BOOK AN APPOINTMENT IN YOUR COMPANY!!! half day masterclass session to launch HCM4.0 within your company context

 

HCM 4.0 MODEL – THE INWARD/OUTWARD APPROACH # PART A - VOICE OF THE CUSTOMER

HCM 4.0 MODEL –

THE INWARD/OUTWARD APPROACH

‘’There are two ways to extend a business. Take inventory of what you’re good at and extend out from your skills. Or determine what your customers need and work backward, even if it requires learning new capabilities “ says Jeff Bezos (Founder of Amazon)

The strategic pathway espoused by Jeff Bezos is indeed a guideline for HCM 4.0 in its journey to make the function business centric.

The critique  against the HCM function in the past has been … that it is an inward looking function without  touch of the market conditions or the external realities. The truth is HCM must now reach further into to external environment of the business to understand more deeply the business agenda  We can name it the  INWARD/OUTWARD APPROACH.

PART (A) - THE VOICE OF THE CUSTOMER

 

The  OUTWARD /MARKET APPROACH  ( “voice of the customer “) means addressing the market trends and compulsions and responding to the forces of competitive market strategy.

HCM 4.0 is centered around the business  environment and the challenges it throws at the HCM function. The real value of HCM is how precisely it is attuned to business realities.  The business’ goals – that is its strategic imperatives – sit at the center  of any HCM strategy

Following that the  VOICE OF THE CUSTOMER begins with a  business mindset and an externally focused view. HCM 4.0  to remain relevant need to shift from the hitherto inward boxed-up  perception of the role of the HCM function. Keeping an eye on the external business environment and the markets is now something which HCM professionals  need to do.

To elucidate the above concept let’s take an example:

A product innovation by the near competitor  for a  technology company means a chain of reaction to challenge the pioneer. This begins with overhauling  the company’s product design and R&D department;  the chain  effect passes on to the Manufacturing Department who need men machine and methods to bring the new product into reality. As a consequence  the marketing department has to rejig its strategy to challenge the market leader and penetrate their market  .

 

 At each of this inflection points the HCM 4.0 leaders must have a proactive action plan to make it business centric. HCM 4.0 has a role to bring in the right people or develop the right competencies; created the change readiness; have a long-term plan for culture of innovation to replicate the process in future

 

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Website Link - https://www.himpub.com/BookDetail.aspx?BookId=8926

Amazon Link - https://www.amazon.in/dp/9356936099?ref=myi_title_dp

 

With Best Wishes

Dr Wilfred Monteiro

HCM4.0 A TALENT INCUBATOR

 

Foreword by Nadir Godrej for my book HCM4.0 BUSINESS CENTRIC HUMAN CAPITAL STRATEGY FOR INDUSTRY 4.0

 

HCM 4.0 FOREWORD

By Nadir Godrej

 

Now people enable companies to grow

And as the economy advances, we know

Especially for industry 4.0,

For benefits to steadily flow

The role of people is even more.

 

Our strategies must change and that’s for sure!

Human Capital must be provided

It has to be built and properly guided.

 

Good strategies can be undermined

If all the people aren’t aligned.

Piecemeal ideas have been suggested

And although they are tried and tested

HR professionals can surely try

But often they are hard to apply.

But this approach is very new.

 

As Wilfred takes a holistic view.

It’s important that you take a look

At this very timely book.

Step by step he shows the way

To systematically play.

 

The environment should be thoroughly scanned

The strategy then, can be well planned

And after an assessment of the organisation

We can have a synchronisation

Of both business and human strategy

To ensure there’s perfect synergy.

 

When both strategies work hand in hand

It’s very easy to understand

That employees know what they need

To do, in order to succeed.

This book ranges far and wide

It serves as a complete guide.

 

 

Everything can be quantified,

Many examples are supplied.

In any business it can be applied

The performance criteria are very clear

Finally HCM 4.0  can cheer.

 

 

There is a clear ultimate goal

And HCM 4.0  knows it’s precise role.

This book can perfectly show

What any business needs to know

In order to succeed and grow;

Our thanks to Wilfred Monteiro.

Nadir Godrej

HCM 4.0 strategy Summit # A much needed initiative to revamp your human resource systems and practices

 

The CEO (a sponsor and well wisher of HCM 4.0)  provides the challenge for integrating human resource considerations to meet the needs of the business. In order to achieve true alignment, you need to get everyone at the table to put the minds together.  A best practice is to have a  HCM 4.0  review meeting; maybe offsite spread over two or three days.

Here HCM 4.0 team  has a meeting focused entirely on the  company strategy  implications and how HCM 4.0 can be a fitting complement to it . HCM 4.0 Strategy review meetings keep the top management informed of what is going on within every level of the organization. It becomes a forum for facilitating the identification and subsequent adoption of opportunities for improvement. There are a lot of good ideas that come from discussing key issues more broadly across the organization. It is then minds and hearts work together!

THE MAIN AGENDA:

A HCM 4.0 strategy Summit not involve any discussion about operations. In strategy meetings. the discussions must  provide insight, information, and recommendations to turnaround and become business centric; these may be listed as:

 

1.    A fundamental transformation of HCM 4.0 starts with a definition of HCM 4.0 value—who the receivers are and a clear statement of what they will receive from HCM 4.0 services. HCM 4.0 value for customers will require that HCM 4.0 professionals answer the question “…How do customers and other key stakeholders—investors, managers, and employees—benefit if they spend time with HCM 4.0 professionals or adapt innovative HCM 4.0 practices?...”

 

2.    The HCM 4.0 leaders should chart out  a cause-and-effect description of how people create business value. The central question to create alignment: what does this long and comprehensive definition of “strategy” in its generic form mean to the human resources function in the company?

 

3.    HCM 4.0 summit can outline the system (both operationally with its  consequences and solutions)  It can examine the implications and acceptance  of strategic initiative which conflict with  sacrosanct HCM 4.0 policies.

4.    A HCM 4.0 strategy review meeting  helps to create Agreement on  the key issues/thematic areas for action and the specific TASKS  related to those themes, develop guiding principles and ensure that the parts can be built into a meaningful whole. HCM 4.0 summit can also ill resolve contradictory strategic intents like higher performance standards (contribution) and reduced headcounts (composition). This may clash with the professed value of a fair employer  code .

 

5.    When winning areas have been identified, best practices can be shared and implemented throughout the organization. Conversely, once neglected areas are brought to attention, we can decide if they need additional resources (either financial or human) to alter or invest in their strategy.

With best wishes

Dr Wilfred Monteiro

 

HCM4.0 MODEL BEGINS WITH A REVIEW from where you are to where you must go ahead

 HCM 4.0 - ORGANISZATION READINESS  AUDIT :

moving in the right direction one step @ a time

The triple objective  of an HRM EXCELLENCE AUDIT are to identify issues of potential liability ,to surface things that needing improvement  and to formulate strategies for improving operational efficiencies

The audit works best when the focus is on improving the HRD function in the organization… if not it is a toothless document. The audit itself is a diagnostic tool, not a prescriptive instrument. It will help you identify what you are missing or need to improve. It is most useful when an Organization is ready to act on the findings, and to evolve its HRD function to a level where its full potential to support the organization’s mission and objectives can be realized.

 WHEN TO START AN AUDIT PROGRAM?

Generally speaking, an HR Audit can be done at anytime; however, Audits are most often conducted when the company is contemplating “change.”  These situations could be summed up as:

¨      The key stakeholders have a sense that certain things could be done more efficiently and for less money but aren’t sure where to start.

¨      There’s been a  series of dis-satisfaction against the HR function and it’s been recommended that they look across all functions of the business for other areas of liability.

¨      The organization is experiencing higher than normal turnover.

¨      Employee morale is low and employee relations issues begin to consume more of management’s time and energy.

¨      The organization has “outgrown” itself and needs to identify tools and resources that will help the organization to mature.

¨      To ensure that any/all new HR systems and programs that are put in place are integrated, seamless and compliments on another.

INTROSPECT ...BEFORE  YOU BEGIN:

Like any other function, the performance and contribution of HRD should be audited regularly. We recommend to our client that they first attempt ot answer thes 12 question before we have a preliminary round of discussion:e:

1.   What strategic contribution is being made by HRD  to the achievement of business/corporate objectives?

2.   To what extent are there well articulated and agreed HRD strategies which are aligned to the business strategy and which are integrated with one another?

3.   What role does HRD  currently play? Is this role appropriate in the context of the organization?

4.   To what extent has the responsibility for HRD  issues been devolved to the management?

5.   How well does HRD  reconcile the need for devolution with the need to ensure  that organizational, ethical and legal obligations and requirements are being mf consistently?

6.   What evidence exists that HRD  is being innovative in a practical and business way, based on an analysis of the business and people needs of the organizational and benchmarking?

7.   How well is HRD  performing by reference to quantitative measures such as added value per employee, absenteeism and attrition?

8.   How well is HRD  performing in terms of service delivery in fields such as INDUCTION, training, reward management, health and safety training  , the management of equal opportunity and diversity, advice on employee  engagement , the provision of employee assistance programmes and the maintenance and use of   HR  information systems?

9.   To what extent does HRD  express proper concern for ethical considerations, the interests of all stakeholders (employees as well as management), enhancing the quality of working life and achieving a satisfactory work/life balance?

10.   What ' contribution has HRD   made to the improvement of the employee relations climate?

11.   How well is HRD  regarded by its customers   management, line managers, employees generally, employee representatives, as measured by formal assessments or opinion surveys?

12.   Is the HRD  function well organized and properly staffed with qualified professionals who are actively concerned with continuous professional development?

We have found that some companies should start the turnaround in a piecemeal whilst others need a quantum change ...both approaches work according to the company "readiness" level of the corporate leadership; its top management shelf; its culture orientation. 

With best compliments

Dr Wilfred Monteiro

Mumbai- India

www.synergymanager.net

HCM 4.0 is a catalyst for strategy plans

 

PLANNING A TURNAROUND OF YOUR HUMAN RESOURCE SYSTEM?? A GUIDEPOST FOR A SUCCESSFUL JOURNERY

 

KEY FEATURES OF THE BOOK

A robust framework, which takes us to  the strategy journey from concept- development of the master plan; alignment to business strategy. It interlinks environmental analysis with analysis of the firm - the two hemispheres of strategic management. It guides  moving away from the traditional inward looking approach - at operations and best practices and crossing the chasm to be  outbound looking at the markets and external challenges in the changing business environment.

 

CEOs in todays scenario of cost crunching; are compelled to ask for more measurement and accountability. Consequently  the HCM function is  under pressure, internally, to show REAL VALUE. In response HCM  leaders are on a sticky wicket.  A  probable reason could the HCM function has never highlighted its  contribution to creating business value;  added except in trendy, unquantifiable, and wannabe terms. the model  directs to Management-By-Measurement - to give it a real-time base sing principles of evaluation.

 Finally HCM 4.0 MODEL  hits upon the tricks and tactics of execution.. Each part of this book gives steps to design, manage, and implement the model. The aim of this  model is to approach the subject from a practical  angle. . Each segment of the model involves a roadmap for ‘’getting things done’’  this book is  most application based every concept is linked to practical application. I  have  tried to share  experiences  and  insights into  how every HCM manager needs to  wrestle  with complex  issues  and  helped  turn  ideas  into action Numerous examples of human resource practices are provided throughout the book, which can be practiced across the spectrum of industry; by companies both small and large. 

The New and improved HCM 4.0 MODEL needs HCM professions who are commercially adept and are able to move ahead of the blind curve and anticipate business challenges. The book address the issue the new competencies HCM professionals; who  need to acquire the ‘business centric’’ mindset which can enable all senior HCM professionals to discuss eyeball to eyeball with the counterparts in the functions.

 

Discussion and Review Questions, and activities at the chapter-end to help MBA students or HCM Planning Retreats in companies have been given. This book is chequered with Key Concept /Critical Reflection boxes. They should help   every  reader  to trigger  the necessary critical thinking and reflective skills to fully engage with the subject.

 

FOR WHOM WAS THIS BOOK WRITTEN 

 

HCM PRACTITIONERS AND LEARNERS

 

Here is a chance for Human Resource managers (who aspire to be  serious practitioners)  to learn strategic ways of managing human resources They  need to  understand why a strategic approach is necessary. It will also help them define a coherent framework; new and enriched  roles in the process to , execute the HCM master-plan and deliver results .  

 

LINE MANAGERS WHO SUPPORT HCM

 This book will be a help to senior managers , who must support HC strategy and take the lead in developing it, The functional managers need to be in harmony with the HCM strategy to support it, provide resources for it, and constantly reinforce and adjust it .

 

PROFESSORS /ACADEMICIANS OR STUDENTS OF MBA IN INDIAN B-SCHOOLS

Professors /academicians or students of MBA in Indian B-Schools will find this book to be a helpful reference.   They rightly complain that textbooks whose coverage is restricted to the prescribe syllabus have limited value. What is needed on the bookshelf is a textbook  which helps them to look beyond - to know the realities of the business world and  explains complex  issues with  simple insight for practical application. Besides the MBA course prescribes   internal assessments and group research dissertations; the End-of-Chapter  exercises  will give the needed the real-time edge.  They would enrich the class presentations which are an important part of the curriculum.

 

JOB EVALUATION - the burning issue in Talent Management today. How to price talent competitively and have a scientific talent retention policy.

 

JOB EVAUATION OF MANAGERIAL  WORK :

analyzing to price competitively

 

Did you as CEO have a problem one fine Monday morning…!!!

 Your star performer in a pivotal position in your company comes to your office  to say  “ … I feel I am underpaid in comparison my contribution to the organization or in ratio to my market value…Could you plan to revise my compensation before I begin a search for a new job”

You are caught in a dilemma. Should you overlook it and lose your prime talent??? Or should you win back this member of the top team???(even if you run the risk of creating a chain of demands within the organization)

This is the burning issue in Talent Management today. How to price talent competitively and have a scientific talent retention policy. Talent is after all the cutting edge of your company’s competitive position in the market

The answer is Job evaluation; which  is a systematic method of determining a job’s relative worth within an organization. Here are five common methods and the characteristics of each:

1. Ranking Method

This method ranks jobs in order based on each job’s perceived value in relation to the others, .

• Does not consider market compensation rates.
• May work well for smaller companies. In a larger organization, it is more complex to use, but sometimes it can still work if jobs are grouped by job families—professional level, etc.

2. Classification/Grading Method

With this approach, generic job characteristics are grouped to reflect levels of skill/responsibility at a number of predetermined grade classifications, .
This is another straightforward method that is not too time-consuming.

• Individual jobs are compared to groups of job characteristics, then matched to specific grade classification.
• Can be a challenge because one size does not fit all, so jobs may be forcefit into a grade.
• The system is subject to grade inflation as jobs get pushed to the next higher level.

3. Point–Factor Method

This approach identifies job factors that add value and worth to a position. The job factors are separated into groups (i.e., skill, responsibility, effort) and assigned a numerical or weighted point value. The points for individual factors are added up to get a point value for the whole job.

• May not reflect market values of jobs.
• Generates a hierarchy but does not have an external component.

4. Factor Comparison Method

With this method, job factors are identified under primary groups (i.e., skill, effort, responsibilities, working conditions) typically up to five groups. Each factor is assigned a RUPEE value (as opposed to point value).

• This is a complex system used only by a few organizations.
• It is hard to communicate to employees.
• There is an inherent degree of subjectivity.

This method is widely used and is considered to be one of the reliable and systematic approach for job evaluation in mid and large size organizations. Most consulting firms adopt this method, where jobs are expressed in terms of key factors. Points are assigned to each factor after prioritizing each factor in order of importance. The points are summed up to determine the wage rate for the job. Jobs with similar point totals are placed in similar pay grades. The procedure involved may be explained thus:

1. Select key jobs. Identify the factors common to all the identified jobs such as skill, effort, responsibility, etc.

2. Divide each major factor into a number of sub factors. Each sub factor is defined and expressed clearly in the order of importance, preferably along a scale.

The most frequent factors employed in point systems are:

(i) Skill (key factor); Education and training required, Breadth/depth of experience required, Social skills required, Problem-solving skills, Degree of discretion/use of judgment, Creative thinking

(ii) Responsibility/Accountability: Breadth of responsibility, Specialized responsibility, Complexity of the work, Degree of freedom to act, Number and nature of subordinate staff, Extent of accountability for equipment/plant, Extent of accountability for product/materials;

(iii) Effort: Mental demands of a job, Physical demands of a job, Degree of potential stress

The educational requirements (sub factor) under the skill (key factor) may be expressed thus in the order of importance.

3. Find the maximum number of points assigned to each job (after adding up the point values of all sub-factors of such a job).

This would help in finding the relative worth of a job. For instance, the maximum points assigned to an officer's job in a bank come to 540. The manager's job, after adding up key factors + sub factors points, may be getting a point value of say 650 from the job evaluation committee. This job is now priced at a higher level.

4. Once the worth of a job in terms of total points is expressed, the points are converted into money values keeping in view the hourly/daily wage rates. A wage survey is usually undertaken to collect wage rates of certain key jobs in the organization.

 

5. Competitive Market Analysis Method

This approach looks at external data, . Job evaluation forms the basis for market pricing. You utilize job descriptions to compare jobs to like positions within the external marketplace. Pay data are collected from published sources and the value of the position within the competitive market is determined.

• Considers the organization’s compensation philosophy. (Where do we want to position ourselves vis-à-vis the market?)
• Examines internal value against market data.
• Requires an overlay to see how it fits with the internal hierarchy.

Market pricing is used by many organizations, , to determine:

• The competitive value of individual positions
• The company’s overall positioning in the marketplace
• The company’s pay positioning against its compensation philosophy
• Whether pay programs achieve basic objectives of compensation
• Internal equity

BENEFITS OF JOB EVALUATION:

 Job evaluation is a process of determining the relative worth of a job. It is a process which is helpful even for framing compensation plans by the personnel manager. Job evaluation as a process is advantageous to a company in many ways:

·         Reduction in inequalities in salary structure - It is found that people and their motivation is dependent upon how well they are being paid. Therefore the main objective of job evaluation is to have external and internal consistency in salary structure so that inequalities in salaries are reduced.

·         Specialization - Because of division of labour and thereby specialization, a large number of enterprises have got hundred jobs and many employees to perform them. Therefore, an attempt should be made to define a job and thereby fix salaries for it. This is possible only through job evaluation.

·         Helps in selection of employees - The job evaluation information can be helpful at the time of selection of candidates. The factors that are determined for job evaluation can be taken into account while selecting the employees.

·         Harmonious relationship between employees and manager - Through job evaluation, harmonious and congenial relations can be maintained between employees and management, so that all kinds of salaries controversies can be minimized.

·         Standardization - The process of determining the salary differentials for different jobs become standardized through job evaluation. This helps in bringing uniformity into salary structure.

·         Relevance of new jobs - Through job evaluation, one can understand the relative value of new jobs in a concern.

PROCESS OF JOB EVALUATION

The process of job evaluation involves the following steps:

·         Gaining acceptance: Before undertaking job evaluation, top management must explain the aims and uses of the programme to managers, emphasizing the benefits. Employees and unions may be consulted, depending on the legal and employee relations environment and company culture. To elaborate the program further, presentations could be made to explain the inputs, process and outputs/benefits of job evaluation.

·         Creating job evaluation committee: It is not possible for a single person to evaluate all the key jobs in an organization. Often a job evaluation committee consisting of experienced employees, union representatives and HR experts is created to set the ball rolling.

·         Finding the jobs to be evaluated: Every job need not be evaluated. This may be too taxing and costly. Certain key jobs in each department may be identified. While picking up the jobs, care must be taken to ensure that they represent the type of work performed in that department, at various levels.

·         Analysing and preparing job description: This requires the preparation of a job description and also an analysis of job specifications for successful performance. See job analysis.

·         Selecting the method of evaluation: The method of evaluating jobs must be identified, keeping the job factors as well as organisational demands in mind. Selecting a method also involves consideration of company culture, and the capacity of the compensation and benefits function or job evaluation committee.

THE WAY AHEAD:

Evaluating jobs: The relative worth of various jobs in an organisation may be determined by applying the job evaluation method. The method may consider the "whole job" by ranking a set of jobs, or by comparing each job to a general level description. Factor-based methods require consideration of the level of various compensable factors (criteria) such as level and breadth of responsibility, knowledge and skill required, complexity, impact, accountability, working conditions, etc. These factor comparisons can be one with or without numerical scoring. If there is numerical scoring, weights can be assigned to each such factor and scores are associated with different levels of each factor, so that a total score is determined for the job. All methods result in an assigned grade level.

 

  

all good wishes

Dr Wilfred Monteiro

www.synergmanager.net