CIPD LVL5 Link Employee Engagement to Positive Business Outcomes Paper

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CIPD LVL5

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Part B (AC1.1, 1.3, 2.1, 2.2, 3.1, 4.1 and 4.2) (2200 words)


You are required to conduct some research into how HR supports organizational performance.

For task 4, you will need to access an article from your Home Page on Online Services (downloads/HRM MODULE 1 - Article for Review 5HRF Part B_.pdf), that discusses 3 organizations, and how their HR practices link with positive organizational outcomes.



You are required to research and write-up your findings covering the sections below:


1.

Provide a brief business justification for managing HR in a professional, ethical and just manner (AC1.3) (Completed)

Explain how these have evolved/are evolving in contemporary organisations. (AC1.2) (Completed)

Give examples of the main organisational objectives that the HR function is responsible for delivering. (AC1.1) (Completed)


2.

Give a brief summary of two different ways HR objectives can be delivered in organizations. (AC1.1) (Completed)


Analyse how the HR function varies between organizations in different sectors and of different sizes. (AC2.2) You should examine three of the following types of organization. 1. A public authority (Government Sector) 2. A national private company 3. An SME 4. A voluntary (Third Sector) organization (Completed)

3.

Discuss the main criteria and methods used to evaluate the contribution of the HR function (AC3.1) Your response should consider (briefly) the following: 1. HR metrics used to evaluate HR function contribution 2. SLA’s and KPI’s 3. Staff surveys 4. Benchmarking with other organizations 5. Return on Investment (ROI) 6. How a ‘balanced scorecard and/or ‘HR dashboard’ might be used to present HR metrics (Completed)


4.

With reference to the article you have accessed from Online Services, what are the key messages from the report? (AC4.1) (approx 150 words)

How convincing do you think these findings are and why? (AC4.1) (approx 150 words)

From your understanding of the findings in the report, how can high performance working and investment in people impact on organisational performance? (AC4.2) (approx 200 words)

5. ADDITIONAL REQUIREMENTS: Please also comment on how you will transfer the new knowledge and skills gained during this assignment into working practices. You may also use this reflection for your CPD. (approx 200 words)


You should also include at least one reference in each section of the report from up to date and relevant sources in order to support your findings

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 Assignment – 5HRF Part B This document is for guidance only – to be used in the classroom workshop. Your actual assignment must be completed on the electronic template you will find on Online Services. WRITTEN ASSIGNMENT B (A.C 1.1, 1.3, 2.1, 2.2, 3.1, 4.1, 4.2) 2,200 words You are required to conduct some research into how HR supports organisational performance. For section 4, you will need to access an article from your Home Page on Online Services (downloads/HRM MODULE 1 - Article for Review 5HRF Part B_.pdf), that discusses 3 organisations, and how their HR practices link to positive organisational outcomes. You are required to research and write-up your findings covering the sections below: Section 1 ▪ Give examples of the main organisational objectives that the HR function is responsible for delivering (AC1.1). ▪ Explain how these have evolved/are evolving in contemporary organisations. (AC1.1) ▪ Provide a brief business justification for managing HR in a professional, ethical and just manner. (AC1.3) Section 2 ▪ Give a brief summary of two different ways HR objectives can be delivered in organisations (AC2.1) ▪ Analyse how the HR function varies between organisations in different sectors and of different sizes (AC2.2)* * You should examine three of the following types of organisation: 1. A public authority (Government Sector) 2. A national private company 3. An SME 4. A voluntary (Third Sector) organisation Section 3 ▪ Discuss the main criteria and methods used to evaluate the contribution of the HR function (AC3.1)* * Your response should consider (briefly) the following: ▪ HR metrics used to evaluate HR function contribution ▪ SLA’s and KPI’s ▪ Staff surveys ▪ Benchmarking with other organisations ▪ Return on Investment (ROI) ▪ How a ‘balanced scorecard and/or ‘HR dashboard’ might be used to present HR metrics Section 4 ▪ With reference to the article you have accessed from your Home Page of OLS: - What are the key messages from the report? (AC4.1) - How convincing do you think these findings are, and why? (AC4.1) - From your understanding of the findings in the report, how can high performance working and investment in people impact on organisational performance? (AC4.2) ADDITIONAL REQUIREMENTS ▪ Please also comment on how you will transfer the new knowledge and skills gained during this assignment into working practices. You may also use this reflection for your CPD. ▪ You should also include 3-5 references from up to date and relevant sources in order to support your findings. (CIPD NAB IHR103001 (17) Ex 09/20) © Oakwood International Ltd. All rights reserved. Page 1 Oakwood International Referencing Requirements Level 3 At Level 3 there are no specific requirements to include references – however, the CIPD insist that if they are used, they shall be used correctly and in the same format as at Level 5 Level 5 The CIPD is not overly concerned by the number of references but the quality and the way they are cited. They require that we set our own standards of style rather than leaving it to the discretion of the candidate. These standards are to be introduced as part of the Induction Programme. There is no necessity to use Harvard or any other academic style – a simple, straightforward adaptation of this will suffice as below; The critical issue is that going forward students must ensure that if they cite in the narrative they must cite on the reference list and v.v. The narrative and reference list must mirror each other. Failure to do so will now result in a REFER – regardless of how good otherwise the assignment is. For Books and Journals Within the narrative: Simply state the name of the Author and Publication ensuring that quotation marks are used if using a direct quote as below It is generally considered that “competence or behaviour-based interviewing has developed in line with the use of competency frameworks” (Martin and Whiting – Human Resource Practice). Within the Reference list: Martin M and Whiting F - Human Resource Practice (7th Ed) For websites Within the narrative: Chartered Institute of Personnel and Development: www.cipd.co.uk/knowledge/fundamentals/people/performance/factsheet With the Reference List: Chartered Institute of Personnel and Development www.cipd.co.uk/knowledge/fundamentals/people/performance/factsheet The whole URL link must be included CIPD Diploma in HR Management MANAGING AND COORDINATING THE HUMAN RESOURCES FUNCTION Workbook Unit 5HRF (Guided Learning Hours 32) Designed and delivered by Oakwood International Ltd © Oakwood International Ltd. All rights reserved  ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Workbook Guide Contents: Introduction Overview of 5HRF Section one – the purpose and key objectives of the HR function in contemporary organisations Section two – how HR objectives are delivered in different organisations Section three – how the HR function can be evaluated in terms of value add and contribution to sustained organisational performance Section four – the relationship between organisational performance and effective HR management and development Section five – workshop activities Section six – guidance for referencing  Learning Outcome: On completion of this unit, learners will: 1. Understand the purpose and key objectives of the HR function in contemporary organisations. 2. Understand how HR objectives are delivered in different organisations. 3. Understand how the HR function can be evaluated in terms of value added and organisation performance. 4. Understand the relationship between organisation performance and effective HR management and development.  Assessment Criteria 1.1 Summarise the organisational objectives that the HR function is responsible for delivering and how these are evolving in contemporary organisations 1.2 Explain the major theories of effective change management and how these are implemented and evaluated 1.3 Evaluate the business case for managing HR in a professional, ethical and just manner 2.1 Explain the different ways in which HR objectives can be delivered in organisations 2.2 Analyse how the HR function varies between organisations in different sectors and of different sizes 3.1 Discuss the main criteria and methods used to evaluate the contribution of the HR function 4.1 Identify and evaluate research evidence linking HR practices with positive organisational outcomes 4.2 Explain how high-performance working and investment in human capital impact on organisational practice © Oakwood International Ltd. All rights reserved. Page 1  Resources & Bibliography: A list of any publications, websites and articles referenced in the workbook. Studying Human Resource Management, Taylor & Woodhams, CIPD 2012. CIPD factsheet ‘History of HR and the CIPD December 2012 An Introduction to Strategic Human Resource Management, Budhar & Ayree CIPD 2002 CIPD 2013 Next Generation Report: http://www.cipd.co.uk/hr-resources/research/next-generation-hrtime-for-change.aspx CIPD HR Profession Map: http://www.cipd.co.uk/cipd-hr-profession/hr-profession-map/ CIPD factsheet ‘The role of line managers in HR (April 2012)’: http://www.cipd.co.uk/hr-resources/factsheets/role-line-managers-hr.aspx CIPD factsheet on the ‘Shared Services/3 legged stool model: http://www.cipd.co.uk/hr-resources/factsheets/hr-shared-service-centres.aspx CIPD factsheet and support resources covering HR as a strategic business partner: https://www.cipd.co.uk/knowledge/fundamentals/people/hr/business-partnering-factsheet 3 legged stool model –and also some essential reading on HR service delivery models, including outsourcing: http://www.cipd.co.uk/NR/rdonlyres/6ED61983-0123-4885-AA5951505F553297/0/9781843983149_sc.pdf CIPD factsheet on HR service outsourcing : http://www.cipd.co.uk/hr-resources/factsheets/hr-outsourcing.aspx Hofstede’s theory: http://www.mindtools.com/pages/article/newLDR_66.htm HR Outlook – view of our profession (CIPD 2016 - 2017) http://www.cipd.co.uk/hr-resources/survey-reports/hr-outlook-winter-2012-13-views-profession.aspx CIPD research article that introduces the term ‘insight-driven’ HR: http://www.cipd.co.uk/hr-resources/research/next-generation-hr-insight-driven.aspx CIPD research paper entitled ‘Business savvy – giving HR the edge: http://www.cipd.co.uk/hr-resources/research/business-savvy-giving-hr-edge.aspx CIPD factsheet on change (includes CIPD 7C model): http://www.cipd.co.uk/hr-resources/factsheets/change-management.aspx#link_0 © Oakwood International Ltd. All rights reserved. Page 2 Article useful in explaining Lewin’s change theory: http://www.change-management-coach.com/kurt_lewin.html Useful article explaining Lewin’s change theory: http://www.change-management-coach.com/kurt_lewin.html Kotter’s Eight Step change model: http://www.mindtools.com/pages/article/newPPM_82.htm Brief video explaining CIPD 7C model: : https://www.youtube.com/watch?v=taD87iKvXN4 McKinsey’s ‘Seven S’ model: http://www.mindtools.com/pages/article/newSTR_91.htm Useful article on managing the change process: http://www.epmbook.com/orgchange.htm Kubler-Ross Change Curve (with video): https://www.mindtools.com/pages/article/newPPM_96.htm Organisational ethics: The Open University - http://www.open.edu/openlearn/moneymanagement/management/business-studies/creating-ethical-organisation/content-section-2 CIPD factsheet that explains the concept of ‘high performance working’ and the role of the HR function in supporting this: http://www.cipd.co.uk/hr-resources/factsheets/sustainable-organisationperformance.aspx CIPD factsheet: http://www.cipd.co.uk/hr-resources/factsheets/employee-engagement.aspx CIPD factsheet covering the principles and practicalities of flexible working: http://www.cipd.co.uk/hr-resources/factsheets/flexible-working.aspx © Oakwood International Ltd. All rights reserved. Page 3  The purpose of this workbook and how to use it The primary purpose of this workbook is to guide you in your research, to stimulate your interest and equip you with the knowledge needed to tackle the written assignment for this unit. The workbook contains ‘guided learning’, which are based on the requirements described in the learning outcomes (what you are required to learn) and the assessment criteria (detailed statements against which your written assignment is assessed). The workbook is structured to cover each of the four learning outcomes in order: 1. Understand the purpose and key objectives of the HR function in contemporary organisations. 2. Understand how HR objectives are delivered in different organisations. 3. Understand how the HR function can be evaluated in terms of value added and organisation performance. 4. Understand the relationship between organisation performance and effective HR management and development. Selected reading and hyperlinks to online resources Each section includes selected reading, or hyperlinks to online resources, which have been chosen to provide you with a clear idea of the underpinning concepts and, where appropriate, alternative views for you to analyse, interpret and apply as you consider appropriate. One of the key aspects of this Level 5 programme is the requirement for you to develop and practice your ability to absorb concepts and views from literary sources, to critically analyse these in the light of your professional experience, and to formulate and apply your own theories. You should aim to read as much as you can and develop a ‘critical’ approach to your reading. What this means is that based on your reading and research you are able to argue with the theory and put forward your own ideas. Broaden your reading beyond the workbook You should read the selected reading – articles and online links; but, you should also read further, using the suggested reading list from the previous section, in order to broaden further your knowledge of the subjects under review. It is important that you show evidence of wider reading by including references to relevant literary sources in your written assignment; this workbook will help guide you towards these additional resources. Workbook Guided Learning The guided learning has been designed to enable you to consolidate your learning and to develop your understanding. Guided learning hours This workbook represents 32 guided learning hours. This means that you should aim to cover the reading within the workbook, the broader reading provided through the links to the internet. © Oakwood International Ltd. All rights reserved. Page 4 Introduction Purpose and aim of unit The purpose of this unit is to introduce learners to human resources (HR) activity and to the role of the HR function in organisations in general terms. It focuses on the aims and objectives of HR departments in contemporary organisations and particularly on the ways that these are evolving. Different ways of delivering HR objectives and emerging developments in the management of the employment relationship are explored as well as the methods that can be used to demonstrate that the function adds value for organisations. The unit also aims to inform learners about published research evidence linking HR activity with positive organisational outcomes. The case for professionalism and an ethical approach to HR is introduced as is the role played by HR managers in facilitating and promoting effective change management. This unit is suitable for persons who: ▪ seek to develop a career in HR management and development ▪ are working in the field of HR management and development and need to extend their knowledge and skills ▪ have responsibility for implementing HR policies and strategies ▪ need to understand the role of HR in the wider organisational and environmental context. Learning outcomes On completion of this unit, learners will: 1. Understand the purpose and key objectives of the HR function in contemporary organisations. 2. Understand how HR objectives are delivered in different organisations. 3. Understand how the HR function can be evaluated in terms of value added and organisation performance. 4. Understand the relationship between organisation performance and effective HR management and development. © Oakwood International Ltd. All rights reserved. Page 5 Section One – understand the purpose and key objectives of the HR function in contemporary organisations 1.1 1.2 1.3 Summarise the organisational objectives that the HR function is responsible for delivering and how these are evolving in the contemporary environment Explain the major theories of effective change management and how these are implemented and evaluated Evaluate the business case for managing HR in a professional, ethical and just manner HR and organisational objectives HR as an integral part of the business The purpose of the HR function is to support the delivery of the organisation’s strategy and objectives through the effective management of people and performance. As such, an organisation’s HR strategy and all activities should be clearly aligned with the strategy and activities of the business Source: Studying Human Resource Management, Taylor & Woodhams, CIPD 2012. What is Strategic HRM (SHRM)? Broadly speaking, SHRM is about systematically linking people with the organisation; more specifically, it is about the integration of HRM strategies into corporate strategies. HR strategies are essentially plans and programmes that address and solve fundamental strategic issues related to the management of human resources in an organisation (Schuler, 1992). They focus is on alignment of the organisation’s HR practices, policies and programmes with corporate and strategic business unit plans (Greer, 1995). Strategic HRM thus links corporate strategy and HRM, and emphasises the integration of HR with the business and its environment Source: ‘An Introduction to Strategic Human Resource Management, Budhar & Ayree CIPD 2002. The role of HR today and in the future The recent recession has seen a number of searching questions being asked about the purpose and future sustainability of organisations, and about the values, practices and leadership required to deliver enduring performance. CIPD is clear that HR has a fundamental role to play in contributing to sustainable organisation performance, and to the substantial social and economic benefits this bring. The CIPD is committed to playing a leading role in ensuring that HR professionals, organisations and the profession as a whole are able to grasp the very real opportunities available now and in the future. Source: CIPD factsheet ‘History of HR and the CIPD December 2012 Linking Strategic Human Resource Management to organisational performance Due to increased free market competition at a global level and the growth of technology and knowledgebased industries, the importance of people to company success was elevated. The workforce, having previously been promoted from ‘cogs’ to ‘resources’ were now to be viewed as ‘assets’ – a valuable source of competitive advantage. This marked the elevation of the HR function to a strategic player in the organisation, responsible for aligning individual and team goals with organisational objectives, facilitating a participative culture, and even directly shaping organisational strategies. Activities in the SHRM department include the following: © Oakwood International Ltd. All rights reserved. Page 6 ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Linking HR practices to organisation strategy Fostering a healthy psychological contract in a context of short-term employment rather than job security The linking of compensation to contribution Training and development linked to encouraging innovation Knowledge management and talent development planning Employee participation Motivation through enriching the work experience Performance and talent management as opposed to appraisal Cross-cultural issues Measuring the value add by HR strategies Source: Studying Human Resource Management, Taylor & Woodhams, CIPD 2012. Guided Learning (AC 1.1) Consider your own organisation, or one with which you are familiar. ▪ ▪ To what extent does your HR function follow a SHRM model? Take 3 of the activities listed above and, for each, provide some practical suggestion on how the intended outcome might be achieved. CIPD 2013 Next Generation Report You will find this very useful reading in defining the role of HR focusing on the future ‘fit’ of the HR function and the need for the HR function to be ‘insight driven’. You will find this report (pdf download)at: http://www.cipd.co.uk/hr-resources/research/next-generationhr-time-for-change.aspx Guided Learning (AC 1.1) Having read the CIPD 2013 Next Generation Report, consider your own organisation, or one that you are familiar with. ▪ How might the HR function help ‘future-proof’ the organisation? ▪ What is meant by being ‘insight-driven’, in the context of the report, and how might this be applied in the context of the organisation? Why is it important for organisations to embrace the concept of change? Read the CIPD factsheet at: http://www.cipd.co.uk/hr-resources/factsheets/change-management.aspx#link_0 This factsheet highlights the importance of change for organisations © Oakwood International Ltd. All rights reserved. Page 7 Guided Learning (AC 1.2) Consider the key messages about the importance of understanding and embracing the concepts of change, then: ▪ ▪ List at least six positive factors that will arise from effective change management List at least six implications for an organisation that fails to take account of and manage effectively the drivers of change The factsheet goes on to discuss the importance of effective leadership and management. Guided Learning (AC 1.2) Again, think about the reality of your own organisation, or an organisation with which you are familiar. ▪ ▪ To what extent do you think management is prepared for and able to manage change? What are the factors that lead to your conclusions? Major models of planned change Concept and examples: main components of change theory and different approaches to change; definitions and examples of organisational change and innovation, for example change in products and services; expansion of customer base; changes in physical location; different types of change strategy; different reactions to change, for example expectation, anticipation, acceptance, mistrust, scepticism, cynicism, rejection; role of different ‘players’ involved in change, including HR personnel. Contextual factors: organisational culture and leadership; organisation’s products, services and customers and relationships with other stakeholder groups. Change can take many forms and there are several models. It is useful to have some definitions. The first of these are ‘planned change’ and ‘emergent change’. ▪ ▪ Planned change – where change is deliberate and prompted by the organisation Emergent change – change seems to evolve in a less structured and planned way – haphazard – different managers having unrelated input More definitions Ackerman (1997) distinguished three types of change: Transitional – seeking to achieve a known future state that is different from the current situation Developmental - this improves an existing situation – such as a process or skill Transformational - this relates to a situation where fundamental change is required – outcome will be a significant change to the current situation e.g. strategy, culture. State that this situation may be very difficult to control and could be chaotic. Kurt Lewin (1951) devised a model of change that is still used today as a lead theory. This focuses on the transitional type of change, later picked by Ackerman. You will find the following article useful in explaining Lewin’s change theory. © Oakwood International Ltd. All rights reserved. Page 8 http://www.change-management-coach.com/kurt_lewin.html You will see that Lewin’s theory is based on three key stages, these being: ▪ ‘Unfreezing’ the current situation ▪ Moving to a new position ▪ ‘Refreezing’ the new state Consider the following analogy: If you have a large cube of ice, but realize that what you want is a cone of ice, what do you do? First you must melt the ice to make it amenable to change (unfreeze). Then you must mold the iced water into the shape you want (change). Finally, you must solidify the new shape (refreeze). Now relate this to the context of organisational change and consider how these three stages apply Guided Learning (AC 1.2) In the context of your organisation and a change example that you are aware of – apply Lewin’s model ▪ How did the ‘unfreezing’ apply? How did this happen? ▪ What were the considerations during ‘moving to a new position’ ▪ How did the ‘refreeze’ phase work? Kotter’s Eight Step change model John Paul Kotter (born 1947) is a professor at the Harvard Business School and author, who is regarded as an authority on leadership and change. A key contribution of Kotter to the theory of change management is his 8 step change model. You will find a useful article on this at http://www.mindtools.com/pages/article/newPPM_82.htm Kotter’s essential eight steps are: ▪ Step One: Create Urgency ▪ Step Two: Form a Powerful Coalition ▪ Step Three: Create a Vision for Change ▪ Step Four: Communicate the Vision ▪ Step Five: Remove Obstacles ▪ Step Six: Create Short-term Wins ▪ Step Seven: Build on the Change ▪ Step Eight: Anchor the Changes in Corporate Culture McKinsey’s ‘Seven S’ model Read the article at: http://www.mindtools.com/pages/article/newSTR_91.htm which explains McKinsey’s ‘Seven S’ model. The underpinning theme of this theory is the fact that a change in any one of the ‘S’s will have an impact to a greater or lesser extent on the other 6 x S’s. The link above includes a useful video with the supporting transcript, which gives a very useful summary of the model and its practical application. © Oakwood International Ltd. All rights reserved. Page 9 CIPD 7 C Model The CIPD have created their own model for managing organisational change, which they have called the 7C model. The 7Cs are: 1. Choosing a team – meaning that it is important to ensure that you have the right people on the change team, representing key areas of the organisation 2. Creating a compelling vision of change – meaning that you need to get people excited by the prospect of change – you need to ‘sell’ the idea! 3. Connecting organisation-wide change – meaning that you need to be aware of the impact of change across every part of the business (compare this concept with the main ideas behind the McKinsey 7 S model: change in one ‘S’ will impact on the other 6 S’s to some extent 4. Consulting stakeholders – meaning that you need to identify all of the stakeholders affected by change (stakeholder analysis) and consult with them at all stages of the change process 5. Communicating change – meaning that you need to keep everyone informed on progress 6. Coping with change – meaning that you need to be aware of the fact that people may have difficulties in coping with change and will need help 7. Capturing learning – meaning that so much learning is lost during the change process because there i not a proper evaluation or review See: https://www.youtube.com/watch?v=taD87iKvXN4 The role played by the HR function in managing change Think about the range of skills you need as a change manager. You might start by considering the difference between the related activities of: ▪ Organisational change management ▪ Organisational design You will find a useful article on managing the change process, where you will find also an explanation of the difference between the above terms at http://www.epmbook.com/orgchange.htm HR professionals have a significant role to play in any change management process. CIPD research has also identified that HR’s involvement in various aspects of change can make the difference between successful and less successful projects by, for example, their: ▪ involvement at the initial stage in the project team. ▪ advising project leaders in skills available within the organisation – identifying any skills gaps, training needs, new posts, new working practices etc. ▪ balancing out the narrow/short-term goals with broader strategic needs. ▪ assessing the impact of change in one area/department/site on another part of the organisation. ▪ being used to negotiating and engaging across various stakeholders. ▪ understanding stakeholder concerns to anticipate problems. ▪ understanding the appropriate medium of communication to reach various groups. ▪ helping people cope with change, performance management and motivation. © Oakwood International Ltd. All rights reserved. Page 10 What are the typical reactions to change? Consider, for a moment, your own reaction to an example of change that had some kind of impact on you. Your reactions probably triggered at various points on a spectrum from positive to negative and may have included: ▪ Expectation ▪ Anticipation ▪ Acceptance ▪ Mistrust ▪ Skepticism ▪ Cynicism ▪ Rejection The following article and video on Kubler-Ross covers typical reactions to change: https://www.mindtools.com/pages/article/newPPM_96.htm The business case for an ethical approach to HR management It is absolutely vital that the HR function takes an ethical approach in all its actions. Ethical behaviour is a core element of the required standards of an HR professional. There is a clear business case for ethical HR management. Sternberg (1995: 125) argues that treating employees ethically is not an optional extra but an essential ingredient in maximising long-term value: Treating employees ethically simply means treating them with ordinary decency and distributive justice. The ethical business rewards contributions to the business objective, and is honest and fair to its staff; it avoids lying, cheating and stealing, coercion, physical violence and illegality. And crucially, since trust is so dependent upon expectations, the ethical business is extremely careful about the expectations it engenders. Ethical business, according to this argument, is built on relationships. Ethical activity is concerned with human activity and so is business. From this perspective bad ethics is bad business – customers, suppliers and employees ultimately all leave. However, are there special moral rights accruing to employees in their own right? Sternberg argues not. She suggests that that constitutes ethical conduct in business depends on business's definitive purpose. Business is, for Sternberg, about maximising long-term owner value through selling goods and services. It may do other things, but this is its core activity and using business resources for non-business purposes constitutes theft, according to Sternberg. She argues (1995: 96) that: An organisation which pursued moral goodness simply because it was good, would simply be not acting as a business. Sternberg argues that moral principles are appropriate in so far as business presupposes a context where lying, cheating, stealing and so on are absent. Honesty and fairness, refraining from coercion and physical violence and respecting the law are its guiding principles, termed ‘ordinary decency’. Sternberg goes on to argue the virtues of distributive justice such that he or she who contributes most to owner value should be rewarded accordingly. This is not as straightforward as is assumed, since who owns performance is often unclear. Sternberg treats individuals basically as productive units in terms of what they contribute to longterm owner value. In other words, Sternberg's view of the ethical organisation is determined by the ends of the organisation. For her, ethics has a place as long as it contributes to long-term value. She does accept that individuals should only be measured on things that are within their control and not determined by external events (1995: 154): © Oakwood International Ltd. All rights reserved. Page 11 Fairness demands that people should only be held accountable for those things that are under their control. In contrast to Sternberg's approach, Miller (1996) takes the view that ethics is concerned with means rather than ends, with ‘how’ as much as ‘what’. In the HR context, Miller describes a number of ‘deliverables’ to employees and these are ‘indivisible’. He also argues that for these employment conditions to be met the organisation must pursue a ‘good’ strategy. Intuitively, this does seem to make sense and is congruent with theories of motivation. We do tend to compare ourselves with others who have similar jobs, backgrounds, education and so on. We also use the core elements of distributive justice, explicitly and implicitly, even where there are no absolute standards for making judgements. In discussing rewards, for example, we may use criteria of merit, effort, contribution and so on to judge ourselves against others. Miller argues that we can identify unethical employment practices from these perspectives. Miller concludes by arguing that there must be a fit between the organisation's strategy and its HR strategy for it to be ethical. Individual and organisational goals need to be harmonised. This requires a two-way relationship between the individual and the organisation, expressed through a combination of rights, duties, obligations and loyalty. Rights at work might include: ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ the right to be treated fairly and honestly the right to be treated as an individual, with roles recognised and adequate training provided the right to be given feedback on performance at work and the opportunity to improve skills the right to be paid a fair and equitable rate in relation to skills, the labour market and the financial position of the firm no restrictions on rights as a citizen the right to have health and safety protected the right to a personal life outside work the right to take part in activities which are of benefit to society the rights to work, and to free association and to strike. Some of these rights may be enshrined in law (health and safety), while others may have the status of aspirations (the right to adequate training). At the same time organisations may have certain duties towards their employees which correspond to rights outlined above and may include the duty to inform and consult workers, to accept criticism without holding a grudge, and so on. However, the relationship cannot be all one way. In return for certain rights we would expect employees to fulfil certain duties, which might include: ▪ ▪ ▪ ▪ ▪ ▪ the duty of loyalty the duty to give ‘a fair day's work for a fair day's pay’ the duty to strike only as a measure of last resort a duty to contribute to the best of their ability to the organisation's goals a duty to work flexibly, using their skills to the full a duty to accept personal responsibility for developing skills to increase their effectiveness. Duties, rights and obligations are not givens. No doubt you will agree with some of those listed above but not others. Also, individuals will have other loyalties which may come into conflict with those to the organisation. For example, professionals may perceive their duty to be to their patient, client or student rather than to the organisation. They may also believe that they have professional duties to colleagues and to the profession as a whole rather than to the specific organisation that they happen to be working for. Conflicts of loyalties can cause real dilemmas. © Oakwood International Ltd. All rights reserved. Page 12 The issue of employees' commitment to perform for the organisation is a key one, and it has a number of components: ▪ ▪ ▪ ▪ the extent to which the individual has internalised the values of the organisation which, in turn, will depend on how congruent individual values are with organisational values the extent to which organisational objectives reflect individual objectives the extent of individuals' involvement and psychological immersion in their work the extent to which individuals value the organisation as a place to spend their time. We have outlined above two opposing views of ethics and strategic SHRM. The first view, associated with Sternberg, sees ethics as a means to an end. The second view, discussed by Miller, sees ethics and strategy as inseparable and based on the relationships between key stakeholders. This view accords with the concept of strategic fit: the ethical organisation consists of a mutual interrelationship between purposes and the implementation of those purposes. Means and ends are inextricably interwoven and exist in a dynamic tension. Source: The Open University: http://www.open.edu/openlearn/money-management/management/business-studies/creating-ethicalorganisation/content-section-2 Guided Learning (AC 1.3) Conduct some research and compile a business case for an ethical approach to HR management. Cover this in brief – bullet points will suffice. Make sure that you address: ▪ Positive relationships with the workforce ▪ Employer brand (organisational image and reputation) ▪ Practicing what you preach! ▪ Link to overall business performance HR role in promoting key philosophies Consider the role of HR in promoting the following: ▪ Equality of opportunity ▪ Diversity ▪ Dignity at work ▪ Work-life balance ▪ Health and well-being ▪ Legal compliance Guided Learning (AC 1.3) Take two of the key philosophies listed above and, for each, briefly ▪ Explain what they mean in the context of your organisation, or one you are familiar with ▪ Explain how HR promotes these philosophies © Oakwood International Ltd. All rights reserved. Page 13 Section Two – understand how HR objectives are delivered in different organisations 2.1 2.2 Explain the different ways in which the HR objectives can be delivered in organisations Analyse how the HR function varies between organisations in different sectors and of different sizes Generalist and specialist roles HR Generalists The Human Resources Generalist is responsible for managing all the HR operations and strategies within a company. The HR generalist oversees the administration of all people related matters such as: ▪ attendance management ▪ compensation and benefits ▪ employment law ▪ employee relations ▪ organisational development ▪ performance management ▪ recruitment ▪ reward and recognition ▪ succession planning ▪ training and development In larger organisations, the Human Resources Generalist works in conjunction with human resource specialists to ensure a comprehensive HR service is delivered to the business. When working for a smaller business, HR generalists often work on a standalone basis. The HR objectives of a company are originated and led by HR generalists. These HR objectives should result in an employee-oriented, high performance culture that emphasizes quality, high standards, productivity and the recruitment and ongoing development of a superior workforce. Guided Learning (AC 2.1) Conduct some research into the role of the HR Generalist, focusing on the following: ▪ ▪ What might the advantages be of having a whole team of HR generalists as opposed to specialists? What do you consider to be the key qualities of a good HR generalist? Specialist HR Roles There are a number of specialist roles in the field of HR, which are carried out a various levels of seniority and levels of experience and expertise. The CIPD HR Profession Map (HRPM) uses specific labels for these specialist areas; you may be familiar with different versions in the context of your own organisations, but, broadly speaking, the labels used on the HRPM capture the essence of these roles. © Oakwood International Ltd. All rights reserved. Page 14 The HRPM identifies 10 functional areas of HR. There are two ‘core’ functional areas, which cover activities relevant to all HR practitioners, no matter what their level of seniority or experience. The core areas are: 1. ‘Insights, strategies and solutions’ – essentially meaning that HR practitioners all have a role which includes supports the aims and objectives of the business 2. ‘Leading HR’ – essentially meaning that all HR practitioners have a role in and responsibility for ‘flying the flag’ for the HR function in support of the organisation. The HRPM then provides eight further labels for HR specialist areas. These are: 1. Service delivery and information 2. Organisation design 3. Organisation development 4. Resourcing and talent planning 5. Learning and talent development 6. Performance and reward 7. Employee engagement 8. Employee relations You will be exploring the CIPD HRPM in depth when we cover 5DPP; it is also an integral part of the entire programme, so you need to familiarise yourself with its purpose, structure and how it is used. You will find the HRPM at http://www.cipd.co.uk/cipd-hr-profession/hr-profession-map/ Guided Learning (AC 2.1) Familiarise yourself with the CIPD HR Profession Map, focusing at this stage on the specialist HR functional areas: ▪ ▪ Write a brief summary explaining the role of the eight specialist areas (the ones listed around the perimeter of the map) and how they support the organisation’s aims and objectives Which area(s) do you consider to be your own area of specialisation? If you consider yourself to be a generalist, which areas do you tend to tend to devote most time to? The role of line managers The whole purpose of the HR function is the effective management of people and performance issues in the business. However, each employee will have their own line manager (or several people to whom they report – e.g. in matrix management structures). The line managers have day-to-day contact with employees and are likely to be the first point of call when an employee has any questions or concerns. It is essential, therefore, that the HR department and line managers work together to manage people issues effectively and consistently. Adapted from ‘Studying HRM’, Taylor & Woodhams, CIPD 2012 You should read the CIPD factsheet ‘The role of line managers in HR (April 2012)’, which you will find at http://www.cipd.co.uk/hr-resources/factsheets/role-line-managers-hr.aspx This provides an interesting, detailed summary of the considerations that underpin the effective involvement of line managers in HR, and the role of the HR function in supporting them. © Oakwood International Ltd. All rights reserved. Page 15 Guided Learning (AC 2.1) Familiarise yourself with the CIPD factsheet ‘The role of line managers in HR’. Relate the details covered to the context of your own organisations, or one with which you are familiar. ▪ ▪ ▪ To what extent have HR responsibilities devolved from the HR function to line managers? Provide some examples of the sort of activities line managers are responsible for that, in the past, would have been undertaken by HR What sort of activities does the HR function retain and why? How can the HR function ensure that the line managers ‘get it right’ when taking on HR-related activities? Shared Services Model (of delivering HR) The ‘shared services’ model of HR service delivery was proposed by David Ulrich in the late 1980’s. It is a model used, or adapted, by many organisations. The model applies, generally, to large, multi-site organisations, sometimes stretching across international boundaries. The ‘shared services’ refers to a single point of contact for day-to-day transactional HR activities. If you think of a call centre, this is pretty much what the ‘shared services’ consists of. Ulrich’s model of HR service delivery, incorporating the shared services aspect, is often referred to as the ‘three legged stool’. It consists of three key areas: 1. Shared services area 2. HR Business Partners 3. Centres of expertise You will find a useful CIPD factsheet on the ‘Shared Services/3 legged stool model at: http://www.cipd.co.uk/hr-resources/factsheets/hr-shared-service-centres.aspx Another explanation of the 3 legged stool model –and also some essential reading on HR service delivery models, including outsourcing (see below) is at http://www.cipd.co.uk/NR/rdonlyres/6ED61983-01234885-AA59-51505F553297/0/9781843983149_sc.pdf Guided Learning (AC 2.1, 2.2) Having familiarised yourself with the ‘Shared services model’/’3 legged stool’ model of HR service delivery, discuss, briefly, the following in the context of your organisation, or one with which you are familiar: ▪ ▪ ▪ If your organisation has adopted the Ulrich model, how does this work in practice? If your organisation does not use the model, could it usefully be adopted? Briefly explain the potential advantages of adopting the model. © Oakwood International Ltd. All rights reserved. Page 16 Outsourcing HR services The practice of HR outsourcing refers to purchasing a service from an external source rather than performing it in-house. Typical areas of HR service provision that is outsourced include payroll, training and recruitment. According to the CIPD Executive Briefing (2005), this is the practice of transferring some, or all, of the HR service provision from an in-house team to one or more external providers. It is also utilised by a number of small organisations that, unable to carry their own internal resource, form an agreement to finance a common service to which they all have an equal, or agreed, access. HR services may be transferred on an anticipated long-term basis, or may be outsourced for the completion of a specific piece of work or project. Source: Human Resource Service Delivery, Gail Swift, CIPD 2012 You will find a useful CIPD factsheet on HR service outsourcing at http://www.cipd.co.uk/hrresources/factsheets/hr-outsourcing.aspx Guided Learning (AC 2.1, 2.2) Read the sources of information covering the outsourcing of HR services – and conduct some of your own research – then discuss: ▪ What are the benefits and potential challenges of outsourcing HR services? ▪ Consider options for outsourcing elements of HR services in the context of your own organisation, or one with which you are familiar. If this already happens, what is the business case for this? Consultancy Some organisations may choose to hire specialist HR consultants to provide advice on certain issues or develop specific strategies or policies (but not usually implement them). A consultant would work for a consultancy firm or be self-employed, and would be contracted by an organisation to enter the business, perform a specific task and then leave. As consultants engage with multiple and changing clients, they can bring deeper levels of expertise than a company could hope to have in-house, and each client only has to purchase as much service as they need. Source: ‘Studying HRM’, Taylor & Woodhams, CIPD 2012 Approaches to the management and co-ordination of HR management and development Different types of organisation are likely to have organise their HR function in different ways – and the function will have different primary objectives in different contexts. Consider the context of the following organisational types: ▪ Large private sector companies ▪ Small and medium-sized enterprises (SMEs) ▪ Public sector ▪ (Third) Voluntary sector ▪ Networked organisations (organisations working in collaboration to develop products or deliver services © Oakwood International Ltd. All rights reserved. Page 17 Consider the following questions for each: ▪ What is the primary purpose of each organisation type? ▪ How do they measure success? ▪ How are they managed? ▪ How are they financed? ▪ What will be the primary focus for HR in supporting each type of organisation? Large private sector companies ▪ Shares usually traded on the Stock Exchange ▪ Senior managers focus on how shares are trading – metrics influencing company performance ▪ Subsidiary companies – degrees of autonomy ▪ Approach to people management – considerations: ▪ Company’s product life cycle ▪ More prosperous –investment in good HR ▪ Less prosperous – harder to get good HR ideas adopted – issues such as redundancy HR/LD should focus on: ▪ Understanding the business – imperatives, pressures (anticipate these) ▪ Being able to sell the concept of good people management/value of LD to the business Small and medium sized enterprise (SME) ▪ Owner personal capital invested – considerable risk ▪ Seeks significant financial gain ▪ Activities desirable – but do they produce income? ▪ Will have a vision (may not be all around profit) HR/LD should focus on: Activities relating to profit, productivity, risk reduction, assistance with business growth Examples: ▪ Recruitment and retention of talent ▪ Reward schemes ▪ LD activity focusing on enhanced productivity/lean processes/quality enhancement (e.g. customer service) Public Sector Ask the group what issues are faced by the public sector, look for: ▪ Public service ethos and specific requirements on public servants ▪ Government policy – changes in government ▪ Constant change and reorganisation ▪ Inspections and regulation ▪ Influence of professional bodies on activities (e.g. on NHS) ▪ Must comply with European directives ▪ Need to attract funds – in line with statutory requirements HR should be aware of: ▪ Conscious of risks – need for accountability as public servants ▪ Focus on quality, good governance, documentation ▪ Familiarise with funding arrangements and control processes © Oakwood International Ltd. All rights reserved. Page 18 3rd Sector Examples: ▪ Charities ▪ Employers of volunteers ▪ Social enterprise – e.g. Prince’s Trust, Sea Cadets, National Trust 3rd sector organisations must adopt a business approach – they need to be realistic about business because of funds Delivering HR across cultural boundaries When considering HR in a global context, there are a number of different issues to bear in mind: ▪ Different countries have different cultures – these affect the employment relationship ▪ Different countries have different employment legislation ▪ Different countries have different tax arrangements ▪ Different countries have different labour markets – availability of talent – recruitment pools ▪ Different countries have different standards of living – pay expectations ▪ Different countries have different education systems – affects skills levels Adapted from ‘Studying HRM’, Taylor & Woodhams, CIPD 2012 Hostede’s national cultural variations See pages 30 – 31 of ‘Study HR Management’ for a fuller explanation of this. Hofstede developed four main factors of cultural differentiation: ▪ Power distance ▪ Uncertainty avoidance ▪ Individualism/collectivism ▪ Masculinity/femininity You will find a useful explanation of Hofstede’s theory at http://www.mindtools.com/pages/article/newLDR_66.htm © Oakwood International Ltd. All rights reserved. Page 19 Section Three – understand how the HR function can be evaluated in terms of value added and contribution to organisation performance 3.1 Discuss the main criteria and methods used to evaluate the contribution of the HR function Evaluating the contribution of the HR function In order for the HR function to demonstrate that it adds value, it must have in place robust systems for the evaluation of its activities – both at an individual level and cumulatively. The most commonly used evaluation tools include the following: ▪ HR statistics – examples: recruitment spend; number of job applications; number of new recruits; grievance/disciplinary statistics; L&D training days delivered ▪ Key Performance Indicators (KPIs) – identifying the aspects of HR performance that are the most critical for the achievement of business objectives, expressed in SMART terms. ▪ Balanced scorecard – a document that lists and agreed set of performance measures in a series of tables – four perspectives: customer; financial; internal business process; and learning and growth. Adapted from ‘Studying HRM’, Taylor & Woodhams, CIPD 2012 It seems to be an obvious point that HR professionals should measure the performance of HR using metrics. However, a recent CIPD survey found that: The majority of HR professionals (66%) agree that HR data informs business decision making. This is the case across both the private and public sector and all sizes of organisation. There is also strong agreement from HR professionals that HR uses measures to review and improve the HR function’s effectiveness (65% agreed), that HR draws insight from data to stimulate change and improvement in the organisation (63% agreed) and that HR uses people measures which are aligned with strategic priority areas for the organisation (62% agreed).There is opportunity for improvement around how HR communicates and interprets people measures for relevant stakeholders in pursuit of competitive advantage, with only 49% of HR professionals saying they do this effectively. HR Outlook – view of our profession (CIPD 2016 - 2017) The full research report can be found at: http://www.cipd.co.uk/hr-resources/survey-reports/hr-outlookwinter-2012-13-views-profession.aspx Guided Learning (AC 3.1) Consider how the output of the HR function in your organisation adds value. Provide a brief explanation covering the following: ▪ What areas of HR performance are measure ▪ How are these areas measured? ▪ How are the metrics used in terms of organisational performance improvement? © Oakwood International Ltd. All rights reserved. Page 20 ‘Insight-driven’ HR service delivery HR professional need to look beyond people-performance metrics to assess their own abilities and consider whether they personally possess the ‘three savvies’ that are: ▪ Contextual savvy: being alert to the external factors and macro trends that affect the organisation now and in the future ▪ Organisation savvy: having a sophisticated understanding of the people and cultural aspects of the organisation – how to get things done with these unique individuals in our very particular context ▪ Business savvy: – having a true understanding of how the organisation makes money and what matters when looking at its current and future commercial health Source: Studying HR Management, Taylor and Woodhams, CIPD 2012 You will find a useful CIPD research article that introduces the term ‘insight-driven’ HR at: http://www.cipd.co.uk/hr-resources/research/next-generation-hr-insight-driven.aspx You will find an interesting CIPD research paper entitled ‘Business savvy – giving HR the edge at:http://www.cipd.co.uk/hr-resources/research/business-savvy-giving-hr-edge.aspx . This paper discusses the following, which is relevant to a forward looking HR function: ▪ Understanding the business model at depth ▪ Generating insight through evidence and data ▪ Connecting with curiosity, purpose and impact ▪ Leading with integrity, consideration and challenge. © Oakwood International Ltd. All rights reserved. Page 21 Section Four – Understand the relationship between organisational performance and effective HR management and development. 4.1 Identify and evaluate research evidence linking HR practices with positive organisational outcomes 4.2 Explain how high-performance working and investment in human capital impact on organisational practice High performance working You will find a useful CIPD factsheet that explains the concept of ‘high performance working’ and the role of the HR function in supporting this at http://www.cipd.co.uk/hr-resources/factsheets/sustainableorganisation-performance.aspx Guided Learning (AC 4.1, 4.2) Having read the CIPD factsheet, consider and discuss, the following in the context of your organisation, or one with which you are familiar: ▪ ▪ The link between sustained organisational performance and HR activity Your view on how effective the HR function is in helping o support high performance working Employee Engagement So what is employee engagement? It can be seen as a combination of commitment to the organisation and its values and a willingness to help out colleagues (organisational citizenship). It goes beyond job satisfaction and is not simply motivation. Engagement is something the employee has to offer: it cannot be ‘required’ as part of the employment contract. Source: CIPD factsheet: http://www.cipd.co.uk/hr-resources/factsheets/employee-engagement.aspx Read the rest of the factsheet, which provides a clear summary of the significance and practicalities of employee engagement. Guided Learning (AC 4.2) Having read the CIPD factsheet on employee engagement, consider and discuss, the following in the context of your organisation, or one with which you are familiar: ▪ ▪ ▪ What is the level of employee engagement in your organisation? How is this measured? What practical steps are used (or could be used) to improve the level of employee engagement? © Oakwood International Ltd. All rights reserved. Page 22 Consider the following: Becoming an employer of choice Being an 'employer of choice' can make a huge difference to your organisation's performance. If you create a great working environment, not only do great people want to work for you but everyone will strive to deliver their very best. But how do you become an employer of choice? The companies that the Sunday Times has listed as the 'best places to work' can tell you. From ASDA and Microsoft to Timpson and Bromford Housing Association, all these organisations have one thing in common. They have created an environment in which employees feel valued and respected; in which they feel so connected to the company that they willingly give the effort required to deliver great results. Discretionary effort See CIPD factsheet on employee engagement at: http://www.cipd.co.uk/hrresources/factsheets/employee-engagement.aspx Flexible working You will find a useful CIPD factsheet covering the principles and practicalities of flexible working at http://www.cipd.co.uk/hr-resources/factsheets/flexible-working.aspx Guided Learning (AC 4.2) Consider and explain in brief the approach of your organisation, or one with which you are familiar, in: ▪ ▪ ▪ Becoming an employer of choice Encouraging discretionary behaviour – getting employees to ‘go the extra mile’ Flexible working arrangements © Oakwood International Ltd. All rights reserved. Page 23 Section Five – Workshop activities Workshop Activity 01 – Future of HR © Oakwood International Ltd. All rights reserved. Page 24 Workshop Activity 02 – Case study – ‘Tarmac’ © Oakwood International Ltd. All rights reserved. Page 25 Workshop Activity 03 – ‘Outside-in HR’ – Dave Ulrich © Oakwood International Ltd. All rights reserved. Page 26 Workshop Activity 04 – HR and business ethics © Oakwood International Ltd. All rights reserved. Page 27 Workshop Activity 05 – Emergent and planned change © Oakwood International Ltd. All rights reserved. Page 28 Workshop Activity 06 – HR business partnerships © Oakwood International Ltd. All rights reserved. Page 29 Workshop Activity 07 – Shared services model © Oakwood International Ltd. All rights reserved. Page 30 Workshop Activity 08 – Balanced scorecard © Oakwood International Ltd. All rights reserved. Page 31 Section Six – Referencing conventions used in written assignments In order to avoid any suggestion of plagiarism (using someone else’s words as your own) it is important that you acknowledge all sources of research material that you have used in your assignments. When quoting directly from a source, or adapting to suit the requirements of your assignment, you must provide a clear indication of where the words used came from. You should provide a clear reference at the point in your narrative where you have used or adapted the words from the source. The source then needs to be identified again at the end of your assignment narrative in a ‘Reference List’. If you are familiar with the Harvard Reference method, or other accepted forms of referencing used in academic papers, you can use these. Similarly, if you are familiar with the conventions for using footnotes, you can use this method of referencing. However, if you are not familiar with some of the more complex models of referencing you should use the method devised by Oakwood, which is explained below. Whichever method you use, please ensure that you reference at the point where you use the source in your narrative, and also in the Reference List at the end. Oakwood referencing method Oakwood’s referencing method is essentially a cut-down version of the Harvard Referencing method. It takes account of the fact that, for the purposes of your Level 5 written assignments you are likely to draw upon the following sources for research: 1. Textbooks 2. Factsheets – e.g. CIPD and ACAS 3. Web-based sources Examples for each of these sources are as follows: Textbook: ▪ In the text: The line managers’ role is thus vital to facilitate learning (Hutchinson 2007) ▪ Reference list: Hutchinson, S (2007), Learning and the line. The role of line managers in training, learning and development, CIPD. Factsheet: ▪ In the text: Such a process should flow from business strategy, and its aim is to produce a plan for the organisation to make sure there is sufficient capability to sustain business performance. (CIPD factsheet: Identifying learning and development needs, April 2015) ▪ Reference list: CIPD factsheet: Identifying learning and development needs (April 2015) Web-based: ▪ In the text: The uses of neuroscience depend on the question being asked. www.theguardian.com/.../neurosciencedavid-eagleman-ray) ▪ Reference list: www.theguardian.com/.../neuroscience-david-eagleman-ray) © Oakwood International Ltd. All rights reserved. Page 32 General guidance: ▪ Never pass off someone else’s words as your own: if in doubt, use a reference! ▪ Aim for between 3 – 5 reference in an assignment between 500 and 1500 words; a few more for longer assignments ▪ Any references used in the narrative text must be listed as shown above in the reference list at the end of your assignment ▪ Do not include details of sources in your reference list if these have not been included as references in the narrative ▪ Avoid overlong quotations – keep to 1 – 2 sentences . © Oakwood International Ltd. All rights reserved. Page 33  Case Study Brief – 5CHR – PART A THE MARSHALL GROUP Marshalls is a multi-national corporation which was founded over 150 years ago by Sir George Marshall and his brother, Lord Arthur Marshall. It is a large high street retail corporate business selling foodstuffs, homewares, clothing, and other accessories. The company has grown from relatively small beginnings to where it is now – one of the leading and most profitable retail operations in the sector. Turnover and profits for the last 3 years: PERIOD Year ending 31 December 20131 Year ending 31 December 2014 Year ending 31 December 2015 TURNOVER $1.4 billion $1.9 billion $2.4 billion PROFIT $700m $900m $1.5 billion The people side of the business is made up as follows: The Executive Office – Chairman, MD, CEO + a full Directorate Board from Sales, Marketing, Finance, HR, Facilities (properties), Legal, etc. There are 10 Executive (working) directors. The Board has also 8 nonexecutive directors, i.e. those who do not work directly for Marshalls but receive a fee for their input into strategy, etc. Employees – 18,000 and rising (multi-cultural and multi-ethnic) Span of Control – around 1 to 10 in Head office and central departments, 1 to 20/25 in the stores and retail outlets. Processes – ▪ Structured Employee benefits packages – salary, pension, medical, etc. ▪ Profit Sharing – 5% of declared profit is set aside each year for staff ▪ “Bonus extras” package – restricted to Sales only ▪ Learning and Development programmes are in place ▪ MBA and other University programmes available for defined individuals ▪ Specialist programmes for the “highpo’s” (High potentials) are in place ▪ Performance Management – which is geared towards Sales achievement ▪ Compliance Procedures are rigorously followed ▪ Strong culture of Management by Objectives ▪ The Management Style is largely “command and control” ▪ Risk/Reward is seen as key to the future of the business ▪ No structured succession planning has been considered ▪ Strategy is set out – not always understood or followed by The Line ▪ There are lines of Communication – unfortunately not always followed ▪ Communication tends to be mainly “downward” ▪ Turnover in staff ranges from 20% - 25%. (the industry average). No exit interviews are carried out. © Oakwood International Ltd. All rights reserved. Page 1  Case Study Brief – 5CHR – PART A ISSUES TO CONSIDER 1. A recent report from financial consultants contracted to look at the organizational aspects of the company suggested that the group should be broken into more manageable units, with the most profitable retained and others sold off. This would involve a further study of the whole business and a complete re-evaluation of the way the business direction needs to take in the medium to long term. On the face of it the retail clothing side would be under the greatest threat of downsizing - or even closure - as there is now significant competition from countries such as China and India. The company realises that perhaps they may have to “change their ways” but are reluctant to do so. There is virtual warfare being waged in the Boardroom over this. On one side are the champions of change who see it as essential for the on-going welfare of the business. On the other side there are those who take the view….“it ain’t broke, so what’s to fix?” This matter is an open secret throughout the business and is starting to cause factions among Board Members. This information has now filtered down to ground level making Staff and Line Managers in the clothing division very unsettled. Some key staff have already started to leave. 2. There is increasing animosity towards the Sales Team which is seen as elitist, arrogant and overpaid. This is made up predominantly of men – this is simply an historical fact. It is also the case that there are more salesmen allowed to take sabbaticals for degree etc. courses than any other members of staff in the business. 3. Learning and Development issues are not understood. The L&D team report to Sales and Operations, they have no real contact with HR. The only training that takes place is a “fun day” at Induction + some high-powered sales training. You are a team of HR Consultants who have been employed by the HR Director. He has been wondering how to approach this topic with The Board. You have decided to prepare a full presentation of the facts to the Board, with supporting notes. This should try to explain the role of HR and the link to business management in differing types of organisation/sectors. You see this as an opportunity for your consultancy “to shine”, and to try and help in placing HR at the heart of the business – up till now it has been seen largely as an operational support function. Perhaps this is the time for HR to break from Sales and take a place in the business in its own right? Your supporting preparation discussions. PowerPoint and notes should explore how a sound business approaches key contemporary issues such as: ▪ An assessment of a range of different factors that impact on an organisation’s business and its HR function. You should include examples of external and internal factors to illustrate the types of impact e.g. profitability, the change agenda, globalisation, government and legal regulation, etc. (1.1) ▪ An analysis of some of the key forces shaping the HR agenda, e.g. HR insights, strategies and solutions to support business performance, business ethics and accountability. (2.1) ▪ A comparison of the different tools for analysing the business environment, e.g. SWOT/TOWS and STEEPLE/PESTLE, Porter’s 5 forces,’ the ‘Value chain,’ etc. (2.2) © Oakwood International Ltd. All rights reserved. Page 2  ▪ Case Study Brief – 5CHR – PART A A summary of the key stages in strategy formulation and implementation with reference to a model from literature. You should also refer to the role of HR in each of the stages and in particular, highlight HR’s contribution to business ethics and accountability. (2.3, 2.4) You have been allocated a one hour slot at the Board meeting, so you should prepare to present for 45 minutes and allow 15 minutes for Q&A. (This is the basis of the case study. You are invited to add your own detail, such as how the organisation is currently structured, in order to bring your presentation to life. You should use internet-based sources to support your analysis of your local business environment.) © Oakwood International Ltd. All rights reserved. Page 3 HR Service Level Agreement September 2016 HR Service Level Agreement University of Bolton 1.0 Objective of the Agreement The purpose of this Service Level Agreement (SLA) is to describe the key services the HR team at the University of Bolton (UoB) provide and the quality standards our stakeholders can expect from us in terms of service delivery. This Agreement sets out:    the services we provide to employees & Heads of School/Service the overall standard which we, in HR aim to achieve in the provision of our services a mechanism for resolving any problems relating to the delivery of the service 2.0 Future reviews and amendments to this Service Level Agreement This agreement will be reviewed annually as part of the annual planning process and any changes will be based on feedback received. 3.0 Objectives of the Services Fundamentally supports the strategy of the UoB and objectives for the HR Department. This is achieved through gaining an understanding of the organisational needs and the provision of a high quality HR consultancy service to the UoB on people management issues (to include resourcing, development, employee relations, change management payroll services and pensions). 4.0         Service Users Executive Board Heads of Schools and Departments. Line Managers Trade Unions (i.e UCU and Unison) Core Staff (Professional and Academic) New Starters Potential Employees External Organisations and Suppliers Please note there is a specific SLA for the UTC. A copy can be provided upon request. 1 HR Service Level Agreement September 2016 5.0 Responsibilities – who we are, what we do The HR Team supports the service users and provides comprehensive strategic and operational guidance and advice relating to all aspect of people management issues in order that the Departments / Schools within the UoB can effectively manage their key resource, their employees. The specific individual responsibilities can be obtained at http://www.bolton.ac.uk/HumanResources/About-HR/About-HR.aspx HR Director Chris leads the HR team. As HR Director he is accountable for the development and delivery of the HR Strategy and the operational HR service provided to managers and employees of the University. As a member of the University’s Executive Board he provides support and guidance (acting as senior HR Business Partner) to his colleagues. He is also one of the Directors of UTC Bolton. Mr Chris McClelland t: 01204 903572 r: Z3-03 e: cm11@bolton.ac.uk HR Business Partners Each HR Business Partner works closely with and proactively supports a number of Heads of School / Services on strategic HR-related matters and organisational objectives such as: > Performance management > Strategic resourcing > Organisational design and development > Change management > Business planning > Policy development Mrs Jo Edwards t: 01204 903365 r: Z3-46 e: jpe1@bolton.ac.uk Mrs Claire Symons t: 01204 903569 r: Z3-46 e: cs19@bolton.ac.uk Mrs Rose Walker t: 01204 903583 r: Z3-46 e: rw1@bolton.ac.uk 2 HR Service Level Agreement September 2016 HR Officer Sharon manages the HR Administrator team within HR, acts as HR Business Partner to Facilities, oversees employee benefits, coordinates staffing committee issues and supports the HR Director on employee relations matters and other HR projects. Mrs Sharon Thompson t: 01204 903584 r: Z3-46 e: st4@bolton.ac.uk HR IS Officer Sara provides high quality management information, prepares and presents staff information / metrics for managers, committees and a number of external organisations. She also supports other generalist activities of the service. Mrs Sara Williams t: 01204 903576 r: Z3-46 e: slt2@bolton.ac.uk Pensions Officer Martin is responsible for the day-to-day management of the TPS, GMPF and USS pension schemes and deals with queries relating to pensions tax allowances, retirement and other pension matters. Mr Martin Evans t: 01204 903575 r: Z3-46 e: me3@bolton.ac.uk HR Administrators HR Administrators have responsibility for all aspects of operational HR activity and support the HR Business Partners to provide excellent customer service to employees in our Schools / Services. They act as the first port of call on issues such as  Employment contract administration  Recruitment  Advice on HR policies / procedures Mr Simon Booth t: 01204 903503 r: Z3-46 e: sb6@bolton.ac.uk Mrs Kerry Prescott t: 01204 903574 r: Z3-46 e: kw9@bolton.ac.uk 3 HR Service Level Agreement September 2016 Mrs Anne-Marie Wilkinson t: 01204 903580 r: Z3-46 e: ah4@bolton.ac.uk To find out which HR Business Partner or HR Administrator looks after your School / Service please click Your HR Contact 5.1 Service Availability The HR team is available from 8.45 am to 5.00 pm Monday to Friday and respond to enquiries by email, telephone and personal contact except for Bank Holidays and University closure days. 5.2 Description of Key Services This agreement covers the HR teams commitment to the wider University for the following areas. A detailed summary of each (to include as appropriate standards, turnaround times and KPIs) can be found in Appendix One. Employment Law advice Probation reviews Termination of FTCs Retirement Pensions Payroll services Family friendly practices Long term absence management Occupational Heath Employee Assistance Programme (EAP) Change management ET cases Employee relations Employee concerns (grievances and discipline) Performance End to End Recruitment and selection DBS Employee development 6.0 What we need from Service Users We will treat you with respect and with courtesy at all times and ask that you do the same. In order that your needs are met in an appropriate and timely manner we ask that you provide full and timely information when you contact the HR team. 4 HR Service Level Agreement September 2016 7.0 Service Levels/Standards Hard copy correspondence – will be responded normally within five working days from receipt Personal callers – if you wish to discuss a HR issue with a member of the team please contact the relevant key contact to arrange a convenient appointment. Emails - will normally be responded within three working days Telephone enquires - will be answered normally within 20 seconds. If a telephone voicemail is left we will endeavour to answer your query within two working days after receipt. Where we have to obtain further information before dealing with your query we will give an update on progress if it takes longer than the two working days 7.1 Monitoring Success The HR Business Partner will hold monthly meetings with the Head of School / Department. The HR team will carry out an annual review of the services and delivery of the services offered. 8.0 Complaints We endeavour to minimise errors and will rectify them as soon as they are brought to our attention. If you wish to comment on our service please click on this link http://www.bolton.ac.uk/HumanResources/CSE/Our-Feedback.aspx or alternatively email us at hr@bolton.ac.uk The complaints procedure is as follows: Stage 1 For routine day to day issues where you have a concern please contact your HR Business Partner in the first instance by email or telephone. Your complaint will be acknowledged and you will normally receive a response within five working days (annual leave permitting) Stage 2 If your complaint is regarding the service/actions of the HR Business Partner or if your complaint at stage 1 has not been resolved satisfactory, then please email the HR Director, Chris McClelland (c.mcclelland@bolton.ac.uk) with full details. He will deal with the complaint as quickly as possible and you will have a response in writing normally within five working days (annual leave permitting) 9.0 Date of Agreement 5 HR Service Level Agreement September 2016 Effective from 1st September 2016 9.1 Signatories to Agreement Chris McClelland HR Director University of Bolton 6 HR Service Level Agreement September 2016 No. Key Services What you can expect from HR Employment Law Advice   Resourcing (i.e. Recruitment and Selection)          Probation   Fixed-Term Employment    Take account of relevant employment law when giving advice on all HR matters Keep all HOS/HOS informed about new developments in employment and practical application Provide advice in relation to recruitment and selection Assist in job / role design and conducting job evaluations Support stakeholder in completing a request to fill a vacancy form and supporting the request before it is sent to Staffing Committee Agree the recruitment schedule Approve and place advertisement in agreed media Invite candidates Issue contract documentation upon receipt of satisfactory pre-employment checks Request references Inform unsuccessful candidates What we expect from you - our stakeholders  Operate in accordance with employment law  Seek advice from HR where necessary Monitoring arrangements Monthly meeting between HRBP  HR Recruitment Tracker Recruitment Policy         Contact HR to discuss potential recruitment Complete a request to fill a vacancy supported by relevant stakeholder and HRBP which will be sent to the Staffing Committee Prepare job description/person specification and draft advert Agree the recruitment schedule Conduct shortlisting Notify HR of candidates Conduct interview in accordance with Make conditional offers to successful candidates Provide detailed feedback to unsuccessful candidates upon request  Provide advice in relation to probationary procedure Provide advice in respect of potential dismissal on the grounds of capability  Ensure understanding of probationary procedure  Conduct probationary meetings  Advise HR of any concerns or issues  Provide HR with all relevant documentation HR Probation Tracker Provide reminder to line manager before the ending of a fixed-term contract Provide advice upon receipt of relevant information from line manager in respect of consultation or potential dismissal process Consult with the line manger to determine  Inform HR whether contracts will expire or whether they will be renewed  Conduct individual consultation with relevant employees regarding the end of their fixed term contract Monthly meetings between HR and Head of School or Service 7 Fixed-Term tracker HR Service Level Agreement September 2016 No. Key Services What you can expect from HR What we expect from you - our stakeholders Monitoring arrangements Advise in relation to relevant procedures Provide information to employees regarding entitlement. Advise in relation to Health and Safety Actively advise in relation to absence cover  Advise HR in respect of pregnancies  Highlight and discuss any issues arising from pregnancy, maternity or paternity leave  Complete risk assessments  Seek advice regarding potential contract changes Relevant tracker Policies HR Administrator responsible for these services in conjunction with HRBP Provide advice regarding voluntary retirement and succession planning Produce correspondence to employees  Ensure HR is aware of impending retirements  Provide relevant documentation to HR Providing professional advice on relevant procedures including but not limited to disciplinary, grievance and performance management. Support with investigations, hearings and appeals. Attend hearings and assist with correspondence Record cases for monitoring purposes  Ensure employees are aware of standards of conduct and performance  Keep HR informed about ongoing concerns  Report any allegations to HR and seek guidance  Management of cases with support from HR  Follow relevant procedures whether or not the post will be extended and next steps. Family Friendly Practices   Maternity Paternity Adoption Flexible Working Parental Leave Retirement     Employee Relations     Monthly meeting HRBP and Head of School or Service Monthly meeting HRBP and Head of school or Service Employment Tribunal Cases   Provide legal advice and guidance Instruct external legal advisors where appropriate  Forward any ET1 forms to HR immediately upon receipt  Provide copies of all relevant documentation  Cooperate fully with HR and external legal advisors to defend the claim  Attend Employment Tribunal Monthly meeting HRBP and Head of school or Service Performance Review   Coordinate the Performance Review cycle Advise in relation to poor performance and how line managers may address this  Monthly meeting HRBP and Head of school or Service 8 Ensure employees are aware of performance standards and what is expected HR Service Level Agreement September 2016 No. Key Services What you can expect from HR  Long Term Absence Management   Organisational Change/ Change Management     DBS Employee Development     What we expect from you - our stakeholders  Ensure employees are provided with relevant support  Ensure HR are made aware of any concerns and provide relevant documentation  Management of cases with support from HR in line with relevant procedures Monitoring arrangements Proactive management of long-term sickness cases in conjunction with line managers Timely referrals to Occupational Health prepared in conjunction with the line manager  Ensure employees are aware of notification and certification requirements Maintain contact with employees and conduct return to work meetings Provide HR with information to ensure the effective management of cases I Trent Sickness Absence Report Meeting with HRBP Planning and HR advice to support the implementation of organisational change activity Advising in respect of the business rationale, consultation requirements and HR process Providing correspondence and documentation Producing calculations in respect of redundancy etc. Maintain the employee personnel file Manage the Single Central Record Instruct student services to commence DBS checks for new starters  Consult with HR at the earliest possible opportunity regarding any organisational change Produce relevant documentation including but not limited to the business case Follow procedures and timelines Consult with relevant impacted parties Ensure the proposed changes are managed and delivered effectively Monthly meeting HRBP and Head of School or Service Provide HR with all relevant information relating to new starters Engage with student services to provide them with all relevant information including clarification on the level of DBS check required DBS Tracker Provide advice in relation to employee development plans (individual or team)  Advocate and support the development of employees STEP programme developed by Student Experience through both informal and formal measures Advise in respect of potential dismissals 9         HR Service Level Agreement September 2016 No. Key Services What you can expect from HR Pensions  Provide factual information and education for all employees who are part of: -TPS -USS -GMPF Payroll  Manage the day-to-day relationship between HR and payroll 10 What we expect from you - our stakeholders  Carry out PR’s and review what development is required  Discuss with employees any Succession planning issues  Operate in accordance with Pension regulations  To direct any pension related queries to the Pensions Officer  To facilitate the communication process surrounding changes to pensions Processes  Ensure that any claim forms, changes in hour and so on are confirmed to HR in a timely manner and in line with the payroll deadlines as issued by Finance on an annual basis. Monitoring arrangements Monthly meeting HRBP and Head of school or Service Pensions Officer HR Administrators  Resources & Bibliography Handout: 5HRF A list of any publications, websites and articles referenced in the workbook. Studying Human Resource Management, Taylor & Woodhams, CIPD 2012. CIPD factsheet ‘History of HR and the CIPD December 2012 An Introduction to Strategic Human Resource Management, Budhar & Ayree CIPD 2002 TARMAC Case Study: http://businesscasestudies.co.uk/tarmac/developing-a-human-resource-strategy/humanresource-management.html#axzz4So0cXTMF CIPD 2013 Next Generation Report: http://www.cipd.co.uk/hr-resources/research/next-generation-hrtime-for-change.aspx CIPD HR Profession Map: http://www.cipd.co.uk/cipd-hr-profession/hr-profession-map/ CIPD factsheet ‘The role of line managers in HR (April 2012)’: http://www.cipd.co.uk/hr-resources/factsheets/role-line-managers-hr.aspx CIPD factsheet on the ‘Shared Services/3 legged stool model: http://www.cipd.co.uk/hr-resources/factsheets/hr-shared-service-centres.aspx CIPD factsheet and support resources covering HR as a strategic business partner: https://www.cipd.co.uk/knowledge/fundamentals/people/hr/business-partnering-factsheet 3 legged stool model –and also some essential reading on HR service delivery models, including outsourcing: http://www.cipd.co.uk/NR/rdonlyres/6ED61983-0123-4885-AA5951505F553297/0/9781843983149_sc.pdf CIPD factsheet on HR service outsourcing : http://www.cipd.co.uk/hr-resources/factsheets/hr-outsourcing.aspx Hofstede’s theory: http://www.mindtools.com/pages/article/newLDR_66.htm HR Outlook – view of our profession (CIPD 2016 - 2017) http://www.cipd.co.uk/hr-resources/survey-reports/hr-outlook-winter-2012-13-views-profession.aspx CIPD research article that introduces the term ‘insight-driven’ HR: http://www.cipd.co.uk/hr-resources/research/next-generation-hr-insight-driven.aspx CIPD research paper entitled ‘Business savvy – giving HR the edge: http://www.cipd.co.uk/hr-resources/research/business-savvy-giving-hr-edge.aspx CIPD factsheet on change: http://www.cipd.co.uk/hr-resources/factsheets/change-management.aspx#link_0 © Oakwood International Ltd. All rights reserved. Page 1  Resources & Bibliography Handout: 5HRF Article useful in explaining Lewin’s change theory: http://www.change-management-coach.com/kurt_lewin.html Useful article explaining Lewin’s change theory: http://www.change-management-coach.com/kurt_lewin.html Kotter’s Eight Step change model : http://www.mindtools.com/pages/article/newPPM_82.htm McKinsey’s ‘Seven S’ model: http://www.mindtools.com/pages/article/newSTR_91.htm Useful article on managing the change process: http://www.epmbook.com/orgchange.htm Kubler-Ross Change Curve (with video): https://www.mindtools.com/pages/article/newPPM_96.htm Organisational ethics: The Open University - http://www.open.edu/openlearn/moneymanagement/management/business-studies/creating-ethical-organisation/content-section-2 CIPD factsheet that explains the concept of ‘high performance working’ and the role of the HR function in supporting this: http://www.cipd.co.uk/hr-resources/factsheets/sustainable-organisationperformance.aspx CIPD factsheet: http://www.cipd.co.uk/hr-resources/factsheets/employee-engagement.aspx CIPD factsheet covering the principles and practicalities of flexible working: http://www.cipd.co.uk/hr-resources/factsheets/flexible-working.aspx © Oakwood International Ltd. All rights reserved. Page 2 B-5HRF 1st Part: Human Resources Strategy Identifies and manages current and future needs to achieve organizational goals. Human resources plays an important role in the organization in assuring employees performance, improving the individual performance which highly impact the organization performance and efficiency that contribute to the organization success. The main target for each organization is hire the competent workforce that will lead the organization to deliver its objectives. Organizational demands are factors within a firm that affect decision making process and how to manage the people and the organization. These demands can be categorized in four elements which are Strategy, Organization characteristics , Organizational Culture and employees’ concerns. Strategy is the organization’s plan to achieve competitive advantage. Different strategies require different employees contributions to create a the competitive advantage Organization characteristics are the differences in stage and size of development. The organization’s size, maturity level and the type of industry does affect how organizations manage their employees. Organizational culture is the set of values and believes that employees are sharing. Employees concerns are the challenges that need to be champion by proper HR management. The role of HR has changed from the administration and compliance to understanding the employee experience, improving the employee engagement monitoring the employment brand and making the company a better place to work in which training employees and developing employees, leading employees and how to manage, attract and retain high potential employees. In this day in age the HR technology industry, has made several HR companies to build systems for collaboration and team connections to bring the work in a better light for each individual. HR acts as the gatekeeper in a matter of selection, proper verification and qualification. Ensure to apply the policies and processes to monitor and manage the cultural behavior of the employees in the organization. In order to position HR and drive ethics in organization with ethics training and ethics awareness to focused on the positive side by implement the right systems to prevent fraud or corruption. Strategic Management: HR Planning and development areas are known to be responsible for several planning activities such as planning workforce plan , designing or defining an organizational structure which drives productivity, ensure implementing the updated policy and procedures that are know as best practices that align with the organization’s strategy and culture. Implement Change Management by developing effective coordination and communication within the organization and stakeholders to ensure the transparency and alignment between employees and decision makers which highly reflect on the employees engagement. Policy Formulation is a very basic yet important aspect of HR that sets all the policies and procedures to prevent the organization of having ethical or behavioral issues and answer employees concerns such as code of conduct, HR manual that includes working hours, vacations, recruitment and promotions. To set a new policy we have to identify the problem first then set an optimal goal and measures the result or outcomes effectiveness. Hiring and selecting the high potential employees and develop their skills by building a career path for them and uplift their learning curve to make them qualified for the any coming potential promotion or leading position. Embracing ethics and supporting diversity and inclusion create abroad understanding for other cultures which can be reflected positively on the overall workplace and organization’s brand or image in which it also leads to a higher performance and productivity level. One of the key objectives of HR is the employees development. Recruitment not the only way of assuring the embracing the change and development through the organization. Hiring a high potential candidates or employees could be helpful for the current strategy goals only which might be a short-term cause. Meanwhile developing employees focus on how to re-shape and create the employees skills and to create a better environment between the employees and the organization. Training and development is also part of the employee engagement in which building or enhancing the employees skills would directly reflect on the direct interaction between the employees and customers. Whenever an organization has the proper trained and capable employees it will directly impact their customer satisfaction. Ongoing performance dialogue or evaluation can minimize the possibility of having issues or major challenges specially with customers which will benefits the organization in the future. Another goal or objective of HR is the employees relations which can be delivered by applying the labor law policy and formulating policies that fits the organization’s strategy, direction and culture. Hence the HR function should focus on proper implementation and execution of any policy to ensure the effectiveness and the impact on the employees on future. Although most of HR departments share the same objectives on how to lead employees to development and plan the proper methods and responsibilities. The HR function activities are different from an organization to another it could be based on the industry type, the organization size, geographic location or even the organization strategy. A public authority (Government Sector) public sector organizations are supported and governed by the government, their structure may fall into multi layers. The HR in public sectors is mostly playing a personnel or administrative roles in terms of payrolls, calculating leaves, monitoring attendance, promotions and demotions and a slight focus on training of the employees’ soft skills. The size of public sectors is usually around 10,000 and above employees which considered as a huge number of headcounts which also means that the HR department size might be also large comparing to total full time equivalent employees. A national private company a full grown organization that has above 250 employee is ranked as large-sized business and it can contains manufacturing , processing, retail, distribution and warehouse, health care, education, financials and banking, hospitality and tourism. Usually large private companies tend to have a hierarchical structure that breaks down to variety of levels. Larger or private companies do hire more employees to fulfill a variety of roles on all levels within the organization structure, including managerial roles. In large or private companies based on their strategy and vision HR plays more as a strategic partner to build the right capabilities and to meet the organization’s objectives. Moreover HR in large and private companies can be focus on other areas such as employees services, employee journey, learning & development, organization development, workforce planning, policies and procedures, performance management and total reward. HR function in large and private companies can have a wider abroad of activities that would highly impact the employees efficiency and the organization in future. Whenever the organization size is 250 and below employees it is consider as small and medium enterprise size do not have many slots to fill nor the vast array of personnel. Therefore, the owner could double as the HR manager, recruiter, interviewer, and overall professional. Small business has one HR individual to operate as manager, assistant, recruiter, and all-in-one professional A voluntary (Third Sector) organization Organizations could also structure themselves according to the sector they operate an example of that charities are raising money through donations. or social enterprises that trade in markets selling good or services but they have a social aim. HR function could be working as administrative or operational department to fulfil the vacancies and process the operational processes. HR metrics considered as a progress report which could be conducted on weekly, monthly or quarterly bases. The main purpose of using HR metrics is to drive the strategy and direction of HR as well as the organization, Provide focus for the organization and HR function, provide a better insights and help in the decision process, drive performance and produce good internal and external public relations. HR metrics could include different ratios and trends due to the organization’s needs. It also could reflect the organization performance and employee behavior. KPI is key performance indicator and it measures how the business and individual or project deliver on their strategic goals, they also can be monitored to measure the success. KPIs are the only metrics that is directly linked to the organization’s strategy. KPIs are developed based on the organization’s strategic goals for example if we are looking for financial performance then our strategic goal could be to grow the profit margin, and to be more clear we have to define targeted audience and what questions are answered “KPQ” to what extend are we delivering a bottom line result. Meanwhile SLA’s are known as Services level agreement which is a wider agreement a business would set with the supplier of a service that reflect the service provided and expectations. Staff survey is commonly used to measure the satisfaction of the employees, the ideal purpose of the survey is to evolve employees and develop constantly certain aspects such as the engagement level and the satisfaction. Staff survey starts by launching it to employees on annual bases, receive a feedback and create an action plan, then start implementing the solutions and outcomes and finally be able to plan the coming year’s staff survey to compare the progress. Benchmarking is making meaningful comparisons to others and identifying opportunities to improve. Benchmarking is usually done versus the best in class organizations or competitors. It is often seen as a way to identify the current leader in a field, identify the gap with that leader and take an action to close the gap. There are many different areas to apply benchmarking for example product benchmarking, best practices or processes, financial benchmarking. To apply benchmarking we have to identify the industry type, company size, gross margin and operating margin. Return of Investment is how much we get back from investing, ROI metrics are critical where it measures the financial return we receive because of something that we do to invest in our organization or its people such as training ROI. Balance scorecard (BSC) measures financial, customer service, internal process and learning and growth or sustainability measures. The HR scorecard has been designed to identifies HR deliverables and HR systems alignment compares HR alignment with strategy and measures the organizational gain created by HR practices for example identifying the HR deliverables and which functions HR performs and the services does HR deliver that would provide value to the organization (recruiting, selection, training, employee development compensation and incentives). Many business today are using the HR scorecard in which it reflects the strategic highlights within HR function. Benchmark the impact and importance of engagement and satisfaction which has been reflected on the employees productivity and efficiency. The right employee engagement strategy is from the bottom up, in order to improve the engagement level within an organization it needs to measured in which each department head would have their score report of what’s the engagement score of their teams and the average score of throughout the organization and sharing these results among the team would raise the level of engagement. Asking questions to highlight the positive attribution and discuss solutions for the area of improvement to create the useful action plan and start implementing. How convincing do you think these findings are and why? (AC4.1) (approx 150 words) From your understanding of the findings in the report, how can high performance working and investment in people impact on organisational performance? (AC4.2) (approx 200 words) ADDITIONAL REQUIREMENTS: Please also comment on how you will transfer the new knowledge and skills gained during this assignment into working practices. You may also use this reflection for your CPD. (approx 200 words) References: B-5HRF 1st Part: Human Resources Strategy Identifies and ...
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Running Head: CIPD ASSIGNMENT

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CIPD Assignment
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CIPD ASSIGNMENT

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CIPD Assignment
What are the key messages from the report?
The critical message advanced by the article is, "Link Employee Engagement to Positive
Business Outcomes," the benefit a company can reap from having an engaged workforce. The
article identifies low employee turnover, significantly reduced absenteeism, increased
innovation, and improved productivity as some of the benefits that an engaged workforce
extends to an organization. Further, various scholarly evidence supports the article's position on
its key message by linking a few more issues that are equally critical to the excellence of many
organizations (Shuck, & Reio Jr, 2011). The first is that there is a high good chance that a happy
workforce will always guarantee customer satisfaction. Further, an organization with a consistent
record of customer satisfaction automatically leads to a sound form of revenue performance. A
good revenue record is just one indicator of positive business outcomes that ...


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