International human resources management lesson 5a

5a Processes are designed and d t ti i t k h ld managed to optimise stakeholder

value

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5A PROCESSES ARE DESIGNED AND MANAGED TO OPTIMISE STAKEHOLDER VALUE

International Human Resources Management, Dr. Jörg Klukas

SUMMARY OF THE LAST SUMMARY OF THE LAST LECTURES – WHAT DID YOU LEARN? YOU LEARN?


What we have learnt.• Overview of the EFQM

Model to be applied for HR-Communication

• Feedback (360°) and M ti ti T t l R dDepartments

• Criteria 3• HR Planning

Motivation, Total Reward

• Criteria 5Y ill l h t t • HR Marketing, Recruiting,

Integration• Succession Planning• Employee Survey

• You will learn, how to get your HR Processes right.

• Employee Survey• Strategic Competency

Management and Blended LearningS tSystem

• Annual Employee Feedback Interviews and Target Appraisals

• Empowerment and Internal International Human Resources Management,

Dr. Jörg Klukas4

The EFQM Model –5a Processes are designed and managed to optimise and managed to optimise stakeholder value


The EFQM excellence modelQ

Enablers Results

People

Leadership

People

Policy andStrategy Processes

People Results

CustomerResults

KeyPerformancep Strategy

Partnerships& Resources

Processes Results

SocietyResults

Results

Innovation and Learning


6

The EFQM excellence modelQ

Leadership

People

Strateg Processes

People Results

Customer Key Performance 5 PLeadership Strategy

Partnership& Resources

Processes Results

Society Results

PerformanceResults 5. Processes

a. Processes are designed and managed to optimise stakeholder value

b. Products and services are developed to create optimum value for customers

c. Products and Services are effectively promoted and marketed

d Products and Services are produces delivered and managedd. Products and Services are produces, delivered and managed

e. Customer relationships are managed and enhanced

What about HR Products, Services and Solutions?


What about HR customer relationship?

7

The EFQM excellence model - ProcessesQ

5 P d i d d d t ti i t k h ld l

In practice, excellent organizationsA l i d i i i h i d d f h

5a Processes are designed and managed to optimise stakeholder value

APPROACHES• Analyze, categorize and priorities their end to end processes as part of the

overall management system and adopt appropriate approaches to effectively manage and improve them, including those processes that extend beyond the boundaries of the organization.

• Clearly define process ownership and their role and responsibility in developing,

Process-orientedManagement System with

ProcessClearly define process ownership and their role and responsibility in developing, maintaining and improving the framework of key processes.

• Develop meaningful process performance indicators and outcome measures, clearly linked to the strategic goals.

• Turn ne ideas into realit through inno ation enabling processes that fit the

Process Documentation,

Managing Roles andResponsibilities,

M i P• Turn new ideas into reality through innovation-enabling processes that fit the nature and importance of the changes they will make.

• Assess the impact and the added value of innovations and improvement to processes.

Measuring ProcessPerformance by

IndicatorsProcess Improvements


pProcess Maturity

8

INTRODUCTION OF THE INTRODUCTION OF THE PROCESS-ORIENTED MANAGEMENT SYSTEMMANAGEMENT SYSTEM

Is Dilbert a suitable advertiser?

Employees don‘t see this issue unreflectingEmployees don t see this issue unreflecting...International Human Resources Management, Dr. Jörg

Klukas10

EFQM Model and ISO 9000Q


11

Reasons for Business Process Managementg

Internal ObjectivesExternal Objectives

Internal optimizations of procedures

Proofs fulfillment of quality and compliance requirements

Internal ObjectivesExternal Objectives

Documentation

Increase in productivity

Transparency for customers

Simplification of business processes

Motivation of employees

Reducing costs

p

Set up efficient customer-supplier relationships

Improve weaknesses

Faster introduction of new hires

Improvement of image

Competitive Advantages


Source: Bruhn (1997)12

PROCESS CHARTSPROCESS CHARTS


Managing Processes – A General Process Model viewed on HR Perspective.p

L d hi P

1. Strategy and Planning

2. Operative Leadership 3. Business Excellence Steering

Core Performance Processes

Leadership Processes

MARK

CUSTO

CUSTO

MARK

4. Acquisi-tion and

7. Know-ledge

Sharing

5. Produce and Deliver Products

KET

OMER

OMER

KET

CRM

6. Manage Projects and Services

gand

Learning

Enabling Processes

8. Human Resources 9. Procurement 10. Finance

Management and 11. Infrastructure


Management ManagementManagement and

Controlling Management

14

Elements of Process Managementg• Processes

• Corporate ViewCorporate View• For all Key processes• Linkages

• Owners, Managers, Community• Sub-Processes

• Fall all main elements Fall all main elements of a process

• Linkages• Indicators/MeasuresIndicators/Measures

• ONLY A FEW: Procedures• Detailed description• Steps, roles, documents


15

HR Processes with Sub-Processes

Integration / On-Boarding (First Day

Education, Training, Coaching, Blended LearningEmployee AppraisalBoarding (First Day

Procedures, Welcome Day,…)Strategic Alignment

(Target Management)

p y ppTotal Reward

Approach

Integrate & Align

Develop & BindPlacement

Integrate & AlignEmplacement

Set free & SupportOutplacementPlan & Find

Last Work Day ProceduresOutplacementCertification Retirement

Personnel and Competency PlanningHR Marketing

Outplacement

Re-integrate & Keep upReplacement

Preplacement

RetirementVacationParental Leave

HR MarketingApplicant

ManagementTransfer, ShiftingJob RotationSuccession PlanningRe-OrganizationAlumni Management


Alumni Management

16

Examples of HR Sub-Process: Plan&Find

Procedures

Qualitative HR Planning and Budgeting Quarterly Review as part of Business Unit ReviewsHR Planning and HR Planning and

Review; Mgmt. of Review; Mgmt. of l ditil diti

Measures

Deviations of plans

Main Steps

Updating communications planes, marketing activities and job posts

Allocation of internal and external channels; Organizing communication

and marketing campaigns

Commission of marketing measures and deployment of

communication plan

general conditionsgeneral conditions

HR marketing and HR marketing and communication communication managementmanagement

p

#applicants per open position;

cost of recruiting per

Management of general conditions (policies and quota of hiring, training with prioritizing by means of cost-benefit analysis,…)

and marketing campaigns communication planmanagementmanagement

Applicant Applicant

Receipt of application, registration and request of

missing information

Pre-selection by HR and forward to Leaders

Manage leaders responses and follow up

1. Decision:decline, recommend, invite

recruiting per open position

time to hire, t f pppp

ManagementManagement Management of interviews or assessments

2. Decision:decline, recommend/save, offer

Prepare offer and negotiation

Creation,

success rates of interviews

time to ContractContractManagementManagement

verification, authorization of

contract

Mailing and administration, Information of leaders

Response Controlling, Follow ups Creation of personal files

IntegrationIntegrationM tM t

Preparation of infrastructur, f ilit d i i t ti

1 First Work D Welcome Day

Target Interviews, P b ti

Monitoring integration steps (e.g. initiation

time to contract,

rejection rate

fluctuation (labor

turnover) within ManagementManagement facility, administration,… Day y Probation

Talks

p ( gplan)employment

probation period

17





(Target Management)

p y ppTotal Reward

Approach

Integrate & Align






Outplacement


Preplacement





Alumni Management

18

Example of HR Sub-Process: Competency Managementp y g

Environment & Challenges

Targets &Strategy

Structures &Processes

Analyze requirements &training targets

Plan &Definition & Preparation

Compare with targets,Review and improve

Information Systems

Develop training sessions

Deployment &Transfer

Controlling of success

Develop training sessionsor outsource training

(make or buy)


Transfer

19





(Target Management)

p y ppTotal Reward

Approach

Integrate & Align






Outplacement


Preplacement





Alumni Management

20

Example: Procedure for Target/Appraisal Management g pp g

Beginning of yearagree individual Targets for all

employees

Within thefollowing year

Beginning of next year

review and update Targets

At least 2 weeksprior Appraisal

Leader&Employee

Leader&Employee

Leader&Employee

Leader

Review Target Achievement (last year) &N T

Status Review(on demand)

Review Target Achievement (last year) &N T

Communication ofOrganization’s

and unit’s targets ll l New Target

AppraisalNew Target Appraisal

to all employees


Changed organizational

targets?

Same targets of organization?

21

Necessary Elements of ProceduresyRoles

ToDos

Decisions/ Gates

Li k tLinks toother

processes, procedures


Source: http://www.essex.ac.uk/adminreview/images/staff-recruitment-diagram.gif

procedures

22

Necessary Elements of Proceduresy

R lRoles

Decisions/ Gates

CommentsGates

Docu-mentsments

ToDos


23

PROCESS DESCRIPTIONPROCESS DESCRIPTION


Describing Processes rightg g

L d hi P


2. Operative Leadership 3. Business Excellence Steering



MARK

CUSTO

CUSTO

MARK

4. Acquisi-tion and

7. Know-ledge

Sharing

5. Produce and Deliver Products

KET

OMER

OMER

KET

CRM

6. Manage Projects and Services

gand

Learning

Enabling Processes

8. Human Resources 9. Procurement 10. Finance

Management and 11. Infrastructure


Management ManagementManagement and

Controlling Management

25

Example Description – HR Processp pNecessity for the organization• Human Resources is a key process because it • Human Resources is a key process, because it

describes procedures for people management, as people are the most important economic factor (People Management)

P t gProcess category• The Process „Human Resources Management“

belongs to enabling processes (Process 8)g g p ( )


26

Example Description – HR Processp pSpecialties:• the individual Sub-Processes are running in parallel and are the individual Sub Processes are running in parallel and are

performed continuously

Process-Customers:Process-Customers:• Internal: Organization, Employees, Manager, Worker’s

Council• E t l A li t S i t bli I tit ti d • External: Applicants, Society, public Institutions and

Authorities, Alumni

E i i h i iExecution in the organization• Over all Business Units (all Processes)


27

Example Description – HR Processp pObjective:1 The Process Human Resources Management“ 1. The Process „Human Resources Management

ensures, that qualified personnel is provided• in sufficient number, • on the right time, • on the right place,

2 and that the employees 2. and that the employees • are trained for their own benefit and for the

organization’s benefit itt d l t • are committed on a long term,

so that the economic success of the organization can be ensured.


28

Example Description – HR Processp pCritical factors of success1 Attainment of HR performance indicators are 1. Attainment of HR performance indicators are

influenced by the framework of the organization (e.g. stop of employment) and because of lack of professionals on the job market

2. Educational controlling for ensuring return on invest of further educationinvest of further education

3. Long-Term Commitment of employees


29

Example Description – HR Processp pThe HR Process supports reaching strategic targets

1. Finance: Revenue and Return, because Quantity and Quality of the employees influence Revenue and Return and Return

2. Customer: Loyalty of customers directly depends on competency and commitment of employees

3 Processes: Utilization rate and Hour-rates per employee 3. Processes: Utilization rate and Hour-rates per employee, because Compentency of the employees influence their utilization and quality of their productsp o c s

4. Potential: Certification, Competencies, Maturity Level for HRM


30

HR Leading Indicators - examplesg p1. Talents-quota in %• Share of Apprentices/BA-Students/Bachelors/Diploma-

Students/MBA-Students• Definition: Number of Apprentices/Number of Employees• How good is the organization’s prevention for being independent of

the market and framework (e.g. stop of employment)?

2. Rate of labor turnover during the trial period of new l (l th h lf )employees (less than a half year)

• Did the organization made the right choice? • Definition: Number of terminations during the trial

period/Number of Employmentsperiod/Number of Employments• Are the right People employed and trained on the right way?


31

HR Leading Indicators - examplesg p3. ø Organization’s expert knowledge in years• Is the organization able to commit employees in the long run?

4. Recruitment Costs• Costs per new hire

5. Degree of certification (Human Capital Readiness Index)• How good are deployed Trainings?g p y g


32

HR Lagging Indicators - examplegg g p6. Satisfaction with their development opportunities

(Surveying)• How satisfied are the employees with their development

opportunities?

7. Ø Deviation from Personnel Planning in %• Degree of deviation of the number of actual employments from

planned employments

8. Placement in the BestPersAward• How good is the organization’s HR in comparison to other

companies? companies?


33

HR Lagging Indicators - examplegg g p9. Value of EFQM-Assessment of criteria 3 and 7• How are the criteria “People” and “People Results” evaluated

internal and external?

10.Evaluation of People-Competencies (Customer Surveys)• How do the customers evaluate the competencies of the

organization’s employees?


34

Are these indicator the right ones?gObjectives of the process

Key Success / Risks Strategic Targets

# indi-cator

1 2 1 2 3 1 2 3 4

1 X X X X X X X X X

2 X X X X X X

3 X X X X X X X X X3 X X X X X X X X X

4 X X X X X

5 X X X X X X X X

6 X X X X X X

7 X X X X X

8 X X X X X

9 X X X X X X

1010 X X X X X X X


35

Description of each Sub-process (text-version)( )• Title/Number of sub-process• Important Main Steps• Important Main Steps• Involved Roles (leader, employee, departments,…)• Reference to further documentation, e.g. Reference to further documentation, e.g.

approaches, concepts, procedures, forms, templates, IT-Systems,…


36

Alignment & Ownership -HR Approaches and HR Sub-Processespp

Committee WorkHuman Capital

Scorecard

ManagingProcesses

HR-Policy & HR-Strategy

Benefits & Compensation

HR-ControllingSalary Elements

HR Reporting

Variable BonusSystem

g

HR-Planning

HR-Recruitment

Monitoring ofPersonnel

DevelopmentofCentral

PLayoff of Personnel

Job Profiles & Career Paths

HR ReportingEmployee Feedback

TalksBlended Learning

System

Planning Recruitment Deployment EmployeesProcesses Personnel

HR-AdministrationPersonnel

Employee Appraisels

HR-Planning Last Work DProcedure

SupportingProcesses

Competency Management System

Working Conditions & Social Conditions

AdministrationCompetency

Management SystemFlexible

trust-based


working time

37

PROCESS ROLESPROCESS ROLES


Process Roles• Process Owner

• owns the process, sub-processes, procedures and all belongings of the process (forms, checklists, templates,…)

• (re-)designs the process, sub-processes, procedures and all belongings of the process, if it is necessary

• assures fulfillment of strategy by its processDis

cuss

nova

te

assures fulfillment of strategy by its process• Process Manager

• Measures and analyzes the process, sub-processes, procedures and all belongings according to:

n, M

easu

re,

mpr

ove,

Inn

• fulfillment of strategy (e.g. linkage to a BSC)• good-in-class performance

• peers (prüfend blicken) the process owner and its processes,…; is not employed with the process owner

Des

ign

Re-

Des

ign,

I

p y p• suggests necessity of improvements

• Process Community• generate, elaborate and share knowledge and best-practices for

i i iimprovements an process innovations


39

Example -Process Owners by Top Managementg


2. Operative Leadership 3. Business Excellence SteeringCEOCEO CEOCEO QMQM



5 ProjectsHead of SalesHead of Sales CEOCEO

MAR

CUST

CUST

MAR

4. Acquisition

7. Knowledge

5. Projects

5 3 Test Services

5.2 Software Solution Development

5.1 Consulting

COOCOOBULBUL

BULBUL

BULBULRKET

TOMER

TOMER

RKET

Acquisition and

CRM 6. Services

Sharing and

Learning

5.3 Test Services

6.1 Agency Services

6.2 Support Services

COOCOO

BULBUL

BULBUL

BULBUL

Enabling Processes

10. Finance

6.2 Support Services

Head of HRHead of HR CFOCFO CFOCFO Head of internal ITHead of internal IT

UU


8. Human Resources Management

9. Procurement Management

10. Finance Management and

Controlling11. Infrastructure

Management

40

Summary - Elements of Processesy•A Process consists of:

– Description of objective and purpose– Description of success factors and critical risk– Assigned Process Owners, Managers, and/or Community– Start points and end points

Li k d b – Linked sub-processes – Links to other processes– Input/Output (a process produces something.)– Involved rolesInvolved roles– Key indicators for process evaluation, that are linked to strategy,

success factors and critical risks•A process is supported by:

– Approaches, Systems, Concepts– Forms and templates– Handbooks, Checklists, Procedures

Tools (e g Database) and other appliances– Tools (e.g. Database) and other appliances


41

Line of Thoughts - Processesg• 1b leaders… base decisions on factually reliable information and use all

available knowledge to interpret current and predicted performance on the relevant processeson the relevant processes

• 2d in order to deploy strategy... maintain and align an organizational structure and a framework of key processes to deliver strategy

• 3a ...align people plans with their strategy, the organizational structure, new technologies and key processes

• 5a ...develop meaningful process performance indicators and outcome measures, clearly linked to the strategic

1b Leaders manage strategy, people and processes

2d strategy 3a people 5a process 2d strategy is deployed

by key processes

organization follows key processes

and strategy

indicators measure strategic success


5b improvements, innovations42

PROCESS MATURITY, PROCESS MATURITY, IMPROVEMENTS


5 formal Levels of Process PerformanceCarnegie Mellon University, 1997


44

Maturity Level in view of Knowledgey g

to produceLevel 1Activity Resultsto produce

Just do it.

PlanningLevel 2Think beforeyou act.A d thi k ft

Activity Resultsto produce

input to

And think afteryou act, just tomake sure youdid right.

Evaluation

input to

to improve


45


Level 3 Planninginput to

ResultsActivityStandardsinput to

to produce

Evaluation to improveinput to

Use your lessons learned.


46


Level 4 Planninginput to to forecast


to produce

Evaluation to improveinput to

Predict the results you need and expect andthen create opportunities to get those results.


47


Level 5 Planninginput to to forecast


to produce

input to

Evaluation to improve

Create lessons learned,and use lessons learned to create more lessons learned,

and use more lessons learned to create even more lessons learned,and use even more lessons learned to create ... Etc.


48

People Capability Maturity Model (PCMM)( )

Continuous Workforce InnovationOrganizational Performance Alignment5 Optimized

Continuousorganizational

Process AreasMaturity Level Focus

Continuous Capability Improvement

4 Managed

development

Capability Management

MentoringOrganizational Capability ManagementQuality Performance Management Competency -Based Assets Empowered Workgroups

C t

Empowered WorkgroupsCompetency Integration

Participatory CultureWorkgroup DevelopmentCompetency-based Practices

3 Defined CompentencyManagement

Career DevelopmentCompetency DevelopmentWorkforce PlanningCompetency Analysis

2 LeadedEmployee

Management

CompensationTraining and DevelopmentPerformance ManagementWork EnvironmentCommunication and Coordination

Staffing


Staffing1 Initial

49

Each Process Areas has Process Goals

GOALS Sample Questions forA tAssessments

G1 The organization actively recruits for qualified talent Goal 1 How does your unit attract

people to open positions?

Staffing

qualified talent. people to open positions?

G2 The most qualified candidate is selected for each position. Goal 2

How does your unit ensure it is selecting the most qualified person for an open position?person for an open position?

G3 Selected candidates are transitioned into their new positions. Goal 3

How are people oriented to their new position and responsibilities in your unit?y

G4 Members of a unit are involved in its staffing activities. Goal 4 How are you involved in the

staffing activities of your unit?


50

Each Goal is assessed and according to the risk of failing the goal evaluated.g g

• „green“: low risk

the intention of the P-CMM goal is adaquately addressed. There is only a low risk to fail process goal.

• „yellow“: medium risk

the intention of the P-CMM goal is partitially addressed (there are approaches and concepts but they are only partitially deployed to approaches and concepts, but they are only partitially deployed to employees . Risk for failing process goal is seen.

• „red“: high risk„ e : g s

the intention of the P-CMM goal is not sufficiently addressed (no approaches). There is a high risk that the process goal will be failing


51

Example Results of a PCMM Assessment

Green Yellow Red

Process AreasST

CO

WE

PM

TD

CM

CA

CD

WF

CR

CB

WG

PC

STF - StaffingPM - Performance MgmtTD - Training&DevelopmentT

FOM

E M D MP

A D FP

RD

BP

GD

C

G 1 Out of

scope

Out of

scope

Out of

scope

Out of scope

Out of scope

Out of scope

TD Training&DevelopmentCA - Competency AnalysisCD - Comp. DevelopmentWFP - Workforce PlanningCRD - Career Development

G 2 Out of

scope

Out of

scope

Out of

scope

Out of scope

Out of scope

Out of scope

G 3 Out of

scope

Out of

scope

Out of

scope

Out of scope

Out of scope

Out of scope

p

G = Process Goal based on questions for assessment

G 4 Out of

scope

Out of

scope na Out

of scope

na Out of scope

Out of scope

Out of scope

G 5*

Out of

scope

Out of

scope na Out

of scope

na na na na Out of scope

Out of scope

Out of scope


*

52

Classification of Improvmentsp

RESULTSstrategic

RESULTS

apta

tion tactical

APPROACH

ffor

t of a

d

operativeDEPLOYMENT

Ef

ASSESSMENT&REVIEW


Frequency of adaptation53

HR MANAGEMENT HR MANAGEMENT REVIEW


Tools for Improvementsp

Approach Indicators Management-Review

Process Maturity (PCMM)

BSC

Process Indicators

AssessmentProcess Maturity (PCMM)

Management Maturity (EFQM) Evaluation of

Management System Process Performance Assessment results

Strategic Initiatives

Process Indicators Target achievements of BSC Business Objectives

Review Customer Feedback State of current

Improvement andCorrection measuresS t i t

Quality Objectives

Budget Owner of

InitativeSurvey Employee Satisfaction

Customer Satisfaction Image

Set up improvementmeasurements

- Initative


55

Management Review (acc. to ISO 9000)

Suggestions forimprovements

Pool of Ideas for Changeand Improvement

improvements

Consolidation

HR Strategy MapHR

ManagementReview

Strategic Filter/

Mange operational Improvement

Actions

Manage Change:HR Strategic Initiatives

Review

HR Code Book

Prioritize

Monitoring International Human Resources Management,

Dr. Jörg Klukas

Actions

HR Process Indicators HCSC Indicators

Monitoring Deployment

56

Synchronize Management/Unit Reviews in all levels of organization

Governanceby Unit Leader

g

Governanceby HR department

Governance byTop Management by Unit Leaderby HR departmentTop Management

4. BU-Review

MMS BSC

ManagementReview

HCSC

HR-ManagementReview

le adaptUnit BSC

MMS BSC, Codebook

HCSC

ear

cycl p

1. BU-Review

2. BU-Review

3 BU Review

1. Review inOffsite

2. Review inOffsite

1. Review inHR Meeting


1 ye

Strat. Initiatives

3. BU-Review3. Review in

Offsite

Strat. Initiatives Strat. Initiatives

HR Meeting


adapt


57

Contact me!Dr. Jörg Klukas• XING: https://www xing com/profile/Joerg KlukasXING: https://www.xing.com/profile/Joerg_Klukas• Facebook: http://www.facebook.com/home.php?#!/joerg.klukas• Slideshare: http://www.slideshare.net/pludoni• Twitter: http://twitter com/pludoniTwitter: http://twitter.com/pludoni• Email: [email protected]

International Human Resources Management, Dr. Jörg Klukas 58