HUMAN RESOURCE MANAGEMENT

(QM 205 PEOPLE MANAGEMENT & TEAM SKILLS) LESSON 5

HUMAN CAPITAL, TALENT, & PERFORMANCE MANAGEMENT

ELIZABETH CRESCINI ESPINAS

TALENT MANAGEMENT
An organization's attempt to RECRUIT, KEEP, and TRAIN the most gifted and highest quality staff members that they can FIND, AFFORD and HIRE. It also refers to the anticipation of required human capital of an organization and setting a plan to meet those needs. The field increased in popularity after McKinsey's research and subsequent book on The War for Talent.

Principle
--- business is only as good as its people, their ideas, their experience, the way they do things and their attitude as they do them. The mindset of this more personal human resources approach seeks not only to hire the most qualified and valuable employees but also to put a strong emphasis on retention. Thereby giving business managers an especially important role to play in recruiting, developing and retaining desirable staff members.

Three major key capacities the capacity to develop talent, the capacity to deploy talent, and the capacity to draw talent from elsewhere --"talent management" is usually associated with competency-based management. Decisions are often driven by a set of organizational core competencies as well as position-specific competencies. Competency set knowledge, skills, experience, personal traits (demonstrated through defined behaviors) --older structure includes education, tenure, and diversity factors but are now considered obsolete in talent management since this creates unnecessary bias.

Activities --succession planning, assessment, development and high potential management which focuses on coordinating and integrating the following:
Recruitment
Retention Employee

development Leadership and "high potential employee" development Performance management. Workforce planning. Culture

This strategic and integrated approach is a way to increase the effectiveness of companies by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors which will show benefits in Critical economic areas: revenue, customer satisfaction, quality, productivity, cost, cycle time, and market capitalization. Tips in achieving a single,unified approach to talent management Talent Strategy and Workforce Plan Are Tied to Corporate Strategy. Talent Management Processes are Aligned to the Talent Strategy Talent Management Processes Share Inputs and Outputs Competency Model as a Common Language Technology Enablement for Talent Management Change Management as a Foundation.

HUMAN CAPITAL MANAGEMENT

(HCM) is an approach to employee staffing that perceives people as assets (human capital) whose current value can be measured and whose future value can be enhanced through investment. --It is also referred to as the development of all labor-related issues that impact a firms strategic and operational objectives, including: the employment of people; the development of resources; and the utilization, maintenance, and compensation of their services aligned with the job and organizational requirements. -- a strategic approach to people management that focuses on the knowledge, skills, abilities and capacity to develop and innovate possessed by people in an organization. -- It is also a set of practices related to people resource management. These practices are focused on the organizational need to provide specific Competencies and are implemented in three categories: workforce acquisition, workforce management and workforce optimization.

The applications that help to enable human capital management include: Core administrative support: Personnel administration Benefits administration Payroll Portal/employee self-service Service center Strategic HCM support: Workforce planning Competency management Performance management Compensation planning and strategy

Time and expense management Learning (education and training) Recruitment (hiring and recruitment) Onboarding Contingent workforce management Organization visualization Other HCM: Reporting and analytics (workforce analytics) Workflow

PERFORMANCE MANAGEMENT
-- Is a process by which organizations align their resources systems and employees to strategic objectives and priorities -- An assessment of an employee, process, equipment or other factor to gauge progress toward predetermined goals. -- the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. It is a whole work system that begins when a job is defined as needed. It ends when an employee leaves your organization. An effective performance management system sets new employees up to succeed, so they can help your organization succeed.

An effective performance management system provides: enough guidance so people understand what is expected of them. enough flexibility and wiggle room so that individual creativity and strengths are nurtured. enough control so that people understand what the organization is trying to accomplish.
Process and Stages Develop clear job descriptions Select appropriate people with an appropriate selection process.

10 Tips in selecting and hiring 1. Improve Your Candidate Pool When Recruiting Employees 2. Hire the Sure Thing When Recruiting Employees 3. Look First at In-house Candidates 4. Be Known as a Great Employer 5. Involve Your Employees in the Hiring Process 6. Pay Better Than Your Competition 7. Use Your Benefits to Your Advantage In Recruiting Employees 8. Hire the Smartest Person You Can Find 9. Use Your Web Site for Recruiting 10. Check References When Recruiting Employees

Provide effective orientation, education, and training Onboarding Tips 1. Familiarity Breeds Contentment 2. Let New Employee Orientation Be - Simple and Interesting 3. Dont Make New Employees Learn The Hard Way 4. Make New Employee Orientation Personal 3 As of teamwork in education and training: Accommodate: Give new team members the tools they need to do work. Assimilate: Help them join with others so they can do work together. Accelerate: Help them (and their team) deliver better results faster

Provide on-going coaching and feedback. 4 Types of Feedback Verbal, Visual, Written and Reviews Negotiate requirements and accomplishment-based performance standards, outcomes, and measures Types of systems and measures 1. Comparative Standard Evaluation System 2. Absolute Standard Evaluation System 3. Behaviorally Anchored Rating (BARS) 4. Management by Objectives (MBO) 5. 360 degree feedback method

Conduct quarterly performance development discussions. What to discuss and provide to empower: 1. Share Leadership Vision 2. Share Goals and Direction 3. Provide Information for Decision Making 4. Delegate Authority and Impact Opportunities, Not Just More Work 5. Solve Problems: Don't Pinpoint Problem People 6. Listen to Learn and Ask Questions to Provide Guidance 7. Help Employees Feel Rewarded and Recognized for Empowered Provide promotional/career development opportunities for staff.

Design effective compensation and recognition systems that reward people for their contributions. Things to consider in determining effective compensation package 1. Determine Salary Philosophy 2. Find Comparison Factors for Salary 3. What Goals Must Salary Help You Achieve? 4. Assess the Competition and Labor Markets 5. Create Salary Ranges Within Your Organization 6. Recognize Your Benefit Package Role in Salary Satisfaction 7. Determine Bonus Philosophy and Potential 8. Communicate Your Salary Philosophy and Approach Assist with exit interviews to understand WHY valued employees leave the organization