In specific unit or the entire company.Human Resources
In the following essay are going to be discuss the evaluation of the functions of Human Resources Management including the practices and procedures correlated with functions and the importance within the business strategies to accomplish goals. Furthermore, integrated with the previous point is join an analysis of the equal opportunities and application of effective strategies for managing diversity in the workplaces as a part of the Human Resources functions. Also, a comparison of the actual Human Resources Management reality in New Zealand and other countries. Decades ago, Human Resources (HR) as a profession has developed to become an integral component of the enterprises. Changes within organizations appear together with HR departments, increasing the value of it. The essay will give an understanding of the necessary actions to develop a staffing framework; understanding the characteristics of a strategic HR function, creating an structure parallel with HR structure based on HR strategy and considering internal versus external HR responsibilities derivation. The functions of HR staffing are the responsibility of the recruitment and hiring, compensation and benefits, training and development, legal compliance, discipline and firing. In today’s world the HR department have the responsibility of three major areas including Transactional work which is administrative and essentially for the benefit of individuals; the tactical work which is focused in the solution and mostly for the benefit of the employees and the strategic work considered long term work and it is ,linked to one or more goals within an organization entailing a variation of solutions and benefits to a specific unit or the entire company.Human Resources Management Policies and Practices within companies indicate that are taking sole responsibility for major policy decisions. On the other side, while HR departments remain involved in the development of business strategy, their involvement has declined slightly in the past four yearsThe following keys are the strategic roles that staffing the HR function enable the HR department; creating a framework for staffing that enclose objectives; taking the decision of which HR function should be processed internally and which should be external. Elaborate internal HR staff members with the competencies needed to perform well in a strategic HR environment. The selection and management of HR outsourcing partners who will contribute them efficiently and the evaluation of key indicators HR staffing capability.The developing of a framework for a strategic HR staffing need to know the essential elements of a strategic HR department to make an appropriate selection of the structure for the HR function and to decide which HR tasks will be accomplish internally or externally. Understanding the characteristics of a strategic HR functions includes the organizations which have combine the HR functions with the business strategy. It delegate to begin the administrative and transactional HR work to concentrate on strategic HR work to reduce costs. It also includes, the investments to captive and retain the top talents using adequate employee recruitment and training schemes. Furthermore, comprehend the utilizations of technologies to assist the progress of integration with employees, customer and suppliers. The identification on how faster the task can be delegated when there is a constant data availability improves also the decision making and service levels. The coordination between HR structure need to be based on HR strategy. There are numerous ways to structure an HR department to meet its goals. The choice of structure should be based on a variety of factors, including the desired degree of strategic impact, the speed of change in the industry, the resources available to the HR department, the level of talent in the HR department and the HR strategies used by competitors. Strategies widely used to structure the HR function include:Personnel strategy.Generalist strategy.Business partner strategy.Call center strategy.Centers of excellence strategy.Service center strategy.E-HR strategy.Many employers use a combination of these HR strategies. One widely used model that incorporates three of these strategies is the shared services model. First articulated by Dave Ulrich, a professor of business administration at the University of Michigan, the shared services model is designed to promote HR expertise and to deliver improved services across the organization. This model relies on the division of HR tasks and expertise into three discrete components, which share technology and ultimately report to HR executives in headquarters. The components of the shared services model include:Centers of excellence. Specialists in areas such as staffing, compensation, training, benefits and labor relations offer services across the organization to executives in business units on request.Service center. This is a central unit for HR-related administrative and transactional tasks that employees and business-unit managers access through online portals and phones.Business partners. These are HR staff members who work directly with business-unit managers in strategic roles. For example, they might discuss and create succession plans and compensation programs with business unit leaders. According to the 2010 Shared Services and Centers of Excellence SHRM Poll, 75 percent of survey respondents indicated they were providing HR support to their organization through the HR shared services model. Initially viewed as an approach best suited for large- and midsize employers, the model is also becoming popular at organizations with fewer than 5,000 employees. The shared services model for the HR function has been credited with significantly reducing costs and increasing employee satisfaction with HR service delivery. This model also enables HR professionals to focus on providing strategic support to their organizations. See However, not all organizations have experienced benefits from the shared services model. Some organizations are not realizing the anticipated cost savings—especially organizations with mature HR shared services operations that have faced repeated funding cuts. In some organizations, HR professionals in centers of excellence are moving away from the internal consultant role envisioned for them. Of the three components, HR business partners might be the smallest in terms of personnel, but it can have a tremendous influence on the organization’s strategic success. See Make HR a True Business Partner.Consider internal versus external HR responsibility sourcingHR function staffing decisions align with business operating plans in many organizations and should be analyzed on a risk-versus-reward basis in determining what activities should be retained or outsourced. See HR ‘New Frontier’ for Data Driven Business Strategies and Survey: HR Seen as Important but Fails to Deliver Value.Those activities that add the greatest value should be handled internally using highly qualified HR professionals, whereas “high-risk, low-reward” HR tasks are good candidates for outsourcing. World-class organizations combine HR outsourcing and HR design during the process of strategic transformation, and they invest more heavily in designing new HR roles and orienting staff. Such organizations place a heavy emphasis on selecting and training staff to have higher value skills that are consultative and policy-oriented. See Employers Likely to Outsource ACA Reporting and Results Oriented Outsourcing.Although conducting business and managing a workforce involves many human resource activities, some HR functional areas are more critical than others to the organization’s business strategies and operating plans. Organizations seem to prefer to maintain control over the following HR responsibilities, rather than to outsource them to a third party:Performance management.Employee communication plans and strategies.Policy development or implementation.Strategic business planning.Compensation and incentive plans administration.These HR tasks may require the most in-depth understanding of the organization’s workforce and may be the most difficult for a third party to perform competently on the organization’s behalf.Conversely, HR activities that are primarily transactional or administrative are prime candidates for outsourcing:Payroll administration.External recruitment.Relocation.Benefits administration.See Outsourcing the HR Function.Staffing-Retained HR FunctionsTurning retained HR into a strategic asset is a top priority for organizations that increasingly outsource administrative and transaction-based HR activities. One effect of outsourcing is the need for changing the roles for the retained HR generalists. Organizations that report the most success with retained HR emphasize the importance of a new direction for HR generalists in workforce planning and consultative services to line managers.To ensure that retained HR functions are handled effectively, internal HR leaders and staff should already possess or should acquire competencies associated with strategic HR performance. Accordingly, those in charge of staffing the HR function should carefully consider the pros and cons of retraining existing HR staff and hiring additional staff with the needed level of HR competency. See HR Professionals Pursue Professional Development.Identify HR competencies for strategic human resource managementCompetencies are individual characteristics, including knowledge, skills, abilities, self-image, traits, mindsets, feelings and ways of thinking, which, when used with the appropriate roles, achieve a desired result. With its unique focus on the global HR community, SHRM developed, and extensively validated with input from more than 32,000 subject matter experts, a model that identifies the competencies needed to be a confident, successful HR professional.According to the SHRM HR Competency Model, nine competencies are most strongly correlated with a high-performing HR professional. Although HR professionals will vary in their proficiency at these competencies based on their level of experience, expertise and opportunity to develop, they must develop and demonstrate each competency when staffing the HR function.The identified competencies are listed below along with a brief explanation of what proficiency in this competency may look like:Human Resource Expertise. The knowledge of principles, practices and functions of effective human resource management. Individuals at the highest level of this competency have a strong working knowledge of critical HR functions and incorporate an attitude of continuous learning, the application of best practices, and the delivery of customized HR solutions.Relationship Management. The ability to manage interactions to provide service and to support the organization. Individuals at the highest level of this competency demonstrate the ability to establish credibility in a wide range of interactions, develop healthy relationships that promote individual and organizational success, and build an effective internal and external network.Consultation. The ability to provide guidance to organizational stakeholders. Individuals at the highest level of this competency apply creative problem-solving to address business needs and issues in a way that addresses business challenges and invites others to approach them with career and organizational concerns.Leadership and Navigation. The ability to direct and contribute to initiatives and processes within the organization. Individuals at the highest level of this competency build a collaborative environment where solutions are generated while conforming to organizational culture. This competency requires leadership that builds consensus while making progress toward change.Communication. The ability to effectively exchange information with stakeholders. Individuals at the highest level of this competency have a full-range of well-developed communication skills that they use to effectively deliver critical information, to gather information, and to communicate with others of like and different perspectives. Communication is not limited to HR topics, but rather encompasses the issues and concerns of the core business functions.Global and Cultural Effectiveness. The ability to value and consider the perspectives and backgrounds of all parties. Individuals at the highest level of this competency are culturally aware and demonstrate nonjudgmental respect for other perspectives. The ability to work cross-culturally is well developed, as is the ability to improve others’ openness to varying opinions and mindsets.Ethical Practice. The ability to integrate core values, integrity and accountability throughout all organizational and business practices. Individuals at the highest level of this competency have developed trusting relationships and are seen as credible because of their judgment related to confidentiality, consistently ethical behavior and ability to hold to a core set of values while making decisions under political and social pressures.Critical Evaluation. The ability to interpret information to make business decisions and recommendations. Individuals at the highest level of this competency have developed the objectivity and critical thinking skills that allow them to make sound judgments based on keen analysis, best practices and an understanding of preferred outcomes.Business Acumen. The ability to understand and apply information to contribute to the organization’s strategic plan. Individuals at the highest level of this competency have a strong understanding of the strategic relationship between HR and the core business functions. This understanding, combined with an understanding of the overall business environment and the various levers that affect the organization’s success, make this HR practitioner a valuable contributor.These competencies can be developed and demonstrated by HR professionals at all levels, from entry to executive. SHRM provides vital information for measuring and improving these competencies in the Competency Model, as well as a more complete list of the subcompetencies supporting each, which will be valuable to any HR professional.Decide whether to retrain or hire new HR staffWhen an organization has identified the competencies needed by internal staff to enable the HR function to operate strategically, the next step is deciding whether to retain and reskill some or all of the existing HR staff. Generally, organizations establish a formal process to help make those decisions. HR leaders commonly use formal competency assessments and interviews to decide which staff members to keep during a transformation of the HR function. Sometimes organizations determine that retaining the HR function requires external recruitment and may necessitate staff reductions and severance to install new recruits with higher-level skills in areas such as talent management and workforce planning.Typically, high-performing organizations have set higher competency standards, have been more likely to use formal assessment processes to evaluate internal staff and have been more willing to hire externally. These employers also consistently invest more in HR skills training than their counterparts. Such training frequently involves:Consultative skills training, which includes teaching staff how to diagnose problem areas, assess the scope of the problems and contract with internal customers to facilitate change.Orientation sessions to introduce staff to their new roles.Use of organizational assessment and diagnostic tools.See:Outsourcing HR FunctionsMany organizations use outsourcing as a key element in staffing a strategic HR function. Although most organizations in this model outsource discrete HR activities, some organizations have outsourced the entire HR function. Obviously, employers should not outsource HR responsibilities just because the staff does not like a particular aspect of the overall job. However, the many compelling reasons to outsource HR functions include:Enabling the retained HR department to eliminate transactional responsibilities and to focus on more strategic HR activities.Reducing HR costs.Jump-starting HR “best practices” that would take significantly longer if started from scratch internally.Despite the popularity and advantages of outsourcing, some organizations put a high value on the “human factor” in conducting their HR functions. Top reasons given by HR professionals for not outsourcing include:Preferring to develop expertise in-house.Not wanting to lose control of HR functions.Concerns that outsourcing would negatively affect customer services to employees.Concerns that it would negatively affect company culture.To avoid possible problems and to achieve maximum value from outsourcing, organizations should:Create an overall HR service-delivery model that integrates outsourced and retained HR.Redesign HR processes and roles, while upgrading retained HR staff’s knowledge, skills and capabilities.Increase line manager and employee readiness to capitalize on HR’s new roles and capabilities.Selecting providersProviders of outsourced HR services should be carefully selected and managed. When evaluating potential HR outsourcing partners, each candidate should be assessed on the following criteria, at a minimum:Financial stability, to ensure that the service provider will stay in business over the long term.Service record, so that the organization can depend on the outsourcer to address challenges and issues satisfactorily and in a timely manner.Cost, while always recognizing that initial savings should not come at the expense of long-term service and support or increased expenses later on.Technology leadership, to ensure that the outsourcer will be able to accommodate the organization’s changing needs due to increased staff or geographic expansion.Legal compliance, to ensure the outsourcing entity meets all legal requirements, including privacy and security of personal employee data.Disaster recovery, to protect the data entrusted to the outsource partner and ensure that the data will be available to the organization, even if a technology malfunction, natural disaster or facility damage occurs.Training, to ensure the success of conversion to an outsourced solution.Managing the outsourcing relationshipOutsourcing to the right vendor—and using that vendor correctly—can save the organization money in the long run. The key to successful outsourcing of HR functions is to successfully manage relationships with outsourcing partners, which involves establishing a collaborative way of working with vendors to establish trust and open communication. This can be accomplished by creating a formalized statement of expected benefits that includes quantitative and qualitative targets and by using established practices that have demonstrated good outcomes.Some of the practices that help organizations obtain value from their outsourcing relationships include:Having a formal written vendor governance strategy. This document should detail what activities should take place at each stage of the vendor lifecycle and provide a step-by-step escalation sequence of actions designed to resolve issues when they arise.Meeting vendors in person. This is especially critical at the beginning of the relationship but is important throughout the life cycle. In-person meetings foster relationships and demonstrate the level of organizational commitment and investment.Defining service quality criteria clearly. A service level agreement (SLA) is a part of a services contract that formally defines the level of vendor service. An SLA should contain individual metrics for evaluating service quality. Organizations should limit the metrics to a manageable number, identifying the most essential and reviewing them frequently.Striving for a mutually beneficial relationship. Vendors are in business to make a profit. Negotiating very low fees will almost certainly lead to poor service. Sometimes clients put themselves in an adversarial position with their vendors, which decreases the prospects for a harmonious and productive relationship.Sharing information openly and taking actions as needed. Clients often maintain an “issues log” describing problems, what caused them and how they were resolved. Sharing such information with the intent of preventing problems can minimize the risk of developing more serious difficulties.Checking invoices for accuracy. Many HR outsourcing contracts have complex fee calculations, and consequently billing errors may occur. Regular and thorough review of invoices reduces misunderstandings, errors and disagreements.Evaluating HR Staffing EffectivenessA key indicator used to measure the effectiveness of HR staffing is the HR-to-employee ratio. The staffing of an organization’s HR function can also be evaluated by HR cost metrics, the return on investment (ROI) on outsourced HR functions, benchmarking comparisons or analysis of the competencies and diversity of retained HR staff.HR-to-employee ratiosThe ratio of HR employees to all employees, referred to as the “HR-to-employee ratio,” is fundamental in understanding the relationship between the HR department and the rest of the organization. It can be a useful indicator of overall efficiency of HR services. This ratio measures the numbers of HR full-time equivalents (FTEs) for every 100 FTE employees in the organization, and is useful when comparing the HR functions in organizations of differing sizes.Organizations using the HR-to-employee ratio should keep the following points in mind when evaluating an HR department’s efficiency:HR outsourcing typically drives an improved HR ratio.HR staff should identify nuances when comparing ratios across organizations.HR professionals should compare the HR-to-employee ratio in their organization with similar organizations. Larger organizations typically have smaller HR-to-employee ratios. Smaller organizations may need proportionately more HR personnel to cover the baseline of HR’s critical functions.Different HR-to-employee ratios can be expected depending on the scope of the specific HR department in question. For example, an HR department that uses extensive HR practices, such as succession planning, training and organizational development to drive business results throughout all levels in the organization, may have a larger ratio than an HR department with a smaller range of responsibilities.The percentage of HR staff occupying different roles can be affected by several factors. For instance, when an increased focus on talent management, organizational learning and change management exists, companies may need more employees in supervisory roles. And fewer HR employees may be in professional, technical or administrative support roles based on the extent of decentralization within the HR department.Other metricsIn addition to the HR-to-employee ratio, HR staffing effectiveness can be assessed in the following ways:HR costs. Calculations of HR costs take three forms: cost per FTE employee, costs as a percentage of revenue and costs as a percentage of total operating costs. Most computations of total HR costs include the complete compensation and benefits of HR FTEs, supplier costs, HR technology costs and corporate overhead costs. Though many companies still have costs of up to $5,000 or more per employee in HR administrative processes, world-class organizations are at or below $1,100 per employee. Outsourcing metrics. Some of the potential qualitative benefits of outsourcing include valuable metrics such as improved response times and increased employee job satisfaction. In contrast, the quantitative benefits of outsourcing focus on money saved by outsourcing versus performing HR functions in-house. These benefits should be expressed in dollar figures and will ideally contain an ROI realized over a period of time. Calculating the ROI can help determine how long it will take to achieve a 100 percent return on an initial outsourcing investment.Benchmarking comparisons. An organization can compare its staffing effectiveness with similar HR functions in comparable organizations and with top-performing HR departments.Competencies of the HR department’s staff. An understanding of the competencies that contribute to an HR professional’s effectiveness allows an assessment of the strengths—and the gaps—for each member of the HR staff. This assessment then identifies opportunities for professional individual growth and for increased impact of the HR department across the organization.HR department diversity. An HR department that reflects the diversity of its organization’s workforce is better able to understand the differing perspectives and behaviors affecting the business.