AU2003100534A4 - Method and system for resource management - Google Patents

Description

I

METHOD AND SYSTEM FOR RESOURCE MANAGEMENT FIELD OF INVENTION The present invention relates to human resource management. The present invention has particular but not exclusive application for small and medium sized enterprises.

PRIOR ART Traditional human resource management has involved applying human resource best practices to a business or organization. These practices have been applied to staff recruitment and job commencement; management and measurement of staff performance; and staff dismissal, exiting and maintenance processes. Each of these areas of human resource management has usually been dealt with as separated components without the results of one area affecting another area or used to provide a holistic view of human resource management.

As a consequence human resource management is often considered by staff and management as providing inconsistent and unreliable results. As well staff are generally unhappy and mistrusting of human resource processes and their results because of inadequate feedback and lack of process transparency. Furthermore the complexity and multifaceted nature of dealing with organizations and people has added to the difficulty in providing better management processes. Many human resource processes fail to consider interpersonal relationships and cultural and behavioural characteristics associated with a business or organization.

I

OBJECT OF THE INVENTION It is an object of the present invention to provide an alternative method of human resource management that alleviates one or more of the aforementioned problems and provides an integrated human resource management system.

STATEMENT OF THE INVENTION In one aspect the present invention broadly resides in a method of human resource management for a business or organization, including applying integrated human resource management procedures for recruitment and start up processes, performance management processes, performance measurement processes, and retention processes to the business or organization to produce consistent and dynamic management results.

The method may also include a further step of reanalyzing substantially all the management results to provide an indication whether the organization or business is capable of achieving its strategic objectives. This further step is possible because the processes are linked and their results can be reanalyzed to assess the strategic organizational capability.

In another aspect the present invention broadly resides in a method of human resource management for a business or organization, including forming integrated human resource management procedures from combining standard HR practice procedures with means for evaluating key behavioural characteristics and incorporating score card methodologies formats; and applying said integrated human resource management procedures for recruitment and start up processes, performance management processes, performance measurement processes, and retention processes to the business or organization to produce consistent and dynamic management results for each process wherein the results of each process are comparable and interactive to provide capability analysis.

In another aspect the present invention broadly resides in a method of human resource management for a business or organization, including applying integrated human resource management procedures for recruitment and start up processes, performance management processes, performance measurement processes, and retention processes to the business or organization to produce consistent and dynamic management results; and reanalyzing substantially all the management results to provide an indication whether the organization or business is capable of achieving its strategic objectives.

In another aspect the present invention broadly resides in a system of human resource management for a business or organization using integrated human resource management procedures applicable to recruitment and start up processes, performance management processes, performance measurement processes, and retention processes to the business or organization to produce consistent and dynamic management results. The system may also include an organizational capability analysis from reanalysis of the combined results.

The integrated human resource management procedures were developed from best practice human resource management procedures incorporating behavioural research results in a balanced score card methodology format (where appropriate). The best practice human resource management procedures were standard known procedures that satisfy compliance, legal and legislative requirements. The behavioural search results were results from studies on small and medium enterprises conducted by the inventor on Australian businesses and -4organizations. The research results identified the top five behaviours of managers being self-motivation, communication skills, team leadership, entrepreneurship and business acumen, and planning and organizing skills. The research results also identified the top five behaviours of staff being teamwork, customer focus, motivation, loyalty, honesty and integrity. These identified behavioural characteristics were incorporated into the procedures. Individual businesses and organizations may choose to use one or more of these behaviours or develop their own set of assessable behaviours. The procedures were developed in a balanced score card methodology format to allow assessment of a person in respect of financial, business processes, customer satisfaction and learning and growth parameters. These parameters provide clarity on how a person's performance can affect a business' performance. Balanced score card methodology provides business strategy methodology. The balanced score card methodology format may also provide a comparable quantitative result. Figure 1 shows a broad aspect of the invention.

The management results are consistent because the processes and procedures are linked and integrated. The management results are dynamic because sets of results are comparable over a period of time.

The recruitment and start up processes include a plurality of procedures that are grouped under the headings (or elements) of position description, workplace policies, interview guide, and reference check.

The performance management processes include a plurality of procedures that are grouped under the headings (or elements) of orientation and workplace policies, staff file management process and performance reviews.

The performance measurement processes include a plurality of procedures that are grouped under the headings (or elements) of staff satisfaction survey and reports, staff exit survey and reports and organizational capability analysis.

The retention strategy processes include a plurality of procedures that are grouped under the headings (or elements) of motivational signs and tools, staff workshops and management workshops.

These processes are illustrated in the flow diagram of figure 2.

The elements in each of the processes are preferably linked. The elements in each of the processes preferably provide results to subsequent elements. The elements of interview guide and performance reviews preferably provide input to the organizational capability analysis element. The element management workshops element is also preferably linked to organizational capability analysis element.

The assessment of the organizational capability is determined from the combined measurement of staff and manager ratings. This assessment can be used by staff to see their individual performance and how it affects and contributes to the total organization.

Strategic and operational planning historically quantifies and measures financial performance, business performance and the market. Information relating to the organization's capacity to deliver on its strategy through it's people has not traditionally been measured. The organizational capability analysis provides performance information which is subjective information into an objective framework.

This information is critical in identifying the gaps between strategic intent and capability. This provides the organization with information to improve problem solving, decision making and judgment to minimize strategic drift.

-6- Systemizing the human resource management procedures brings about transparency in the selection of staff and performance review processes. Normally where managers conduct these processes, information is collated and then placed on the staff file. The manager is not accountable for the quality of the assessment or feedback provided to staff. The integrated human resource management procedures holds managers accountable for ratings provided. This also provides information on the individual manager's developmental needs in leadership and management. It can also be used to compare with other business measurements financials, customer satisfaction ratios, errors etc.) The organizational capability statement collates the information from the performance review or from the interview guide (for new staff) to track individual and departmental performance. The information is collated in an objective framework, similar to financial information, which then indicates key areas for the manager to focus on in their business or business unit.

The information collated in the organizational capability statement can assist in decision making processes relating to recruitment and training of staff.

Where gaps have been identified in competency, this may assist managers to reflect on the following: 1. Quality of the recruitment process, 2. Suitability of source of applicants, 3. Essential and preferred criteria for Position Descriptions 4. Task allocation Training on the job 6. Training off the job 7. Resources provided to assist staff with their performance -7- The information collated in the organizational capability statement can assist in decision making processes relating to business processes. Where gaps have been identified in departmental and organizational rates, this may assist managers to reflect on the following: 1. Quality of output of the business 2. The culture and values within the business 3. Workflow and resourcing issues 4. Return on investment of labour cost Synergy and communication within the business 6. Balance of focus on business performance outcomes for the key stakeholders including owners, customer and staff.

BRIEF DESCRIPTION OF THE DRAWINGS In order that the present invention be more readily understood and put into practical effect, reference will now be made to the accompanying drawings wherein: Figure 1 is a flow diagram of the human resource management method of the present invention; Figure 2 is a flow diagram of the processes of the human resource management method; Figure 3 is an example of the staff interview guide used in the preferred embodiment; Figure 4 is an example of the staff performance review used in the preferred embodiment; and Figure 5A is an example of the organizational capability analysis used in the preferred embodiment and Figure 5B is an example of the departmental Figure 5A is -8an example of the organizational capability analysis used in the preferred embodiment capability analysis used in the preferred embodiment.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT The following is an example of using the method of human resource management with the integrated human resource management procedures for an employee performance review and subsequent organizational capability analysis.

The employee is Harry Potter who works in Sales and Marketing. Harry was employed in August 2002. The business conducts performance reviews in May each year prior to the budget setting process. He had his first performance review in May 2003. Documents included: 1. Completed interview guide from the selection process in August 2002 2. Performance Review completed in May 2003 3. Organizational Capability Analysis completed in May 2003 Summary The Organizational Capability Analysis was used as a business measurement source in the Management Strategy Meeting in June 2003 prior to the new financial year. The business saw that the organizational rating was 67%. It was decided that to achieve their strategy, they required the capability to be 80% as a minimum.

Decisions made as an outcome included: Recognition Recognizing performance over 80% to: Call centre for financial results contribution Sales and Marketing Manager on recruitment and training decisions All Managers for their technical ability and demonstration of the planning and organizing Culture Reinforcement Staff workshop on improving the workplace with a primary focus on teamwork and honesty and integrity Management strategy workshop on improving the entrepreneurship and business acumen and planning and organizing Management Mentor Program In house management development program for all managers with the General Manager on strategies to improve KPI (Key Performance Indicators) performance in Financial and Customer Satisfaction.

Development of Action Plans for each manager.

Revenue Generation Review Review strategy to ensure that the business has leveraged the skills and knowledge of all staff and managers technical ability in revenue creation.

Training needs analysis to be completed. On the Job Training Program Where managers are technically competent, on the job training program to be developed to filter this to staff. This will be used for up and cross-skilling and succession planning in the business.

(ii) About the XYZ Business XYZ is a sales organization with 8 staff. Its distribution is via an incoming and outgoing call centre activity. The outgoing call centre provides telemarketing services for the Sales and Marketing team, obtaining leads and setting of appointments. The incoming call centre provides customer services post sales to maintain the client base.

The business has been in existence for 8 years and is concemrned about a new competitor who has established a 20% market position in less than 2 years. Even though the XYZ has the major market share, the sales have dropped, affecting the profitability of the business.

The General Manager decided to employ a new Business Development Executive to focus on their largest market sector and at the same time review their marketing strategy over the coming six months.

(iii) About Harry Potter The interview guide collates information about Harry Potter, collected during the interview process (see Figure Harry applied from an advertisement placed in the Courier Mail.

Harry was employed due to his proven track record in direct sales where his essential skills rates over the requirements of the role. His past performance was also solid in the initiatives he undertook in creating loyalty programs and consistent customer relationship management systems. In all these areas, Harry scored 20 or higher, which reflects an "above expectation" rating of the role.

-11- From the interview, Harry was also provided with a development plan to work on areas that were developmental needs. These were customer focus, complaint handling, loyalty through contribution to the team.

The manager in the first week also clearly established what the business policies were for conflict of interest, code of conduct and legislative related policies to communicate the need for Honesty and Integrity another area of development for Harry. Harry completed an orientation process and signed off that he had read and understood these business expectations.

Harry's capability for his position when he started was 59%.

The business at the time did not know what the total business capability rating would be.

(iv) Harry's Probation Period Harry received a probationary review during the standard three month period in December. Harry's performance in sales reflected his learning curve in understanding the business, product/service and customers. He had specific developmental needs in the area of Teamwork and Honesty and Integrity that required addressing during this period. Both issues were discussed with Harry in relation to his communication style with others. The result from Harry's Probation Period Review was recorded on the Staff File Manager as a control process by the business.

Harry's Performance Review Harry completed a Performance Review with the other staff in May 2003 (see Figure His personal performance had improved since December, reflecting the 7 coaching provided to him to succeed not only within his specific tasks, but as an effective team member for the business. His performance review also identified activities for the coming 6 months to assist in areas identified in the process as goals.

Since commencement, Harry improved his performance for the position from 59% to 75%. His last rating is shown in the Organizational Capability Analysis.

(vi) Organizational Capability Statement The XYZ business completed all performance reviews in May 2003 in preparation for the new financial year and to devise a solid marketing strategy for 2003 2004. The key objective is to reduce the gap of strategic drift by defining their direction. The organizational capability analysis (see Figures SA and shows an overall rating for the business at 67%. As the core capability of the business is their sales ability, the General Manager has key issues to address if they are to maintain market share. The benchmark of 80% was set by the management team for the coming 6 months.

Where managers were technically competent in their roles (a rating of 81% for managers), the Organizational Capability Analysis clearly demonstrates that this is not translated back to the staff and the customer (A customer rating of It also reinforces the poor financial results.

As a management team, these indicators would be worthwhile exploring through workshopping the following questions: Have we been complacent as market leader? As a sales organization have we been focusing more on us and less on our customer and loosing our edge? 13- Have we become order takers and taking our customers for granted? Have the customer needs changed? As managers are we focusing on ourselves and not imparting our knowledge or expectations on to our staff (technical ability 59%)? Are we providing the right leadership and leading by example to get the results we need? In other words are we doing our job?! By exploring these indicators, in line with other business information, the XYZ company can clearly identify opportunities for growth and action to achieve it's goals.

The business planning becomes a real process for all staff, not a document that collects dust on a shelf.

(vii) Individual Contribution When the management review was completed, Harry was able to see his personal contribution to the overall goal. Where he does not have access to other peoples individual ratings, he can see the overall result and his ratings as a comparison.

Harry can see that he can play a leadership role within the business to assist others improve their performance. His position rating being 75% and the overall business at 67% can provide Harry with an opportunity to improve his teamwork (an area of development) and help the business improve at the same time.

Harry can also see that his role is strategically important in driving sales. The loss of market share has an impact on profitability (the cream above break even).

14- Harry can set himself a goal to at least meet the minimum benchmark of for his own performance through teamwork. If he is successful in achieving this, he should also see that the overall business for Financials and Customer Focus will improve.

This process will empower Harry to go beyond the scope of the role and encourage loyalty and ownership behaviours which has been identified as a requirement for small businesses to succeed. Harry now has direction, focus and a future with XYZ.

The next performance review process will be in six months. The trend analysis has now begun.

ADVANTAGES

The advantages of the preferred embodiment of the present invention include providing a method and system for integrated management of human resources using procedures developed from a variety of sources including results of behavioural research in businesses and organizations. Because of the integrated nature of the human resource management system, the results from various human resource management processes can be reanalyzed to provide strategic organizational capability information. The preferred embodiment of the present invention provides an integrated human resource management system that is relatively easy to manage with trackable and measurable results. Furthermore the integrated human resource management system has transparent processes which are linked to each other to provide consistent results.

VARIATIONS

It will of course be realised that while the foregoing has been given by way of illustrative example of this invention, all such and other modifications and variations thereto as would be apparent to persons skilled in the art are deemed to fall within the broad scope and ambit of this invention as is herein set forth.

Throughout the description and claims this specification the word "comprise" and variations of that word such as "comprises" and "comprising", are not intended to exclude other additives, components, integers or steps.

Claims (5)

1. A method of human resource management for a business or organization including applying integrated human resource management procedures for recruitment and start up processes, performance management processes, performance measurement processes, and retention processes to the business or organization to produce consistent and dynamic management results.

2. A method as claimed in claim 1 wherein substantially all the management results are reanalyzed to provide an indication whether the organization or business is capable of achieving its strategic objectives.

3. A method of human resource management for a business or organization, including forming integrated human resource management procedures from combining standard HR practice procedures with means for evaluating key behavioural characteristics and incorporating score card methodologies formats; and applying said integrated human resource management procedures for recruitment and start up processes, performance management processes, performance measurement processes, and retention processes to the business or organization to produce consistent and dynamic management results for each process wherein the results of each process are comparable and interactive to provide capability analysis. 17

4. A method of human resource management for a business or organization as substantially described herein with reference to and as illustrated by the accompanying drawings.

5. A system of human resource management for a business or organization as substantially described herein with reference to and as illustrated by the accompanying drawings. DATED THIS FOURTH DAY OF JULY 2003 HUMANOZ HOLDINGS PTY LTD by their Patent Attorneys WYNNES PATENT AND TRADE MARK ATTORNEYS