HR Governance 20 September - ZIHRM


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HR Governance 20 September - ZIHRM

  1. 1. HR GOVERNANCE: From Business Partner to HR Governor Marius Meyer 20 September 2013, ZIHRM @SABPP1
  2. 2. New SABPP Model: HR Voice for Professionals Knowledge Human resource development Ethics Research - info Quality assurance Value & visibility Open for alliances Learning growth & development Innovation CPD Excellence Self-governance Duty to society
  3. 3. SABPP VALUE PROPOSITION: Products/Services to advance HR profession RECOGNITION = PROFESSIONAL STATUS • • • • • • • • Professional registration NLRD Upload (SAQA) RPL Awards Advocacy HR Assessors/Moderators registration Accreditation of providers University accreditation RESOURCES = PRODUCTS/SERVICES • • • • • • • • • • • • • • • • • • • • HR Competency Model Social media discussions Knowledge Centre Booklets/DVDs Guides/toolkits Charts/posters Fact sheets One-stop info Updates (laws, trends) Ethics help-line Newsletters Website HR Internships/jobs HR policies Mentoring Workshops/seminars Access to alliances Event/product discounts CPD Students RESEARCH = INFORMATION • • • • • • • • Research papers Position papers Books Articles Cases Benchmarking Magazines Labour market information
  4. 4. Professional registration levels MHRP (Master) • M/D degree + 6 years top level experience • LoW = executive level CHRP (Chartered) HRP (Professional) • Hons degree + 4 years sr experience • LoW = senior management • Degree/ND + 3 years experience • LoW = middle management HRA (Associate) • 2 year dip + 2 years experience • LoW = junior level HRT (Technician) • Certificate + 1 year experience • LoW = entry
  5. 5. AGENDA • The emerging field of HR governance: Balancing people GRC for business sustainability • The transition from HR business partner to HR Governor • Key dimensions of HR governance • Applying robust HR risk management • Balancing performance and compliance • HR’s contribution to a sustainable business
  6. 6. HR AS BUSINESS PARTNERS? This financial crisis is forcing government and local agencies to make some tough decisions. If things continue for much longer, there's a real risk that we may have to lay off Jose.
  8. 8. FLAWS OF BUSINESS PARTNER MODEL • Why partner with the business if we are part of the business? • Why HR, what about IT, marketing etc? • Underlying assumption that business is right & HR is wrong. • Line management view that performance is more important than compliance. • Line taking short cuts to side-step laws, HR policy & procedures, e.g. selection. • Line seen as most important stakeholder, what about other stakeholders?
  10. 10. LINE SHOULD BECOME HR PARTNERS • Turning the business partner model around – line should become HR partners! • Balancing the needs of multiple stakeholders (not only line) • HR as innovators, social activists & stakeholder partners - sustainability • High performance organisation culture • HR driving business strategy • HR’s role as governors – custodians of people
  12. 12. Comfort zone challenged
  13. 13. Why a national HR Standard? • We need to improve the quality of HR practice. • HR will not be seen as a true profession without standards. • Inconsistencies – practices, sites, business units, companies, industries. • Too many bad examples of things going wrong – Marikana, De Doorns, Medupi. • Raising the bar for the HR profession and business impact.
  14. 14. Operational Management Consistency in the Management of People One of the toughest things to be is consistent
  15. 15. HR Standards Facilitators Kate Dikgale-Freeman Michael Robbins Linda Chipunza
  16. 16. 468 HR Leaders developing HR Standards for South Africa
  17. 17. SABPP HRM SYSTEM STANDARDS MODEL BUSINESS STRATEGY – HR BUSINESS ALIGNMENT Prepare HR Risk Management Talent Management HR ARCHITECTURE Implement Workforce planning Learning & Development HR Service Delivery Review Performance Management Reward Wellness ERM OD I HR VALUE & DELIVERY PLATFORM HR MEASUREMENT HR Audit: Standards & Metrics HR Technology (HRIS) HR COMPETENCIES Strategic HRM Improve
  18. 18. National HR Governance Strategy Alignment HR Competencies • • • • • • HR Products/Services: CPD Mentoring Professional registration Research HR Academy Curriculum standards ISO: HR HR Professional Standards: • HRMS (13) • HRMSAS (13) • HRPPS (30+) HR Metrics: • National HR Scorecard • HR Service Standards Integrated Reporting HR Auditing: • Internal Audit • External Audit King IV: HR Governance
  20. 20. Triple bottom-line: 3 P’s PEOPLE (Social) PLANET (Environment) SUSTAINABILITY PROFITS (Financial performance)
  22. 22. HR governance defined: is the act of leading, directing & controlling the HR function to promote sound corporate governance in pursuit of the overall business goal of economic, social & environmental sustainability
  23. 23. “Good human resource management is imperative for good governance” Mervin King
  24. 24. Evolution to HR governance High P e r f o r m a n c e HR Leader (business partner) HR Governor HR Manager HR Regulator Low Low C o m p l i a n c e High
  25. 25. PERFORMANCE VS COMPLIANCE Source: Kevin Carter
  26. 26. “People and behaviour are often the biggest risks” • Critical to include people risks in a company’s risk management plan • HR need to be the eyes & ears for peoplerelated governance & compliance
  27. 27. What happens if we don’t manage risk: A public sector case study  181 babies died in state hospitals.  Human errors, faulty equipment & cover-up by senior medical staff were key factors.  Infection-control nurse retired, and her post not filled.  Critical shortage of nurses & clinical engineers who are responsible for maintaining ventilators.  Senior doctors presented inaccurate stats to their bosses to cover up poor management practices.  Doctors failed to alert DoH to the crisis, even though a few nurses had raised the alarm to management.
  28. 28. What happens if we don’t manage risk: A public sector case study STAFF COMPLAINTS:  Shortage of nurses, leading to overworked staff being vulnerable to human error.  High baby-to-nurse ratio – babies not getting adequate care and attention.  Specialist doctors consult junior doctors on the phone without personally accessing high-risk cases.  Inadequate training for medical staff. 30 May 2010
  29. 29. Risk / Readiness Profile
  30. 30. HR risks – people risk, governance and compliance
  31. 31. PEOPLE RISKS IN THE BUSINESS • People risk includes: company culture, talent shortages & retention, incompetence, employee performance • HR risks need to be factored into every major business decision
  32. 32. H R R I S K S (8 African countries) • • • • • • • • Safety - accidents Skills shortages/gaps Incompetence Employee disengagement Strikes & poor employment relationships Fraud/corruption Stress HIV/AIDS • Staff turnover • Low staff satisfaction – impact on customer satisfaction • Cyber security • Conflict/disputes • Diversity problems • Sexual harassment • Expatriate issues • Non-compliance
  33. 33. Identity Fraud
  34. 34. Workplace behaviour
  35. 35. OOPs !! What if ? the pilots had not read the Instruction book
  36. 36. What if ? The ground staff didn't think that house keeping was an important issue Who insured it and will they pay ??
  37. 37. HR role  HR’s role is to guide and develop policies and ensure that managers have a clear understanding of their responsibilities. This applies in respect of, for example, health and safety; fair employment practices; recruitment and terminations; diversity and the avoidance of discriminatory behaviour.  HR should participate at all levels in managing risks within the company and contribute to ensuring ‘joinedup thinking’ between different business functions.  HR should be represented at executive level and on specialist company-wide committees – for example, on the implementation of the Corporate Governance (King 3) requirements.
  38. 38. HR RISK MANAGEMENT STANDARD DEFINITION HR Risk Management is a systematic approach of identifying and addressing people factors (uncertainties and opportunities) that can either have a positive or negative effect on the realisation of the objectives of an organisation.
  39. 39. HR Risk Management OBJECTIVES 3.2.1 To increase the probability and impact of positive events and decrease the probability and impact of negative events caused by people factors on the achievement of organisational objectives. 3.2.2 To align HR and people management practices within the governance, risk and compliance framework and integrated reporting model of the organisation. 3.2.3 To ensure appropriate risk assessment practices and procedures relating to people factors are embedded within the organisation. 3.2.4 To ensure appropriate risk controls are designed and applied to HR activities and interventions. 3.2.5 To contribute in creating and sustaining a risk culture in an organisation which also encourages innovation and creativity. SABPP (2013)
  40. 40. HR Risk Management IMPLEMENTATION 3.3.1 Position the role of HR in influencing and communicating the organisational risk culture. 3.3.2 Asses potential positive and negative people factor risk to achieving organisational objectives. 3.3.3 Identify and evaluate the potential risk impacts with regards to strategic and operational HR activities. 3.3.4 Decide on appropriate risk tolerances for the different components of the HR function. 3.3.5 Design and implement appropriate people-based risk management systems, metrics, risk controls, and HR practices which will contribute to mitigate the potential risk. 3.3.6 Ensure all HR risk practices conform to the organisational governance, risk and compliance strategies and policies including integrated reporting. SABPP (2013)
  41. 41. RISK Reporting
  42. 42. RATING SCALE TO ASSESS HR PROBLEMATIC MEDIOCRE EXCELLENT High Risk Medium Risk Low/no Risk Some pockets of excellence, but they are isolated, and applied inconsistently in certain parts of company. Some occasional positive results comparable to typical average HR standards. Should be addressed before it becomes problematic. HR leading practice is well infused, aligned and integrated across the company and applied consistently with clear results. Comparable to worldclass standards. Should be maintained, reinforced or used as a model for other companies. HR practice is non-existent, has a low uptake or is applied poorly. Little, no or poor results are evident. Requires urgent attention to move to medium risk over short or medium term.
  43. 43. Business sustainability
  44. 44. Key phases for HR Governance • Transform HR management to HR governance by taking full responsibility for GRC in the HR space, but with a clear link to overall GRC and business strategy • Identify all stakeholders and engage with them • Form new relationships – CRO & CAE • Design and implement a robust HR risk management plan • Ensure HR features in integrated reporting • HR Professionalism – competencies & standards
  45. 45. HOW TO MAKE IT WORK • • • • • • • • • • Understand the business & strategy Align HR strategy with business strategy Work on business & financial acumen Building sound relationships Regular open communication Use the language of business, not HR jargon Invite line people to HR meetings Start HR meetings with business strategy Invite yourself to line meetings! Proper HR analytics & metrics for business
  46. 46. Gap between strategy and execution
  47. 47. ELIMINATING THE OBSTACLES • Develop a clear business partner philosophy & model for your organisation • Break down the silos within HR, before you try to break down the gap between HR and line • Create a people-driven culture • Build high level HR competence • Develop line managers as people managers – leaders • Get line to understand risk & governance
  48. 48. 6 CRITICAL QUESTIONS No Key Questions 1 Have you identified all your stakeholders? 2 Do you have a plan for implementing HR GRC? 3 What is the role of HR enabling GRC in your organisation? 4 Have you identified all the HR risks in the business? 5 Do you have an HR governance framework? 6 If you are assessed today, will you meet the requirements of a GRC compliance audit?
  49. 49. SUSTAINABLE PERFORMANCE “Whether a company sustains exceptional performance depends first and foremost on whether it continues to have the right people in power.”
  50. 50. GRC ROLE OF CHRO “Governance, risk & compliance provides a perfect opportunity for Chief HR Officers & HR organisations to move beyond their traditional administrative role & earn a seat at the strategy table - providing HR with a level of credibility & respect that’s long overdue.”
  51. 51. CONCLUSION Yes, HR should be strategic business partners, but that means that we really address the needs of the business without compromising our professional duty of sound HR governance. If we can improve on our HR performance and gain true credibility as strategic HR champions, the challenge will be to ensure that line managers become HR partners. We should also become HR governors overseeing HR as a key resource. Best wishes with your HR work in Zambia!
  52. 52. Let us build world-class HR functions (Professional Registration) (Professional Services) (Stakeholder Relations) (Research) (Learning & Quality) (Strategy inputs) (Social media) Website : Blog: New office: 8 Sherborne Str, Parktown, South Africa Tel: +27 11 482-8595 Fax: +27 11 482-4830 Cel: 082 859 3593 (Marius Meyer)