HR TRANSFORMATION FOR SMALL & MEDIUM ENTERPRISSES in UAE

HR
TRANSFORMATION
FOR
SMALL & MEDIUM
ENTERPRISSES
(SME) IN
UAE
© Browne & Mohan, 2014

Few Facts & Figures
Small and Medium enterprises (SME)
represent 95% of all the
establishments.
Micro, small and medium sized firms
contribute 72%, 18% and 5%
respectively.
SME businesses account for 42% of
the work force of Dubai.
The annual growth rate of GDP of
Dubai is around 4.9%.

SMEs HR Orientation
INSIGHTS
Lower productivity levels are
prevalent due to lack for a
strategic HR unit.
Lack of description of the
KRA/KPIs and effective
performance management system.
Absence of identification of the
training needs and actual skill
development training provided to
employees.
According to a survey done by Dubai
SME agency, appointed by
Department of Economic
Development, Dubai:-
 75% of the survey respondents
indicated that they do not have a
separate HR unit.
 83% of the SMEs do not have well
defined KRA/KPIs and PMS.
 74% of the SMEs indicated that
they do not provide need based or
comprehensive training.

SME Recruitment & Selection Challenges- UAE
Criteria Current Gap
Purpose Source from web portal and
agencies
Source right candidate for right job at the right
time
Comprehensiveness No estimation for future and
no pool of valid job
applicants.
Success rate of selection process ,
Estimation of the future man power
requirement
Consistency Abstract mode of
interviewing
Standardized tools and instruments for
recruitment.
Delivery No closure Not successful in bringing right candidate on
board.
Outcome The lead time overshoots No knowledge management system to trace
back and make corrective actions.
 Need to develop a knowledge management system to know the no. of resumes received,
screened for telephonic interview, shortlisted for face to face interview and no. of candidates
finally rejected and offered job.
 Need to assess the quality of interviewer and assess the quality of instruments used for
testing.

SME Induction Challenges- UAE
Purpose Major focus on HR rules, information of HR
policies and preview of organization.
Focus on actions that drive business, Emphasis
on business plan, evaluation of new hire
Comprehensiveness No validation of training module and no
complete picture of role and activities.
The big picture. The extended application of
tools and methodologies
Consistency Induction period not the same. Trainer is
consistent for all induction processes .Same
content bestowed each time
The induction period must remain the same for
all new entrants, evaluation on same parameters,
The trainer is chosen with respect to the role and
responsibility , Training contents should be
updated frequently
Delivery Quality of delivery is not measured Timeliness of delivery, Quality of delivery and
management of delivery
Impact No impact analysis is done The trainee should have understanding of the
company, role and expectations from the
company
Outcome Absence of evaluation of trainee post
induction
The decision to fit/refit/refuse the new hire
 Need to develop a process plan to assess the quality of the interviewer, quality
of the trainer, quality of the training content and the consistency of the trainer.

SME Performance Appraisal Challenges- UAE
Purpose basis for salary increment, promotion and
reward & recognition
focus on continuous development of individual,
team and the organization
Comprehensiveness major focus on non-cost drivers and given
equal weightage
focus on cost drivers of the role, analysis of
facilitating and inhibiting factors in performance,
identify training needs and feedback.
Consistency the same tool with same weightage is used
across entire organization
customize the performance appraisal forms to each
department considering the levels and
responsibilities of each employee position
Delivery behind schedule to complete the appraisal
process
completed and conveyed the results within the
stipulated time and delivery management must be
owned by HR
Impact negative effects like frustration and
dissatisfaction on appraisal results, lack of trust
and no proper communication
open appraisal system
Outcome employee training needs are known, high
performers are given promotion and rewards
like salary increments are given
developmental activities are identified, consistent
low performers identification, promotion of
performance culture, periodic review and feedback.
 Need an effective system of acquisition of performance data, interpretation and informed decision making.
 Need to know the actual employee performance , their basic salary, to whom increments to be given, to whom
promotion for next position be given, who are the laggards, their training needs and who should be laid off from
the company.

SME Exit Challenges- UAE
Purpose To relieve an employee voluntarily or
involuntarily
to relieve a laggard/ voluntary exit, identify
problem areas and corrective actions.
Comprehensiveness Involves full and final settlement and
relieving without proper communication
between management and employees
Feedback from employee on job, remuneration &
Benefits, Quest Org., senior managers and
management.
Consistency Use of a default exit form for all employees
with no scope for improvement.
Recruitment of new employee, use of exhaustive
form to know areas for improvement.
Delivery Relieved employee before a new hire
brought on board.
Knowledge transfer to the new hire/ employee.
Outcome Vacancy created, job activities will be
stopped or need to be shared by existing
employees till the new hire arrives and
training cost increases.
Urgency to recruit the right person for the job and
provide knowledge transfer within the notice
period.
 Need for a standardized process for identification of laggards, taking informed decision
to lay off or retain the employee, the procedure to be followed to relieve the employee
with no dues, exit interview and quarterly review of reasons for exit, monitoring of
attrition rate and alumni meet.

HR Transformation Required
Traditional
reactive HR
Pressing need for establishment of HR as a strategic unit.
Alignment of organizational objectives with individual KRA/KPIs.
Presence of an effective Performance Management System.
Identification of training needs of the employees and deployment of
skill development trainings.
Proactive &
Strategic HR

Three Pillars for Successful HR Transformation
Standardization Automation Consolidation

B&M HR Transformation Framework
As –is Analysis
ISO GPTW
benchmarking
Implementatio
n & review
Measure &
Extend
The data collected must be robust, complete, comprehensive and lead to
analysis. Align the process and procedures according to GPTW benchmarking.
Make relevant changes in organization structure, remove redundancy and
under utilization of resources. Review and incorporate changes for betterment
of the processes.

Organizational Analysis: B&M Approach
Organizational analysis is a process where we understand organization's systems,
capacity and functionality. The information is used to increase efficiency, performance and
output. The objective is to collect data and highlight opportunities for improvement.
The first step in consulting is the as-is analysis.
As is analysis-
 Detailed presentation of the process as it is currently being performed. When doing an as-is
analysis, information regarding all the processes that are currently followed are
documented.
 As in analysis would give an idea to understand which are the areas that have to catered to
immediately. The objective being improvement of methods to reach the goals, measure
outcomes and keep improving further on.
 To conduct an As is analysis, we use ‘Reference Model’
 There are 6 elements based on which details are collected:

Reference Model for As-is analysis
Strategy-value
&
developmen
t
Results-financial
&
Operational
objectives
Structure-
Process &
organizatio
n
People-
Skills,
competence
development
Culture-leadership
& core
values
Resource-
Financial &
Information
Management

Recruitment: B&M approach
• Source
candidates from
recruitment
agencies
• No internal
recruitment
• No campus
selection
AS-is
• Telephonic
interview process
• Data capture at
each stage of
recruitment
process
Areas which
require
change with
GPTW
• Telephonic
process
• Process
templates for
data capture
Implemented
To seek right
candidates from
internal resources
Yet to be
Implemented

Induction: B&M approach
• No long term
induction plan
• Induction
taken only by
HR team
AS-is
• Training on
relevant job
areas
• Evaluation of
Training
contents &
trainer and
performance of
new hire
Areas which
require
change with
GPTW
Induction plan
Implemented for new Hires
Evaluation of
Training contents,
the trainer and
performance of
New Hire
Yet to be
Implemented

Performance Appraisal: B&M approach
• Yearly performance
appraisal
• HR team not involved
• Evaluation is sent to
MD to fix % of hike
• Focus on attendance
& punctuality rather
on performance
AS-Is Entire process
Areas which
require change
with GPTW
Not implemented
the Proposed
process
Implemented
• Establish KRA
• Roll out the
proposed plan
• Aggregation of
employees based
on their
performance
Yet to be
Implemented

Training & Development :B&M approach
• 52 days training
• 50 days on the job
training
• 3 days training on
data entry
AS-Is
• Training analysis
based on
performance of
the individual
• Training content
and trainer
scrutiny
Areas which
require
change with
GPTW
Training need
analysis
Implemented
• Suitable internal
and External
trainers are to be
identified
• Training
calendar
Yet to be
Implemented

Employee Engagement :B&M approach
Celebrate Dushera,
Eid, Christmas,
annual day and
sports Day
AS-is
• Create
quarterly/annual
employee
engagement calendar
• Engage all employees
of Quest working
from different
geographies
Areas which
require
change with
GPTW
Partially prepared
Implemented the activities
• Employee
engagement
calendar
• Online engagement
of Quest employees
Yet to be
Implemented

Rewards & Recognition :B&M approach
• Awards for
completion of 5
years
• Best attendance
• Half yearly
incentives based on
performance
AS-is
• Introduction of
newer awards to
motivate employees
• Recognition of team
work
Areas which
require
change with
GPTW
Partially prepared
plan for quarterly
recognition process
Implemented
Roll out plan for
rewards &
recognition for each
quarter
Yet to be
Implemented

Exit :B&M approach
•Specific notice period
for diff designation
and exp level
•Exit interview
questionnaire
•Response
communicated
through resp.
departments
Yet to be
AS-is
•Exit interview
•Process of
communication
through HR
•Interconnectivity
of processes
•Knowledge
transfer
Areas which
require
change with
GPTW
•New
hire/replacement
•Knowledge
transfer
Implemented Process adherence
Implemented

Inter- connectivity of processes
 Multi stage linkage of the processes
 Smooth Data flow to yield meaningful decisions
 Managers do not take decisions based on intuition
 The company as a whole carries an effective knowledge management system.

Benefits for the clients by B&M HR transformation process
 Cost saving
 Better business alignment
 Deeper professional expertise
 More consistent processes
 Improved customer service
 Greater line engagement
 Repositioning of HR/people management on the map

Thank You
Browne & Mohan
Board & CEO Advisors,
Management Consultants
157/A, 2nd Floor, 10th 'A' Main,
Jayanagar 1st Block
Bangalore-560 011
Ph: +91-80-26565164/40951170
www.browneandmohan.com

HR TRANSFORMATION FOR SMALL & MEDIUM ENTERPRISSES in UAE

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