The Strategic Role of Human

Resources Management

By

Dr. Mohamed Moustafa Mahmoud

Ph.D. MBA, MA, MS

1 Dr. 3M
 ‫بسم الله الرـحمن الرـحيم‬

‫‪2‬‬ ‫‪Dr. 3M‬‬

 :This presentation contains
1. Theory Material which were mainly extracted form
textbooks
2. Surveys Results: of best practices which were
conducted by consulting companies and
professional societies
3. Real life Practical Examples which were all
developed by the author (Dr. 3M) . All practical case
studies are labeled with the following label:
Practical
Example

If you need further details about the development

and applications presented in these practical
examples, please contact me at:
mmmim1954@yahoo.com
3 Dr. 3M
 Human Capital

4 Dr. 3M
 Types of Organizational Assets/Capital

5 Dr. 3M
 Competitive Advantage through People

• Core Competencies
– Integrated knowledge sets within an organization that distinguish
it from its competitors and deliver value to customers.
• Sustained competitive advantage through people is
achieved if these human resources:
– Have value.
– Are rare and unavailable to competitors.
– Are difficult to imitate.
– Are organized for synergy.

6 Dr. 3M
 Mapping Human Capital

7 Dr. 3M
 HR Value Chain

• Integrated management of human capital

can result in 47% increase in market value
• Top 10% of organizations studied
experienced 391% return on investment in
8 management of human Dr. 3M capital
 Model for Management Success

Refocusing staff on Building return on

what’s important compensation
– Performance – Link base-pay
management as progression to
disciplined, strategic, competency
value-added process achievement
– Clearly define, – Link incentive pay to
differentiate & balance annual, semiannual, or
between core quarterly results
competencies &
results
9 Dr. 3M
 AN INVESTMENT
PERSPECTIVE OF
HUMAN RESOURCE
MANAGEMENT

10 PowerPoint Presentation by Charlie Cook Dr. 3M

Copyright © 2002 South-Western. All rights reserved
 The Strategic View of Human Resources

• Employees are human assets that increase in value to

the organization and the marketplace when investments
of appropriate policies and programs are applied.
• Effective organizations recognize that their employees
do have value, much as same as the organization’s
physical and capital assets have value.
• Employees are a valuable source of sustainable
competitive advantage.

11 Dr. 3M
 Sources of Employees Value

12 Dr. 3M
 Managing Talent, or Human Capital

• Human Capital
– The knowledge, skills, and capabilities of individuals
that have economic value to an organization.
– Valuable because capital:
• is based on company-specific skills.
• is gained through long-term experience.
• can be expanded through development.

13 Dr. 3M
 Human Performance Improvement Model
Factors that impact performance

Business Objectives

Performance Requirements

Information Resources Incentives

Performance Factors

Environment
75% 35% 26% 14%

Knowledge/Skills Capacity Motivation

Individual 11% 8% 6%
25%
14 Dr. 3M
 Sources of Employee Value

• Technical Knowledge
– Markets, Processes, Customers, Environment
• Ability to Learn and Grow
– Openness to new ideas
– Acquisition of knowledge and skills
• Decision Making Capabilities
• Motivation
• Commitment
• Teamwork
– Interpersonal skills, Leadership ability

15 Dr. 3M
 Valuation of Human Assets

• Implications for Individuals and Organizations

– Determination of compensation
• Internal and external equity for employees in return for their
contributions to the organization.
• Organization placement of resources and returns on employee
development are aligned and well-matched.
– Advancement opportunities
• Developing current employees creates motivation and permits
promotion from within.
– Development of retention strategies
• Effective means of retaining valuable employees allows for the
recapture of the invested costs of their development.

16 Dr. 3M
Factors influencing an organization’s investment orientation

17 Dr. 3M
 The Investment-Oriented Organization

• Organizational Characteristics
– Sees people as central to its mission/strategy.
– Has a mission statement and strategic objectives that
espouse the value of human assets in achieving
goals.
– Has a management philosophy that encourages the
development and retention of human assets and does
not treat or regard human assets in the same ways as
physical assets.

18 Dr. 3M
 Investing in Human Capital
Influencing Factors

• Senior Management Values & Actions

– Managers need “investment orientation” toward
people
• Attitude Toward Risk
– Investment in human resources inherently riskier
– Human assets never absolutely “owned”
• Nature of Skills Needed by Employees
– The more marketable employee skills, the riskier the
firm’s investment in skill development
19 Dr. 3M
• Utilitarian (“Bottom Line”) Mentality
– Attempt made to quantify employee worth through
cost-benefit analysis
– “Soft” benefits of HR programs difficult to objectively
quantify
• Availability of Outsourcing
– Given availability of cost-effective outsourcing,
investments in HR should produce highest returns &
sustainable competitive advantages.

20 Dr. 3M
 The SWA Value Cycle

Value at Southwest Airlines is:

1. Create through satisfaction of employee needs.
2. Converted to customer and share holder value via
organizational capabilities (the design of specific
operating processes).
3. Captured by SWA as competitive advantage through
lower costs and superior service (productivity) in
relation to its competitors.

21 Dr. 3M
 Corporate Strategic Planning

22 Dr. 3M
 Process of Strategic Management

23 Dr. 3M
 SWOT Analysis

Internal
Strengths Weaknesses

External
Opportunities Threats

24 Dr. 3M
 Porter’s Forces of Competition Model

Potential New
Entrants

Actions of The Competitive

Arena Customers
Suppliers

Substitute
Products
SOURCE: Adapted from Michael E. Porter, “How Competitive Forces Shape Strategy,”
Harvard Business Review 57, no. 2 (March-April 1979), p. 141.
25 Dr. 3M
 Strategic Management

• Strategic Human Resource Management

– Involves aligning initiatives involving how people are
managed with organizational mission and objectives

• Strategic Management Process

– Determining what needs to be done to achieve corporate
objectives, often over 3 - 5 years
– Examining organization and competitive environment
– Establishing optimal fit between organization and its
environment
– Reviewing and revising strategic plan
26 Dr. 3M
 Models of Strategy

• Industrial Organization (I/O) Model

– External environment is primary determinant of
organizational strategy rather than internal
decisions of managers
– Environment presents threats and opportunities
– All competing organizations control or have equal
access to resources
– Resources are highly mobile between firms
– Organizational success is achieved by:
• Offering goods and services at lower costs than
competitors
• Differentiating products to bring premium prices
27 Dr. 3M
 Models of Strategy

• Resource-Based View (RBV)

–An organization’s resources and capabilities, not
external environmental conditions, should be basis
for strategic decisions
–Competitive advantage is gained through acquisition
and value of organizational resources
–Organizations can identify, locate and acquire key
valuable resources
–Resources are not highly mobile across
organizations, and once acquired are retained
–Valuable resources are costly to imitate and non-
substitutable
28 Dr. 3M
 Contrasting the Two Approaches

• What drives strategy?

– I/O: External considerations
– RBV: Internal considerations
• I/O: Strategy drives resource acquisition
• RBV: Strategy determined by resources

29 Dr. 3M
 The Process of Strategic Management

• Mission statement
• Environmental analysis
• Organizational self-assessment
• Establishing goals and objectives

30 Dr. 3M
 Mission Statement

• Explains purpose and reason for

existence
• Usually very broad
• No more than a couple of sentences
• Serves as foundation for everything
organization does

31 Dr. 3M
 Solectron Mission Statement

“Our mission is to provide worldwide responsiveness to

our customers by offering the highest quality, lowest
total cost, customized, integrated, design, supply-
chain and manufacturing solutions through long-term
partnerships based on integrity and ethical business
practices.”

32 Dr. 3M
 Analysis of Environment

• Critical components of external

environment
– Competition
– Industry structure
– Government regulations
– Technology
– Market trends
– Economic tends

33 Dr. 3M
 Organization Self-Assessment

• Identify primary strengths and weaknesses

• Find ways to capitalize on strengths
• Find ways to improve or minimize
weaknesses
• Examine resources
– Physical
– Human
– Technological
– Capital

34 Dr. 3M
 Organization Self-Assessment

• Examine internal management systems

– Culture
– Organization structure
– Power dynamics and policy
– Decision-making processes
– Past strategy and performance
– Work systems

35 Dr. 3M
 Establishing Goals & Objectives

• Goals should be:

– Specific
– Measurable
– Flexible

36 Dr. 3M
 Aligning HR Strategy with the
Corporate Strategy

37 Dr. 3M
 Example of Corporate, Business, and HR Management Strategy
Interrelationship

General Motors Saturn Project

Corporate Level
Design and build a production
car, based on quality first.

Business Level HR Level

Redesign the production line, Redefine the role of
based on the latest management and workers
technology available, creating based on the concepts of
new technologies when teamwork and involvement.
needed.
Dynamic Interaction Based on
Sociotechnological Design
38 Dr. 3M
 Corporate Strategy Drives Functional Strategies

Corporate Strategy

Production
Financial Marketing HR Strategy Engineering
Operations
Strategy Strategy Strategy
Strategy

Integration

39 Dr. 3M
 A model of the Strategic Management Process
Strategy formulation Strategy implementation
HR Practices
External Recruitment Job analysis
Analysis Training Job design
Performance Selection
Opportunities
management Development
Threats
Labor Pay structure
relations Incentives
Employee Benefits
relations

Human
Firm
resource
Performance
Strategic needs
Mission Goals
Skills Productivity
choice
Behaviors Quality
Culture Profitability
Human
Human resource
resource actions
capability Behaviors

evaluation
Skills Results

Strategy
Internal Abilities Productivity,(
analysis Knowledge absenteeism,
Strengths )turnover
Weaknesses

40 Dr.strategies
Emergent 3M
 Competitive Challenges Influencing Organizations

Competing in the Competing through Competing by Meeting Competing through

New Economy High-Performance Stakeholders Needs Globalization
Work Systems
• Provide a return to
• Expand into
• Increased value • Change employees shareholders
foreign markets
placed on and managers’ work • Provide high-quality
• Prepare
knowledge roles products, services,
employees to work
• Development of e- • Integrate technology and work
in foreign
business and social systems experience for
locations
employees

Business Competitiveness

41 Dr. 3M
Examples of How HRM Practices Can Help Companies Meet Competitive Challenges

Global Stakeholder
Challenge Challenge

HRM Practices
• HRM strategy is matched • Continues learning
to business strategy. environment is created
• Knowledge is shared • Discipline system is
• Work is performed by progressive
teams. • Customer satisfaction and
• Pay systems reward skills quality are evaluated in the
and accomplishments. performance management
system.
• Selection system is job –
related and legal. • Skills and values of a
diverse workforce are
• Flexibility is where and valued and used.
when work is performed
• Technology is used to reduce
• Work attitudes of line time for administrative tasks
employees are monitored and to improve HR efficiency
and effectiveness.

42 The New Economy Dr. 3M High Performance Work

Challenge System Challenge
Corporate Strategies: Growth
• Benefits • Internal Methods
– Gaining economies of scale in – Penetration of existing markets
operations and functions – Developing new markets
– Enhancing competitive position – Developing new products or
vis-à-vis industry competitors services for existing or new
– Providing opportunities for markets
employee professional • External Methods
development and advancement
– Acquiring other organizations
• HR Issues – Vertical integration
– Planning for new hiring
• HR Issues
– Alerting current employees
– Merging organizations
– Ensuring quality & performance
– Dismissing redundant employees
standards are maintained

43 Dr. 3M
Corporate Strategies: Stability
• Maintaining status quo due to limited
environmental opportunities for gaining
competitive advantage
• Few employees will have opportunities for
advancement
• Critical that management identify key
employees and develop specific HR
retention strategies to keep them
44 Dr. 3M
 Corporate Strategies:
Turnaround or Retrenchment
• Downsizing or streamlining organization in
cost-cutting attempt to adjust to
competitive environment
• Few opportunities and many
environmental threats
• Important to develop HR practices to
manage “survivors”

45 Dr. 3M
 Business Unit Strategies:
Cost Leadership
• Increases in efficiency and cutting of costs, then
passing savings to consumer
• Assumes price elasticity in demand for products or
services is high
• Assumes that customers are more price sensitive
than brand loyal
• HR strategy focuses on short-term performance
measures of results and promoting efficiency through
job specialization and cross-training

46 Dr. 3M
 Business Unit Strategies:
Differentiation
• In order to demand a premium price from
consumers
– Attempting to distinguish organizational products or
services from other competitors or
– Creating perception of difference
• Organization offers employees incentives and
compensation for creativity
• HR strategy focuses on external hiring of
unique individuals, and on retaining creative
employees
47 Dr. 3M
Business Unit Strategies: Focus
• Business attempts to satisfy needs of only a
particular group or narrow market segment
(niche)
• Strategic intent is to gain consumer loyalty of
neglected groups of consumers
• Strategic HR issue is ensuring employee
awareness of uniqueness of market segment
– Thorough employee training and focus on
customer satisfaction are critical factors
– Hiring members of target segment who are
empathetic to customers in target segment
48 Dr. 3M
Examples of Strategic Decisions That Have Major Direct Impacts on
HRs

Plant Location Job Design/Redesign

Plant Closing Production Technology
Wage Cutting Supervisory Style
Restructuring Organizational Culture
Change
Automation Market Expansion
Mergers/Acquisitions

49 Dr. 3M
Examples of Strategic Decisions That Have Minor Indirect
Impacts on HRs

Restructuring Loan/Portfolio Public Relations

Campaign

Stock Offerings Changes in Accounting

Methods

Logo/Name Change Product Feature

Change

50 Dr. 3M
 Strategic HRM

51 Dr. 3M
 Strategic Role for HR

• HR becomes a strategic business partner by:

– Focusing on developing HR programs that enhance
organizational performance .
– Involving HR in strategic planning at the onset.
– Participating in decision making on mergers,
acquisitions, and downsizing.
– Redesigning organizations and work processes
– Accounting and documenting the financial results of
HR activities.

52 Dr. 3M
 HR Roles in Building a Competitive Organization
Future/Strategic
Focus

Strategic Partner Change Agent

Management of strategic Management of
human resources transformation and
change

& System People

Processes
Administrative Expert Employee Champion
Management of firm Management of
infrastructure employee contribution

Day-to-Day / Operational
53 Dr. 3M
Focus
 HR has 4 roles and 16 accountabilities
Future/Strategic
Focus

Change Agent
Strategic Partner • staffing
• strategic hr planning • organizational design
• hr as business partner • survey action planning
• culture and image • performance measurement
• training and development
& System People
Processes
Administrative Employee Relations
Expert Expert
•compensation •employee relations
•benefits •labor relations
•hr information systems •safety & workers’ compensation
•compliance •Diversity

54 Day-to-DayDr./ Operational
3M
Focus
 HR Roles in Knowledge-Based Economy

• Human capital steward

– Creates an environment and culture in which employees
voluntarily contribute skills, ideas, and energy
– Human capital is not “owned” by organization
• Knowledge facilitator
– Procures necessary employee knowledge and skill sets that
allow information to be acquired, developed, and disseminated
– Provides a competitive advantage
– Must be part of strategically designed employee development
plan

55 Dr. 3M
 HR Roles in Knowledge-Based Economy

• Relationship builder
– Develops structure, work practices, and culture that
allow individuals to work together
– Develops networks that focus on strategic objectives
• Rapid deployment specialist
– Creates fluid and adaptable structure and systems
– Global, knowledge-based economy mandates
flexibility and culture that embraces change

56 Dr. 3M
 SHRM Critical Competencies

• HR’s success as true strategic business partner

dependent on five specific competencies:
– Strategic contribution - development of strategy
– Business knowledge - understanding nuts and bolts of
organization
– Personal credibility - measurable value demonstrated in
programs and policies
– HR delivery - serving internal customers through
effective and efficient programs
– HR technology - using technology to improve
organization’s management of people
57 Dr. 3M
 Traditional HR Versus Strategic HR

58 Dr. 3M
 Barriers to Strategic HR

• Short-term mentality/focus on current performance

• Inability of HR to think strategically
• Lack of appreciation for what HR can contribute
• Failure to understand line managers’ role as an HR
manager
• Difficulty in quantifying many HR outcomes
• Perception of human assets as higher-risk
investments
• “Incentives” for changes that might arise

59 Dr. 3M
 Outcomes of Strategic HR

60 Dr. 3M
 Model of Strategic HR Management

61 Dr. 3M
 4 Strategic Levels of HR
Where is your organization?

Operationally Proactive HR Strategically Proactive HR

Proactive

Improves upon design and Focuses on creating

delivery of existing HR strategic alternatives
basics before problems set in

Strategically Reactive HR
Operationally Reactive HR
Focuses on supporting
Reactive

successful
Focuses on
implementation of
implementing day-to-day
business strategy
demands for HR

62
Operational Dr. 3M
Strategic
 Strategically Reactive HR

– Supporting execution of tactics that drive

long-term strategies
– Developing cultural and technical capabilities
necessary for long-term success
– By providing change management support for
tactical activities

63 Dr. 3M
1. Define business unit for which HR practices
are being designed
2. Specify key trends in external business
environment
3. Identify and prioritize firm’s sources of
competitive advantage
4. Define required culture and technical
knowledge and skill areas required to support
the sources of competitive advantage

64 Dr. 3M
5. Identify cultural characteristics that firm should
reduce or eliminate if it is to optimize
competitive advantage
6. Design HR practices that will have greatest
impact on creating desired culture
7. With these decisions made, firm should
establish action plans for detailed design of
HR processes
8. Final step specifies means by which
effectiveness of entire process is measured
65 Dr. 3M
 Strategically Proactive HR

• Become proactive by:

– Learning enough about other functional areas to allow
HR to contribute to business
– Expanding/enriching parameters of HR agendas
through which strategic alternatives are defined and
created
• Creates culture of of creativity and innovation
• Involved in full breadth of mergers and
acquisition activities
• Creates internal capabilities based on future
external environmental requirements
66 Dr. 3M
 HRD Roles

67 Dr. 3M
 Organization Design Consultant

• Designs work systems

• Develops effective alternative work designs
• Implements changed systems

68 Dr. 3M
 Learning Program Specialist

• Identifies needs of learners

• Develops and designs learning programs
• Prepares learning materials and learning aids
• Develops program objectives, lesson plans, and
strategies

69 Dr. 3M
 Instructor/Facilitator

• Presents learning materials

• Leads and facilitates structured learning
experiences
• Selects appropriate instructional methods and
techniques
• Delivers instruction

70 Dr. 3M
 Individual Development and Career Counselor

• Assists individuals in career planning

• Develops individual assessments
• Facilitates career workshops
• Provides career guidance

71 Dr. 3M
 Performance Consultant (Coach)

• Advises line management on appropriate

interventions to improve individual and group
performance
• Provides intervention strategies
• Develops and provides coaching designs
• Implements coaching activities

72 Dr. 3M
 Researcher

• Assesses HRD practices and programs

• Determines HRD program effectiveness
• Develops requirements for changing HRD
programs to address current and future
problems

73 Dr. 3M
 Human Resource Competency Model

74 Dr. 3M
 Line Manager Role

75 Dr. 3M
 Some Ways to Enhance the
HR Unit’s Credibility and Reduce Line-Staff Conflict

• Hire only competent, well trained, and

experienced people for the HR unit.
• Clearly spell out HR responsibilities in relation
to line management responsibilities.
• Have HR staff members view their roles as
supportive to line-staff members.

76 Dr. 3M
 Some Ways to Enhance the
HR Unit’s Credibility and Reduce Line-Staff Conflict

• Have HR and line staff members work

together in forming personnel policies.
• Ensure that HR staff members have firsthand
contact and experience with line operations.
• Ensure that managers remember the
important role that HR plays in reducing
burdensome tasks.

77 Dr. 3M
 ?How strategic is HR getting
)Survey result(

78 Dr. 3M
of the top 1000 UK companies 100

Research commissioned by LogicaCMG

November 2004
 To what extend do you agree with the following statements:

Strongly Agree Nether Disagree Strongly

Agree Nor disagree
5 4 3 2 1

1- Our HR function makes a major 5 4 3 2 1

strategic contribution to this organization

2- Our HR function already makes a

significant strategic contribution but is 5 4 3 2 1
capable of playing a much greater
strategic role

3- HR departments should provide

important HR functions and processes and 5 4 3 2 1
leave strategy and strategic development
to other areas of the company

4- HR has always been an internal inward

5 4 3 2 1
facing
80 function and it should stay that way
Dr. 3M
for the foreseeable future
 Level of agreement with key phrases
Total HR CXO
% % %
1- Our HR function makes a major 59 72 46
strategic contribution to this organization

2- Our HR function already makes a 67 72 62

significant strategic contribution but is
capable of playing a much greater
strategic role

3- HR departments should provide 25 20 30

important HR functions and processes and
leave strategy and strategic development
to other areas of the company

4- HR has always been an internal inward 11 10 12

facing function and it should stay that way
for the foreseeable future
81 Dr. 3M
Proportion of HR Director time spent on functional day-to-day operations

40 HR Director own view

36 CXO view
35
32

30
26
25
22

20 18

15
10 10 10
10 8 8 8
6
5 4
2

0
Less than 30% 31-50% 51-60% 61-70% 71-80% 81-90% 90%+

82 Dr. 3M
Proportion of HR Director time spent on corporate/strategic issues

45 HR Director own view 42

CXO view
40
35
30
25 22 22
20 20
20 18
14
15 12
10 10
10 6
4
5
0
Less than 10% 11-20% 21-30% 31-40% 41-50% 50%+

83 Dr. 3M
 Functional vs Strategic
- is this the right balance?

HR Director own view

70 62 CXO view

60 56

50

40 34

30 22

20 14
8
10 4
0
0
Yes Too much operational Too much strategic Don't know

84 Dr. 3M
Proportion of HR department time spent on functional day-to-
day operations - HR Directors

%
24
25
22
20
20
16

15

10 8
6
4
5

0
Less than 41-50% 51-60% 61-70% 71-80% 81-90% 90%+
40%
85 Dr. 3M
Proportion of HR department time spent on corporate/strategic
issues - HR Director
%
30
26

25
20
20 18
16 16

15

10

4
5

0
Less than 10% 11-20% 21-30% 31-40% 41-50% 50%+

86 Dr. 3M
 Level of agreement with more key phrases
- HR Director
Strongly Agree Nether Disagree Strongly
Agree Nor disagree
5 4 3 2 1

1- Our senior management do not really

5 4 3 2 1
appreciate the potential strategic
contribution HR is capable of making to
the growth of this organization

2- I am supported by the 5 4 3 2 1
management team in viewing HR as
a profit centre with the ability to
transform the organization

3- I’d like own role and that of my 5 4 3 2 1

department to be more strategic but
there are only just enough hours in the
day to provide basic HR functions
87 Dr. 3M
 Level of agreement with more key phrases
- HR Director

%
1- Our senior management do not really 46
appreciate the potential strategic contribution HR
is capable of making to the growth of this
organization

2- I am supported by the management team

in viewing HR as a profit centre with the 66
ability to transform the organization

3- I’d like own role and that of my department to

be more strategic but there are only just enough 66
hours in the day to provide basic HR functions
88 Dr. 3M
 Level of agreement with more key phrases - CXO
Strongly Agree Nether Disagree Strongly
Agree Nor disagree
5 4 3 2 1
1- I support my HR Director in viewing the HR
function as a profit centre with the ability to
transform the organization 5 4 3 2 1

2- To be successful in the future we need a

new breed of HR individual with a different set 5 4 3 2 1
of skills

3- Our existing HR team does not have the

5 4 3 2 1
necessary skills to provide a strategic role

4- HR is really just an overhead function that 5 4 3 2 1

can not make a strategic input

5- Even though there is a lot of talk about HR

5 4 3 2 1
becoming strategic I do not think it will happen

6- HR needs to be less transactional focused 5 4 3 2 1

89 Dr. 3M
 Level of agreement with more key phrases - CXO
Strongly Agree Nether Disagree Strongly
Agree Nor disagree
5 4 3 2 1
7- As a board we need to take more
responsibility for people development
and need to invest more in HR 5 4 3 2 1

8- We will miss key opportunities if we

do not change our attitude about our HR 5 4 3 2 1
function and position in the org

9- HR is a poor “team player” and tends 5 4 3 2 1

to do things Unilaterally

10- HR has lost touch with the

5 4 3 2 1
pastoral/employee relations issues

11- I would like to absorb the

5 4 3 2 1
responsibility of my senior HR person
into90the role of another senior Dr. 3M
board member
 Level of agreement with more key phrases
- CXO
%

1- I support my HR Director in viewing the HR function 32

as a profit centre with the ability to transform the organization

2- To be successful in the future we need a new breed 32

of HR individual with a different set of skills

3- Our existing HR team does not have the necessary 20

skills to provide a strategic role

4- HR is really just an overhead function that can not 16

make a strategic input

5- Even though there is a lot of talk about HR 28

becoming strategic I do not think it will happen

6- HR needs to be less transactional focused 46

91 Dr. 3M
 Level of agreement with more key phrases - CXO

As a board we need to take more responsibility for 48

people development and need to invest more in HR

We will miss key opportunities if we do not change our38

attitude about our HR function and position in the org

HR is a poor “team player” and tends to do things 10

Unilaterally

HR has lost touch with the pastoral/employee 8

relations issues

I would like to absorb the responsibility of my 10

senior HR person into the role of another senior
board member

92 Dr. 3M
 Regularity of CXO meeting with head of HR- CXO

% 40
40

35

30

25
20
20 18

15 12
10
10

5
0
0
Weekly Monthly Quarterly Half yearly Annually Never

93 Dr. 3M
Companies where HR has executive seat on board- CXO

% 54

54

52

50

48 46

46

44

42
Yes No

94 Dr. 3M
Typical proportion of board member time spent on HR - CXO

%
70
62

60

50

40

30 26

20
8
10 4
0
0
Less than 10% 11-20% 21-30% 31-50% 51%+

95 Dr. 3M
 HR Audit Measurement

96 Dr. 3M
 Turnover Rate

Rate Personnel functions to examine

• Quit rate • Salary and benefits package
• Termination rate • Supervisory practices
• Layoff rate • Job design
• Retirement plan
• Retirement rate
• Length of service rate

97 Dr. 3M
 Job Attendance Rate

Rate Personnel functions to examine

• Absence rate • Exit interviews
• Tardiness rate • Discipline
• Convenience of lunchroom
and rest room
• Sick-pay policy

98 Dr. 3M
 Overtime Rate

Rate Personnel functions to examine

• Overtime rate • Employee planning and
scheduling
• Shortage of staff
• Selection and training process

99 Dr. 3M
 Position/Vacancy Rate

Rate Personnel functions to examine

• Position • Recruitment and selection
• Vacancy Rate process
• Salary and benefit package
• Company image in community

100 Dr. 3M
 Error/Scrap Rate

Rate Personnel functions to examine

• Error/scrap rate • Recruitment selection and
placement
• Training and development
• Job satisfaction

101 Dr. 3M
 Training and Development Rate

Rate Personnel functions to examine

• Training and • Recruitment and selection
development rate • Training and development

102 Dr. 3M
 Grievance Rate

Rate Personnel functions to examine

• Grievance rate • Supervisory practices
• Job dissatisfaction

103 Dr. 3M
 BSC

104 Dr. 3M
 Organizations need both strategy and execution

Strategy Execution
Flawed Sound
Strategy Formulation

Strategic Missed
Sound

Success Opportunity
Flawed

At Risk Doomed From

The Start
105 Dr. 3M
 Balanced Scorecard Evolution

Tool to
measure Tool in
whether an Tool in formulating
organizatio Tool in translating corporate
n is able to implementing and strategy and
achieve it’s describing aligning
strategies
strategic strategies various
objectives units
or not?

106 Dr. 3M
 Why BSC?

What gets measured and“

”.rewarded gets done
107 Dr. 3M
 Why BSC?

Focus

Alignment
108 Dr. 3M
BSC measures organizational performance across four balanced perspectives

Financial
Results that Internal
the business Process
provides to
Customer its
Identifies shareholders Key internal
Customer, market
segments and processes
value which
propositions to be drive the
delivered business
Infrastructure,
people,
systems and
Learning and procedures.
Growth
BSC Provides the framework for a strategic measurement and management system

Dynamic Wizards
Minimize time to market
Accumulate Intellectual Capital
Performance Measurement Libraries
Clarify and Virtual Meetings
translate Make the strategy operational
vision and
strategy Competitive Intelligence
Best Practices Identification

Communicate Dynamic Enhance

and link strategic strategic
objectives BSC feedback and
and measures learning

Multimedia Knowledge Base Plan,

Structured Dynamic cascading set targets,
and align Target Setting
strategic Budget Guidelines
initiatives Budget/BSC Alignment
111 Dr. 3M
 Human Capital Objectives

– Strategic Skills / Competencies (80%)

– Leadership (90%)
– Culture & Strategic Awareness (90%)
– Strategic Alignment (70%)
– Sharing of Strategic Knowledge (60%)
112 Dr. 3M
 The Human Capital Readiness Report

Measure of Strategic Readiness Human Capital Category / Objective

• Strategic Talent Gap 1. Strategic Competencies

• Key Employee Retention
• Leadership Gap 2. Leadership
• Employee Survey of Leadership
Effectiveness
• Cultural Alignment Index 3. Culture & Strategic Awareness
• % Employees Who Understand
Strategy
• % Goal Alignment 4. Strategic Alignment
• % Incentive Alignment
• Sharing of Knowledge Across 5. Sharing of Strategic Knowledge
Boundaries
113 Dr. 3M
 HR Measures for a BSC

Constituents
Improve relationship with constituents

Goals Measures
 Time to fill
 Support Mgrs/Divisions
through effective sourcing,  Terminations within first 6
interviewing and hiring of months*
qualified staff  Vol./Invol.
 [Cost to fill*]

 Provide information to all  Orientation of New Employees

employees on HR programs
 Current employee and
supervisor handbooks
 Monthly communication on HR
programs
 Provide targeted training and
 Provide value-added training performance support tied to
and development resources to Corporate initiatives
increase employee
 [Training activities tied to
skills/productivity
development plans]
115 Dr. 3M
 HR Measures for a BSC

Innovation
Find new and better ways to achieve our mission
Goals Measures
 Utilize technologies to improve  Expand use of corporate intranet
employee communication and  Maintain timely and accurate
service employee information
 Explore, evaluate and propose
cost effective technologies for
employee communication and
services to support Corporate
initiatives.
 Improve quality of workforce,  Increase retention average tenure
work environment and foster an
 Establish talent pipeline
inclusive organizational culture.
 Implement a competency-based
hiring and selection process*.
 Employee commitment survey

116 Dr. 3M
 HR Measures for a BSC

Process
Realize efficiencies in key areas
Goals Measures
 Improve HR processes and  Processes have been
automate where cost effective automated
 Decrease in processing time
 Increase in customer
satisfaction

117 Dr. 3M
 HR Measures for a BSC

Financial
Meet overall financial targets
Goals Measures
 Manage ABC  Results of audit of pay
Compensation Budget structures and levels
to ensure alignment against philosophy
with defined market driven market
competitive/ philosophy  Control benefit costs
 Provide competitive per employee
benefit programs in a
cost efficient manner
 Manage HR  Budget variance
Department Budget (within +/- %)

118 Dr. 3M
 Practical Example

Jeddah Chamber of Commerce

and Industry
Balanced Score Card

119 Dr. 3M
 Strategic Map - Linkage Model
Government & Trading Partners
Community Members
Foreign Investors
C1 C2 C3 C4
Increase attractiveness Improve Business
Stakeholders Support Government Efforts
of Jeddah for trade &
Improve satisfaction
Environment & Quality of
at Growth, Development & of members
Perspective Government Investment Life
modernizing

P1 P2 P3 P4 P5
Increase Increase Flow Increase Range & Increase range
Internal of Information effectiveness Increase Level of
effectiveness of effectiveness &
Processes Chances of & of community support Automation
policy analysis of member Services
Perspective Effective Encounters services

LG1 LG2 LG3

& Learning Build a diverse Enhance technology Build a unified
Growth talented team capability and improve culture & climate
Perspective alignment for action

F1 F2 F3
Financial Grow and diversify Ensure viable fiscal
Develop sustainable
Perspective revenue base position thru financial
Contribution Program
management & cost control
120 Dr. 3M
121 Dr. 3M
GoAgile www.horizonsoftware.com
 Strategy Navigation Dashboard
122 Dr. 3M
 HR BSC

123 Dr. 3M
 Sample HR Measures

Lagging Measures Leading Measures

Impact of Prior Decisions Guide Future Outcomes

Budget variance Employee strategic focus

Employee relationship results Executive retention
Executive coaching Retraining
Employee productivity Internal promotion rate
Cost per hire by job class Exit Rate of “C” Players
People expense/Revenues Employee relationship factor

124 Dr. 3M
Examples of Key Indicators and Customer Satisfaction Measures for HRM Functions

KEY INDICATORS CUSTOMER SATISFACTION MEASURES

Staffing
Average days taken to fill open requisitions Anticipation of personnel needs
Ratio of acceptances to offers made Timeliness of referring qualified workers to line supervisors
Ratio of minority / women applicants to representation in local Treatment of applicants
labor market Skill in handling terminations
Per capita requirement costs Adaptability to changing labor market conditions
Average years of experience / education of hires per job family
Benefits Promptness in handing claims
Fairness and consistency in the application of benefit
Benefit cost per payroll dollar policies
Percentage of sick leave to total pay Communication of benefits to employees
Assistance provided to line managers in reducing potential
for unnecessary claims

Compensation
Per capita ( average) merit increases Fairness of existing job evaluation system in assigning
Ratio of recommendations for reclassification to number of grades and salaries
employees Competitiveness in local labor market
Percentage of overtime hours to straight time Relationship between pay and performance
Ratio of average salary offers to average salary in community Employee satisfaction with pay
Training
Percentage of employees participating in training programs per Extent to which to which training programs meet the needs
job family of employees and the company
Percentage of employees receiving tuition refunds Communication to employees about available training
Training dollars per employee opportunities
Quality of introduction / orientation progarams
125 Dr. 3M
Examples of Key Indicators and Customer Satisfaction Measures for HRM Functions

KEY INDICATORS CUSTOMER SATISFACTION MEASURES

Employee appraisal and development

Assistance in identifying management potential
Distribution of performance appraisal ratings Organizational development activities provided by HRM
Appropriate psychometric properties of appraisal forms department
Succession planning
Ratio of promotions to number of employees Extent to which promotions are made from within
Ratio of open requisitions filled internally to those Assistance / counseling provided to employees in
filled externally carrier planning

Safety
Assistance to line managers in organizing safety programs
Frequency / severity ratio of accidents Assistance to line manager in identifying potential safety
Safety – related expenses per $ 1000 of payroll hazards
Plant security losses per square foot ( e.g. fires, burglaries) Assistance to line managers in providing a good working
environment ( lighting, cleanliness, heating, etc.)
Labor relations Assistance provided to line managers in handling grievance
Ratio of grievances by pay plan to number of employees Efforts to promote a spirit of cooperation in plant
Frequency and duration of work stoppages Efforts to monitor the employee relations climate in plant
Percentage of grievances settled

Overall effectiveness
Ratio of personnel staff to employee population Accuracy and clarity of information provided to managers
Turnover rate and employees
Absenteeism rate Competence and expertise of staff
Ratio of per capita revenues to per capita cost Working relationship between organizations and HRM
Net income per employee department
126 Dr. 3M
 HRM Practices

127 Dr. 3M
Categories of HRM Activities and Percentages of Time Spent on Them

Transformational
(5-15%)
Knowledge management
strategic redirection and
renewal
Cultural change
Management development

Traditional ( 15-30%)
Recruitment and selection
Training
Performance management
Compensation
Employee relations

Transactional (65-75%)
Benefits administration
Record keeping
Employee services
128 Dr. 3M
 How HR Spends Its Time

129 Dr. 3M
 HR Management Activities

130
Dr. 3M
131
Analysis and design of work

HR
Planning

Recruiting

Selection

Training and development

Dr. 3M
Compensation
Strategic HRM

Performance
management

Employee
relations
Human Resource Management Practices

Company
Performance
 Responsibilities of HR Departments
Employment and Interviewing, recruiting, testing, temporary labor,
recruiting coordination
Training and Orientation, performance management skills training,
Development productivity enhancement
Compensation Wage and salary administration, job descriptions,
executive compensation, incentive pay, job evaluation

Benefits Insurance, vacation leave administration, retirement

plans, profit sharing, stock plans

Employee service Employee assistance programs, relocation services,

outplacement services

Employee and Attitude surveys, labor relations, publications, labor

community relations law compliance, discipline

Personnel Records Information systems, records

Health and safety Safety inspection, drug testing, health, wellness

Strategic planning International human resource, forecasting, planning,

132 mergersDr.and
3M acquisitions
 HRM Practices in Total Quality Companies
HUMAN RESOURCE MANAGEMENT
CHARACTARISTICS TRADITIONAL MODEL TOTAL QUALITY MODEL

Top-down
Communication Top - down
Horizontal, lateral
multidirectional

Voice and involvement Employment at will Due process- Quality circles

Suggestion systems Attitude surveys

Efficiency – Productivity-Standard procedures Quality – Customization-Innovation

Job design Narrow span of control Wide span of control
Specific job descriptions Autonomous work teams
Empowerment

Job-related skills Broad range of skills

Training Functional, technical Cross-functional
Diagnostic, problem solving

Productivity & Quality - Team goals

Productivity - Individual goals
Performance measurement Supervisory review
Customer, peer and supervisory review
and evaluation Emphasize quality and service
Emphasize financial performance

Competition for individual Team and group-based rewards

Rewards merit increases and benefits Financial rewards, financial and
nonfinancial recognition

Treat problems Prevent problems. Safety programs

Safety Health and Wellness programs
Employee assistance programs

Selection and Promotion Selection by manager Selection by peers

Narrow job skills Problem-soling skills

Career development Promotion based on individual accomplishment Promotion based on group facilitation
133 Dr. 3M
Linear career path Horizontal career path
 Categories and Point Values for the Malcolm Baldrige National Quality
Award Examination

Leadership 125
The way senior executives create and sustain corporate citizenship customer focus, clear values and
expectations and promote quality and performance

Information and Analysis 85

Management and effectiveness of the use of data and information to support customer – driven
performance and market excellence

Strategic Planning 85
The way the company sets strategic direction , how it determines plan requirements, and relate to
performance management

Human Resource Focus 85

Company’s efforts to develop and utilize the workforce and to maintain an environment conductive to full
participation, continuous improvement, and personal and organizational growth

Process Management 85
Process design and control, including customer – focused design, product and service delivery, support
services, and supply management

Business Results 450

Company’s performance and improvement in key business areas (product, service, and supply quality,
productivity, and operational effectiveness and related financial indicators)

Customer and Market Focus 85

Company’s knowledge of the customer, customer service systems, responsiveness to customer, and
customer satisfaction

Total
134Points Dr. 3M 1,000
 Menu of HRM Practice Options
Job Analysis and Design
Few tasks Many tasks
Simple tasks Complex tasks
Few skills required Many skills required
Specific job descriptions General job descriptions
Recruitment and Selection
External sources Internal sources
Limited socialization Extensive socialization
Assessment of specific skills Assessment of general skills
Narrow career paths Broad carrier paths
Training and Development
Focus on current job skills Focus on future job skills
Individual orientation Group orientation
Train few employees Train all employees
Spontaneous, unplanned Planned systematic
Performance Management
Behavioral criteria Results criteria
Development orientation Administrative orientation
Short-term criteria Long-term criteria
Individual orientation Group orientation
Pay structure, Incentives, and Benefits
Pay weighted toward salary and benefits Internal sources
Short-term incentives Extensive socialization
Emphasis on internal equity Assessment of general skills
Individual incentives Broad carrier paths
Labor and Employee Relation
Collective bargaining Individual bargaining
Top-down decision making Participation in decision making
Formal due process No due process
135 View employees as expense Dr. 3M View employees as assets
 Human Resources Planning

136 Dr. 3M
 Continual Strategic Choices in HR Planning

Reactive Proactive

Narrow Broad

Informal Formal

Loosely Tied to Closely Tied to

Strategic Plan Strategic Plan

Inflexible Flexible

137 Dr. 3M
Strategic HR Planning Serves as the Key Link Between the
Overall Strategic Plan and HR Management

Overall Strategic HR Management

Strategic Plan HR Planning

138 Dr. 3M
 A Model for Constructing an HR Plan

Personal Values and Norms of Strategic

Managers and Internal Organization
Political Environment

Social,
Determine Organizational Perceived
Economic,
Growth/Retrenchment Market
Legal, Political
Objectives Opportunities
Environment

Determine HR
Objectives

139 Dr. 3M
 A Model for Constructing an HR Plan

Changes in Examine the Job Changes in

Technology Structure and Design Aspiration and
Skill Level

Estimate the Future Skill Requirements

by Occupation or Job Category

Estimate HR Shortage or Surplus for

Each Occupational Category

Establish Specific Objectives, Plans, and Policies for

Recruiting, Selection, Placement, Training, Compensation,
Promotions, Layoffs, Terminations
140 Dr. 3M
 Human Resource Planning (HRP)

• First component of HRM strategy

• All other functional HR activities are derived from and
flow out of HRP process
• Basis in considerations of future HR requirements in
light of present HR capabilities and capacities
• Proactive in anticipating and preparing flexible
responses to changing HR requirements
• Both internal and external focus

141 Dr. 3M
 Human Resource Planning (HRP)

• Goes beyond simply hiring and firing

• Involves planning for deployment of human capital in line
with organization and/or business unit strategy
• May involve:
– Reassignment
– Training and development
– Outsourcing
– Using temporary help or outside contractors
• Needs as much flexibility as possible

142 Dr. 3M
 Key Objectives of HR Planning

• Prevent overstaffing and understaffing

• Ensure organization has right employees with right skills
in right places at right times
• Ensure organization is responsive to changes in
environment
• Provide direction and coherence to all HR activities and
systems
• Unite perspectives of line and staff managers

143 Dr. 3M
 Types of Planning

• Aggregate Planning
– Anticipating needs for groups of employees in
specific, usually lower level jobs, and general skills
employees will need to ensure sustained high
performance
• Succession Planning
– Most often focuses on ensuring key critical
management positions in organization remain filled
with individuals who provide best fit

144 Dr. 3M
 Model of HR Forecasting

FORECASTING DEMAND

Considerations Techniques BALANCING

• Product/service demand • Trend analysis SUPPLY AND
DEMAND
• Technology • Managerial estimates
• Financial resources • Delphi technique
• Absenteeism/turnover (Shortage)
• Organizational growth Recruitment
• Management philosophy • Full-time
• Part-time
• Recalls
Techniques External Considerations
• Staffing tables • Demographic changes (Surplus)
• Markov analysis • Education of the workforce Reductions
• Skills inventories • Labor mobility • Layoffs
• Management inventories • Government policies • Terminations
• Replacement charts • Unemployment rate • Demotions
• Succession planning • Retirements

FORECASTING SUPPLY
145 Dr. 3M
 Markov Analysis for a Retail Company

146 Dr. 3M
 How strategic is your HR planning?

 Is it long-term?  Is it integrated?
Is activity conceptualized as Does it provide basis for
long-term value? integrating multifaceted
 Is it comprehensive? activities that might otherwise
be fragmented and
Does it cover entire disconnected?
organization or isolated
components?  Is it high value-added?
 Is it planned? Does it focus on critical
business success issues, or
Is it thought out ahead of on things that must be done
time, and is it well but are not critical?
documented?

147 Dr. 3M
 Job Design

148 Dr. 3M
Relationship of Job Requirements to Other HRM Functions

Job Requirements

Recruitment Determine recruitment qualifications

Provide job duties and job

Selection specifications for selection process

Performance Provide performance criteria for

Appraisal evaluating employees

Training and Determine training needs and develop

Development instructional programs

Compensation Provide basis for determining

Management employee’s rate of pay
149 Dr. 3M
 Determining Job Requirements

Nature of:
Basis for:
Job Analysis
• What employee does
• Why employee does it • Determining job requirements
• How employee does it

Job Description
• Summary statement of the job • Employee orientation
• List of essential functions of the • Employee instruction
job • Disciplinary action

Job Specification
• Personal qualifications required • Recruitment
in terms of skills, education and • Selection
experience • Development
150 Dr. 3M
 Individual and Group Job Design Options

Individual Design Options Group Design Options

WORK TEAMS
JOB ROTATION
Large Task that Is
Rotating from Job to Job
Completed by a Group of
within an Organization
Specific Task Assignments

AUTONOMOUS
JOB ENLARGEMENT Job WORK GROUPS
Adding More Tasks to the Design Work Teams Are Given a
Job; Horizontal Loading Approaches Goal to Achieve and Control
over Accomplishment
JOB ENRICHMENT
Making Jobs More QUALITY CIRCLES
Meaningful and A Group of Employees and
Challenging; Vertical Supervisors Meet Regularly
Loading to Discuss Quality Problems
151 Dr. 3M and Solutions
 Job Characteristics Model

152 Dr. 3M
Strategic Guidelines Offered by the Job Characteristics Model

Strategic Guidelines Core Job Dimensions

1. Combining tasks - Combine existing specialized
tasks to form a large module of work.
Skill Variety

2. Creating natural work units - Form tasks into

an identifiable meaningful whole piece of work.
Task Identity
3. Establishing client relationships - Establish direct
relationships between employee and user of Task Significance
the good or service.

4. Vertical Loading - Give employee more Autonomy

responsibility, discretion, and control over work.

5. Opening feedback channels - Increase employee

performance feedback and tell if performance has Feedback
remained stable, increased, or decreased.
153 Dr. 3M
 Selection & Recruitment

154 Dr. 3M
 Person-Organization Fit

155 Dr. 3M
“Can-Do” and “Will-Do” Factors in Selection Decisions

156 Dr. 3M
157 Dr. 3M
 Big Five Personality Characteristics

158 Dr. 3M
 Warning Signs of a Weak Talent “Bench”

1. It takes a long time to fill key positions

2. Key positions can be filled only by hiring from the
outside.
3. Vacancies in key positions cannot be filled with
confidence in the abilities of those chosen for them.
4. Replacements for positions often are unsuccessful
in performing their new duties.
5. Promotions are made on the basis of whim,
favoritism, or nepotism.

159 Dr. 3M
160 Dr. 3M
161 Dr. 3M
162 Dr. 3M
163 Dr. 3M
 Suggested Interview Questions

164 Dr. 3M
 Career Planning

165 Dr. 3M
 Alternative Career Moves

166 Dr. 3M
 HR’s Role in Career Development

167 Dr. 3M
Organizational and Individual Career Planning Perspectives

168 Dr. 3M
 Combinations of Career Interests and Skills

High
Explore Pursue
SKILLS

Avoid Develop
Low

Low High

INTERESTS
169 Dr. 3M
Succession Career
Planning Development
 Practical Example

Panda Supermarkets
Cashier Career Path

171 Dr. 3M
 Store Manager

Store Assistant
Manager

Dept. Head
Front End
Manager

Assistant
Dept. Head
Head Cashier

Store Dept.
Service
172 Dr. 3M
Cashier
 Retention

173 Dr. 3M
 Turnover Rate

Number of employee separations during the month

 100
Total number of employees at midmonth

174 Dr. 3M
 Retention Determinants

175 Dr. 3M
 Practical Example

Talent Management
Jeddah Chamber of Commerce &
Industry

176 Dr. 3M
 Employee Profiling

Competencies Sector
CV Analysis
Assessment Preferences

Psychometric Numerical &

Weekly activities
Profiling Verbal
planning and
(OPQ ) Aptitude test
follow up sheet

LM
English Performance Occupational
Language Assessment Preferences

177 Dr. 3M
 Competencies
Indicators Competencies
1
2
3 A. Problem Solving and
Assignment 1 4 Creativity
5
6 B. Achievement Focus
7 and Capacity to
8 .3 perform
Assignment 2 9
10 C. Attention to details
11 D. Customer focus
.2
12 E. Written communication
Assignment 3 13
14 skills
.5
15 F. Negotiation/convincing
16 skills
17
. G. Planning skills
Assignment 4
. H. Information collection
178 .22 Dr. 3M
 Flexible reports
English level
report for all
Employee By
qualification
report
By length of
All Staff experience

By Salary
Movement
Report
Salary and
current position
Performance
Assessment

By old Dept

179 Profile by Dr. 3M Full profile

Dept report
 Practical Example

Savola Knowledge Profiler

180 Dr. 3M
181 Dr. 3M
182 Dr. 3M
 Training

183 Dr. 3M
Training and Development and Other HRM Functions

Availability of training can aid Provide an additional

in recruitment
Recruitment source of trainees

Training may permit hiring Effective selection may

less-qualified applicants
Selection reduce training needs

Training aids in the Performance A basis for assessing

achievement of performance Appraisal training needs and results

Training and development may Compensation A basis for determining

lead to higher pay Management employee’s rate of pay

Training may include a role for Union cooperation can

the union
Labor Relations facilitate training efforts

184 Dr. 3M
Training and Development are a Shared Responsibility

Top HR
Management or Training
(support and Department
budget) (staff support
and guidance)
RESPONSIBILITY
FOR TRAINING AND
DEVELOPMENT

Employee Immediate
(interest and Supervisor
motivation) (guidance and
some training)

185 Dr. 3M
 Systems Model of Training

186 Dr. 3M
 Development Approaches

Individual
Coaching

Committee
Learning
Assignment/
Organization
Meetings

Job-Site
Corporate
Universities Career Methods Job
Rotation
Development

On-line “Assistant to”

Development Positions

187 Dr. 3M
 Development Approaches

Classroom Courses Human Relations

and Degrees Training

Off-Site
Methods
Outdoor Training Simulations
(Business Games)

Sabbaticals and
Leaves of Absence

188 Dr. 3M
 Most Commonly Used Instructional Media

189 Dr. 3M
 A Typical Learning Curve

190 Dr. 3M
 Learning Styles

191 Dr. 3M
192 Dr. 3M
 Evaluating Training

• Were business objectives

achieved?

• Can those behaviors be

demonstrated over time?

• Can they prove they learned

something?

• Did they like it?

193 Dr. 3M
ASSESSING TRAINING EFFECTIVENESS often entails using the four-level model developed by Donald Kirkpatrick (1994).
Factors That Increase the Likelihood That Training Will be Used
on the Job

Theory
Demonstration

Practice or Simulation

Practice on the Job with Feedback

Practice on the Job with Coaching

194 Dr. 3M
 The PROPER Way to Do On-the-Job Training

195 Dr. 3M
 Training

Just in Case (JIC)

Just in Time (JIT)

196 Dr. 3M
 Practical Example

Competency Based Training

Savola Academy

197 Dr. 3M
 Managing Strategy

3
Managing Managing Info
2 MP
People & Finance
1
E

2
Managing Managing 1
OS
Operation Self E

Information Technology Management Trainees

English Language - Level 6

Code Managing Self Days Points

MS1 Savola 101: The Savola Way 1 5
MS2 The Seven Habits of Highly Effective People 2 10
MS3 Setting SMART Objectives 1 5
MS4 Savola Big Rocks System 1½ 5
MS5 Personal Development Planning 2 10
198 Dr. 3M 7½ 35
 Knowledge Fair
199 Dr. 3M
200 Dr. 3M
 Practical Example

Competency Based Training

Panda Academy

201 Dr. 3M
 Core Skills Functional Skills
Company Induction Module
202 Dr. 3M
203 Dr. 3M
 Competencies Assessment

204 Dr. 3M
 Assessment Centers

205 Dr. 3M
 360-Degree Assessment

206 Dr. 3M
 Practical Example

Leadership Assessment

Savola
Jeddah Chamber of Commerce
Jeddah Municipality

207 Dr. 3M
 Leadership Practices Inventory (LPI)

1- Challenging 2- Inspiring a
the Process Shared Vision

5-
Encouraging
the Heart
3- Enabling
4- Modeling
Others to
the Way
Act
 360 Degrees Assessment
100 Values Leadership
90
100
80 90 87
70 80
60 70 67
50 60
40 50
30 40 43 43
20 32
30
10
20
0
10
0
Challenging Inspiring Enabling Modeling Encouraging

Ethics 100
90
80
100 70
60
50
80 40
30
20
60 10
0

40

De

In
Ac

Co

Pl

Cu g w

Ba
fo
or
an
hie

lf

lan
st o
nf

rm
kin opm
nin
id e

De
vm

ce
m

at
g

er
nc

ve

ion

d
en

&
20 e

ith

Fo er s

Et
tF

De

Ga
a

hic
cu
Ot
nd
oc

liv

th
en

s
h

al
us

Dr

er
er

Va
ing

in g
209 Dr. 3M
iv e
0

lue
Management

s
Birr Amanah Mujahadah
210 Dr. 3M
 Mirror 360 is web-enabled engine that can be used to administer 360
:assessment of
• Management Competencies
• Values
•Leadership Profile (based on LPI)

Visit the web site at www.mirror 360.net

Use the following to enter to the system to examine Self template:
User ID: 111
Password: 111

For Others Assessment

User ID: 222
Password:222

To use the system, contact mirror360profile@yahoo.com

211 Dr. 3M
 Performance Management

212 Dr. 3M
 Performance Appraisal and Other HRM Functions

Performance appraisal judges Quality of applicants

effectiveness of recruitment Recruitment determines feasible
efforts performance standards

Selection should produce

Performance appraisal
Selection workers best able to meet
validates selection function
job requirements

Training and development

Performance appraisal Training and
aids achievement of
determines training needs Development performance standards

Performance appraisal is a Compensation Compensation can affect

factor in determining pay Management appraisal of performance

Appraisal standards and

Performance appraisal justifies
personnel actions
Labor Relations methods may be subject to
213 Dr. 3M negotiation
 Performance Appraisal

Appraisal Programs

Administrative Developmental

Compensation Ind. Evaluation

Job Evaluation Training

Career Planning

214 Dr. 3M
 Performance Appraisal under an MBO Program

MANAGEMENT BY OBJECTIVES

215 Dr. 3M
 Factors That Influence Performance

216 Dr. 3M
 Performance Diagnosis

217 Dr. 3M
 Forced Distribution on a Bell-Shaped Curve

218 Dr. 3M
 Practical Example

Going from Mission to Moments

The Savola Big Rocks System

219 Dr. 3M
 555 Strategy

BSC
SMARTs

BRS

Weekly Action Plans

 To Discover my unique strengths and
contumely develop them and apply
them in such way that makes Allah
pleased with me.

Mission

Roles

SMART Objectives

Weekly Big Rocks

Review
221 Dr. 3M
 SAMRT Objectives

SMART Title Points Assessment Factors & Wights

Customer
Establlish Panda Academies in Use of Building Overall
50 Quantity Timeliness Quality Value Independence
Jeddah and Riyadh Resources Competencies Evaluation
Added
10% 20% 20% 15% 15% 10% 10% 100%
2 2 2 1 2 3 2 1.95

SMART Title Points Assessment Factors & Wights

Produce Ethics @ Retail Document Customer
Use of Building Overall
and introduce an implementation 30 Quantity Timeliness Quality Value Independence
Resources Competencies Evaluation
change management program Added
10% 20% 20% 15% 15% 10% 10% 100%
3 2 2 2 3 2 1 2.15

SMART Title Points Assessment Factors & Wights

Palm Tree Project: Achive Customer
Use of Building Overall
Saudization recruitment and 40 Quantity Timeliness Quality Value Independence
Resources Competencies Evaluation
retention taregets Added
10% 20% 20% 15% 15% 10% 10% 100%
1 1 2 3 3 2 1 1.9

Summary
3: Exceeded Expectation SMART Wight Rating Wighted Rate
2: Met Expectation 1 50 1.95 0.81
1: Below Expectation 2 30 2.15 0.54
3 40 1.9 0.63
Total 120 1.98

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223 Dr. 3M
 Three Types of Users Certificates
There are three types of BRS user certification that
Savola managers can obtain.
.

Certified BRS Certified BRS Professional Certified BRS

Users Users Team Leader Users

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 Performance Consulting

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 Performance (P) = Ability (A) x Effort (E) x Support (S)

Effort (E)

Ability (A) Support (S)

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 Performance Consulting

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 Practical Example

Performance Improvement @
Panda front lines

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 Training Career

Performance
Bonus Standards

Discip-
Mentor Cashier linary

Work
Job
Conditions
Titles
Com &
FEM
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230 Dr. 3M
 Key Performance Measures
– Attendance
• Measured by how many late.
– Customer Service
• Daily assessment of 20 points check list
– Speed: Scan Rate
• Items per minutes from Head Cashier
report
– Accuracy
• End of shift balance (short/over)

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 Cashier Performance report 79999 Moahmed Sayeed
May-02 Performance Scores

Customer service

Punctuality
Time Card

Accuracy
Speed

Speed

Points
Short
Over
Day

Day
No Total
1 1-May 23 4 5 12 1 143 125 50 121 439
2 2-May 13 5 6 13 2 127 125 65 115 432
3 3-May 12 5 5 14 3 113 125 50 107 395
4 4-May 11 4 6 9 4 96 125 65 107 393
5 5-May 14 3 7 6 5 102 125 65 107 399
6 6-May 13 4 8 12 6 103 125 65 103 396
7 7-May 23 4 7 4 7 109 125 65 103 402
8 8-May 23 4 6 12 8 113 125 65 99 402
9 9-May 23 0 5 3 9 116 125 65 99 405
10 10-May 23 7 4 12 10 119 125 65 95 404
11 11-May 23 2 3 3 11 121 125 65 95 406
12 12-May 23 8 5 3 12 123 125 65 95 408
13 13-May 23 7 6 12 13 125 125 65 91 406
14 14-May 34 4 7 3 14 127 125 65 91 408
15 15-May 23 4 8 12 15 128 125 65 87 405
16 16-May 21 4 7 3 16 129 125 65 87 406
17 17-May 12 44 8 13 17 127 95 65 81 368
18 18-May 21 4 9 3 18 127 95 65 81 368
19 19-May 12 4 8 3 19 125 95 65 81 366
20 20-May 12 55 10 4 20 123 80 80 81 364
21 21-May 12 4 2 12 21 121 80 65 77 343
22 22-May 21 4 8 9 22 122 80 65 77 344
23 23-May 21 5 8 3 23 123 80 65 77 345
24 24-May 12 5 8 4 24 121 80 80 77 358
25 25-May 12 5 9 5 25 120 95 80 77 372
26 26-May 12 5 8 23 26 118 95 80 51 344
27 27-May 12 5 7 23 27 117 95 80 25 317
28 28-May 12 5 6 16 28 116 95 80 13 304
232 29 29-May 21 55 7 12 Dr. 3M 29 117 80 80 9 286
30 30-May 12 5 6 6 30 116 80 80 9 285
31 31-May 12 5 7 5 31 115 80 80 9 284
 Cashier Performance Score

500
400 Speed
Accuracy
300
Score

Points
200
Punctuality
100 Total
0
1

10

13

16

19

22

25

28

31
Day
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 Compensation & Benefits

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 Compensation Management and Other HRM Functions

Supply of applicants
Aid or impair recruitment Recruitment affects wage rates

Selection standards affect

Pay rates affect selectivity Selection level of pay required

Training and Increased knowledge leads

Pay can motivate training
Development to higher pay

Training and development may Compensation A basis for determining

lead to higher pay Management employee’s rate of pay

Low pay encourages Pay rates determined

unionization
Labor Relations through negotiation

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 Relationship between Pay Equity and Motivation

Doing More and Receiving Less Doing the Same and Receiving the Same Doing Less and Receiving More

The greater the perceived disparity between my input/output ratio and

the comparison person’s input/output ratio, the greater the motivation
236 to reduceDr.the
3M inequity.
 Total Compensation

Direct Indirect

Wages / Salaries Time Not Worked

• Vacations
• Breaks
• Holidays
Commissions
Insurance Plans
Bonuses • Medical
• Dental
• Life
Gainsharing
Security Plans
• Pensions

Employee Services
• Educational assistance
• Recreational programs

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 The Mercer Model of Total Remuneration System

Determinants Pay/Remuneration Elements Outcomes Tools

Alignment with
Individual needs Flexible Benefits

Flexible
Benefits

Performance Long Term Value growth Value Drivers Analysis

KPIs
Incentives
Total Remuneration
Variable

Person
Target achievements
Short Term Individual success Balanced Scorecard

Position Insentives

Competency Model
Employee development 360 degree feedback
External Market
Fixed

Base Salary
Clarity, Internal and Job Grading System
External Equity

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 Job evaluation
4 Factors/ 10 Dimensions

Impact Communication
Contribution
(Limited -> Major) Frame
(Internal Shared Interests
-> External Divergent Interests)

Impact
(Delivery -> Visionary)

Organisational Size Communication

(Based on ”Turnover” and #Employees) (Convey -> Negotiate Strategically)

Knowledge
Innovation
Teams
(Team member -> Teams Manager)
Complexity
(Defined -> Multi-dimensional)

Knowledge
(Limited Job Knowledge
-> Functional Specialist/
239 Innovation Dr. 3M Breadth Organisation Generalist)
(Follow -> Scientific/Technical Breakthrough) (Domestic -> Global)
 Establishing Pay Structures

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 Factor 1 : Impact / Contribution

Level of Contribution
1 2 3 4 5
NATURE OF
Limited Some Direct Significant Major
IMPACT

1 Delivery Establish and implement business

strategies with significant impact on
business unit/function results

2 Operational

3 Tactical

4 Strategic

5 Visionary

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 Factor 2: Communication / Frame

FRAME
1 2 3 4

COMMUNICATIONS Internal Shared External Shared Internal Divergent External Divergent

Convince others within the

1 Convey organisation that are skeptical or
unwilling to accept concepts,
practices, and approaches
2 Adapt & Exchange

3 Influence

4 Negotiate

Negotiate
5
Strategically

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 Factor 3: Innovation / Complexity
COMPLEXITY
1 2 3 4

Defined Difficult Complex Multi-Dimensional

INNOVATION

1 Follow

2 Check Analyse complex issues and improve

or adapt methods and techniques

3 Modify

4 Improve

Create /
5
Conceptualise

Scientific/Technical
6
Breakthrough
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 Factor 4: Knowledge / Teams / Breadth

TEAMS
1 2 3 BREADTH

KNOWLEDGE Team Member Team Leader Teams Manager

Domestic
Limited
1
Job Knowledge
Basic
2 Regional
Job Knowledge

3 Broad Job Knowledge

Global
Technical
4
Expertise
Qualified
5
Professional
Leads a team through application of
Functional Specialist/ adequate knowledge of one job area
6
Org. Generalist or basic knowledge of several job
areas - Regional
Functional Preeminence/
7
Broad Practical Experience
Broad and Deep
8
Practical Experience
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 The eIPE evaluation process

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 Pay Scattergram

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 Single Rate Structure

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 Pay Ranges

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 Wage Structure with Increasing Rate Ranges

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 Continuum of Compensation Philosophies

250 Dr. 3M Figure 12–3

 Types of Variable Pay Plans

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 Factors for Successful Variable Pay Plans

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 Practical Example

Savola 3P System for

Compensation Management
Attamauyz

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 BSC

SMART

Job Description
Job Size

Activities: M/F
Competencies Achievements
Knowledge: M/F

Salary
 Practical Example

Establishing Ethics & Values

Systems
Savola Group @

255 Dr. 3M
 Ethics,
Culture,
Values,
“ Our Value
resides in our
Values”
‫قيمتنا قيمنا‬

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 Customers
Competitors Colleagues

Tenants Subordinates

You

Vendors Community

Savola Other
Shareholders Authorities
BUs
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 Scientific Sophistication

Amanah Values
Mindset
Can-Do

AT-TAMAYUZ
Birr Taqwa
AL-MU’AZARAH

Tawado

Mujahadah
Attitudes Styles

Customer Focus
258 Dr. 3M
 Shareholders
Balancing

ah
Amanah

ad
jah
Mu
Customers

Suppliers
Taqwa Taqwa

Birr

Employees
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 HR IT

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261
Uses of an HR Information System (HRIS)

Dr. 3M
 Leading Web-based HR Technologies

• Job postings and recruitment (70%)

• Corporate communications (57%)
• Benefits information and enrollment (32%)
• On-line training (24%)
• Access to profit sharing, savings and 401(k) (18%)
• On-line performance appraisal (6%)
• Other web-based HR applications (e.g., collaboration,
interviewing systems) (19%)

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 Implications of e-HRM for HRM Practices

HRM PRACTICE IMPLICATIONS OF E-HRM

Analysis and Employee in geographically dispensed locations can work

design of work together in virtual teams using video, e-mail, and the internet

Recruiting Post job openings online, candidates can apply for jobs
online

Training Online learning can bring training to employees anywhere,

anytime

Online simulations, including tests, videos, and e-mail, can

Selection measure job candidates ability to deal with real-life business
challenges.

Compensation and benefits Employees can review salary and bonus information and
seek information about and enroll in benefit plans.

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 Thank You
3M
‫نسألكم الدعاء‬
Remember me in your prayer

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