Ahmeds Tajuddin Human Resource Planning
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Vision, Mission, and Stakeholders
Most companies have vision and mission statements that are
intended to be clear declarations of what the company is all
about-its values, purpose, and intentions. To the average
employee, these statements too often read like organizational
versions of the Boy Scout code-"thrifty, brave, clean, and
reverent and cost competitive"-not such a bad idea, if
organizations would live up to it.
The degree to which a vision and mission are fulfilled depends,
in part, on two things:
How well management implements processes to ensure
that day-to-day operations reflect the vision and mission.
How much employees actually experience, rather than are
just aware of, those processes.
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The first condition is a function of planning, discipline,
accountability, communications, and what is reinforced in the
organization. The second condition affects trust and is often
ignored. Trust is often viewed as something other than a
business issue.
From the rank-and-file employee's view, vision and mission can
create trust and provide a central theme of an organization only
if clear, tangible supportive processes are in place and operating,
That's more than management training, the most common effort
to connect vision, mission, and practice.
Management training is how most organizations address the
promise of the vision and mission. It focuses on making
managers coaches who are employee sensitive, reinforcing,
consultative, and supportive of the individual's development.
Planning is a reflection of vision and mission statements, and
believed to be the starting point. If your organization is without a
statement, the following steps are to be considered:
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There are four stakeholders in a company:
1.
Financial stakeholders: our stockholders, who invest in our
company and expect a return on their investment
2.
Product and service stakeholders: our customers, who
provide a lifetime of revenue potential and expect high
value in our products and services compared to others in
the marketplace
3.
Community stakeholders: our neighbors, who expect us to
operate in a sociably responsible manner
4.
Career stakeholders: our employees, who invest their time,
energy, skill, and creativity and who expect to be
respected, full members of the team, with the opportunity
to increase their contribution to the team's success and to
share in the gains of that success
Our mission is to ensure that we meet the needs of all our
stakeholders.
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Business Planning and the Measurement of Performance
In most organizations, top management determines the
objectives that will affect each type of stakeholder, develops
strategies and tactics, and cascades them down into the
organization.
At each succeeding management level, managers address the
objectives they feel they can influence; they develop their own
action plans and tactics and cascade them down to the next level.
And so it goes. This approach is called a lot of things, but most
commonly it is referred to as management by objectives (MBO).
People Strategy and Follow-Through
People strategies can be characterized as:
Getting the right people and keeping them (attracting and
retaining)
Making people more effective in their specific jobs (or
broadly defined roles) and as people to be developed to
meet the organization's needs
Improving the organization's business performance
The first and second needs are generally addressed by a "people
strategy" section of a strategic plan. Organizations spend about
90 to 95 percent of their labor dollar getting and keeping the
right people and trying to make them more effective as
individuals. The specific reinforcement plans for these strategies
are known as individual compensation and capability plans.
Measurement of improvement in these two objectives is rarely
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boiled down to a few numbers. The third objective-improving
the organization's sperformance-can -be measured objectively
and is just becoming a role for the rank and file. It is generally
considered the responsibility of management, to be carried out
by employees.
Attracting and Retaining Employees
The attract-and-retain is objective a complex one. Attracting the
right people-identifying the organization's needs, recruiting and
evaluating candidates, hiring the appropriate ones, offering them
enough pay (but not too much), and starting them off properly
affects how successful a company is going to be. Retention of
the rank and file, however, has been primarily a cost-control
strategy Organizations try to retain employees at minimum cost.
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Making People More Effective
Making people more effective is both an individual and a
collective developmental issue. Individual incentives,
promotions, and merit increases (all base compensation plans)
can have some effect, but the real hope is in thinking about
employees as people rather than as the job they do
Improving Business Performance
Satisfying financial stakeholders by improving business
performance has been management's job. Command-and-control
organizations seem to believe that only management can really
address this objective. The development of recognition and
group-based reward plans can be a way to satisfy all four
stakeholders, assuming that the plans are designed with them in
mind. Organizations currently spend relatively little time and
money in this area, but it provides the greatest untapped
opportunity for growth.
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Beginning the Process
The announcement of objectives by management is mildly
interesting to employees. Announcing a reward plan to reinforce
those objectives really gets attention. It telegraphs what is
important and where the company is willing to invest its money
A reward system has a different agenda than that of the ' total
business planning process.
Improving Business Performance
Satisfying financial stakeholders by improving business
performance has been management's job. Command-and-control
organizations seem to believe that only management can really
address this objective. The development of recognition and
group-based reward plans can be a way to satisfy all four
stakeholders, assuming that the plans are designed with them in
mind. Organizations currently spend relatively little time and
money in this area, but it provides the greatest untapped
opportunity for growth.
Tajuddin Ahmeds Human Resource Planning
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Beginning the Process
The announcement of objectives by management is mildly
interesting to employees. Announcing a reward plan to reinforce
those objectives really gets attention. It telegraphs what is
important and where the company is willing to invest its money
A reward system has a different agenda than that of the ' total
business planning process. So, with the business plan as
background information, it is often helpful to start with a blank
sheet of paper.
Making a List
The first step in developing a total reward & plan is to get the
leaders of your company or organizational unit to sit down
together and draw up a list of the critical issues in your business.
Business objectives tend to look pretty much the same in all
companies, but the measures are different. Objectives related to
profit, return on net assets, productivity, quality, customer
satisfaction, new product introduction, and so forth apply to
most organizations, at least in the private sector. Here's a brief
list of objectives
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Example Business Objectives:
Improve financial performance
Improve quality
Improve productivity
Reduce cycle time
Create a flexible workforce
Reduce turnover
Reduce benefit cost
Develop a contingent workforce for telemarketing department
Conclusion
Developing reward plans often forces all levels of management
to come to a consensus on the few critical business objectives
and their measures. General business planning sessions, even
when they include discussions of the same objectives and
measures, tend not to have the brevity and clarity demanded by a
reward plan, which requires that all consider the effect on each
of the four stakeholders. Developing reward plans requires
organizational units to consider what specific measures will
reflect their contribution to one at a higher level. The process
also requires consensus on the primary messages to the
workforce about what's important, how they know how they are
doing, and the degree of commitment the organization is willing
to make in dollars and cents-in addition - and plans.