The document discusses human resource planning from an organizational perspective. It states that people are a company's only competitive advantage and that leading companies unleash human potential through vision, capability assessments, manpower planning aligned with business planning, quality hiring and retention practices, and manpower control. The rest of the document provides details on the concepts, processes, techniques, importance and limitations of human resource planning.

1. HRP: An organizational perspective
 People are the only competitive advantage
 People as a potential limiting factor
 Leading edge companies unleash people potential(best people
approach)
 Vision and Capability-The achievable plan
 Capability Assessment
 Manpower planning within Business Planning
 Quality of people and their retention
 Manpower Control

2. HR Planning
 HR Planning is the process of examining an organizations’
future human resource need.
 It involves:
 Identifying and acquiring the right number of people with the proper skills
 Motivating them to achieve high performance
 Creating interactive links between business objectives and resource
planning activities

3. Human Resource Planning (HR Planning) is both a process and a set of plans.
It is how organizations assess the future supply of and demand for human
resources.
An effective HR plan also provides mechanisms to eliminate any gaps that may
exist between supply and demand. Thus, HR planning determines the
members and types of employees to be recruited into the organization or
phased out of it.
Dynamic by nature, the HR planning process often requires periodic
readjustments as labor market conditions change.
Human Resource Planning

4. Technological forecasts
Economic forecasts
Market forecasts
Organizational planning
Investment planning
Annual operating plans
Technological forecasts
Economic forecasts
Market forecasts
Organizational planning
Investment planning
Annual operating plans
Annual employment
requirements
Numbers
Skills
Occupational categories
Annual employment
requirements
Numbers
Skills
Occupational categories
Existing employment
inventory
After application of
expected loss and
attrition rates
Existing employment
inventory
After application of
expected loss and
attrition rates
VariancesVariances EndEnd
If surplusIf surplus If shortageIf shortage
Decisions
Layoff,
retirement,
etc.
Decisions
Layoff,
retirement,
etc.
Decisions
Overtime,
recruitment,
etc.
Decisions
Overtime,
recruitment,
etc.
EndEnd EndEnd
Strategic Planning Human Resource Demand Human Resource Supply
Compared
with
If none
Action
Decisions
HRP Process

5. All effective HR planning shares certain features. It is generally agreed that HR
planning involves four distinct phases or stages:
Situation analysis or environmental scanningSituation analysis or environmental scanning
Forecasting demand for human resourcesForecasting demand for human resources
Analysis of the supply of human resourcesAnalysis of the supply of human resources
Development of plans for actionDevelopment of plans for action
The HRP Process

6. Why is HRP important ?
 Even an imperfect forecast is better than none at all
 Anticipating needs – preparing for the future gives you an edge
 Address potential problems – avoid skill deficiencies

7. What is HRP?
 HRP is a sub-system of total organizational planning.
 HRP facilitates the realization of the company’s objectives for
the future by providing the right type and number of personnel
 HRP is also called Manpower planning, Personnel planning or
Employment planning

8.  HRP ensures that the organization has:
 Right Number
 Right Kind
 Right Place
 Right Time

9. Benefits of HRP
 Create reservoir of talent
 Prepares people for future
 Expand or Contract
 Cut Costs
 Succession Planning

10. 5-22
Formulating HR Plans
Human Resource Planning
Once supply and demand for labour is known adjustments can be
made formulating requisite HR plans
A variety of HR plans
 Recruitment plan
 Redeployment plan
 Redundancy plan
 Training plan
 Productivity plan
 Retention plan

11. 5-23
Responsibility For Human Resource
Planning
HRP is a top management job. HR plans are usually made by the
HR division in consultation with other corporate heads. Any
deviations from the formulated plans and their causes must be
looked into, from time to time in order to assess whether the plans
require revision or modification.
Human Resource Planning

12. 5-24
Limitations Of Human Resource
Planning
HR professionals are basically confronted with three problems while
preparing and administering HR plans: accuracy, inadequate top
management support, lopsided focus on quantitative aspects.
Human Resource Planning

13. 5-25
Effective Human Resource Planning
HR plans must fit in with overall objectives of a firm. They must get
consistent support from top management. Computerised human resource
information systems must be used for applicant tracking, succession
planning, building skills inventories etc. The whole exercise must be
carried out in coordination with operating managers.
Human Resource Planning

14. Forecasting Techniques
 Managerial Judgment
 Ratio trend analysis
 Work Study Techniques
 Delphi Technique
 Flow Models
 Others

15. Factors in Demand forecasting
 Social factors – Working conditions, Govt. regulations,
environmental conditions, religious, cultural.
 Technological Factors
 Political Factors – Trade restrictions, War etc.
 Economic Factors
 Demand generation
 Growth
 Employee Turnover

16. Job Analysis
 Job Analysis is not a one time activity as jobs are changing
constantly
 The job and not the person – an important consideration in job
analysis is conducted of the job and not of the person
 It simply highlights what are the minimum activities that are
entailed in a job.

17. Job Analysis
 Skill Range
 Does the job cover a reasonable but not too extensive range
of different tasks?
 Are there opportunities to use knowledge and skills
associated with effective performance of the job?
 Can the individual make full use of their skills and develop
their skill base?

18.  Job Purpose
 Is the purpose of the job clearly and unequivocally
 Is its contribution to the organisation’s objectives evident?
 Is its contribution to its dept obvious?
 Is the post holder responsible for the successful completion
of the whole job?
 Do the internal systems help the post holder do the job?
Job Analysis

19. Job Analysis
 Relationships
 Are the formal relationships clearly specified and related to
the achievement of the objectives?
 Is there opportunity to develop working relationships within
and across the department’s boundaries?
 Are colleagues available with whom the post holder can
discuss professional issues

20. Job Analysis
 Job Outcomes:
 Can the post holder see the result of their efforts?
 Can the results of the post holders efforts be recognised?
 Does the post holder have the opportunity to influence their
own levels of performance?
 Rewards
 Are the rewards appropriate and obtainable?
 Are the rewards linked directly with the performance of the
post holder?

21. Steps in Job Analysis
1. Organizational Analysis – Overview of various jobs in the
organization and the linkages between them and the
contribution of various jobs towards achieving organizational
efficiency and effectiveness.
2. Uses of Job Analysis Information
3. Selection of jobs for analysis
4. Collection of Data
5. Preparation of Job description – tasks, duties, responsibilities
6. Preparation of Job Specification – personal attributes required
in terms of education, training, aptitude and experience to
fulfill the job description

22. Methods of collecting information
 Job Questionnaire:
 Most cost effective method
 Elicits information from workers & their immediate supervisor
 You can get intimate detailed knowledge of their jobs
 Questionnaire needs to be structured in advance
 Responses can be used to create a job description

23.  Questionnaire method
Disadvantages
 Right population – questions can be interpreted differently
 Not everyone is able to describe fully & exactly
 Questionnaire not easy to make to cover all aspects

24. Interview
 Disadvantages:
 Time consuming
 Quality and experienced analyst
 Distrust of interviewers

25. Observation
 It is good for simple and repetitive jobs
Disadvantages:
 Presence of analyst can cause stress
 Jobholder may purposely reduce the pace of
activity to justify overtime
 Cannot be used where job requires personal
judgment and intellectual ability

26. Independent Observers
 Diary – One or more incumbents note duties and frequency of
tasks performed
 Critical Incidents – Incumbents brainstorm of critical incidents
that happen routinely and infrequently – this method is excellent
for training
 Photo tape recording
 Review of records – Maintenance records, repair records at
seasonal variations

27. Data collected
 List of tasks
 List of decisions made
 Amount of supervision received
 Supervision exercised
 Diversity of functions performed
 Interaction with other staff
 Physical conditions
 Software used

28. Definitions
 Job - Consists of a group of tasks that must be performed for an
organization to achieve its goals
 Position - Collection of tasks and responsibilities performed by
one person; there is a position for every individual in an
organization

29. Definitions
 Job analysis - systematic process of determining the
skills, duties, and knowledge required for performing
jobs in an organization
 Job description – document providing information
regarding tasks, duties, and responsibilities of job
 Job specification – minimum qualifications to perform
a particular job

30. Tasks Responsibilities Duties
Job
Analysis
Job Descriptions
Job Specifications
Knowledge Skills Abilities
Human Resource Planning
Recruitment
Selection
Training and Development
Performance Appraisal
Compensation and Benefits
Safety and Health
Employee and Labor
Relations
Legal Considerations
Job Analysis for Teams
Job Analysis: A Basic Human Resource Management Tool

31. Job Description
 Difficult to have a perfect and fully inclusive JD – as one moves
up in the hierarchy of the organization, a detailed JD becomes
very difficult.
 Most orgs would prefer not to describe the job fully, because
employees would stick to it and not do anything beyond
 Supervisors job may become redundant
 Rapid technological changes

32. Job Description
 A job description
 Clarifies work functions and reporting relationships, helping
employees understand their jobs.
 Aids in maintaining a consistent salary structure.
 Aids in Performance evaluations.
 Is a set of well written duty statements containing action words
which accurately describe what is being done.

33.  Duty statements
 should focus on primary, current, normal, daily duties and responsibilities
of the position (not incidental duties, an employee’s qualifications or
performance, or temporary assignments). Related or similar duties
should be combined and written as one statement.
 Should be a discreet, identifiable aspect of the work assignment,
described in one to three sentences, and should be outcome-based,
allowing for alternate means of performing the duty, changes in
technology, preferences of employees and supervisors, and
accommodations of workers with disabilities, without altering the nature
of, and/or the duty itself.

34. Writing a JD
 Duties are to be listed in order of importance, not necessarily
frequency.
 There is no need to group tasks/duties under sub headings,
however it is acceptable.
 Commence each statement with a verb eg 'processes', 'maintains',
'records' etc, .
 Avoid using the term 'responsible for' rather describe the action
e.g. 'obtains', 'coordinates' etc.

35. Writing a JD
 Frequencies should be identified in multiples of 5%. Duties that
take less than 5% of the officer's time should not be shown as
separate but grouped with other duties.
 Use action verbs which tell what the position does. Examples
include "supervises", "programs", "directs" and "analyzes".
Provide specific examples to illustrate the duties Avoid
ambiguous terms such as "oversees" or "manages", instead,
describe the activities involved in overseeing or managing.
Quantify activities when possible. Examples may include: How
often is the activity performed? How much money does this
position manage? What is the volume of work handled?

36. Writing a JD : Primary Function
 What is the Position's objective?
 What is the Role of Position (including key relationships)?
 Position summary [Briefly state the purpose or objective of the
position]:
 Essential job functions [State the major responsibilities, indicate
New (N) or Existing (E), and the estimated percent of time
devoted to each - include descriptive statements of typical or
representative tasks associated with the major
responsibilities/functions]:
 State briefly the general function of your position, including the
basic nature of the department and the relationship of your
position with other positions in your work area

37. Person Specification
 Person Specification is a statement derived from
the job analysis process and the job description
 Of the characteristics that an individual would need
to possess in order to fulfill the requirements of a
job

38. Compiling a person specification
 Attainment: What educational requirements and specialist
knowledge are really required for successful completion of the
task
 Experience: What roles and tasks should have been occupied
to ensure that the post holder is adequately equipped?
 Abilities: What skills need to be deployed for the competent
performance of the tasks?
 Aptitude: Where will the post-holders strengths lie;what
particular talents do they need to possess?
 Interests: What interest relevant to the work will suggest
possession of sought after skills /aptitudes?

39. Reasons For Conducting Job Analysis
 Staffing – would be haphazard if recruiter did not know
qualifications needed for job
 Training and Development – if specification lists a particular
knowledge, skill, or ability, and the person filling the position
does not possess all the necessary qualifications, training
and/or development is needed
 Compensation and Benefits – value of job must be known
before dollar value can be placed on it

40. Reasons For Conducting Job Analysis (Continued)
 Safety and Health – helps identify safety and health considerations
 Employee and Labor Relations – lead to more objective human resource
decisions
 Legal Considerations – having done job analysis important for supporting
legality of employment practices

41.  Work Activities – work activities and processes; activity records (in film
form, for example); procedures used; personal responsibility
 Worker-oriented activities – human behaviors, such as physical actions
and communicating on the job; elemental motions for methods analysis;
personal job demands, such as energy expenditure
 Machines, tools, equipment, and work aids used
 Job-related tangibles and intangibles – knowledge dealt with or applied
(as in accounting); materials processed; products made or services
performed
Summary of Types of Data Collected Through Job Analysis

42.  Work performance – error analysis; work standards; work measurements,
such as time taken for a task
 Job context – work schedule; financial and nonfinancial incentives;
physical working conditions; organizational and social contexts
 Personal requirements for the job – personal attributes such as
personality and interests; education and training required; work experience
Summary of Types of Data Collected Through Job Analysis

43. Conducting Job Analysis
The people who participate in job analysis should
include, at a minimum:
 The employee
 The employee’s immediate supervisor
 Other key stakeholders in the organization

44. Exercise

45. Recruitment and Selection

46. HR Processes – An Employee Life Cycle

47. Routine HR Functions
 Manpower planning
 Recruitment and Selection
 Training & Development
 Appraisals – Performance Management
 Transfers / Promotions
 Compensation and Benefits

48. Non Routine HR Functions
 Culture Management
 Change Management
 Cross Cultural Issue Management
 HR Audit
 HR Accounting
 Outsourcing of HR
 VRS / Existing Employee Management / Succession
Planning

49. HR Process Mapping
Business
Planning
HR Policy HR
Planning
Recruitment
Selection
Performance
Management
Compensation
Management
Talent
Management
Training
Development
HR Systems
Data Mgmt
Employee
Relations
Occupational
Health and Safety

50.  Recruitment: Overall process of defining jobs
profiles and inviting applicants.
 Selection: Specific process of narrowing the
focus and selecting the perfect fit
Definitions

51. Manpower Planning
 Business Needs
 Financial Feasibility
 Future Plans
 Brand Name

52. Manpower Planning
 Why does the position exist?
 Temporary Replacement
 Permanent Replacement
 Creation of new position

53. Manpower Planning
 Do we need to review the position?
 Current and Ongoing need
 Sufficient budget
 Is the position description current
 Appropriate current level
 Is a full time employee required?

54. Manpower Planning
 What about existing staff?
 Do we have a succession plan for the replacement?
 Does the vacancy create career development
opportunities for existing people?

55. Recruitment and Selection process
 Business Plan
 Related HR Plan
 Competencies
 People
 Compensation and Benefits
 Numbers
 Current : Budgeted and Actual
 Future : Short Term and Long Term
 Three Conditions
 Current = Future
 Maintenance B = A
 Vacancy Filling B > A
 Current > Future
 Redundancy Planning
 Current < Future
 Recruitment Plan

56. Recruitment and Selection process
 Recruitment Plan
 Position Description/Specifications
 Person Specifications
 Method of Recruitment
 Internal
 Reference/Promotions/Transfers
 External
 Advertisement
 Where to advertise
 Writing an advertisement
 Consultants
 Retainer
 Multiple
 Internet
 Receiving Applications and Screening/Filing

57. Recruitment and Selection process
 Screening /Short-listing
 Coding
 Computer aided screening
 Selection Tools
 Written Tests
 Group Discussions
 Interviews
 Assessment Centres
 Reference Checks
 Offer
 Joining

58. Process Key Parameters
 Process must be
 Equitable
 Objective
 Open to scrutiny
 Transparent
 Merit based
 Confidential

59. Common Hiring Mistakes
 Relying on an interview to evaluate a candidate
 Using successful people as model
 Using too many criteria
 Evaluating”personality” not job skills
 Using yourself as an example
 Not using statistically validated data

60. Exercise

61. Performance Management

62.  An objective is a simple statement of an end result to
be achieved within a specified time frame.
 It should be short, clear and specific.
 It can also be in the form of an activity as it may not
always be possible to quantify the end results.
Objective setting

63.  Gives direction to job.
 Helps focus on important job areas.
 Assists review and change in job emphasis.
 Provides a basis for appraisal, counselling and
feedback.
 Increases mutual job understanding with superior.
Why objective setting?

64.  Are significantly important areas of job.
 When performed well, improves overall results.
 Are maximum payoff job areas.
 Represent the work which account for 80% of results.
Objectives

65.  Targets – are specific conditions to be
achieved/indicates how much of what and by when
 Activities – action steps which lead to the end results /
used when targets are not quantifiable / indicate what
by when
Objectives

66.  What is the job ?
 What are the end results expected ?
 What policies / procedures / work methods are impeding
performance ?
 What changes are needed for better results ?
 How can work assignments be regrouped/altered to improve
schedule ?
 What problems need to be overcome next year ?
Process of Goal Setting

67. Objectives vs targets
 Focus on imp. Areas
 Related to job description
 Signposts
 Direction of work
 Optimum number 6
 Measures imp. Results
 Related to objectives
 Milestones/Pathways
 Specific condition
 One or more for each
objective

68.  Observable
 Basis for appraisal
 Jointly evolved
 Extra effort
 Clear/consistent with dept. objective
 Time bound
 Initiative
 Verifiable
 End result- emphasis on
 Satisfying
Criteria for objectives

69.  S - Specific
 M - Measurable
 A - Attainable
 R - Relevant
 T - Time-bound
Objectives

70.  Establishing specific goals to support stated purpose.
 Determining the importance of these goals.
 Making plans for action.
 Arriving at performance standards and measurement
criteria.
 Stating anticipated problems.
Process

71.  Weighing the resources required to carry out the
planned action.
 Providing for interaction of organization and individual
goals.
 Following up with actual performance measurement
and evaluation.
Process…

72. HRs role in Performance Management
 Delivering time-lines
 Ensuring timely adherence
 Auditing the objectives jointly with line managers
 Ensuring objectives are in line with organisational goals
 Requesting modification if required

73. Competency
 It is derived from the Latin word ‘Competere’, which
means to be suitable.
 The concept was originally developed in Psychology
denoting Individual’s ability to respond to demand placed
on them by the environment.

74. Competencies defined
 A collection of characteristics (i.e. skills, knowledge and self-concept, traits,
behaviour, motivation, etc.), that enables us to successfully complete a
given task.
Self-conceptSelf-concept
(Attitude)(Attitude)
SkillsSkills KnowledgeKnowledge

75. Iceberg Model of Competencies

76. Competencies in the Corporate World
 Communication
 Critical Thinking
 Ethics / Social Responsibility
 Information Technology
 Interpersonal Diversity
 Leadership
 Managing Change
 Self-managed Learning
 Teamwork
 Technical know-how

77. Emotional Competency Framework
Personal Competence Social Competence
Self Awareness:
Knowledge of one’s self-concept
and values
Empathy:
Awareness of others’ feelings and
emotions
Self Regulation:
Management of one’s impulses
and emotions
Social Skills:
Adeptness at inducing desired
responses in others
Motivation:
Self-guidance and direction
* from Working With Emotional Intelligence, by Daniel Goleman

78. Competency Classification
Individual Organisation
Social Behavioural
Leadership
Generic competencies
Organisational
Cultural
Technical Functional / operational
knowledge
Skill knowledge
Threshold competencies
Core competencies
Corporate competencies
Distinctive competencies

79. Why use competencies
 Competencies
 help individuals and organisations to improve their
performance and deliver results
 can be quantified and communicated
 can be taught, learned, measured and monitored

80. Benefits of competency-modeling
 Integrates fragmented management and practices
 Links individual or group performance to strategic direction
 Helps develop high value activities for the organisation
 Focusing on what people do, not what they are
 Leads to organisational flexibility and stability
 Leads to competitive advantage
 Is participatory and involving
 Is objective; therefore, can be geared to possible change in business future
and to ensure relevance

81. Benefits of competency-modeling – HR Delivery
 Matching of Individuals and Jobs
 Employee Selection
 Training and Development
 Professional and Personal Development
 Performance Measurement
 Succession Planning

82. Who Identifies competencies?
 Competencies can be identified by one of more of the following category of
people:
 Experts
 HR Specialists
 Job analysts
 Psychologists
 Industrial Engineers etc.
in consultation with: Line Managers, Current & Past Role holders,
Supervising Seniors, Reporting and Reviewing Officers, Internal Customers,
Subordinates of the role holders and Other role set members of the role
(those who have expectations from the role holder and who interact with
him/her).

83. What Methodology is used?
 The following methods are used in combination for competency
mapping:
 Interviews
 Group work
 Task Forces
 Task Analysis workshops
 Questionnaire
 Use of Job descriptions
 Performance Appraisal Formats etc.

84. How are they Identified?
 The process of identification is not very complex. One of the
methods is given below:
 1. Simply ask each person who is currently performing the role
to list the tasks to be performed by him one by one, and identify
the Knowledge, Attitudes, and Skills required to perform each of
these.
 Consolidate the list.
 Present it to a role set group or a special task force constituted
for that role.
 Edit and Finalize.

85. What Language to Use?
 Use Technical language for technical competencies. For
example: knowledge of hydraulics.
 Use business language for business competencies. Example:
Knowledge of markets for watch business or Strategic thinking.
 Use your own language or standard terms for Behavior
competencies. Example: Ability to Negotiate, Interpersonal
sensitivity, Sales techniques. Too technical and conceptual
knowledge align to the organization and people may create
more problems than help

86. HRD Audit
 HRD audit is a comprehensive evaluation of the current HRD
strategies, structure, systems, styles and skills in the context of
the short- and long-terms business plans of a company. It
attempts to find out the future HRD needs of the company after
assessing the current HRD activities and inputs and thus
proving to be an effective tool for the organization development
process.

87. How is Human Resource Analysis Done?
 Human Resource Audit
 Purpose:
 To identify the size, skills and structure surrounding
current employees and
 to identify future human resource needs of the
organization
 Question Answered:
Are the human resources a strength or a
weakness?

88. The Audit: Principles
 Obtain some basic information on the people and
policies involved in the organization
 Explore in detail the role and contribution of the human
resources management function in the development of
strategy

89. The Audit: Contents
 People in the Organization
 Role and Contribution of HR strategy

90. HR Audit: People in the organization
 Employee numbers and turnover
 Organization structure
 Structures for controlling the
organization
 Use of special teams, e.g. for
Innovation
 Level of skills and capabilities
required
 Morale and rewards
 Employee and industrial
relations
 Selection, training and development
 Staffing levels
 Capital investment/employee
 Role of quality and personal service
in delivering the products or services
 of the organization
 Role of professional advice in
delivering the product or service

91. Role & Contribution of HR Strategy
 Relationship with strategy
 Key characteristics of HR strategy
 Consistency of strategy across different levels
 Responsiveness of HR strategy in leading change in
the organization
 Role of HR strategy in leading change in the
organization
 Monitoring and review of HR strategy
 Time horizon for operation of HR strategy

92. What the Audit Achieves
 Provides information that is useful in deciding how
feasible a strategy is
 Identifies any human resource “gaps” (human
resources necessary for a proposed strategy minus the
current state of human resources)
 Allows the organization to “benchmark” their
performance against other organizations (benchmark is
a process of comparison)

93. Human Resources as a CSF
 Critical Success Factor (CSF) = a reason why one
organization is superior to another
 HR can be a CSF if employees have unique skills

94. The HR audit is based on the following premise
 The Vision and Mission of the Organization:
 The Audit consultants are able to formulate their strategies
based on these objectives. They also analyze the
competencies that the organization will need to achieve
these targets whether long term or short term.
 The consultant breaks down these organization level
competencies to individual skills to be developed at various
levels. These competencies may deal with various aspects
like technical, conceptual or people management skills

95. Current competencies available in the company
 This is generally done through examining the details of the
employees like their qualifications, job descriptions, training
undertaken, thus basically trying to identify the skill level of the
employees at various levels.
 Organization process documents like performance appraisal
feedback and training need identification provide additional
information on this.
 Departmental heads and other employees provide insights
into the competency and other skill requirements.

96. Available HRD systems that help build the competency levels required
achieving the long-term goals or the short-term goals.
 These provide details for the HRD Systems maturity
score in the HR scorecard.
 The existing HR processes tell the auditors the maturity
level of the process that is studied in detail to ensure
the availability, utilization and development of skills in
the organization.

97. Effectiveness of the HR systems and process
 The presence of the HRD systems is not sufficient to achieve
success. These processes also need to be efficient. Example:
An organization may have an excellent Exit interview system in
place. But if the feedbacks from the Exit interviews are not
utilized for improving organization systems then the Exit
interview process is of no use and becomes redundant over a
period of time.
 The exit interview should give inputs for training needs or
improving people management skills or compensation policies
in some cases.

98. Ability of the existing HR structure in managing the HR
process and policies
 The consultants identify whether the current HR
structure is sufficient to handle the pressure of the
future needs of the company. To implement any OD
intervention or handle any Change management
exercise the HR task force has to be at its best with all
the required tools of competencies and skills.

99. Leadership styles of the Management team
 The senior manager leadership style is very important
for any change process and implementing the HR
audit. It is necessary that their management style
facilitate in creating a learning organization. The
leadership styles define the culture of the organization

100. The HR audit process
 Auditing a human resource department is a systematic
process that involves at least two steps:
 Gathering information to determine compliance, effectiveness, costs
and efficiencies.
 Evaluating the information and preparing a written report, with an
action plan based on exposures, priorities and a timeline for
instituting changes. In order to reduce exposure to legal liability,
some changes will need to be implemented immediately, while others
can be completed in three to six months.

101. Immediate benefits of an HR audit
 Very typically, small to medium-size companies realize
almost instant cost savings once an audit is complete
and changes are implemented. For example:
 Correcting benefit premium errors and overpayments can
generate many thousands of dollars in savings.
 Examining the effectiveness of recruitment

102.  A small or medium-size firm also may benefit from using an HR
audit to:
 Study retention and turnover, employing a neutral party to solicit honest
feedback from employees, and allowing the company to develop an
action plan.
 Examine the company's foundation for its compensation philosophies
and develop an objective method of grading jobs, with new ranges that
are market-competitive and internally equitable.
 Improve employee communication and ensure that the HR department is
accessible.
 Identify opportunities to outsource areas within human resources that
offer more value to the company

103. Rewards and Recognition

104.  How many managers feel that “appreciating others” is a
major part of their job ?
Very FEW
Recognition Jeopardy

105. Recognition Jeopardy
 What causes you the most dissatisfaction at work ?
Lack of appreciation

106. A Challenging Situation
 Employee faith and loyalty in organizations dropping!
 40% of employees feel unappreciated
 1 in 3 workers are unhappy and not engaged
 “not feeling appreciated” may be the #1 reason people leave a
job
 61% of employees received no meaningful praise in the past
year

107. 78% of employees feel it is very important to be
recognized by their manager
“I now perceive one immense omission in my
psychology – the deepest principle of human nature is the
craving to be appreciated.”
William James
“I can live for two months on a good compliment!”
Mark
Twain
Who needs appreciation?

108. Informal Recognition: Building A Culture
 Understand organizational goals/values
 Determine the goals of the recognition initiative
 Know your staff better
 “How to do it”– every day
 Look for recognition opportunities
 “Thanks”, praise and feedback

109. Organisation’s Goals / Values
 What values and goals does the organization want to promote?
 Relative importance?
 Relative impact?
 What specific values and goals will be addressed with
recognition efforts?

110. Potential Initiative Goals
Create a positive work environment 80%
Create a culture 76%
Motivate high performance 75%
Reinforce desired behaviors 75%
Increase morale 71%
Support organizational values/goals 66%
Increase retention 51%
Encourage loyalty 40%
Others – communication, teambuilding, focus
NAER 2003 Recognition Survey

111. Recognition Follies
better people skills technical achievements
If we want Why do we often recognize
innovative thinking
employee development
Remember you get what you recognize!
“no mistakes”
tight control over
resources

112. Potential Benefits
 Positive workplace…
 Support of organization’s
goals…
 Increased retention
 Higher performance
 More innovation/better
economics

113. Potential Benefits
 Positive workplace…
 Support organization’s
goals…
 Increased retention
 Higher performance
 More innovation/better
economics
 Increased self-esteem
 An employee who feels
more valued
 A more committed,
engaged analyst
 Strengthened bond
between the analyst and
manager
 A more focused manager

114. Know Your Analysts
 What are their professional and personal goals?
 What do they value?
 Fit the recognition to their values
 How do they want to be recognized?

115. Getting to know what your people want
 Challenging, interesting work
 A collegial work environment
 Work that supports growth and personal achievement
 Good communications and supportive relationships
 Recognition for new promising ideas
 Support for risk taking
 Clearly integrated technical/business goals

116. “Good Recognition”
 As immediate as possible
 Specific
 What did you see
 How did it impact the situation or the organization
 In a form meaningful to the employee
 Provided in a way meaningful to the employee
 Recognizes work in progress/efforts as well
 Recognizes everyone including high performers

117. Effective Ways to Recognize
 “Thanks!” including feedback
 Employee involvement
 Responsibility and authority
 Employee development
 The work itself
 Attention
 Professional recognition

118. Highly Valued Forms of Recognition
4. More authority
3. More responsibility
2. Personal praise
1. Manager’s support and involvement

119. Employee Involvement
 Ask for their opinions and ideas
 Implement their ideas whenever possible
 Include them in planning and decision making
 Provide as much information as possible
 Let them represent the lab
 Suggest participation on special teams and committees

120. Responsibility/Authority
 More freedom to work independently
 More opportunities to self-manage
 Higher levels of responsibility
 Empowerment to make more decisions
 Ability/responsibility to improve processes

121. Employee Development
 Provide opportunities to fulfill their own goals – not just follow
organizational dictates
 Freedom to work more independently
 Formal training opportunities
 In or out-of-house
 Let them use the new skills immediately
 Let them brief others
 Recognize individual talents when assigning work

122. (ASAP)3
= Effective Praising
 As soon
 As sincere
 As specific
 As personal
 As positive
 As proactive
© 1997 by Bob Nelson
(scientific version of ASAP-Cubed)

123. Recognition Using Feedback
 Feedback is a powerful form of praise
 Addresses important values of challenging work and excellent
performance
 Shows your concern and interest
 Positive AND constructive messages
 “…can’t have one without the other”
 Enhances intrinsic motivation
 A positive cycle of excellent work leading to higher motivation from the
work leading to higher performance….

124. ALMA Roundtable – Insights
 “Thanks” is highly effective if reinforced over time
 Recognition must be sincere, timely, appropriate
 Tailor the recognition/reward
 The more personal the better
 Show appreciation in various ways
 Personal notes
 Pass along or post messages of appreciation
 Post successes
 “Recognition/rewards are not motivators, but they keep motivated people
from becoming de-motivated”

125. Potential Obstacles?
 Managerial behavior
 Mismatch with environment/culture
 Expectancy/reinforcement theory
 Recognizing the wrong behavior or value
 Intrinsic motivation – the Pareto 20%

126. Measuring Success
1. Response to surveys
2. Performance development meetings
3. Retention rates
4. Exit interviews
#3 and #4 – highly accurate data, too late and likely
“NO”
ALMA Roundtable 2005

127. Why Do Rewards Fail?
 Often punish/undermine relationships
 Undermine interest in the task itself
 Reduce risk taking
 Undermine attempts to solve problems
Alfie Kohn
Out with carrot & stick psychology!

128. Choice, Collaboration & Content
 Choice – participative management style
 Collaboration – opportunity to interact with analysts of similar skills
and work ethic
 Content
 What work they perform
 How they perform their work
 Environment
These suggestions on recognition directly address Kohn’s
concerns, fit with his suggestions and should lead to more-satisfied
analysts.

129. A Closing Thought
“…the best success we can have in getting managers and
supervisors to recognize employees more often is less a
function of awareness of the importance of recognition and the
skills of providing recognition and more a function of getting
managers to personally experience the power of recognition.”
Bob Nelson

130. Thank you