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Align strategic HR to Business plan

This document outlines the business plans and objectives of a sugar corporation in Ethiopia. It details the corporation's goals of: - Producing over 2 million tons of sugar and ethanol by the end of its growth period - Expanding sugar factories and building new ones to increase production capacity - Increasing sugar cane yields and exports - Providing training to over 21,000 employees - Creating over 162,000 jobs It also outlines the corporation's vision to create a sustainable and competitive sugar industry, and its mission to satisfy national sugar demand, support energy supply through ethanol production, and create economic opportunities. The document discusses aligning HR strategies and processes to achieve these strategic business goals and objectives.

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power
ethanol
sugar
I Siva Kumar
HR Advisor
By
TRAINING PROGRAM ON ALIGN
STRATEGIC HR TO BUSINESS PLAN
DATED 22/04/13 TO 24/04/13.
FOR HR PERSONNEL OF SUGAR
CORPORATION & FACTORIES
ORGANIZED
BY
CORPORATE HR
CONDUCTED
BUSINESS PLAN & STRATEGY
2
ALIGN STRATEGIC HR TO BUSINESS PLANS
In simpler terms business strategy is all about your Product,
Customer, People and Processes.
3
BUSINESS STRATEGY
MANAGEMENT INFROMATION SYSTEM IN HR
• Produce 2.25 million tons of sugar and 181,604 meter cube ethanol;
• Produce 101 mega watt electric power by the end of the GTP period;
• Finalize expansion projects of the existing sugar factories as well as construction of the new
one at Tendaho;
• Build additional ten new sugar factories with a capacity of 12,000 tcd; and cultivate 315,000
hectares of sugar cane plantation;
• Export 623,000 tons of raw sugar and 623,000 tons of white sugar which in total makes the
amount 1,246,000 tones by the end of the GTP period;
• Substitute up to 44,340 meter cube ethanol for blending purposes by the end of the GTP
period;
• Spread six high yield cane verities developed through research;
• Establish a well equipped breeding station;
• Complete the construction of four tissue culture laboratories and green house;
• Enhance the productivity of cane from 145 to 155 tons per hector;
• Provide knowledge and skill upgrading training for 21,500 employees at different levels;
• Create Job opportunities for more than 162,000 citizens through agriculture, factory, house
and irrigation projects;
• Construct the corporation’s head quarters and research & training institutions;
4
SUGAR CORPORATION BUSINESS PLANS & OBJECTIVES
Strategic Analysis
BUSINESS STRATEGY
Strategic Analysis
• Most businesses will constantly evaluate their
position
• Strategic analysis includes different methods of
assessing
the current position of the business
in the market place
• Two basic methods:
– Internal
– External
BUSINESS STRATEGY

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Align strategic HR to Business plan

  • 1. power ethanol sugar I Siva Kumar HR Advisor By TRAINING PROGRAM ON ALIGN STRATEGIC HR TO BUSINESS PLAN DATED 22/04/13 TO 24/04/13. FOR HR PERSONNEL OF SUGAR CORPORATION & FACTORIES ORGANIZED BY CORPORATE HR CONDUCTED
  • 2. BUSINESS PLAN & STRATEGY 2 ALIGN STRATEGIC HR TO BUSINESS PLANS
  • 3. In simpler terms business strategy is all about your Product, Customer, People and Processes. 3 BUSINESS STRATEGY
  • 4. MANAGEMENT INFROMATION SYSTEM IN HR • Produce 2.25 million tons of sugar and 181,604 meter cube ethanol; • Produce 101 mega watt electric power by the end of the GTP period; • Finalize expansion projects of the existing sugar factories as well as construction of the new one at Tendaho; • Build additional ten new sugar factories with a capacity of 12,000 tcd; and cultivate 315,000 hectares of sugar cane plantation; • Export 623,000 tons of raw sugar and 623,000 tons of white sugar which in total makes the amount 1,246,000 tones by the end of the GTP period; • Substitute up to 44,340 meter cube ethanol for blending purposes by the end of the GTP period; • Spread six high yield cane verities developed through research; • Establish a well equipped breeding station; • Complete the construction of four tissue culture laboratories and green house; • Enhance the productivity of cane from 145 to 155 tons per hector; • Provide knowledge and skill upgrading training for 21,500 employees at different levels; • Create Job opportunities for more than 162,000 citizens through agriculture, factory, house and irrigation projects; • Construct the corporation’s head quarters and research & training institutions; 4 SUGAR CORPORATION BUSINESS PLANS & OBJECTIVES
  • 6. Strategic Analysis • Most businesses will constantly evaluate their position • Strategic analysis includes different methods of assessing the current position of the business in the market place • Two basic methods: – Internal – External BUSINESS STRATEGY
  • 7. Where Is The Business Now? • Internal Audits – uses data and information generated from within the business Internal audits may be carried out through recruitment of an outside consultant to look at how the business works and offer an ‘independent’ viewpoint • External Audits – uses information and data from outside the business – such information may be outside of the business’s control but has to be factored into decision making BUSINESS STRATEGY
  • 8. Internal Audits • Productivity – Human resources/capital • Efficiency – Using ratio analysis, investment data, etc. • Costs – Wastage? Unnecessary expense, cost cutting opportunities? • Internal Data – Labour turnover, absenteeism – Customer satisfaction surveys – Quality procedures – defects, complaints, etc. – Cash flow statements – record what is actually happening – Sales trends – generate patterns – Skills audit – do the skills in existence match those required? • SWOT analysis – Strengths and weaknesses can be viewed as internal aspects • Core competencies – What is the business good at and recognised for? BUSINESS STRATEGY
  • 9. External Audits • General business environment – Inflation, competitiveness, unemployment/employment, growth, consumer spending • Competitors – What are they doing? What threats do they provide? • PEST factors – Political – e.g. change of government not only in domestic country but in overseas markets – Economic – potential trends in economic growth, inflation, etc. – Social – changing nature of social issues – environment, ethical expectations, changed outlook, age structure of population, etc. – Technological – rapid changes – firm gets left behind? BUSINESS STRATEGY
  • 11. Where Will The Business Go In The Next Ten Years? • How far can the business plan ahead? • How valuable are such plans? • Strategic intent – provides an outline framework of basic principles and targets to inform operational planning BUSINESS STRATEGY
  • 12. Strategic Planning • Competitive Advantage –seeking to identify sources of competitive advantage • Adding Value – looking at ways to add value • Mass or niche markets? – which is the best route? • Cost based strategies – focus on reducing costs to compete and grow • Market based strategies – focus on satisfying consumer needs as the means to growth BUSINESS STRATEGY
  • 13. MANAGEMENT INFROMATION SYSTEM IN HR • Ensure the national supply of Sugar; • Support the national energy supply through cogeneration and use them for key economic sectors; • Maximize the contribution of the sector to the national economic growth and create job opportunities for citizens; • Hold an elevated export share in the International market; • Create institutional capacity with the appropriate human resource and potential for research and technology which help realize the strategic objectives of the sector; 13 SUGAR CORPORATION BUSINESS GOALS
  • 14. MANAGEMENT INFROMATION SYSTEM IN HR VISION: • To create a sustainable and competitive Sugar Industry. MISSION: • Create an institution that plays a major role in the national political & economic transformation which brings rapid, sustainable and equitable growth; • Create a change and result oriented leadership and workforce with a development mind – set, ethics and skill; • Satisfy the national sugar demand; • To seize a remarkable export share in the international market; • Support the national energy supply through the use of bi – product of sugar; • Create a wide job opportunity to citizens; • Support and facilitate cultural and social development around sugar development areas; • To bring about technology transfer in sugar development sector; • Enhance the industry’s competitiveness through intercropping; • To create institutional competences capable of attaining the strategic goals of the sugar Industry; • Create compatible social and economic interlink among public; 14 SUGAR CORPORATION VISION & MISSION
  • 15. MANAGEMENT INFROMATION SYSTEM IN HR • Establish a result – oriented and cost effective attitude system. • Sustainable change and competitiveness; • Establish good governance; • Virtuous work ethics; • Cooperate with the people and ensure their benefit. 15 SUGAR CORPORATION CORE VALUES
  • 16. BUSINESS PLAN ORGANISATION • HR Strategy •Structure •People, Process & Systems •People & behavior & Training •Performance & Competency building Shree Renuka Sugars Limited BUSINESS PLAN & ORGANIZATION
  • 17. STRATEGIC HUMAN RESOURCE MANAGEMENT 17 ALIGN STRATEGIC HR TO BUSINESS PLANS
  • 18. Strategic human resource management is the process of linking the human resource function with the strategic objectives of the organization in order to improve performance. HR’S EMERGING ROLE: Strategic human resource management is an approach which defines how the organization’s goals will be achieved through people, by means of HR strategies and integrated HR policies and practices. Strategic HRM has been defined as: “All those activities affecting the behaviour of individuals in their efforts to formulate and implement the strategic needs of business” 18 STRATEGIC HUMAN RESOURCE MANAGEMENT
  • 19. MANAGEMENT INFROMATION SYSTEM IN HR • Changes in the business environment brought about by globalization and the development of new technology have made it mandatory for organizations to involve HRM in the strategic Decision Making Process. • Changes in Market Conditions, economic conditions, labor markets, industrial structure, and international competition have all highlighted the importance to the management of human resources for gaining a competitive advantage. 19 STRATEGIC HRM
  • 20. MANAGEMENT INFROMATION SYSTEM IN HR • The pattern of planned human resource deployments and activities intended to enable the forms to achieve its goals is • concerned with explaining how Human Resource Management influences organizational performance • Strategy defines organization's behaviour and how it tries to cope with its environment. • If HRM is an approach to the management of people, • strategic HRM implies what is done on a planned way that integrates organizational goals with policies and action sequences. 20 STRATEGIC HRM
  • 21. MANAGEMENT INFROMATION SYSTEM IN HR • 5p model identifies various HR activities that must be aligned with the Strategic needs of the Business to gain a competitive advantage. • HR Philosophy: refers to Org attitude • HR Policies: Refers to guidelines • HR Programs: Coordinated HR efforts to sustain Change • HR Practices: includes roles that individuals assume in an Org. • HR Processes: Involves Identification, formulation and implementation of HR activity 21 Transition from HRM to Strategic HRM
  • 22. • Administrative in nature • Endorsing Specialization of work • Development of Policies and its Functions • Ensures Adherence to the Rules • Transactional in Nature: routine day to day work • People Not viewed as Competitive advantage • Change is Slow and Fragmented. • Empowering in Nature • Multi Tasking – Changing according the Environment • It is More Interdisciplinary in Nature • Rules and Regulations are Flexible. • Focus on Short Term Objectives of Org. • People as viewed as Intellectual Assets. • Change is Proactive and Systematic Traditional HR Vs Strategic HR
  • 23. MANAGEMENT INFROMATION SYSTEM IN HR • Strategic Role • Information and Decision Making Role • Strategic HR functional Role • Administrative Role 23 Role of strategic HRM (SHRM)
  • 24. • Focusing on Shot Term Performance • Lack of technical Knowledge • Lack of Strategic perspective • Difficulty in quantifying • Apprehensions towards training people • Resistance of employees 24 Barriers To SHRM
  • 25. MANAGEMENT INFROMATION SYSTEM IN HR • Two models help us understand the relationship between HR and Strategy, they are • Model of Best Practice • Model of Strategic Change 25 Model Integrating Strategy & HR
  • 26. Strategic Level Operational Level Business Process Level Frame policies Recruitment and Retention Checking equal Weight age to all stakeholder Model Best practice
  • 28. 1. Strategic integration 2. High commitment 3. High quality 4. Flexibility The model has four basic Propositions:
  • 29. Socio economic, technical Politico-legal Culture, Structure, Politics Leadership, task technology Business outputs Role Definition Organization HR outputs HR Flows Work systems Reward systems Employee Relations Objectives Product – market Strategy and Tactics Outer Context HRM Context Inner Context Business strategy content HRM Content Model of Strategic Change & HRM
  • 30. External Alignment (Business Environment) ALIGNMENT ORGANISATION Internal Alignment (Management Processes) GM OFFICE Agri & Cane FACTORY Operations Finance Materials& Commercial MIS & IT Sales & Marketing HR /IR & ADMN Planning Development Training Competency Management Performance Management Career Planning Succession Planning Deployment Benefit Administration Human Relations Projects ALIGNMENT TO ORGANIZATION
  • 31. EXTERNAL ALIGNMENT :  Alignment of Organization with the Business Environment  Bench marking Industry and best practices  Stakeholders including community  Customers  Suppliers 31 ALIGNMENT TO ORGANIZATION
  • 32. INTERNAL ALIGNMENT :  Alignment of Factories with Corporate Direction/ HR Vision & Mission.  Alignment of Cross functional teams with Corporate Direction/HR Vision & Mission in Corporate/Factories.  Alignment of internal People, Processes & Systems.  Alignment of Trade Union & Management Teams  Alignment of individuals in the Organization. 32 ALIGNMENT TO ORGANIZATION
  • 33. Manage a Global Organization Attract, retain and deploy high end talent Organizational Momentum Integrate Factories to maximize synergy Create a global mindset Global benchmarking Improve Information access Cross functional teams Cross fertilization of ideas Knowledge networks across Factories Setting high performance standards provide real time feedback to enhance performance Strengthen people development processes Develop leaders from within Share the vision, big picture Build ownership, inspire ORGANIZATION IMPERATIVES
  • 34.  Human resource is considered as the backbone of economic enterprise. The optimum utilization of natural resources and the factor in puts of capital technology depend on the extent of use of human resources. The human resource management is a proactive central strategic management activity. It has tremendous relevance to productivity industry. Human input is the single largest that goes in the Sugar complex Industry. The level of efficiency of production of Human input reflected in the quality of product provided by the industry to its customer. 34 Viewing Human Resource as a critical resource
  • 35. • Investment Perspective of HR – Management Value – Organization Attitude Towards Risk – Employee skills Required – Cost benefit Analysis – Outsourcing • Human Capital Accounting – Sources of employee value: productivity & added Value – Adding value through rewards & benefits – Adding value through attrition & recruitment Economic Indicators of HRM
  • 36. Human Capital comprises of…  Intellectual Capital- War for Talent Building human capital by recruiting, developing and retaining people with best knowledge and skills.  Social Capital- Developing Relationships Creating a network of relationships that link and leverage intellectual capital.  Emotional Capital- Building Commitment Creating an environment that energizes, motivates and builds commitment. HUMAN CAPITAL
  • 37. Thus,sustainable advantage is Human Capital alone. Emotional Capital Social Capital Intellectual Capital Talent Audacious standards Pruning Line management involvement in coaching Relationship Gain sharing Health benefits and insurance Work life balance e.g.5 day week Creating fun workplace Commitment Channels of communication Flexible networked Company Peer pressure/Stretch Values HUMAN CAPITAL
  • 38. Responsibility of developing human capital assets rests firmly with the leadership. • Management Committee (Strategic Architects) » Framing opportunity horizon and performance standards » Building a context of collaboration and support » Developing a sense of corporate purpose, challenge and trust • Operation/location/function Heads (Developers) » Reviewing, developing and supporting initiatives » Linking dispersed knowledge, skills and competencies » Managing the tension between short term performance and long term ambition • Team Leaders (Entrepreneurs) » Managing continuous performance improvement » Attracting and developing skills and resources » Creating and pursuing opportunities HUMAN CAPITAL
  • 39. 39 Strategic Partner Process Expert Employee Champion Change Management Process People Present Future Catering to the present need of employees and taking care of employees while advocating their causes Designing, coordinating and facilitating implementation of various HR Processes with changes from time to time Preparing people for change to adapt to the future needs as well as dynamic response to changing environment Aligning HR strategy and processes to the vision and strategy of the organization as well as constituent business units Role of HR: Taking care of both Process and people.
  • 40. The people Process Systems initiative builds competitiveness by aligning people, process and systems. It facilitates improvements in existing business in terms of people and processes. Its components include designing and development of organization rejuvenation processes, as well as facilitation and implementation of new businesses/ new projects (factories)/expansions of existing capacities and /or processes to achieve organizational goals. 40 PEOPLE, PROCESS & SYSTEMS
  • 41. The approach is closely study structures and processes.  The Organization (System): Structure, strategy, critical success factors, critical business issues, identification of core processes and their categorization into primary, support and management.  The process: Which of the various functions perform independently or cross functionally to deliver out puts.  The people: Who manages the processes, and their job descriptions. 41 PEOPLE, PROCESS & SYSTEMS
  • 42. People, Process, Systems (PPS) Alignment Review Business Vision & Strategic Direction People strategy Stakeholders (CEO) Technology strategy 42 NEED OF THE HOUR
  • 43. HR’s contribution to business strategy HUMAN RESOURCE MANAGEMENT CONTRIBUTION
  • 44. Understanding strategic formulation • Not always as per textbook: – intended strategies – emergent strategies – political strategies • How does HR contribute: – operationalises business strategy – provides separate people thrust: • connected with organisational aims • disconnected: HR best practice model – is an integral part of business strategy HR’S CONTRIBUTION TO BUSINESS STRATEGY
  • 45. Types of linkage between business & HR strategy two way linkage: mutual influence passing ships: independent HR and business strategies integrative business strategy informs HR actions HR’S CONTRIBUTION TO BUSINESS STRATEGY
  • 46. Linking business & HR strategy • Factors that affect this linkage: • Planning process – formal or informal – deliberative or emergent • Degree and timing of HR involvement • Extent of challenge permitted • Legitimate areas for HR input • Extent of HR’s alignment with business - broad objectives and current imperatives HR’S CONTRIBUTION TO BUSINESS STRATEGY
  • 47. Understanding the decision making process • If decided by formal processes • If matters are settled beforehand • If real action happens at operational level • Get a seat at the decision making table • Build coalitions, work to influence outside meetings • Ensure you have business partners effective at BU level HR’S CONTRIBUTION TO BUSINESS STRATEGY
  • 48. Stakeholder management • board • executive committee • senior managers • line managers • team leaders/supervisors • employees • employee representatives • external suppliers • government bodies • other agencies • what is their stake? • what are their goals? • what are their expectations? • how will change affect them? • what do they know already? • what influence do they have? • what power do they have? HR’S CONTRIBUTION TO BUSINESS STRATEGY
  • 49. Characteristics of strategic HR • A philosophy underpinning people management • Seeing people as a competitive resource HR’S CONTRIBUTION TO BUSINESS STRATEGY
  • 50. Making the case: what Human Capital HR can deliver • Improved utilisation of talent • Higher productivity • Reduced costs • Better service delivery • Organisational integration • Aligned culture & organisational values • Greater employee engagement • Stronger employee proposition etc HR’S CONTRIBUTION TO BUSINESS STRATEGY
  • 52. Characteristics of strategic HR • A philosophy underpinning people management • Seeing people as a competitive resource • A planning approach to resources – numbers – skills – potential • Adds long-term rather than short term value in line with business need HR’S CONTRIBUTION TO BUSINESS STRATEGY
  • 53. horizontal integration vertical integration People management integration business strategy reward employee relations training & devt work orgn culture leadership style HR’S CONTRIBUTION TO BUSINESS STRATEGY
  • 54. Characteristics of strategic HR • Integrated – brings together multifaceted activities • Comprehensive – covers the entire operation (at BU or corporate level) • High value added – focuses on business critical issues • Builds social capital – helps sharing, networking and relationships HR’S CONTRIBUTION TO BUSINESS STRATEGY
  • 55. Characteristics of strategic HR • Integrated – brings together multifaceted activities • Comprehensive –covers the entire operation (at BU or corporate level) • High value-added –focuses business critical issues • Builds social capital – helps knowledge sharing, networking and relationships • Anticipates change – through horizon scanning and internal sensing HR’S CONTRIBUTION TO BUSINESS STRATEGY
  • 56. Connecting business & HR strategies Business strategy HR strategy Business plans Imple- mentation Monitor Internal drivers External drivers HR’S CONTRIBUTION TO BUSINESS STRATEGY
  • 57. How is people & business alignment achieved • What is the organisation’s big idea? • What are the business priorities? • What are the people priorities? • How do they link? Big idea Business priorities People priorities HR’S CONTRIBUTION TO BUSINESS STRATEGY
  • 58. Establishing people priorities What causes people to come to work, be motivated and perform? What stops them from beingeffective? HR’S CONTRIBUTION TO BUSINESS STRATEGY
  • 59. A model of capability ability: skills, training education motivation: engagement involvement application: OD product market strategy access: resourcing recruitment succession DeploymentDevelopment Individual capability Organisational action HR’S CONTRIBUTION TO BUSINESS STRATEGY
  • 60. What are external influences? Conduct environmental scanning: • what is the legal context • how tight/loose is the labour market • are the right skills available • at what price • what is the output from schools, universities, etc • what are the political priorities HR’S CONTRIBUTION TO BUSINESS STRATEGY
  • 61. What is the state of the current workforce? • What proportion is skilled for their current and for future jobs? • What is its demographic shape? • How committed are employees? – attendance – productivity – staying or leaving • What are collective relationships like? • To what extent is employee potential being harnessed? HR’S CONTRIBUTION TO BUSINESS STRATEGY
  • 62. What stops HR succeeding? • Human capital not recognised as a source of advantage • Weak organisational leadership • Poor teamworking across organisation • Business strategy poorly defined • There is little forward planning • People resources assumed to be unlimited, free or fully trained • Resources are hoarded & not shared HR’S CONTRIBUTION TO BUSINESS STRATEGY
  • 63. HR’s own problem areas • Obstacles to success: – time – capacity – focus – capability – positioning – organisation HR’S CONTRIBUTION TO BUSINESS STRATEGY
  • 64. HR’s own problem areas • Obstacles to success: – time – capacity – focus – capability – positioning – organisation • Relationships with management not working. The villains: – HR – not letting go – the line – not taking it up – senior mgt – sending wrong signals HR’S CONTRIBUTION TO BUSINESS STRATEGY
  • 65. Results • Inadequate HR service performance • Concentrating on low value tasks • HR policies are disjoined & inconsistent • They serve functional not organisational needs • Weak functional leadership • Poor internal reputation • Human capital not exploited, developed HR’S CONTRIBUTION TO BUSINESS STRATEGY
  • 66. What should HR do? • Review your retention model – right level of wastage? – numbers, types, quality Why do they leave? Why do they join?  Construct a workforce plan  Establish the supply/demand balance  Are the right people, in right jobs?  Review your recruitment model ■ able to attract - all types? ■ brand ■ proposition HR’S CONTRIBUTION TO BUSINESS STRATEGY
  • 67. A strategic review of recruitment and retention Market availability Organisational impact Outsource Commoditise Attract & retain HR’S CONTRIBUTION TO BUSINESS STRATEGY
  • 68. What should HR do? (2) • How well are employees aware of – the bigger picture? – their job? – what success looks like? How do you know?  Are you able to motivate staff? ■ degree of engagement ■ what motivates them? ■ what demotivates them? ■ what impact does pay and performance management have? HR’S CONTRIBUTION TO BUSINESS STRATEGY
  • 69. What should HR do? (3) • How skilled are line managers in – Appraising performance? – Giving feedback? – Developing skills? • How effectively are – Employees allocated to jobs? – How well are jobs/the organisation structured? – Employees moved to meet business needs? HR’S CONTRIBUTION TO BUSINESS STRATEGY
  • 70. What should HR do? (4) • What is the organisation’s – Ability to change/innovate • How good is the organisation’s governance structure? • How strong (and respected) are the organisational values, eg – On diversity? – Meritocratic progression? HR’S CONTRIBUTION TO BUSINESS STRATEGY
  • 71. Measure people and HR functional performance Through for example • Critical success factors/areas • Key performance indicators • Customer surveys • Employee attitude surveys • Process mapping/activity analysis • Audits/reviews (incl... quality) • Scorecards • Benchmarking HR’S CONTRIBUTION TO BUSINESS STRATEGY
  • 73. Examples of measures in multi dimensional measurement Process metrics Ratios Human Capital Cost/Income against headcount Strategic alignment Functional positioning Customerviews HR’S CONTRIBUTION TO BUSINESS STRATEGY
  • 74. internal external business performance managing people business goals HR policies & practices HCM measuring reporting acting Human capital measuring & doing HR’S CONTRIBUTION TO BUSINESS STRATEGY
  • 75. HR Strategies Providing Superior Return on Human Capital Investments SMART HR PRACTICES
  • 76. If you want 1 year of prosperity, grow grain. If you want 10 years of prosperity, grow trees. If you want 100 years of prosperity, grow people. - old Chinese proverb SMART HR PRACTICES
  • 77. Purpose • Provide strategic context about how to use “Smart HR” practices to build value in your organization. SMART HR PRACTICES
  • 78. Payoff • Information about how “Smart HR” practices can reduce costs, improve quality and increase value. SMART HR PRACTICES
  • 79. We Help Leadership... • Align people with business strategies. • Deal with the "soft" factors driving human performance. We help managers deal with the toughest issue: their people. SMART HR PRACTICES
  • 80. Expertise • Surveys and Assessments • Training and Development • Strategic Planning • Culture Change • Team Building • Coaching SMART HR PRACTICES
  • 81. Do I know what is expected of me at work? Do I have the materials and equipment that I need in order to do my work right? At work, do I have the opportunity to do what I do best every day? In the past seven days, have I received recognition or praise for doing good work? Does my supervisor, or someone at work, seem to care about me as a person? Is there someone at work who encourages my development? 12 Simple Questions SMART HR PRACTICES
  • 82. 12 Simple Questions (continued) • At work, do my opinions seem to count? • Does the mission or purpose of my company make me feel that my job is important? • Are my coworkers committed to doing quality work? • Do I have a best friend at work? • In the past six months, has someone at work talked to me about my progress? • This past year, have I had opportunities at work to learn and grow? SMART HR PRACTICES
  • 84. Why Bother with Satisfaction? • New employees are very expensive • Current employees are very valuable • Satisfied employees are very forgiving • Employees respond more strongly to how you treat them than anything else SMART HR PRACTICES
  • 85. “Smart HR” Practices More Productive and Engaged Workforce Loyal Customers Improved Business Performance... Service - Profit Chain SMART HR PRACTICES
  • 86. Sustainable Competitive Advantage “The ability to learn faster than your competitors may be the only sustainable competitive advantage.” People are the key to maximizing shareholder value and increasing profits in today’s economy. SMART HR PRACTICES
  • 87. “Smart HR” Practices Strongest Links to Financial Success • Collegial, Flexible Workplace • Communications • Prudent Use of Resources • Rewards and Accountability • Recruiting SMART HR PRACTICES
  • 88. “Smart HR”: Collegial, Flexible Workplace • Flexible work arrangements • Encourage teamwork and cooperation • Perks do not vary with position • High employee satisfaction • All employees on first-name basis • Low emphasis on titles SMART HR PRACTICES
  • 89. "Smart HR": Communications • Easy access to communication technologies • Ample opportunity to give ideas and suggestions • Financial information is shared • Input into how work gets done • Business plans and goals are shared SMART HR PRACTICES
  • 90. "Smart HR": Prudent Use of Resources • Profit-sharing based on business unit’s success • Training for advancement • Input into peer evaluation • Input into evaluating managers SMART HR PRACTICES
  • 91. "Smart HR": Rewards and Accountability • Stock plan options • Termination of unacceptable employees • Help poor performers improve • Top performers are significantly paid more • Positions paid above market • Link pay to business strategy • Link performance appraisals to pay • Profit-sharing linked to firm’s overall success SMART HR PRACTICES
  • 92. "Smart HR": Recruiting • Hire well-equipped professionals • Link recruiting to business plan • Reputation as a desirable place to work • Hire well-equipped hourly new employees • Employee input on hiring decisions • Recruiting strategy for hiring critical positions SMART HR PRACTICES
  • 93. 3 Most Important People Issues? • Leadership development • Motivational pay • Training and development of their workforce SMART HR PRACTICES
  • 94. Employee Commitment and the Bottom Line • Implementing “"Smart HR"” practices will create an energized, enthusiastic, educated workforce. • These practices provide difference between retaining a highly qualified workforce or searching needlessly and expensively for new talent. SMART HR PRACTICES
  • 95. Peer Coaching: “Smart HR” • What “Smart HR” Goals would you like to set for yourself? • What would it look like if you accomplished those goals? • What next steps must you take to accomplish your goals? SMART HR PRACTICES