Effective Organizations

Effective Organizations(Organization Development)

The trend toward reducing the number of management levels in organizations is being driven by the need of organizations to increase the speed and accuracy of communication. Traditional organizations, with their many levels of management, process information slowly. Plus the information gets filtered along the way, often for political reasons which can conflict with the overall good of the organization.

Processing information quickly and accurately, then acting upon what is learned, is critical for the success of an organization. Another key item is selecting relevant information for measuring organizational performance relative to organizational goals. This can be challenging in light of today's information rich environment. (Selecting the wrong metrics, those which pull the focus of the organization away from what is most important for its ultimate success, will harm an organization). After selecting the appropriate metrics, organizational performance can be further enhanced by linking the performance results to individual or team incentives.

Performance Management is a process that can facilitate the flow of information in an organization. Performance Management includes the following:

1. A flow-down of goals beginning with the organization's strategic plan, to the annual organizational goals, to the President's or CEO's individual performance goals, on down to all employees in the organization. Thus each member of the organization can ultimately tie their individual performance goals to the organizational goals .


2. A formal feedback system in which individual performance results can ultimately flow back and influence the organization's strategic plan. Feedback must occur frequently.


3. A mutual (between the employee and manager) establishment of duties and responsibilities and criteria for measuring success. Also, performance results are mutually determined. The mutuality is what encourages the feedback.

NEW TRENDS IN INTERNATIONAL HRM

International HRM places greater emphasis on a number of responsibilities and functions such as relocation, orientation and translation services to help employees adapt to a new and different environment outside their own country.

. Selection of employees requires careful evaluation of the personal characteristics of the candidate and his/her spouse.

. Training and development extends beyond information and orientation training to include sensitivity training and field experiences that will enable the manager to understand cultural differences better. Managers need to be protected from career development risks, re-entry problems and culture shock.

. To balance the pros and cons of home country and host country evaluations, performance evaluations should combine the two sources of appraisal information.

. Compensation systems should support the overall strategic intent of the organization but should be customized for local conditions.

. In many European countries - Germany for one, law establishes representation. Organizations typically negotiate the agreement with the unions at a national level. In Europe it is more likely for salaried employees and managers to be unionized.

HR Managers should do the following things to ensure success-

. Use workforce skills and abilities in order to exploit environmental opportunities and neutralize threats.

. Employ innovative reward plans that recognize employee contributions and grant enhancements.

. Indulge in continuous quality improvement through TQM and HR contributions like training, development, counseling, etc.

. Utilize people with distinctive capabilities to create unsurpassed competence in an area, e.g. Xerox in photocopiers, 3M in adhesives, Telco in trucks etc.

. Decentralize operations and rely on self-managed teams to deliver goods in difficult times e.g. Motorola is famous for short product development cycles. It has quickly commercialized ideas from its research labs.

. Lay off workers in a smooth way explaining facts to unions, workers and other affected groups e.g. IBM , Kodak, Xerox, etc.

Emerging Trends in Managing Human Resources

If we trace back the history of business environment, in the early years, trading patterns and markets were stable, technology was static, customers were passive, speed in getting to market was secondary, competition was limited to sectors and regions, and hierarchies were generally accepted in all walks of life. No more, since 1960’s, America and much of the rest of the world has been almost continually buffeted by change. Customers demand that businesses do it better, faster, cheaper; employees want to control more than the “Stop” button on the assembly line. The twentieth century saw nations around the world become part of the global village, with trade barriers between them reduced or removed completely. Globalization of trade and economy are taking deep roots in India. The holistic paradigm shift to a single global company has opened up new economic opportunities. Events of the last five years of the previous century have focused our attention on knowledge industries. Quality human resources have therefore become an important base with which to respond to the emerging environment. The knowledge workforce in particular has a vital role to play in the emergence of the digital economy.

A look at the trends in managing people in this dynamic industry reflects that Attracting, Managing, Nurturing talent and Retaining people has emerged to be the single most critical issue in lieu of the enormous opportunities spun off by the market. The new avatar of talent is the knowledge professional who is innovative, business savvy, quick on the uptake, has an instinctive ability to network, and possessing unbridled ambition. They are propelled by an urge to experiment, scan new avenues that can spur their creativity. The knowledge professional will gravitate to an organization that is flexible, has strong values, a robust performance ethic and provides challenging work on latest technology. This has led to companies proactively taking measures on three fronts. First, companies create an organizational ambience where talent can bloom. Second, they put in place systems that help unleash their potential and third, they build a reward and recognition mechanism that provides value for people.

Profound systemic changes have been seen in the way companies are structured. The concepts of leadership and managing people gave undergone a radical rethink. Cubicles, hierarchies and rigid organization structures of the past, have now given way to open work environment, flat structure with informality being a general rule and empowerment of individuals. Today work itself is centered around projects, which have virtual teams working on them. This work structure has led to a culture of flexi time, round the clock accessibility to the workplace. Also catching up fast is the trend of workstations at home, remote access, video-conferencing and reporting by exception. To stay one step ahead of the aspirations of their people, companies are continuously striving to provide an intellectually stimulating environment. Few examples being, in-house libraries, continuous up gradation of knowledge and skills, knowledge sharing, building relationships with academia thus enabling knowledge workers to pursue multiple careers within a single company. Coming times will see sabbaticals forming part of the organization culture, corporate universities dotting the new horizon, competing companies bunching together to setup knowledge networks.

Companies today are constantly striving towards enhancing the quality of work life and also the personal life of its employees and this does not stop with the employee buts gets extended to his / her family as well. In-house health clubs, yoga and meditation centers to relieve stress, sports and cultural activities, employee get-togethers with invitations to come over with families, day care centers and many of the like are being provided by companies.

With the increasing size of the companies, the top down communication model of yesteryears has been replaced by bottom up, cross level communication thereby encouraging people to voice their opinions and feelings. Open house sessions, mentoring, online chats on the intranet have emerged to be the communication enablers.

The new economy has given rise to a culture of working in teams. Today no job in the knowledge industry can be performed in isolation. Since working in teams is not a passing fad, companies are now designing compensation structures, which rewards team performance in addition to individual performance.

To conclude, change is here to stay, and we need to understand that all the practices that are working today may not necessarily work tomorrow. Customers’ expectations, market changes and strategic decisions will derive the tools to managing the human assets.

Changing Strategies in HR Technology and Outsourcing

In many companies today, benefit plans and compensation are in transition. Employers are no longer providing one-size-fits-all health care and retirement benefits, and they’re increasingly linking compensation to performance goals. Employees are being asked to play a more active role in defining their reward package and in managing their benefits.

But the success of this new reward system depends on more than a change in employee mindset — it means that employers must provide the information and tools necessary for employees to make the right decisions for themselves and their families. This new focus is driving many companies to reconsider the way they deliver human resource services,with a strong emphasis on improving administration and engaging employees.

Watson Wyatt’s 2007 HR Technology Trends Survey finds that companies are turning to technology to give employees access to pertinent information and tools. From portals to software solutions to call centers, HR technologies are providing a bridge to the information that employees need to understand their changing workplace.

Key Findings :

. One in five companies expects to change its HR delivery structure in the coming year. This signals a significant shift in an area that companies have historically preferred to keep stable.
. Employee engagement and information delivery are paramount, due to the growing complexity in plans and the need for decision-support tools.
. Many companies plan to use HR portals to communicate health care and total rewards information to employees.
. HR looks to use internal or enterprise resource planning (ERP) systems whenever possible. Less than 25 percent of companies direct their HR function to outsource whenever possible.
. While companies cite internal process improvement as the primary goal for their sourcing strategy, 31 percent report missing that goal.
. Most companies are satisfied with HR delivery in the retirement and health and welfare areas but are not as satisfied with HR delivery in the talent management area.
. Many companies are looking to implement technology solutions for their talent management programs.
. Retirement plan administration is a key focus for many companies, with one in four planning to change defined benefit administration and delivery in the next two years.
. Most companies have HR call centers and strongly prefer that employee inquiries be handled in the United States.
. Satisfaction with call centers is tied to the use of case management systems.
. The majority of self-service transactions on the Web are in the health and welfare area. Most transactions related to compensation/payroll decisions and retirement plans do not take place over the Web.