Human Resource Management Kal Ka

Human Resource Management
Developing a HRM strategy

Faced with rapid change organizations need to develop a more focused and coherent approach to managing people. In just the same way a business requires a marketing or information technology strategy it also requires a human resource or people strategy. In developing such a strategy two critical questions must be addressed.

What kinds of people do you need to manage and run your business to meet your strategic business objectives? What people programs and initiatives must be designed and implemented to attract, develop and retain staff to compete effectively?
In order to answer these questions four key dimensions of an organization must be addressed. These are:

Culture: the beliefs, values, norms and management style of the organization Organization: the structure, job roles and reporting lines of the organization People: the skill levels, staff potential and management capability Human resources systems: the people focused mechanisms which deliver the strategy - employee selection, communications, training, rewards, career development, etc.
Frequently in managing the people element of their business senior managers will only focus on one or two dimensions and neglect to deal with the others. Typically, companies reorganize their structures to free managers from bureaucracy and drive for more entrepreneurial flair but then fail to adjust their training or reward systems. When the desired entrepreneurial behavior does not emerge managers frequently look confused at the apparent failure of the changes to deliver results. The fact is that seldom can you focus on only one area. What is required is a strategic perspective aimed at identifying the relationship between all four dimensions. If you require an organization which really values quality and service you not only have to retrain staff, you must also review the organization, reward, appraisal and communications systems. The pay and reward system is a classic problem in this area. Frequently organizations have payment systems which are designed around the volume of output produced. If you then seek to develop a company which emphasizes the product's quality you must change the pay systems. Otherwise you have a contradiction between what the chief executive is saying about quality and what your payment system is encouraging staff to do.
There are seven steps to developing a human resource strategy and the active involvement of senior line managers should be sought throughout the approach

Steps in developing HRM strategy
Step 1: Get the 'big picture' Understand your business strategy.

Highlight the key driving forces of your business. What are they? e.g. technology, distribution, competition, the markets. What are the implications of the driving forces for the people side of your business? What is the fundamental people contribution to bottom line business performance?
Step 2: Develop a Mission Statement or Statement of Intent That relates to the people side of the business. Do not be put off by negative reactions to the words or references to idealistic statements - it is the actual process of thinking through the issues in a formal and explicit manner that is important.
What do your people contribute?
Step 3: Conduct a SWOT analysis of the organization Focus on the internal strengths and weaknesses of the people side of the business.
Consider the current skill and capability issues.
Vigorously research the external business and market environment. High light the opportunities and threats relating to the people side of the business.

What impact will/ might they have on business performance? Consider skill shortages? The impact of new technology on staffing levels?
From this analysis you then need to review the capability of your personnel department. Complete a SWOT analysis of the department - consider in detail the department's current areas of operation, the service levels and competences of your personnel staff. Step 4: Conduct a detailed human resources analysis Concentrate on the organization's COPS (culture, organization, people, HR systems)

Consider: Where you are now? Where do you want to be? What gaps exists between the reality of where you are now and where you want to be?
Exhaust your analysis of the four dimensions. Step 5: Determine critical people issues Go back to the business strategy and examine it against your SWOT and COPS Analysis

Identify the critical people issues namely those people issues that you must address. Those which have a key impact on the delivery of your business strategy. Prioritize the critical people issues. What will happen if you fail to address them?
Remember you are trying to identify where you should be focusing your efforts and resources. Step 6: Develop consequences and solutions For each critical issue highlight the options for managerial action generate, elaborate and create - don't go for the obvious. This is an important step as frequently people jump for the known rather than challenge existing assumptions about the way things have been done in the past. Think about the consequences of taking various courses of action. Consider the mix of HR systems needed to address the issues. Do you need to improve communications, training or pay? What are the implications for the business and the personnel function? Once you have worked through the process it should then be possible to translate the action plan into broad objectives. These will need to be broken down into the specialist HR Systems areas of:

employee training and development management development organization development performance appraisal employee reward
employee selection and recruitment manpower planning communication
Develop your action plan around the critical issues. Set targets and dates for the accomplishment of the key objectives. Step 7: Implementation and evaluation of the action plans The ultimate purpose of developing a human resource strategy is to ensure that the objectives set are mutually supportive so that the reward and payment systems are integrated with employee training and career development plans. There is very little value or benefit in training people only to then frustrate them through a failure to provide ample career and development opportunities

HRM systems diagnostic checklists
The following check-lists present some questions which may prove helpful for you to think about when planning your development programs for human resources (your people) in your organization. Use them to provoke thought and to stimulate discussion. Consult with others in your organization. They will help you to identify the critical human resource issues facing your organization.
The aim is to begin to explore how a considered and planned approach to people management can improve business performance, to the benefit of all. Use this checklist in conjunction with our team building diagnostic instrument. It will, via your team members responses identify critical issues they perceive as important. These issues may be at odds with your own perceptions and analysis and therefore any such discrepancy will need to be addressed. Warning Indicators Your organization is more than likely in trouble if any of the following holds true:

chronic industrial relations problems no means of resolving employee grievances increasing / erratic employee turnover increasing number of customer complaints no pride in the organization inter-group conflicts no career paths for ambitious talented employees dissatisfaction with pay and conditions unclear job roles no clear performance measures quality is unimportant bad product service / delivery records poor recruitment standards / practices no management development programs no induction training for new employees critical skill shortages inter-departmental conflict you do not know if any of the above are applicable you ignore any of the above
Culture, organization, people, systems (COPS), checklist

Culture

Do your staff identify with the organization and 'the success of the organization' as being of direct benefit to themselves? Do your staff see themselves as having common interests with their work colleagues and group? Is there a strong team spirit? Is work allocated on the basis of individual expertise rather than position in the organization? Are there sufficient skills / power bases in the organization? Are there appropriate leadership skills within the organization? Are your staff encouraged to say what they think about the organization? Does your organization encourage innovation and creativity amongst staff?
Do your staff feel a sense of personal responsibility for their work? Is quality emphasized in all aspects of the organization?
Organization

Does the structure of your organization encourage effective performance? Is the organization structure flexible in the face of changing demands? Is the structure too complex? If so in what areas? Do your staff have clear roles and responsibilities? Does your organization structure tend to push problems up rather than resolve them at the point where they occur? Do your procedures and management practices facilitate the accomplishment of tasks? Do you constantly seek to challenge your organization structure?
People

Do your staff have the necessary skills and knowledge to perform their jobs in the most effective manner? Do your staff understand their jobs and how they contribute to overall business performance i.e. have clear goals and objectives? Do your staff have a customer service orientation? Are people with potential spotted and developed for the future? Are your staff encouraged to perform well through the giving of recognition, feedback, etc.? Do your people know what their expected performance standards are?
Systems
Do your organization's systems (e.g. employee selection and recruitment, promotion, planning, management, information and control) encourage effective performance among your staff? Are these systems consistent across the organization? Are there clear rewards for effective performance within your work group? Does the organization review its systems frequently and ensure they mutually support each other?
You may now wish to consider and write down:

What are the three critical people issues facing your business? What plans /actions can you take to address these issues?
To help you further, click on this team building link and have your people tell you the issues confronting them in the workplace
Ergonomics
Fitting the task to the person is what ergonomics is really about. Good ergonomics:

Shortens learning times Makes the job quicker with less fatigue Improves care of machines Reduces absenteeism Reduces labor turnover and other signs of worker malcontent Meets the requirements of health and safety legislation
Within management services various principles exist; for example,

work-place design motion economy rest allowances job satisfaction and environmental control
which have for at least 50 years been taught and applied on a semi-empirical basis, and all of which are orientated around the worker. Starting with the Industrial Fatigue Research Board in 1919, scientific advances in the study of the human at work have shown that the application of scientific understanding of anatomy, physiology and psychology results in improved productivity, thus ergonomists will have received formal education at degree level in these subjects. Although they may seek to operate directly on the shop floor or in the office, they will often be naive concerning some of the harder facts of industrial and commercial life and will therefore work much better via the management services department. On the other hand some people in management services, in their lack of scientific knowledge, try to apply commonsense solutions to ergonomic problems that subsequently backfire on them. Ergonomic principles are much better described in some books (e.g. Murrell (1965), Grandjean (1969)) than in others. The main snag with many scientific authors is their lack of industrial experience. Conversely many industrial writers have no formal scientific training; their books are merely restatements of what they themselves have read elsewhere. This section will describe the application of ergonomics within a broad area of the subject. Readers are recommended to consult books listed in the references (in the PDF
version) for a full description of ergonomics. There is no point in restating that which will be found better written elsewhere. It is important for the manager and supervisor to be conscious of the effect that the application of ergonomics has in the average workplace. Ergonomic principles are important in the constant search for productivity improvement. This section will serve as a reminder. Is there a better way? Seek, examine and consult widely with experts, keeping in mind the background information from this section. Next | Ergonomics and anatomical problems
Ergonomics
Application of ergonomics to anatomical problems
Anatomy is about the structure of the body.
Many jobs are better done by workers of a particular shape and size. The motor car is an obvious example; the seating and controls are designed to suit the majority of the driving population. The same approach should be used in the design of most controls. Whilst many design engineers use their general knowledge and experience for positioning controls etc., there are statistical data used by ergonomists that give the dimensions of most parts of the body relating to percentages of the population. Using these data, the carmakers know fairly accurately the number of people who will not fit comfortably in their cars and can assess the cost of meeting their needs against the amount of lost sales. Most workplace design involves positioning controls but what may be comfortable for a short thickset individual is likely to be awkward for someone tall and slim. Additionally, the reading of poorly positioned instruments may require excessive body movement. Adjustment of the workplace can solve many problems; the typist's chair with armrests for some work is an inexpensive and robust solution to many seating problems arising from differences in anatomical dimensions. The design of many everyday things, e.g. stairs, doorknobs, wheelbarrows, manholes etc., are all based on human dimensions. People in Western countries in general are more obese than 50 years ago; the trend is likely to continue whilst the better-fed children of the post war years replace the older generation. The principal body dimensions of women are similar to those of many of the smaller men, with the difficulty of shorter arms and legs; although for some tasks the female bosom causes minor problems in equipment and workplace design both because of position and size, and because of its sensitivity.
Nowadays there are computer three-dimensional simulations of the person at the workplace that enable the ergonomist to project onto the computer screen how operators, with ranges of given body dimensions, would fit into a new workplace and use new equipment. The overall differences in body dimensions in people are so great that, like the car designer, normally only a proportion of people will be suited in any particular situation. To increase the suitability of the workplace or equipment, for a wider range of people, costs money, but this can be offset against the greater ease of filling that job. Many health and safety requirements relate to human anatomy; they are difficult to formulate for all shapes and sizes of worker.
Ergonomics
Application of ergonomics to physiological problems
Physiology is about the way the body functions.
Physiological problems occur when the body is required to do too much work, to work awkwardly or to work under bad environmental conditions. Fatigue results from most work. The worker should be not more than healthily tired at the end of his working day. Thus the rest allowances built into the task should be adequate without being excessive and uneconomic. Ergonomists assess physical work by measuring oxygen breathed, heart rate change etc, but are usually handicapped by only being able to measure individuals under semi-natural conditions. However, in a similar way they can measure recovery from fatigue. This has a direct connection with rest allowances; for instance, it has been confirmed that although learners need more rest than qualified workers, they are apt to tire themselves out by not resting adequately during the early part of their work. There is a natural balance between work periods and rest periods for every day whereby quality and quantity of work are at an optimum. This is not yet being adequately exploited by the employment of industrial ergonomists at the actual workplace. Work measurement, in management services, involves rating for effort. A worker on piecework performs at 25 per cent more output than on day rate, and a work study person can assess within fairly close limits the rate at which an operator is working. In the past there have been many attempts at using ergonomics to measure effort more accurately; unfortunately such successes as have been achieved in the laboratory tended not to have been repeated in the rigors of the actual workplace. But with the transistorized miniaturization of equipment now available, improved accuracy of shopfloor studies will
increase substantially, eventually leading to the point where rates can easily be set by using simple standard physiological measuring equipment. In jobs where anatomical restrictions result in postural difficulties, extra physiological effort and fatigue occur. Often work is aided by using momentum from part of the body, and the value of this depends on exactly how it is done. Performed inexpertly it can result in permanent damage to the back. By assessing the effect on the affected muscle groups, ergonomists can determine which of several postures is less fatiguing and make recommendations of how to improve matters at least cost. The physiological effects of environmental factors have been traditionally catered for by increased rest allowances. Ergonomists have shown this practice to be erroneous; it now contravenes health and safety legislation. Actually by giving workers an increased rest allowance, indirectly translatable into cash, vulgarly but accurately called 'dirt money', management formally acknowledges the health hazard by bribing the worker not to make a fuss about it. Thus there is cause for saying that both management and workforce become liable to prosecution where poor environments are compensated for in increased wages, however sophisticated the payment system may appear.
DEVELOPING GLOBAL HUMAN RESOURCE STRATEGIES

Hans-Erich Mueller* FHW-Berlin School of Economics Discussion paper for European International Business Academy 27th Annual Meeting, 13-15 December 2001 in Paris Abstract. A few years ago it was typical to give ones subsidiaries a free rein and send managers overseas from headquarters only. But today a great deal depends on overcoming this one-way street and in looking for and employing the best-suited managers, regardless of their origins. What contribution can human resource management make towards a companys global orientation an area in which local scope and latitude are traditionally very high? Our study shows that in recent years large US and German industrial enterprises have re-aligned the management of their executive staff. Cornerstones of this quiet revolution are a policy of worldwide parity of executives in evaluation, remuneration and development, greater participation of those with line responsibility from product areas
and regions in strategic development, as well as a realignment of human resource instruments. Worldwide standards in human resource policy are key factors in the competition for qualified managers. Not only companies, but also executives need to adjust. How have these companies managed to press ahead this quantum leap in their international strategy for executives? What significance do local or cultural differences have, if any? What are the possible consequences of this job market opening? The following article makes best practice proposals for pursuing new avenues towards a cross-border human resource strategy.
*Hans-Erich
Mueller is a Professor of Management and Organization at the FHW-Berlin School of Economics in Berlin/Germany and a guest professor at Reims Management School in France. Parts of this article are published in German as Wie Global Player den Kampf um Talente fhren in Harvard Business Manager 2001, No. 6, p. 16-25 HANS-ERICH MUELLER DEVELOPING GLOBAL HUMAN RESOURCE STRATEGIES -2-
Cynics ask: Whats so important about globalization? Its been under way for decades. In fact, in the beginning it only affected a few areas and only a few functions like marketing and financing. Global Players were certainly exceptions to the rule. In the meantime however, this process has gained in breadth and latitude: today it no longer depends on if but rather on how on Best Practices in International Business (Czinkota/Ronkainen 2001). In the near future and in almost every area of business, we will be forced to contend with the challenges of a global economy, in which the old rules no longer apply and the new ones are yet to be developed. And this also applies to the area often considered the tailender: cross-border human resource management. Do you have worldwide HR policies, that is, policies that apply to all employees regardless of location? This is one of the central questions underlying our interviews with HRM executives of the twelve largest German manufacturers, which took place between the
summer and fall of 2000. This includes the largest German companies excluding trade, banking and insurance, as well as energy suppliers according to the Business Week Global 1000, 12 July 1999. We wanted to measure the degree of development in an area in which, traditionally, decision-making had rarely been centralized and questions concerning the overseas assignments dominated. In other words, is human resource management also in the process of being globally integrated as other functions previously? Is there enough room for adequate local adjustment? How and with whom will this changed policy be developed and implemented? The idea for our study originated from our collaboration with Thomas M. Begley and David P. Boyd of Northeastern University in Boston, who interviewed executives from 32 large U.S based high technology companies, such as AT&T, Cisco, IBM, Intel and Microsoft in the same way. It is interesting to compare our results. SENIOR MANAGEMENT STRATEGY HAS CHANGED: GLOBAL INTEGRATION The same worldwide standards for senior management in evaluation, compensation and development are the milestones en route towards a global human resource strategy, which has only caught on in recent years at German companies like BASF, Bayer, DaimlerChrysler, Henkel, Lufthansa, SAP, Schering, Siemens, and Volkswagen.
HANS-ERICH MUELLER DEVELOPING GLOBAL HUMAN RESOURCE STRATEGIES -3-
Roland Schulz, Personally Liable Associate at Henkel, describes this change in strategy for his company : Up until 1990 we were very German-oriented, allowing the subsidiaries in individual countries a great deal of autonomy. Only for the top two hundred executives was there something like an alignment or standardization of a few specific themes. But for the past ten years we have been actively redrafting all of our human resource policy instruments systematically, and we think in a professional way. So, today, we are able to say that we have
succeeded in creating a comprehensive executive structure, allowing us to treat key questions of human resource policy in a unified way. Evaluation, compensation, management development, training and education we have harmonized all of these instruments for executives and made them binding worldwide. Henkel sees itself as a leader in human resource policy, both within and beyond its own areas of business, one which brings about more equality of treatment and fairness, so that qualified executives can commit themselves to the company and participate in its success. Reviewing international human resource strategy. Not every company needs to follow these examples exactly. It is clear that there is not just one right course of action for human resource as well as company strategy. There are four principle alternatives between local adaptation (responsiveness) and global integration with respective coordination costs (see box 1 below). Four alternatives for a cross border strategy Local Adaptation: International Strategy: appropriate when there is little foreign business knowledge transfer from the center of headquarters. Coordination cost are low. Multinational Strategy: Affiliates are autonomous and local adapted. Cross-borderadvantages of standardization and learning are low. Coordination-costs are lowest. Globale Integration: Global Strategy: Advantages of standardization of policies and practices. Strong centralism. Lack of local responsiveness causes disadvantages. National segmented markets, cultures, policies set barriers. Coordination costs are high.
Transnational Strategy: uses advantages form globalization, localization and cross-borderlearning simultaneously. Coordination cost are highest. (see Bartlett /Goshal 1998) None of these large German manufacturers we interviewed pursues a comprehensive, allinclusive, globally integrated human resource policy. The autonomy of the national
companies in terms of the human resource policy for commercial staff is not noticeably limited, whereas corporate normally assumes exclusive responsibility for decisions concerning executives (Macharzina/ Wolf 1998). But even in this executive area not every company has completed its change of strategy towards global integration. Deutsche Telekom and Preussag (the former steel manufacturer-turned tourism giant), who have recently become more international in their orientation, are just now in the process of preparing themselves for a cross-border, integrated human resource policy. The autonomy of the newly purchased overseas companies has been substantial so far. Bertelsmann, where deployment has traditionally been decentralized, has just begun a more integrated policy for senior management. Lufthansa in the Star Alliance network, too, participated recently for the first time in creating a sound foundation for a global executive management scheme. Moving towards global integration. Every company will have to find its own route and this will depend on the situation and will be different for executive management and specialized staff. The decisive turnaround within todays human resource policy appears to be in the replacement of both local autonomy and the home country preference: companies successful across borders with corporate headquarters in Germany have pursued a more globally integrated human resource strategy. Begley/Boyd (2001) also found a globally-oriented executive policy amongst the 32 American high tech companies. In another study, Conn/Yip examined 35 large American multinationals and documented the advantages of such a strategy statistically. According to their research, the improvements in effectiveness of global compensation systems, transferring managers from country to country and having worldwide training systems lead to a measurable increase in the worldwide transfer of critical capabilities such as speed of innovation, quality management and cost-efficient production.
To date the autonomy of country managers in human resource policy had been substantial. But it was agreed that an increased trend towards global managers, integrated processes and a global corporate culture was certainly intended (Czinkota/Ronkainen 2001).
How much local influence is necessary? In a global-local strategy, cultural differences amongst employees can be seen as a strategic advantage for crossborder learning capabilities and the flexibility of the company. But the initial impression is that, for the moment at least, both German and American companies place little value on adapting their global human resource policies to local situations. This policy can be summarized as follows: As much global integration as possible, as much local adaptation as absolutely necessary. One Hewlett-Packard manager illustrated the direction in one sentence: We want one solution for the world rather than 54 country solutions. We optimize at the company rather than the country level. IBM, on the other hand, values a regional differentiation in their human resource policy. They believe in making exceptions, in flexibility in the area of deployment even as far as differentiated standardization: this is the span needed to bridge the political and cultural gaps, especially between westernized corporate cultures and Asian country cultures (Begley/Boyd 2001). What the actual situation is like can only be determined by the careful observation of the characteristics and instruments of a strategy, which rests on both global integration as well as on local adaptation. A transnational human resource strategy include (Welge/Holtbrgge 1998, Dowling/Welch/Schuler 1999): Vision and Guidelines: Mutual orientation. Reduce narrow-minded behavior. Mutual understanding and acceptance leading to worldwide cooperation. Decision-making: International decision-making committees and communication between
the product, country, and function specialists in networks. Recruitment: Oriented and focused on qualification and no longer on country of origin. Human resource development: through international networking and further educational opportunities, overseas assignments. Personnel maintenance: handle flexibly. Cross-border career paths through internationally comparable policies for potential opportunities and performance evaluation. A compensation policy that encourages conformity to a common corporate objective. The following examples and remarks form executives of leading companies offer inspiration to reconsider the own route and to avoid possible stumbling blocks.
VISIONS FOR MANAGERS: ALLOW BLUR Predictably, large German companies have supported their worldwide alignment with an appropriate system of objectives. Models for executives should not be too restricted or too loosely set. Their focus is on mutual goals: whether it is relationship or task-related. The following are two examples of this: Company A has a long-term vision, fundamental values and guidelines, which promote both cultural diversity and teamwork as well as obligate the staff to develop their intercultural competence and deal with each other in mutual respect and integrity. These goals are relationship-oriented. Since 1996, Company B has also had guidelines for a strategic orientation towards globalization: success through competence and responsibility. For the employees and the companys organization this means in particular, that B employs the most competent men and women worldwide, has a corporate culture that is innovative and performance-oriented, and one that actively promotes debate as well as a transparent policy for information transfer. These goals focus on task. Even further: emphasis on individuality, staff appraisals of supervisors, open debate of issues, performance-oriented compensation all of these are part
and parcel of what is associated with a western corporate culture. In the export business, for example to Asian countries, where the group, respect for superiors and senior staff members, personal relationships and traditions are typical, difficulties may develop when the corporate culture and the countrys culture can not harmonize. Research on this subject, which is not yet very comprehensive, assumes that the countrys culture dominates. However, in their study of the biggest American high technology companies, Begley and Boyd (2001) found that U.S. executives tend to export their corporate culture and assume that American culture is preferable to others. The reasons for this can be illustrated in three faulty fundamental assumptions: the universality of values, the similarity of motivators, the centrality of performance. For German executives, this is an attitude, which, because of the historical experiences of their country and the degree of openness towards the world, hardly seems imaginable. Why do these hazy visions and models reap smiles so often? The more complicated and dynamic the tasks become, the more the organizations units are spread and differentiated
around the world, the greater the need for integration in all areas of the company, from the top of the hierarchy to each and every executive. Differentiation and integration are two sides of one coin. This is why there is little dispute about the importance of the so-called soft success factors in the strategy process the core competences, the knowledge and the capabilities of the employees and the corporate culture need to share priority with hard strategies, structures and systems. Visions and models at the top of the company, along with flexible goals covering a wide range, steer this process. They should also help individual managers find a strategic path through this opaque and turbulent maze without overwhelming them. Less can be more.
On the other hand, some models miss their target as the central point in a constellation because they are too theoretical and cant be integrated into a practical policy. If it is the task of a human resource policy to fill the companys goal expectations with life, then it makes good sense to include all employees working in the companys diverse locations in an examination of these values. A task force at Texas Instruments (TI) was given the charge to revise an outdated human resource policy and set about to identify the most central corporate values. In hosting 30 focus group meetings with TI employees around the world they discovered that three values surfaced consistently: integrity, innovation and commitment. These stood for the new IT, which had divested its defense-related divisions and begun to concentrate their efforts on the highly competitive semiconductor technologies. Unfortunately, management had not found the time to acknowledge the shift. (Begley/Boyd 2000) Thus, the regular examination of human resource policy is advisable (see Box below). This should begin with the articulated core values of the corporate culture, then be identified as models, and finally, be carried out as human resource policy. In this entire process it is vital not to lose sight of those who make a difference: the employees. Checklist for Examining Existing Human Resource policies Relevance: Are the policies relevant in the current business environment? Strategy: Are the policies connected to the companys goals?
Adaptability: Are the policies adaptable to changing circumstances? Applicability: Are the policies applicable across the companys theater of operations? Familiarity: Are employees aware of the policies? Clarity: Are the policies easy to interpret and apply? Boundaries:Do the policies clarify the bounds of acceptable employee behavior? Commitment: Do employees support the policies? (Begley/Boyd 2000) INCORPORATING GLOBAL KNOWLEDGE
Executives should see themselves as drivers of a common corporate culture. They travel more, send e-mails around the world, participate in tele-conferencing, familiarize themselves with business magazines and business schools and, in short, are part of a knowledgeable and mobile elite. This is reason enough for former barriers to disappear, allowing questions about comparisons and equity to emerge. The new media make the flow of information and communication around the world possible. But how and to what extent this new media can be employed in the development of an integrated global executive strategy also depends on the individual strategy and corporate culture. Company networks and very decentralized structures seem to hinder global standardization, whereas a growing international business responsibility frees a substantial and powerful drive. Finally, the degree of integrating business areas and the regions will differ. Barriers of decentralized structures and networks. Along with twelve other global airlines, Lufthansa is an important partner in the global STAR-Alliance. Managing such a delicate constellation around the world is quite a challenge compared with a traditionally organized company. Strategies that overlook the will of the partners dry up. With this in mind, Lufthansa CEO Thomas Sattelberger finds the strategy guru Ansoffs statement striking: It is no trick to formulate a strategy, the problem is to make it work.
The STAR-Alliance only just recently established its own comprehensive management organization. It sees itself as a consultancy for the moment, but in the future could develop into a management holding company in individual regions of the world. The problem lies in the implementation of the strategy: The influence of this STAR Inc. on the partner airlines is greatest in the development of cross-border strategy and concepts. However, when it comes to the harmonizing of processes it falls off markedly and is confronted with the limitations of the
company when they try to implement new policies. The solution was found in not attempting to harmonize the management of all the STAR-partner executives, but instead to establish their own individual policies for recruitment, appraisal and remuneration for STAR Inc. This is similar in decentralized businesses, like Bertelsmann. The over 500 comparatively autonomous profit centers see themselves as the driving force behind the business, and they expect substantial justification from corporate. With the convergence and the consolidation of media and communications, there is a growing impulse for a more influential role for the headquarter. In the area of management recruiting and development this has already been established, but not yet for compensation. International business responsibility as the driver: The priority Corporate before Business before Region, has already been deployed in many large corporations: at Henkel since 1985, Bayer since1994, DaimlerChrysler since 2000 and at SAP in the near future. This will finalize the loss of power for the regional managers. Corporate: this does not have to be the company headquarters since the Center of Competence, for example at Schering and Siemens , can also be at subsidiaries that often assume central responsibilities. Along with the growth of regional units and global responsibility, the development of crossborder integration of the management of executives is also enhanced. Thomas Neumann, acting Human Resource Manager at SAP, referring to his previous experience at Hewlett Packard, as the leadership of the company was no longer pursued solely in America but also in Europe: the standardization of processes and the harmonization of systems, those were the major objectives in the area of human resources. The most important driver was the problem that most executive managers in the different countries now have, and therefore arent able to cope in the human resource area. Roland Schulz argues for Henkel in the same light: By 1985 we had already decided that we
wanted to pursue worldwide responsibility of the strategic business units. This would make it easier for those of us in personnel. Out of this new worldwide business responsibility a new
HANS-ERICH MUELLER DEVELOPING GLOBAL HUMAN RESOURCE STRATEGIES - 10 -
challenge for the human resource area developed. Understandably, the leaders of these culturally diverse international teams wanted the same treatment. The motivation came from the business itself, but also from the interviewing we conducted with executives and staff alike. The theme of equity and equal opportunity had clearly become dominant factors. These also help determine whether we are attractive employers in these different countries. The guiding principle here is: It is not your nationality that matters, but your class! We want to take advantage of human resources worldwide so that we can attract the best talents. Participation of the businesses and the regions. The objectives of an organizational structure are to coordinate products, regions and functions in accordance with the companys goals. At first glance a complex matrix organization might look ideal. But in actual fact many companies reject this and pin their hopes on simpler routes. Some of the reasons include the need for team decision-making and a potential for conflict in organizations, which have more than one executive manager. In addition, secondary organizations like projects, teams and networks, committees, informal channels and similar value systems, should promote integration. In this way, traditional barriers to business areas can be overcome. This is how the global human resource strategy at DaimlerChrysler was developed last year from an international HR strategy team, together with the representatives of the business units and including the top level decision-makers. Together they adapted the human resource strategy to the companys strategy, which has culminated in a combined strategy that promotes greater overall identification and acceptance.
At Siemens, too, they are trying to promote an international human resource management that involves the participation of other areas wherever possible. One of the newly created instruments for this is the Personnel Council World (PCW) that meets every six months. Apart from the top decision-makers in the human resource area, the heads of both the regional and business areas are represented. Their Partners for Regions secure the position of the region and the feedback to the human resource department at the head office even further. This is because there is quite a tradition of strong regions at Siemens. Areas such as Energy, Industry & Transport, Information and Communication are dependent on these regional units because they dont have their own distribution organizations. The objective is to tighten issues of policy without ignoring the needs of the regions or the product. Mike Panigel, responsible for Compensation and Benefits at the head office of the Siemens AG, speaking about the relationship between global regulation and local adaptation: This has become
more important today because the sub-units in the Centers of Competence are no longer managed from Germany. The guidelines should always include enabler functions, which make changes and structuring possible. In the future the responsibility for the marketing of their positions will be left more and more to top management and headquarters. To do this they will utilize the Intranet, brochures, as well as the communication amongst company executives at meetings, for example through presentations. Here the conformity to a transnational strategic model is apparent. RECRUITING, DEVELOPING AND RETAINING QUALIFIED MANAGERS Qualified managers have become a bottleneck factor in international competition. Crossborder and interdisciplinary experience is expected and not always available. In addition,
loyalty to the company has depreciated. Headhunters are poaching the best people. How do companies with international experience handle this problem? Corporate itself is addressing the subject, human resource instruments for executives are realigned creating a winning employee value proposition. Qualified Managers is a matter for the boss. Bertelsmann recently established a special area for management development, responsible for recruitment, development and the placing of High Potentials, reporting directly to the Board. At Volkswagen, when it comes to designating or hiring for Board or other key positions, nothing works without a decision from the group headquarters. At Siemens, the principle High Potentials belong to the Corporation only applies to those at the very top the three highest functional levels of the companys leadership which include less than five percent of all executive positions. At lower levels there are no such regulations. Regional units can develop their executive management positions as they see fit. The influence of corporate in questions of hiring and placement is becoming greater but only applies to the top echelons of management. Broad and international experience as career steps. Vertical promotion and origin from the companys home country should no longer be the norm. Executives are often recruited from within the company but broad experience and international interchangeability are considered more valuable. In the past, Bayer recruited and placed 95% of all their executive positions from within. Their principle: Leaders we need from the people we have. Klaus Beck, representing the groups staff of senior executives at Bayer AG, emphasizes that, whoever
wants to gain an international general management position normally has to have completed three steps: They should have changed positions, changed the business area and they should have gained previous experience overseas. In their core value statements and principles BASF
also laid down their intention to promote their own employees of all cultures and nationalities. These objectives can also be found in the abovementioned American studies. A value proposition for executives. The attractiveness of the company, the tasks and the compensation are the central propositions in the competition for qualified manager. For this reason, DaimlerChrysler recently launched a preferred employer project. Since the year 2000 SAP has maintained a stock options program, which is in fact the first worldwide human resource program at SAP that has been developed and lead by the home office in Walldorf/Germany. Human Resource director Thomas Neumann warns against expecting too much from these golden handcuffs. The success of the company and its attractive jobs attracts good people and binds them to the company. Corporate universities are also part of this package of opportunities, those joint ventures companies like Bertelsmann, DaimlerChrysler, Lufthansa, SAP and Siemens have with renowned international business schools. They are valuable not only for improving qualifications, but also for increasing communication, the creation of networks and for establishing partnerships, which in turn will bond talented leaders. For the search, selection, placement and development of qualified managers on a global level, the traditional mode and procedure for overseas assignments is outdated. Short assignments, job rotation, broad career paths, real and virtual teams and conferences, the Internet and other systems for information transfer and communication promote organizational learning, global orientation and, at the same time, the ability to handle local differences effectively. REALIGNING PERFORMANCE AND COMPENSATION SYSTEMS An improved integrated human resource management is the answer to changes in the companys strategies due to increased globalization. The starting point includes basic values and guidelines being worked out and formulated by international teams and the appropriate
tools. The goal is to increase the global standardization of appraisal and compensation systems for executives and at the same time to incorporate local qualities.
Appraisal: Installing equity. Part of the appraisal management at Henkel is the Target Dialogue in which the years objectives for team and individual performance are agreed upon and evaluated. They also determine leadership qualities and types of behavior, and specific agreements about other measures for development are reached as well. Both of these results are included in the Management Review, the regular assessment of performance and potential of Henkel group executives - worldwide. DaimlerChrysler, as a result of their merger, established a similar procedure for goal setting, appraisal and potential estimation, and the same is true for BASF and Siemens. All of the companies have reported how vital it is to consider local and cultural differences. More flexibility is needed for implementation, otherwise the assessment scheme would frustrate executives working in eastern Europe, because they could easily be reminded of the former system. In China, the appraisal of superiors is unthinkable. In this context Roland Polte, Head of the Competence Center for Management Development at Siemens, refers to the special significance of the Siemens competence committee as described above. Here we decide whether a specific instrument, like the 360-degree evaluation, whose implementation began two years ago, should be launched worldwide or whether it should just be a Best Practice instrument. We decided on the latter: For us the 360-degree evaluation is not a corporate instrument. Daimler-Chrysler allows a number of different methods of evaluation to exist parallel to the heads: besides the assessment of colleagues and superiors from other areas, the evaluation of the next highest management level is also included.
An examination of the compatibility of the company and country cultures can be appropriate and instrumental in preventing things from going off course. This does not only include the question of whether specific human resource instruments in each country can be used successfully, but also each interpretation of the evaluation criteria. Jrgen Lahr, Head of Human Resource Development at BASF emphasizes that a lot has been learned in recent years. The evaluation criteria for senior executives and potential candidates are the same around the world, but one criterion, for example the ability to communicate, has to be looked at differently in China and Korea, compared with the USA or Germany. It is one criterion, but: how it can be applied in a specific place and what behavior can be expected, depend on local situations. One should take a close look at what really needs to be solved centrally. How a company attempts to adjust its global executive strategy to local situations, can be illustrated by the Volkswagen example. In June 1999 Human Resources Director Peter Hartz
initiated a project, which will develop a worldwide minimum standard in terms of selection, appraisal and qualification that includes the participation of regional companies and which concerns itself with management trainees, managerial staff and executive management. Detlef Lampe, who is responsible for international human resource management at Volkswagen, stresses that in addition to the guarantee of overall minimum standards, every company is still free to develop their own country or culture-specific standards that expand on the groups standards. Indeed, the concepts are defined to allow sufficient flexibility for differing interpretations at the local level. This, in turn, requires a kind of quality control system, for example by combined training for monitoring, through an exchange of facilitators, etc., in order to establish and guarantee equivalence. This should encourage and promote the process
of internationalization, so that many more managers from other companies and countries can gain experience and embrace international career planning. To date, by far the greatest number of employees who have been sent overseas have originated from companies in Germany. Performance-oriented compensation! Everywhere? A few years ago, the Henkel group simplified and standardized the compensation for senior management worldwide. They wanted to flatten organizational structures, increase customer orientation as part of the business process and promote project management, international business teams and new communications technologies, which require a high degree of flexibility and willingness to change. International compensation packages, like the one at Bayer are based on a fixed salary for the function plus a commission for short or long-term performance motivators (like stock options) - and adapt and conform to market requirements. At the top, this added commission is often larger than 50 percent, for middle managers it is about 30 percent. This global integration of human resource policy has created a new market for companies such as the HayGroup which specialize in this type of business consulting. They are brought in to elicit cross-border requirements, for example whether the compensation conforms to both performance and market prerequisites, and to replace traditional forms of compensation. A functional based salary is no longer associated with title, level of hierarchy and seniority, but universally on the essential know-how required by the position, the ability to solve problems and responsibility worldwide.
The goal of the harmonization of evaluation and compensation systems includes added flexibility and equality. The discussion partners we spoke to at these companies are well
aware that they need to take local differences into consideration. Because of the tax situation in Belgium, for example, stock options make little sense, and in Turkey they are illegal. In Korea, job appraisal and salary policy are traditionally dependent on seniority and age. Performance appraisal systems that openly elicit the strengths and weaknesses of employees do not comply with values, which emphasize harmony and conflictavoidance, typical in many Asian cultures. The amount of compensation of many American senior managers is seen as inconsistent with European attitudes of fairness. On the other hand, convergence is achieved through constant change. Roland Schulz reports about the very difficult problems facing Henkel, in their attempts to introduce the Hay system in Japan. It was finally solved with the comparison with a Best Practice company. This was Kao, a firm which is considered exemplary in the human resource area in Japan and a company that was involved in introducing the system there. The economic crisis in Asia also contributed to a greater acceptance of appraisal and compensation on the basis of performance rather than on seniority. EPILOGUE: NO END TO THE STORY In recent years, many of the largest German companies have completed the change towards a transnational strategy for senior management: Worldwide guidelines with enough flexibility to adjust to local situations, a global as far as possible with local responsiveness and interpretation of criteria, as well as a network of systems development contributing to global integration (see fig. 1). The drivers of this transformation are adjusted company strategies and structures, the lack of qualified senior executives for global competition and the fact that managers have staff in many countries. Additional impetus has come about by a change in the expectations of executive managers and their desire for equality of treatment. The consequences: changes in the expectations placed on senior management broader and greater international experience
and the dissolution of traditional centers of power, which the headquarters had offered previously.
HANS-ERICH MUELLER DEVELOPING GLOBAL HUMAN RESOURCE STRATEGIES - 16 Global integration Lokal adaptation Learning worldwide
Managing top executives: towards a transnational strategy

1990: local autonomy and home country preference 2000: Equality of treatment for executives through valid principles and instruments worldwide 2000: Learning and knowledge transfer through real and virtual networking 2000: Local adaptation through participation of regions
Equality! Great transformations require time. Sometimes they miss their objectives. For this reason, it is important to study what the described human resource strategies really affect and how they can be implemented. We also need to keep an eye on possible countercurrents and weak signals of new trends. In this respect the new relationship between the head office and the periphery is being redefined by the Internet. Relationship management is developing supplier and customer networks. In this respect, customized solutions are available not only for customers, but for employees as well.
Bibliography: Christopher A. Bartlett, Sumantra Ghoshal: Managing Across Borders, The Transnational Solution, 2nd edition, London 1998. Thomas.M. Begley, David P. Boyd: Articulating Corporate Values through Human Resource Policies, in: Business Horizons, July-August 2000, pp. 8-12; Thomas.M. Begley, David P. Boyd:: A Primary U.S High Technology Export: Corporate Culture, unpublished draft 2001. Michael R. Czinkota, Ilkka A. Ronkainen, (editors), Best Practices in International Business, Fort Worth 2001. Peter J. Dowling, Denice. E. Welch, Randall S. Schuler: International Human Resource Management, 3rd edition, Cincinnati, Ohio. 1999. Karen Roberts, Ellen Kossek, Cynthia Ozeki: Managing the global workforce: Challenges and
Strategies, in: Academy of Management Executive 1998, No. 4, pp. 93106. Klaus Macharzina, Joachim Wolf: Die internationale Personalfunktion und ihre globale Koordination, in: Nino Kumar, Dieter Wagner (editors), Handbuch des internationalen Personalmanagements, Mnchen 1998, pp. 48-83. Martin K. Welge, Dirk Holtbrgge: Internationales Management, Landsberg/Lech 1998.
Human Resource Management Strategy

Executive summary
Developing and implementing a soundly based strategy for human resource management is a specific area for improvement in the Federation of the Futures section outlining the Framework for Action. The Federation Human Resources (HR) Strategy was approved in April 2005 and actions to deliver it commenced in June of that year. The support of Department for International Development (DfID) during the years 2007 and 2008 has been fundamental in facilitating the achievement of major elements of the strategy. For the years 2009 and 2010, whilst the key themes of the human resources strategy remain in place, the focus of action shifts to building on achievements to date to cement them into the regular operating practices of the Federation. This is particularly the case in the seven zone offices that sit at the heart of the new operating model. In the context of the 2008 to 2010 strategy, and like the years 2007 and 2008, additional financial resources will be required to support key strategic interventions that will enable the HR department to implement and then operationalise major changes that can be absorbed into the regular operating budget of the department. The Federation can only move forward on HR initiatives by building consensus amongst leaders and
the HR community on priorities and approaches. Through a target audience of HR professionals in the Secretariat and National Societies, the programme above will facilitate better recruitment, retention, motivation and management of international and local staff throughout the world and, in turn, the better performance of the Federation against the Global Agenda Goals. In particular, a fundamental part of the HR development programme is to better identify and develop talent from under-represented groups at all levels in the Federation and in the Movement as a whole. This includes appointing more women and a greater national diversity of staff in delegate, international management and leadership positions. For the years 2009 to 2010 the strategic HR focus will be on; Establishing effective human resource management at zone level to provide genuinely value added support to the new operating model; Developing the organisations international management capacities; Refining and implementing the remaining elements of the delegate profiling approach that sits at the heart of the delegate effectiveness section of the HR strategy; and Building further Movement wide understanding, adoption and cooperation in the delivery of consistent human resource priorities;
1 2
The most significant challenges facing the implementation of the strategy are assuring the financial and operational support of National Societies to the HR improvement programme and maintaining focus on strategic development in the face of pressing day-to-day issues and problems requiring immediate attention. In order to provide a focus on delivery, quarterly reviews will be conducted to measure progress against the achievement of objectives and budgetary performance in addition to the regular Federation monitoring and evaluation process. The total 2009-2010 budget is CHF 1,775,401 (USD 1,622,853 or EUR 1,130,829). Click here to go directly to the summary budget of the plan.
Context
Developing and implementing a soundly based strategy for human resource management is a specific area for improvement in the Federation of the Futures section outlining the Framework for Action; A human resource strategy to strengthen the volunteer and staff base of the International Federation (FoF p.12)
The Federation Human Resources Strategy was approved in April 2005 and actions to deliver it commenced in June of that year. The support of DFID during the years 2007 and 2008 has been fundamental in facilitating the achievement of major elements of the strategy including the development of an assessment centre based approach to the recruitment of international managers and operations managers; the design and operationalisation of new approaches to contracts and pay and benefits for international leaders and local professionals; the design of new approaches to the Movement related aspects of the induction of volunteers and staff into all parts of the Movement (WORC) and the operational orientation of international delegates (IMPACT); and improving our ability to respond to disasters quickly and effectively. Without the support of DFID it is clear that we would not be where we are today. For the years 2009 and 2010, whilst the key themes of the human resources strategy remain in place, the focus of action shifts to building on achievements to date to cement them into the regular operating practices of the Federation. This is particularly the case in the seven zone offices that sit at the heart of the new operating model. Earlier this year the 2005 2007 human resources strategy was revised and recalibrated as the Federations HR strategy for the years 2008 to 2010. Our HR plans for the period are formulated around six strategic themes plus an objective relating to performance assurance; Making the operating model work effectively; One Federation building coherent support for the HR strategy and supporting the development of HR capacities of the Secretariat (including National Society staff) to deliver; Emergency response building on current achievements to enable better and faster mobilisation in emergencies; International delegate effectiveness a critical review, revision and delivery of the delegate profiling method; Developing our staff identifying and developing talent streams; Improving management effectiveness the best possible HR support to Secretariat managers and staff; and Developing an objective HR performance measurement matrix to assure achievement against objectives and continuous functional improvement.
For the years 2009 to 2010 the focus will be on; Establishing effective human resource management at zone level to provide genuinely value added support to the new operating model. The existing core budget adequately provides for staffing in Geneva and in the field, including the management of transition. If the transition is to be managed as quickly and effectively as possible, additional limited term resources are needed to develop, refine and transfer HR systems, processes, procedures and practices to the zones. The development of HR networks at zone and global levels to support HR capacity building in the zone based Federation and National Society staff will also be crucial. Continued actions in the area of selecting and developing the organisations international management capacities where the emphasis will shift toward building a critical mass of appointment ready staff and the capacity development of those in the international management pool through the international manager development programme; Refining and implementing the delegate profiling approach that sits at the heart of the delegate effectiveness section of the HR strategy; and Building further Movement wide understanding, adoption and cooperation in the delivery of consistent human resource priorities;
Priorities and current work with partners
Improvement in the management of human resources is a key priority for the Movement as a whole and this is reflected in the specific reference to the function in the Federation of the Future areas for improvement. The Federation HR strategy development work involves working with partners inside the Movement in three key areas; Developing alignment around a consistent set of Movement wide (including ICRC) HR priorities through the Human Resource Strategic Advisory Group Generating understanding of and support for Federation, ICRC and joint HR initiatives contained in the HR strategy and that impact on the work of National Societies through networks of donor societies, the extended HR seminar involving around 80 HR professionals from throughout the Movement; Using the zone offices to establish local networks of HR professionals from the Federation and National Societies within the zone.
Primarily through the vehicle of the HR seminar we have engaged with external partners to identify HR best practices in the international humanitarian area. Included in the engagement programme to date have been Save the Children, the Association for HR Managers in International Organisations; the International Labour Organisation; and People in Aid.
Secretariat programme in 2009-2010
As outlined above, the HR global programme will focus on a number of key strategic interventions that can be absorbed into the regular operating budget of the department in subsequent years. The four strategic headings are further explained below; i) Establishing effective human resource management at zone level The organisations core budgets already contain the manpower and physical support tools to establish effective HR functions in both Geneva and the field offices. This includes additional manpower to manage the transition of authorities and responsibilities form Geneva to the field. For the transition to work effectively additional support needs to be provided in following areas;
Roll out of HR Information systems and the associated training and coaching to facilitate the effective export of the web based recruitment portal - JobNet; SAP based HR administration system - HRONLINE, and the revision and replacement of current performance management tool - ARONLINE; The extension of professional human resource management procedures and practices to cover all Secretariat staff in the field including the implementation of new grading and remuneration systems; improved practices in the areas of recruitment and retention; The establishment of a human resource system to identify and develop talent amongst national staff in the Federation and in National Societies and the operationalization of the new local professional category of staff. Exporting and supporting the effective implementation of the recently developed emergency response tools including the emergencies HR toolkit and extension of rosters by substantially building the numbers of available people from the zone organisations; Supporting implementation of the new Movement induction of volunteers and staff into all
parts of the Movement (WORC) and the operational orientation of international delegates (IMPACT) Ensuring implementation and monitoring compliance to the new code of conduct, ensuring that adequate systems for reporting misconduct are in place and that reported incidents are followed up and investigated Introducing and supporting decentralisation of employee well being system that have been developed by the Federation for many years to ensure that the same quality support to staff for psychological support , health and HIV in the workplace is maintained by the zones Establishing networks of professional HR staff within the zone in both Secretariat and National Society operations to improve the consistency of HR practice and to support HR capacity building. ii. Developing international management capability The assessment method based selection of staff for the Federations international managers is now well established; a pilot international management development programme has been run and a revised one year international development process launched in 2008. In short we have all the strategic tools available to us and they are working. In the immediate term additional assistance is needed in building a critical mass of international managers that have passed the assessment centre and to fast-track those individuals through the international manager development process. Once critical mass has been achieved, the procedure can be run as a part of the regular recruitment and training budget. iii. Staff profiles The 2005 HR strategy required the organisation to shift from the existing one size fits all approach to the selection and mobilisation of international delegates. Five profiles of international delegate were identified that required differing approaches to hiring, contracting and remuneration. The international manager and emergency profiles have been readily accepted and adopted. Implementation of the remaining profiles required much more detailed work to be done on the contracting and payment of local and near local professional staff. These new categories will improve the skills base of the Federations professional staff; greatly improve the diversity in our
professional population; and assist in the identification and development of our best talent from throughout the world.
Since the development of the profiling approach, the operating model of the Federation has changed substantially and it now needs to be reviewed and revised against the needs of the new organisation structure and the possibilities afforded by the legal and contractual solutions that are currently being developed. ii) Cohesive Human Resource Management approach in the Federation The Federation can only move forward on HR initiatives by building consensus amongst leaders and the HR community on priorities and approaches. Many of the approaches introduced and proposed are new and different to the historical way of working and organising. In these areas the Federation either moves forward as a whole and by consensus or not at all. The investment made in this area in the last three years has been enormously valuable in securing understanding of problems and buy in and support for solutions. The three activities highlighted in the section above on work with partners, and summarised below, must be built upon and reinforced over the next two years; Developing alignment around a consistent set of Movement wide HR priorities through the Human Resource Strategic Advisory Group; Generating understanding of and support for Federation, ICRC and joint HR initiatives through networks of National Society HR staff; Establishing local networks of HR professionals from the Federation and National Societies within the zone.
Human resource management strategy

a) The purpose and components of the programme Programme purpose
The purpose of this work programme is to facilitate the achievement of results on the International Federations Global Agenda goals by succeeding in delivering the Federation of the Future Human Resource Framework for Action objective of; A human resources strategy to strengthen the volunteer and staff base of the International Federation The human resources strategy budget is CHF 1,775,401 (USD 1,622,853 or EUR 1,130,829).
Programme component 1: Establishing effective human resource management at zone level
Component outcome 1: HR Information systems are rolled out to the zone offices. This involves coaching and training of HR professional in the zones to be able to use these systems effectively Specific outcomes Zone offices use the web based recruitment portal JobNet to identify the best talent for vacancies in their zone and to build an international database of talent SAP based HRONLINE is fully operational in the zones. Revised performance management system is introduced and working in Geneva and the zones. All HR processes, procedures, policies are revised and readily accessible for use to the zones.
Component outcome 2: Professional human resource management policies, procedures and practices are accessible to cover all Secretariat staff in the field Specific Outcomes New grading and remuneration systems successfully implemented; Performance in the areas of recruitment and retention improved significantly; System established to identify and develop talent amongst local staff in the Federation and in National Societies; Code of conduct implementation and associated reporting and investigation system working effectively everywhere New Induction systems WORC and IMPACT successfully carried out at zone level Employee well being system offering same quality support to staff for psychological support , health and HIV in the workplace is maintained by the zones Component outcome 3: Implementation of the recently developed emergency response tools are effectively exported to the field Specific Outcomes Process for HR professional to carry out rapid deployment in emergency situation is established and working The HR emergency toolkit is understood and systematically applied in all zones; Rosters of emergency responders and potential emergency response leaders available and accessible to the zones
Programme component 2: Developing International management capability
Component outcome 1: A critical mass of international managers that have passed the assessment centre and fast-track them through the international manager development process Specific Outcomes Assessment centres held for 80 candidates in each of the two years 2008 and 2009 Four international manager development programmes held during the period two in 2009 and two min 2010 covering 72 people in total
Programme component 3: Developing staff profiles to deliver the New Operating Model
Component outcome 1: Revised staff profiling approach matching the needs of the new operating Specific Outcomes A new profiling approach developed involving broad base consultation with Geneva and field based Secretariat and National Society staff. Includes National Staff development
Programme component 4. Cohesive HRM approach in the Federation
Component outcome 1: Alignment around a consistent set of Movement wide HR priorities through the Human Resource Strategic Advisory Group Specific Outcome New forward looking agenda for Movement wide HR management established with the Human Resources Strategic Advisory Group. Three meetings held over the period 2009/2010
Component outcome 2: Increased understanding of and support for Federation, ICRC and joint HR initiatives through networks of National Society HR staff Specific Outcome HR seminars held in 2009 and 2010 that involve learning and HR policy development involving at least 60 National Society HR professionals from all over the world Component outcome 3: Networks of HR staff established and working in each zone
b) Profile of target audience and final beneficiaries
Through a target audience of HR professionals in the Secretariat and National Societies, the
programme above will facilitate better recruitment, retention, motivation and management of international and local staff throughout the world and, in turn, the better performance of the Federation against the Global Agenda goals.
c) Potential risks and challenges
The most significant challenges facing the implementation of the strategy are; Achieving the continued buy - in of National Societies to the HR improvement programme. This includes the willingness to devote resources to the professionalisation of the function in many National Societies, and the willingness of donor societies to embrace new methods of working; Continuing focus on developing and delivering the human resources strategy in the face of pressing day-to-day issues and problems requiring immediate attention.
Role of the Secretariat

a) Technical programme support
The Federations professional HR staff in Geneva and in the newly resourced zone offices will facilitate greatly improved communication with and potential assistance to their National Society counterparts. Capacity building will continue to be a focus of the annual human resource management seminar.
b) Partnership development and coordination
The success of this strategy calls for partnership development at a number of levels; With National Society leaders through the HRSAG; Through a variety of global networks centred around existing donor society and global human resource seminar attendees; The establishment of HR National Society networks at the zone level; Continued engagement with selected organisations outside the Movement with the aim of identifying and importing suitable best practices. The Movement HR principles developed by the HRSAG are a tool to develop professional HR practises that enable us to support delivery of support to vulnerable people effectively. The envisaged improved human resource management capacities will facilitate better programme delivery through people.
Promoting gender equity and diversity
A fundamental part of the HR development programme is to better identify and develop talent from under-represented groups at all levels in the Federation and in the Movement as a while. This includes
appointing more talented women and a greater national diversity of staff in delegate, international management and leadership positions.
Quality, accountability and learning
The components and component outcomes described above have been designed to facilitate monitoring and evaluation of the programme. Formal updates against the achievement of objectives and budgetary performance will be conducted Alongside this programme, HR strategy 2008 2010 includes an objective of establishing a matrix of normative measurement criteria to monitor achievement against objectives and success in the application of continuous improvement goals.
How we work
The International Federations activities are aligned with its Global Agenda, which sets out four broad goals to meet the Federation's mission to "improve the lives of vulnerable people by mobilizing the power of humanity". Global Agenda Goals: Reduce the numbers of deaths, injuries and impact from disasters. Reduce the number of deaths, illnesses and impact from diseases and public health emergencies. Increase local community, civil society and Red Cross Red Crescent capacity to address the most urgent situations of vulnerability. Reduce intolerance, discrimination and social exclusion and promote respect for diversity and human dignity.
Contact information
For further information specifically related to this plan, please contact: In the Federation Secretariat: Lorraine Mangwiro, Head, HR Department, lorraine.mangwiro@ifrc.org; phone: +41 22 730 4983.
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Please read: A personal appeal from Wikipedia founder Jimmy Wales

Human resource management
From Wikipedia, the free encyclopedia
Jump to: navigation, search "Human Resources Manager" redirects here. For the 2010 Israeli film, see The Human Resources Manager. Human resource management (HRM) is the strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business.[1] The terms "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations.[1] In simple words, HRM means employing people, developing their capacities, utilizing, maintaining and compensating their services in tune with the job and organizational requirement. Contents [hide] 1 Features 2 Academic theory 3 Business practice 3.1 HRM strategy 4 Careers and education 5 Professional organizations 6 Functions 7 See also 8 References [edit] Features Its features include: Organizational management Personnel administration Manpower management Industrial management[2][3] But these traditional expressions are becoming less common for the theoretical discipline. Sometimes even employee and industrial relations are confusingly listed as synonyms,[4] although these normally refer to the relationship between management and workers and the behavior of workers in companies. The theoretical discipline is based primarily on the assumption that employees are individuals with varying goals and needs, and as such should not be thought of as basic business resources, such as trucks and filing cabinets. The field takes a positive view of
workers, assuming that virtually all wish to contribute to the enterprise productively, and that the main obstacles to their endeavors are lack of knowledge, insufficient training, and failures of process. Human Resource Management(HRM) is seen by practitioners in the field as a more innovative view of workplace management than the traditional approach. Its techniques force the managers of an enterprise to express their goals with specificity so that they can be understood and undertaken by the workforce, and to provide the resources needed for them to successfully accomplish their assignments. As such, HRM techniques, when properly practiced, are expressive of the goals and operating practices of the enterprise overall. HRM is also seen by many to have a key role in risk reduction within organisations.[5] Synonyms such as personnel management are often used in a more restricted sense to describe activities that are necessary in the recruiting of a workforce, providing its members with payroll and benefits, and administrating their work-life needs. So if we move to actual definitions, Torrington and Hall (1987) define personnel management as being: a series of activities which: first enable working people and their employing organisations to agree about the objectives and nature of their working relationship and, secondly, ensures that the agreement is fulfilled" (p. 49). While Miller (1987) suggests that HRM relates to: ".......those decisions and actions which concern the management of employees at all levels in the business and which are related to the implementation of strategies directed towards creating and sustaining competitive advantage" (p. 352). [edit] Academic theory Research in the area of HRM has much to contribute to the organisational practice of HRM. For the last 20 years, empirical work has paid particular attention to the link between the practice of HRM and organisational performance, evident in improved employee commitment, lower levels of absenteeism and turnover, higher levels of skills and therefore higher productivity, enhanced quality and efficiency [6]. This area of work is sometimes referred to as 'Strategic HRM' or SHRM ([7]. Within SHRM three strands of work can be observed[8]: Best practice, Best Fit and the Resource Based View (RBV). The notion of best practice - sometimes called 'high commitment' HRM - proposes that the adoption of certain best practices in HRM will result in better organisational performance. Perhaps the most popular work in this area is that of Pfeffer [9] who argued that there were seven best practices for achieving competitive advantage through people and 'building profits by putting people first'. These practices included: providing employment security, selective hiring, extensive training, sharing information, selfmanaged teams, high pay based on company performance and the reduction of status differentials. However, there is a huge number of studies which provide evidence of best practices, usually implemented in coherent bundles, and therefore it is difficult to draw generalised conclusions about which is the 'best' way (For a comparison of different sets of best practices see Becker and Gerhart, 1996 [10] Best fit, or the contingency approach to HRM, argues that HRM improves performance where there is a close vertical fit between the HRM practices and the company's strategy. This link ensures close coherence between the HR people processes and policies and the
external market or business strategy. There are a range of theories about the nature of this vertical integration. For example, a set of 'lifecycle' models argue that HR policies and practices can be mapped onto the stage of an organisation's development or lifecycle[11]. Competitive advantage models take Porter's (1985) ideas about strategic choice and map a range of HR practices onto the organisation's choice of competitive strategy. Finally 'configurational models' [12] provide a more sophisticated approach which advocates a close examination of the organisation's strategy in order to determine the appropriate HR policies and practices. However, this approach assumes that the strategy of the organisation can be identified - many organisations exist in a state of flux and development. The Resource Based View (RBV), argued by some to be at the foundation of modern HRM [13], focusses on the internal resources of the organisation and how they contribute to competitive advantage. The uniqueness of these resources is preferred to homogeneity and HRM has a central role in developing human resources that are valuable, rare, difficult to copy or substitute and that are effectively organised. Overall, the theory of HRM argues that the goal of human resource management is to help an organization to meet strategic goals by attracting, and maintaining employees and also to manage them effectively. The key word here perhaps is "fit", i.e. a HRM approach seeks to ensure a fit between the management of an organisation's employees, and the overall strategic direction of the company (Miller, 1989). The basic premise of the academic theory of HRM is that humans are not machines, therefore we need to have an interdisciplinary examination of people in the workplace. Fields such as psychology, industrial relations, industrial engineering, sociology, economics, and critical theories: postmodernism, post-structuralism play a major role. Many colleges and universities offer bachelor and master degrees in Human Resources Management or in Human Resources and Industrial Relations. One widely used scheme to describe the role of HRM, developed by Dave Ulrich, defines 4 fields for the HRM function:[14] Strategic business partner Change Agent Employee champion Administration Expert [edit] Business practice Human resources management involves several processes. Together they are supposed to achieve the above mentioned goal. These processes can be performed in an HR department, but some tasks can also be outsourced or performed by line-managers or other departments. When effectively integrated they provide significant economic benefit to the company.[15] Workforce planning Recruitment (sometimes separated into attraction and selection) Induction, Orientation and Onboarding Skills management Training and development Personnel administration Compensation in wage or salary Time management
Travel management (sometimes assigned to accounting rather than HRM) Payroll (sometimes assigned to accounting rather than HRM) Employee benefits administration Personnel cost planning Performance appraisal Labor relations [edit] HRM strategy An HRM strategy pertains to the means as to how to implement the specific functions of HRM. An organization's HR function may possess recruitment and selection policies, disciplinary procedures, reward/recognition policies, an HR plan, or learning and development policies, however all of these functional areas of HRM need to be aligned and correlated, in order to correspond with the overall business strategy. An HRM strategy thus is an overall plan, concerning the implementation of specific HRM functional areas. An HRM strategy typically consists of the following factors:"Best fit" and "best practice" - meaning that there is correlation between the HRM strategy and the overall corporate strategy. As HRM as a field seeks to manage human resources in order to achieve properly organizational goals, an organization's HRM strategy seeks to accomplish such management by applying a firm's personnel needs with the goals/objectives of the organisation. As an example, a firm selling cars could have a corporate strategy of increasing car sales by 10% over a five year period. Accordingly, the HRM strategy would seek to facilitate how exactly to manage personnel in order to achieve the 10% figure. Specific HRM functions, such as recruitment and selection, reward/recognition, an HR plan, or learning and development policies, would be tailored to achieve the corporate objectives. Close co-operation (at least in theory) between HR and the top/senior management, in the development of the corporate strategy. Theoretically, a senior HR representative should be present when an organization's corporate objectives are devised. This is so, since it is a firm's personnel who actually construct a good, or provide a service. The personnel's proper management is vital in the firm being successful, or even existing as a going concern. Thus, HR can be seen as one of the critical departments within the functional area of an organization. Continual monitoring of the strategy, via employee feedback, surveys, etc. The implementation of an HR strategy is not always required, and may depend on a number of factors, namely the size of the firm, the organizational culture within the firm or the industry that the firm operates in and also the people in the firm. An HRM strategy can be divided, in general, into two facets - the people strategy and the HR functional strategy. The people strategy pertains to the point listed in the first paragraph, namely the careful correlation of HRM policies/actions to attain the goals laid down in the corporate strategy. The HR functional strategy relates to the policies employed within the HR functional area itself, regarding the management of persons internal to it, to ensure its own departmental goals are met. [edit] Careers and education Further information: Graduate degree programs in human resources management
Cornell University's School of Industrial and Labor Relations was the world's first school for college-level study in HRM Several universities offer programs of study pertaining to HRM and broader fields. Cornell University created the world's first school for college-level study in HRM (ILR School).[16] University of Illinois at Urbana-Champaign also now has a school dedicated to the study of HRM, while several business schools also house a center or department dedicated to such studies; e.g., University of Wisconsin-Madison, University of Minnesota, Michigan State University, Ohio State University, Roosevelt University,and Purdue University. There are both generalist and specialist HRM jobs. There are careers involved with employment, recruitment and placement and these are usually conducted by interviewers, EEO (Equal Employment Opportunity) specialists or college recruiters. Training and development specialism is often conducted by trainers and orientation specialists. Compensation and benefits tasks are handled by compensation analysts, salary administrators, and benefits administrators. [edit] Professional organizations Professional organizations in HRM include the Society for Human Resource Management, the Australian Human Resources Institute (AHRI), the Chartered Institute of Personnel and Development (CIPD), the International Public Management Association for HR (IPMA-HR), Management Association of Nepal (MAN) and the International Personnel Management Association of Canada (IPMA-Canada), Human Capital Institute. National Human Resource Development Network in India. [edit] Functions The Human Resources Management (HRM) function includes a variety of activities, and key among them is deciding what staffing needs to have and whether to use independent contractors or hire employees to fill these needs, recruiting and training the best employees, ensuring they are high performers, dealing with performance issues, and ensuring your personnel and management practices conform to various regulations. Activities also include managing your approach to employee benefits and compensation, employee records and personnel policies. Usually small businesses (for-profit or nonprofit) have to carry out these activities themselves because they can't yet afford partor full-time help. However, they should always ensure that employees haveand are aware ofpersonnel policies which conform to current regulations. These policies are often in the form of employee manuals, which all employees have. Note that some people distinguish a difference between HRM (a major management activity) and HRD (Human Resource Development, a profession). Those people might include HRM in HRD, explaining that HRD includes the broader range of activities to develop personnel inside of organizations, including, e.g., career development, training, organization development, etc. There is a long-standing argument about where HR-related functions should be organized into large organizations, e.g., "should HR be in the Organization Development department or the other way around?" The HRM function and HRD profession have undergone major changes over the past 20 30 years. Many years ago, large organizations looked to the "Personnel Department," mostly to manage the paperwork around hiring and paying people. More recently, organizations consider the "HR Department" as playing an important role in staffing,
training and helping to manage people so that people and the organization are performing at maximum capability in a highly fulfilling manner. [edit] See also Nomenclature Human resources Enterprise Feedback Management (EFM) E-HRM [edit] References
^ a b Armstrong, Michael (2006). A Handbook of Human Resource Management Practice (10th ed.). London: Kogan Page. ISBN 0-7494-4631-5. OCLC 62282248. ^ "personnel management". The Columbia Encyclopedia (Sixth Edition ed.). Columbia University Press. 2005. http://www.bartleby.com/65/x-/X-personne.html. Retrieved 2007-10-17. "personnel management - see industrial management". ^ Encyclopdia Britannica (kl ed.). "Personnel administration is also frequently called personnel management, industrial relations, employee relations". ^ Encyclopdia Britannica. ^ Towers, David. "Human Resource Management essays". http://www.towers.fr/essays/hrm.html. Retrieved 2007-10-17. ^ Golding, N. (2010) "Strategic Human Resource Management" in Beardwell, J. and Claydon, T. (2010) Human Resource Management A Contemporary Approach, FT Prentice Hall ^ Storey, J. (2007) "What is strategic HRM?" in Storey, J. (2007) Human Resource Management: A Critical Text, Thompson ^ Paauwe, J. (2009) 'HRM and Performance: Achievement, Methodological Issues and Prospects' Journal of Management Studies, 46 (1) ^ Pfeffer, J. (1994) Competitive advantage through people, Harvard Business School Press ^ Becker, B. and Gerhart, B. (1996) 'The impact of human resource management on organisational performance' Academy of Management Journal 39 (4) 779-801 ^ Kochan, T. and Barocci, T. (1985) Human Resource Management and Industrial Relations, LittleBrown ^ Delery, J. and Doty, H. (1996) 'Modes of theorizing in SHRM' Academy of Management Journal, 39(4), 802-835 ^ Prahalad, C. and Hamel, G. (1990) 'The core competences of the organisation' Harvard Business Review ^ Ulrich, Dave (1996). Human Resource Champions. The next agenda for adding value and delivering results. Boston, Mass.: Harvard Business School Press. ISBN 0-87584-719-6. OCLC 34704904. ^ The Strategic Impact of High Performance Work Systems ^ "About Cornell ILR". Cornell University School of Industrial and Labor Relations. http://www.ilr.cornell.edu/about/. Retrieved 23 August 2009. Wilkinson, A. (1988). "Empowerment: theory and practice". Personnel Review 27 (1): 4056. doi:10.1108/00483489810368549. http://hermia.emeraldinsight.com/vl=2601464/cl=84/nw=1/fm=docpdf/rpsv/cw/mcb/00483486/v 27n1/s3/p40. Retrieved 2007-10-17.[dead link] Legge, Karen (2004). Human Resource Management: Rhetorics and Realities (Anniversary ed.). Basingstoke: Palgrave Macmillan. ISBN 1-403-93600-5. OCLC 56730524.
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Human Resource Management

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