hrm prsentation

8/7/2019 hrm prsentation

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The Process of HCMThe Process of HCM

By:By:Sudaryanto, SE, MIB.Sudaryanto, SE, MIB.

Day #3 of HCM courseDay #3 of HCM courseABFI PerbanasABFI PerbanasKaret KuninganKaret Kuningan

JakartaJakarta

Ch 3 of Human Capital Management: Achieving AddedCh 3 of Human Capital Management: Achieving AddedValue Through PeopleValue Through People

Baron & Armstrong (2007)Baron & Armstrong (2007)


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The process of HCMThe process of HCM


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The key drivers:The key drivers:

The need to achieve the strategic goals of theThe need to achieve the strategic goals of theorganisationorganisation

The recognition that people with knowledge, skillThe recognition that people with knowledge, skilland talent as the competitive advantage creationand talent as the competitive advantage creation

Appreciation to factors of people value creationAppreciation to factors of people value creation

The realisation of actual and potential factorsThe realisation of actual and potential factorsmeasurementsmeasurements

The need to make sure that HR process createsThe need to make sure that HR process createsvalue for moneyvalue for money


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The HCM PathwayThe HCM Pathway


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HC MeasurementHC Measurement

DefinitionDefinition

About finding links, correlation andAbout finding links, correlation andideally causation, between differentideally causation, between differentsets of (HR) data, using statisticalsets of (HR) data, using statisticaltechniques (IDS, 2004)techniques (IDS, 2004)


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The need for HCThe need for HCMeasurement is a highMeasurement is a highperformance work system:performance work system: Links the firms selection andLinks the firms selection and

promotion to validated competencypromotion to validated competencymodelsmodels

Develops strategies for skill demandDevelops strategies for skill demand

Enact compensationEnact compensation


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Reason for the interest inReason for the interest inmeasurementmeasurement

Human capital constitutes a key element of the market worthof a company.

People in organizations add value and there is a case forassessing this value to provide a basis for HR planning and formonitoring the effectiveness and impact of HR policies andpractices.

The process of identifying measures and collecting andanalysing information relating to them will focus the attentionof the organisation on what needs to be done to find, keep,develop and make the best use of its human capital.

Measurements can be used to monitor progress in achievingstrategic HR goals and generally to evaluate the effectivenessof HR practices.

You cannot manage unless you measure.


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HC Reporting:HC Reporting: is concerned withproviding information on how well

the human capital of anorganization is managed

External reportingExternal reportingThe Accounting for People Task Force (2003) recommended

that:The (external) report should clearly represent the Boardsunderstanding of the links between HCM policies and practicesand its business strategy and performance. This means that itshould normally include details on the size and composition ofthe workforce, employee retention and motivation, skills,competencies and training, remuneration and fair employmentpractice, and leadership and succession planning. The reportshould follow a process that is susceptible to review byauditors, provide information in a form that enablescomparison over time, and use commonly accepted terms anddefinitions.


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Seven guidance forSeven guidance for

Internal reporting:Internal reporting:1. set out the quantitative and qualitative information

this might include data on the size andcomposition of the workforce, attraction and

retention, absence, motivation, skills andcompetencies, learning and development activities,remuneration and fair employment practices,leadership and succession planning and theoutcomes of opinion or job satisfaction surveys;

2. analyse measures of employee satisfaction andengagement, comp-are them with data on businessperformance and demonstrate the links betweenthem;

3. analyse the outcomes of external benchmarking;


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Internal reportingInternal reporting

4. identify the key performance drivers in theorganization and indicate how HCM is contributingto adding value in each of these areas;

5. review the extent to which people managementstrategy, policies and practices are contributing tothe achievement of business goals;

6. set out the returns on investments in peoplemanagement and development projects and

evaluate the effectiveness of the investments;7. draw conclusions on the implications of the datafor future people management strategy, policyand practice.


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Getting Into ActionGetting Into Action

Why do we doing this?Why do we doing this?

Where is it leading us to?Where is it leading us to?

What sort of action do we believe can andWhat sort of action do we believe can andshould flow from this process?should flow from this process?

Who takes the action?Who takes the action?

How are we going to ensure that actionHow are we going to ensure that action

takes place?takes place?No standard to answer those questions whyNo standard to answer those questions why

organizations approach will different!organizations approach will different!


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Six steps of criticalSix steps of critical

evaluation may help:evaluation may help:


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Putting all togetherPutting all together


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Programme for introducingProgramme for introducingHCMHCM


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