Employers Organisation The People Implications of the Efficiency Agenda

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The HR function and efficiency

As well as supporting the organisation in achieving high performance people management
and managing the changes required to improve efficiency, the HR function needs to review
its own performance to ensure that it is efficient and effective. A review of the
effectiveness of the function will look at whether:

the functions service plan reflects organisational need and an appropriate strategy for
the deployment, management and development of the workforce is in place

there is appropriate HR leadership so that people issues are considered at the outset of
any organisational change

the current HR function organisational structure meets service need

the processes and systems used ensure that administrative and reporting tasks are
delivered in a timely and efficient manner

there is an effective interface between the HR function and managers, employees,
trade unions and potential employees and all parties are clear about their roles and
responsibilities in relation to the service provided

the HR job roles reflect service need

HR staff have the relevant competencies and capabilities to deliver what is required

performance is appropriately managed and service delivery changes are made in a
timely manner

The HR function may undertake a review independently or the review may be part of a
wider review of back office and transactional services.

The review can be undertaken in a number of ways and may include:

establishing a champion and project team to undertake the review

consultation with key stakeholders such as members, managers, employees, trade
unions and HR staff

benchmarking against other HR functions

evaluating current systems and job roles to determine what is actually done and how

Where changes are proposed these will need to be clearly defined and potential savings
calculated, particularly if savings are to be included in the councils AES.


Employers Organisation The People Implications of the Efficiency Agenda

2
Further Information

Efficiency Agenda: www.lg-employers.gov.uk/efficiency/index.html

The process should be dealt with in the same way as any other change management
programme: http://www.lg-employers.gov.uk/documents/efficiency/efficiency_agenda.doc.

Guidance on specific aspects of HR delivery such as structures, processes and systems and
HR skills can be found at http://www.lg-
employers.gov.uk/people/impact_function/index.html and in the EOs Whats Your People
Strategy? guide http://www.lg-
employers.gov.uk/publications/fullpublications/people_strategy.html.

People Management Survey 2005 the state of people management in local authorities:
www.lg-employers.gov.uk/people/survey_people_management_2005.html

Taking forward organisational change and development:
http://www.improvementnetwork.gov.uk/imp/aio/11427