly integrate the various silos within HR. So what is a competency anyway? Traditionally we I/O Psychologists have broken down a person's capabilities to perform a job into what are known as KSAOs. This stands for: Knowledge, Skills, Abilities, and Other things. Using these terms has always been difficult for me because there is no real firm definition to separate each of these individual criteria. For instance, when is something like communication a skill but not an ability? Just what is meant by "Other" anyway? While these terms do describe things of value when trying to learn about someone's job related capabilities, they are a bit too micro to really capture the broader elements that define job performance. This means that when one attempts to separate a job into its discreet elements using KSAOs, the bigger picture of what it takes to do the job can get lost in translation. While doing specific job related tasks may involve the use of KSAOs, it is the way the person uses the Ks, Ss, As and Os together that makes them either a slug or a star performer when accomplishing the tasks that define their work. So, in my mind KSAOs do help us define the requirements of a job, but they really end up defining the job more then the person. Conversely, competencies describe the person more than they do the job. My viewpoint is based on the idea that you can't accurately describe who a person is in terms of their individual experiences or the individual things they know how to do. A person represents something more then the sum of their experiences and their doing and learning. I think of competencies in this same "the whole is greater then the sum of its parts" perspective. A competency is a much broader description of one aspect of what a person has to be able to do to perform a job but it also describes what it is about a person that will allow them to do other jobs or perform well in specific work related situations. Thus by putting together multiple competencies we can begin to describe what a person must be able to do in order to perform a specific job as well as how they can add value throughout many different roles within the organization. So, using competencies offers a modular approach that allows organizations to better look at individuals relative to their lifecycle within an organization rather then in terms of their ability to perform a specific aspect of a job. The thing about competencies that trips people up is that thinking about people and jobs in this broad nature can be hard to operationalize when it comes time to actually measure things related to job performance. So, I feel that in order to be useful when measurement and standardization is involved competencies must have several levels of meaning. Here is an example of what I am talking about, which is part of a competency model that I developed for a client. Notice that the main competency in the example, Ethics, has several components to it. The first is a high level broad definition of what someone who has ethics will do in a work related situation. Beneath this are sub-competencies that describe the things a person with ethics does in more detail. Each sub-competency is further defined by specific behaviors that demonstrate how a person uses their ethics in the course of the workplace. # Competency: Ethics # Definition: The ability to understand and exercise honesty, integrity, responsibility, trust, respect and responsible citizenship in all aspects of personal and professional life. The ability and willingness to set an example for the organization when dealing with employment practices, records and information, communicating with internal and external parties, potential conflicts of interest, the handling of organizational assets. The ability to safeguard the public's trust in the organization. # Sub-facet 1: Ethical Leadership >> Definition: The ability to ensure the creation of a climate in which adherence to ethical guidelines and responsibility is valued by all employees. >> Behaviors: Lives by a clearly defined code of ethics; Provides ethics training and awareness; Leads by example # Sub-facet 2: Employment Practices >> Definition: The ability and willingness to exercise ethical, and honest behaviors when dealing with employees and the practices that guide their relationship with the organization. >> Behaviors: Supports and practices ethical behaviors as they relate to the following - Workplace Harassment; Equal Opportunity; Diversity; Fair Treatment of Staff; Work-Family Balance; Discrimination; llegal Drugs and Alcohol; Use of Organization Property; Proper exercise of authority Sub-facet 3: Records and Information >> Definition: The ability and willingness to exercise ethical and honest behavior when dealing with records and information related to the organization and its business. >> Behaviors: Supports and practices ethical behaviors as they relate to the following - Maintaining records and information; Recognizing the need to maintain privacy and confidentiality and maintaining when required; Using ethical principles when disclosing information When competencies like the one above are combined with others, a picture of a person emerges. It is then possible to compare this composite picture with an understanding of what the role requires in order to ascertain who is best suited for a particular job. The beauty of this picture is that it can also be compared to other jobs within the organization in a way that speaks volumes about an individual's ability to make a contribution. This picture can also be used to help provide an understanding of what might be missing from the picture should that person be interested in another job within the organization. Once all jobs are explained using a common set of building blocks that define both broad and micro level behaviors it becomes easier to see how individuals can fit into new roles or perform well in new situations. This approach also provides a standardized meaning that creates consistency between all of the HR functions that impact an individual and thus is a form of common language that can begin to break down the walls between various HR functions. It is probably unrealistic of me to think that there will ever be one universally accepted standard definition for what defines a competency. In fact this may not really even be necessary. It is more important to see that organizations are beginning to create a common language that they can use to accurately describe sets of individual characteristics that describe an individual's ability to perform a job or role within that organization. By understanding these things organizations have created a foundation that is needed to manage the entire employee lifecycle. ---------------------------------------------------------------------- 4. The future of HR As We Know It In High Performance 'World Class' Organisations By Andre Parker who can be contacted at andre@gracehumancapital.co.za ---------------------------------------------------------------------- The interdependence of Customer Service, Product Quality and Price are three of the most significant barriers to competitor entry and success in just about any business and is a continual 'top-of-mind' guiding philosophy in 'world class' business organisations. Such organisations rely on their people to give effect to their philosophy to unlock the value contained in their organisations. It underpins and gives substance the organisation's change strategy to create a paradigm shift in the psychosocial contracts of the organisation's human capital from one of a 'coercive relationship' to that of 'business partnering'. Veldsman (2002: 42) reports on this trend as an emerging theme in high performance 'world-class' business organisations, making the point that "without a partnership contract, the mobilisation of organisational members around a commonly understood, accepted and internalised strategic intent becomes a myth and a pipe dream." 'World Class' organisations know and understand that committed, motivated, and productive people have a sound relationship with the organisations that employ them and that this has a direct positive rub-off as to how they treat their customers. This view concludes that poor relationships become the breeding ground for destructive attitudes, poor commitment and poor customer service. Hiebler, Kelly & Ketterman (1998:26-27) report that 'world-class' organisations are obsessively focused on their customers and see their employees as key to customer service, developing serious, positive and ongoing partnering relationships with key stakeholders. "Unfulfilled ... frontline employees make for unhappy customers and an army of unhappy ex-customers". This implies that where there is a positive employment relationship between internal suppliers and internal customers all along the value chain, the ultimate 'moment of truth' where the end customer or consumer's needs are met, is positive. The conclusion therefore is that "happy employees equal happy customers." Bob Head, MD of the UK's revolutionary Egg Bank puts it this way: "if you want happy shareholders, if you want happy customers, you've got to have happy people working for you" (Grulke & Sibler: 2002: 97). Reporting on Sears transformational experience, Anthony, Steven & Richard (2001:90) clarify how Sears' employees drive customer satisfaction and how that, in turn, fuels overall organisational performance. In the course of an interview with a team of supervisors and managers at the Disney Corporation to understand their commitment to customer service, a Disney World Manager commented as follows. "Committed, motivated and productive people have a sound relationship with the organisation that employs them. That has a direct rub-off as to how they treat their customers. Such people are a valuable asset to the organisation. Poor relationships, on the other hand, become the breeding ground for 'lousy' attitudes and poor commitment - for which the customer bears the brunt. Such people are a costly liability." (Parker, 1998). Great Plains Coca-Cola, a 'world class' bottler of Coca-Cola products in Oklahoma City in the USA see this partnership relationship as a two way street in that "we are each other's customers ... together we manage things ... we lead people only by example ... use things ... love people". What is so significant about this approach explains Thomas (2003), is that "even at the "moment of truth," we are our customer's customers in that there is a reciprocal meeting of needs. Where there is true partnering, no one is greater than the other. It is a case of sharing reciprocal interests from a base of equality." One of the main keys to unlock a 'passion' for unrivalled customer service is therefore undoubtedly the management of a sound employment relationship between employer and employee. Drawing on extensive research into the connection between customers and how the employment relationship is managed, Marchington and Harrison in Slabbert, Backer and Prinsloo (2000: 7-14) conclude as follows: "Senior Managers in each of the companies regard customer service as the key to competitive advantage. There is little doubt that customer pressure, in whatever form it appears, acts as a considerable constraint on managerial choice in the area of work relations. What emerges is that from a strategic point of view, the employment relationship must always be managed in such a way that it proactively and constructively promotes the 'business' or mission accomplishment of the organisation as a whole. " Aware that line management is logically best positioned to manage this 'employment relationship', 'world class' organisations endorse the intent that line management should take full ownership of managing individual and collective relationships with their people. This, in turn, casts the spotlight on the Human Resources function to re-assess its role and function in the organisation with a view to integrating the management of human resources practices into line so that line can assume the responsibility of managing their relationships with their people with increasing competence and effectiveness. This view has long since been reinforced by Beatty and Schneier (1997: Vol 36:1:29) who report that the latter half of the last decade of the 20th century saw the most popular emerging role promoting HR being that of a "business partner". They point out that this process has led to the re-engineering of HR processes - one of which has been exporting of some HR work back to line management. Describing the process that HR must follow in becoming a strategic partner, Ulrich (1997: 61) identifies a number of principles as central to organisations with HR best practices. One of the most significant on his list is that line managers are accountable for HR management as a key piece of total business management. This paradigm shift in how HR is viewed and practiced in 'world class' organisations can be illustrated as follows: This implies that: >> Line management will need to undergo a 'paradigm shift' in their thinking and practice in that they have to assume responsibility for some fundamental HR (people) practices which directly impact on the employment relationship. >> HR will have to undergo a similar shift in their thinking to dismantle the structure of the traditional HR Department and skillfully integrate HR practices into line where HR plays an integrated role as business partner, guiding and supporting line with a "HR Toolkit" and systems that become enablers for line to fulfill this role. >> HR will 'have to let go' and outsource low level value-adding work to a centralised shared service center so that it can focus on value adding strategic business decisions and tactical implementation plans ... and in the process, integrate and operationalise sound HR practices into these plans. >> In their new roles, HR will have to broaden their skills, knowledge and hence competence in every area of HR and that of the business as a whole. For example, in this new role, a HR practitioner will no longer be able to 'hide' a weak side to say, Industrial Relations or Learning and Development by referring such work to a specialist managers in their discipline. Simply put, HR practitioners will have to become multi-skilled. More than that, HR practitioners will have to develop a relatively deep understanding of business processes and principles to be effective. This implies transcending from being solution providers to becoming business partners. >> extensive and a carefully crafted Learning and Development plans - aimed at both HR practitioners and line management, will have to be crafted and implemented to achieve this shift in mindset and accountabilities. Summary; 'World Class' organisations are ranked 'world class' by their customers who are served with a passion by their people. This passion is driven from a deep commitment to and alignment with the vision, values and purpose of the organisations in which they are valued partners. In these organisations, HR is not a Department, but a discipline that is practiced and owned by everyone in the organisation and which provides guidance in how to best manage relationships along the entire values stream, transmitting effective moments of truth into unrivalled customer satisfaction. ---------------------------------------------------------------------- 5. Organizational Assessment: The Missing Link* By Lauri McBassi who can be contacted at ---------------------------------------------------------------------- The relentless force of globalization has left only one sustainable path to profitability for firms operating in high-wage, developed nations: to compete based on their superior human capital capabilities and strategies. Any benefits that were historically associated with superior technology and access to capital (both physical and financial) are now far too short-lived to provide a sustainable advantage. One of the central challenges of using strategic human capital management as a source of competitive advantage is that human capital, which clearly represents an "asset" for knowledge-intensive firms, must be reported as a "cost" under current (and outdated) accounting standards and regulations. Compounding the problem, it is treated as the worst kind of cost: a hidden one buried inside a large general category ("selling, general, and administrative expenses," or SG&A). In essence, our accounting and reporting systems, which may have worked satisfactorily during the industrial era, are now impeding the emergence of knowledge-era opportunities by creating disincentives for organizations to invest in their people. Overcoming this will require creative new measurement systems that help organizations to move away from the easier (but less helpful) task of managing their people merely as costs and toward managing them as assets. Such systems will have to go beyond those that are currently used by some organizations to assess individuals' skills and knowledge. "Next generation" systems must instead measure an organization's overall human capital capability - the extent to which the organization maximizes the potential contributions of its people collectively. While important for all organizations, the creation of these new systems of measurement is particularly important for publicly-traded firms, which are the organizations most adversely affected by the current accounting and reporting requirements. Want to read more about this subject click on: http://www.mcbassi.com/whitepapers/WhatToDo.pdf *Reprinted with the permission of the author ---------------------------------------------------------------------- 6. Complimentary HR Tools/Downloads: Change & Transition Organisation Diagnosis ---------------------------------------------------------------------- All members of a team affected by change should complete this questionnaire. The questionnaire will indicate areas in which people will perceive that change will leave them especially vulnerable. For example, if the response to the statement "The goals and objectives of this organisation are clearly stated" is "disagree", it is highly likely that the change will exacerbate this and leave the respondent feeling confused and ambiguous about the role that he/she is expected to play in the organisation. The Organisational Diagnosis questionnaire highlights factors that will be adversely impacted by change. These are conditions that should be supported with special care during and after the change has been introduced. Download the Organisational Diagnosis questionnaire at www.workinfo.com/free/downloads/180.htm
------------------------------------ MANAGING FOR DIVERSITY WORKSHOP ------------------------------------ New and improved version of this workshop for supervisors & managers now available! Comprehensive facilitator's guide and participant workbook is now available as a download. Train as many groups as you like for the price of 1 download! http://www.workinfo.com/mall/diversity.htm ---------------------------------------------------------------------- 7. Case Law & Legislation Review: Substantive Fairness In Dismissal - Dishonesty By Gary Watkins who can be contacted at www.caselaw.co.za or www.workinfo.com ---------------------------------------------------------------------- # ISSUE: Substantive fairness in dismissal - dishonesty. Employee not authorised to make withdrawals from a customer's account - employee explains all these departures from procedures as mere mistakes that are of no significance and should be pardoned - as a card controller, she bypassed the very procedures that she is expected to enforce - dismissal justified # SUMMARY OF EVIDENCE: The Company is in the business of lending money to customers on a short-term basis. It is common cause that employee withdrew an mount of R2000.00 from the bank account of customer. The employee alleges that she was requested by the customer's son to make the withdrawal, and that the customer would collect the money later on that day. The company alleges that the withdrawal was unauthorized and that the whole process relating to the withdrawal and or alleged storage of the money amounted to dishonesty and gross negligence. This resulted in her summary dismissal following a disciplinary hearing. # SUMMARY OF JUDGEMENT: The company witness in his evidence indicated that the procedures to be followed are well known by all company employees, and explained that these were necessary in the nature of the business to ensure control, especially as customer's details are vulnerable due to exposure. The company's evidence is that the employee had no business making withdrawals, as she was a card controller and not a runner. That even if the circumstances necessitated her making a withdrawal, she still needed to follow the control measures in place. The employee only came forward with explanations after the manager had informed of his intended visit to the bank to view video material. This evidence went largely unchallenged. The employee did not dispute the card control procedures but her evidence is that due to the urgency of the customer's son's request, she could not wait for a runner, and that she forgot to sign the card out and fill in the necessary forms. It was found that the employee took the opportunity when the runners were not available at the branch to go out and made a withdrawal from a customer's account; she took out a customer's card and withdrew from it without following the card control procedures; she was not authorised by the customer to withdraw from his account; on return she returned the card but did not sign it in; she kept the money and did not sign it in as required,; she knew at the time that she would be taking the day off the following day; she returned the money via a cashier, explaining that she had forgotten it in her box. Unfortunately for the employee her misdemeanour had already come to light when the customer came to the branch the previous day and discovered the transaction. The employee explains all these departures from procedures as mere mistakes that are of no significance and should be pardoned. The commissioner concurred with the Company's verdict of guilt and had no doubt that the dismissal sanction was appropriate and fair. ------------------------------------ DOES YOUR EMPLOYMENT EQUITY COMMITTEE DELIVER RESULTS? ------------------------------------ The DoL is on the warpath for non-compliance! Train an entire committee for the price of 1 electronic manual with full reproduction rights. http://www.workinfo.com/mall/escmt.htm ---------------------------------------------------------------------- 8. Book Reviews ---------------------------------------------------------------------- # Globalization of Business: Tracking the Business Role of International HR Specialists To purchase this book click on http://www.kalahari.net/e-trader/referral.asp?toolbar=mweb&linkid=5&partnerid=293&sku=27135302 By Paul Sparrow, Chris Brewster, Hilary Harris. Routledge, an imprint of Taylor & Francis Books Lt, 2004 The role of international HR professionals is coming to the fore as new information and communication technologies transform both organisational structures and geographic boundaries. Globalizing Human Resource Management serves to establish the agenda for global HR as seen through the eyes of HR professionals themselves. A number of key questions are addressed: Does IHRM drive the business agenda more than domestic HRM? What is the impact of IHRM on organizational effectiveness? What are the keys to success in IHRM? Drawing upon current research conducted as part of the Chartered Institute of Personnel and Development's Globalization Research Project the text includes data from surveys of HR professionals and company practice as well as longitudinal case studies. # HR Strategy: Business Focused Individually Centred To purchase this book click on http://www.amazon.com/exec/obidos/ASIN/0750657685/workinfo/103-5731801-1884662?creative=327641&camp=14573&link_code=as1 By Paul Kearns. Butterworth Heineman, 2003 Addressing the two key themes of translating business strategy into a workable, measurable HR strategy, this volume simultaneously examines the needs and motivational patterns of individual employees in order to unleash their maximum value. The ultimate aim of any HR strategy is to design the highest value organization. Strategy may be a notoriously difficult topic to pin down but the author produces both a wide-angle view and specific examples of what a real HR strategy looks like in different organizational contexts. This is a book that covers the theory but swiftly moves on to the question of how anyone might actually start to develop a high value HR strategy. It shows the key ingredients and practical steps involved in implementation. ---------------------------------------------------------------------- 9. Unsubscribe & Moving Soon ---------------------------------------------------------------------- UNSUBSCRIBE: Scroll to the end of the newsletter where you will find a code directly linked to your name. Click on the unsubscribe link. PLEASE DO NOT REPLY TO THIS NEWSLETTER TO UNSUBSCRIBE. MOVING SOON: If you are changing your email address soon and would still like to continue receiving this newsletter, please email us your new or temporary email address to ensure that you do not miss out on the next edition. ------------------------------------ FOUR LINE ADS: WORKPLACE RESOURCES FOR LINE AND HR ------------------------------------ # Download the updated HUMAN RESOURCES POLICIES & PROCEDURES MANUAL. Contains pro-forma policies and procedures. Save today and buy both downloads. Available in MS Word for easy customization. http://www.workinfo.com/mall/hrm.htm # Use the 600 page electronic manual with detailed action plans and guide notes for IMPLEMENTING EMPLOYMENT EQUITY. This is a companion piece to the EQUITY-SKILL DEVELOPMENT COMMITTEE TRAINING COURSE; http://www.workinfo.com/mall/eeim.htm ------------------------------------ About the e-Journal/e-Newspaper ------------------------------------ Equity-Skills News & Views is a free bi-monthly newsletter for business owners, Line Managers, and Human Resource Practitioners (who support Line Managers) with the implementation of fair and developmental people management systems and practices. The style of this e-Newspaper fits between the traditional email newsletters and printed professional trade journals & magazines. Subscribers will be kept up to date with the latest developments in the world of people management, receive handy people management tips, and feedback about labour court rulings that relate to the implementation of the key Labour Acts. Please add equity skills news & views to your list of approved senders if your Internet provider, or server administrator filters incoming e-mail, to make sure you receive periodic e-mail alerts and this newsletters to which you are subscribed. ------------------------------------ Opinions expressed by contributors DO NOT NECESSARILY REPRESENT the standpoint of the publisher-editor of Equity-Skills News & Views. Information published here is for general information, and is not intended as legal advice. The authors, editors, and publishers do not accept responsibility for any act, omission, loss, or damage occasioned by any reliance upon the contents hereof. This message is sent in compliance with ELECTRONIC COMMUNICATIONS AND TRANSACTIONS ACT. 2002, Act No. 25, 2002 [South Africa] passed on 20 May 2003. Sender: Jeff Sacht E-mail: jeffs@worldonline.co.za Telephone: +27 011 485 4943 Facsimile +27 011 485 4943 Publisher-Editor: Equity-Skills News & Views 'A MUST TO PRINT & READ' ------------------------------------ Copyright (c) 2003 Registered electronic newspaper: 1SSN 1684-5714 |
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