Investing in People Asset

8/9/2019 Investing in People Asset

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Investing inPeople Assetsby Bernard Sia

Maintaining a happy and engaged workforce while keeping people poachers at bayhave kept many CEOs awake at night. Research has shown that there are biggermovers than money and the genesis of a conducive work environment begins withdeeply understanding and harnessing your people asset.


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The traditional accounting practice of defining employee as cost is ananachronism in action. Unless the IT organization manages and owns physicalassets which they lease or sell, they are essentially running a People Business 1 and the model of ascertaining performance via return on assets (physical assetse.g software/hardware sales) can not apply. Although organizations are awarethat lost people assets entails investment to groom the replacement, thecorrective actions and solutions swing between lukewarm and ignorance. Totap into the fountain of human capital, organizations have to consciously andcontinuously focus on the retention and refinement of their people assets.

Employee Retention

A Different Way of ThinkingPeter Cappelli, a George W. Taylor Professor of Management Studies reversedthe common understanding of staff retention policies.

"If managing employee retention in the past was akin to tending a dam that keeps a reservoir in place, today it is more like managing a river. The object isnot to prevent water from flowing out but to control its direction and speed." ~Cappelli.

Quoting UPS, which was suffering from high turnover rates of their drivers,UPS realized that unless the problem is resolved, they are loosing valuable

people assets that take considerable time to train. Especially when drivers arerequired to understand the idiosyncrasies of traffic flow and getting from pointA to B in the shortest amount of time. When the situation was analyzedfurther, UPS discovered that the reason for the departure was the arduous task of loading the goods before each delivery. Rationalizing the situation, UPS

hired loaders, and the drivers were left to what they do best, ensuring timelydelivery of UPS parcels. The loaders continue to suffer from high turnoverrates, but because the minimal amount of training required and ease inhiring replacements the situation was manageable.

The lessons learned from UPS meant that organizations would have tocustomize jobs to fit the employees peak performance quadrant. Thechallenge is in the impetus and willingness for the organizations to proactivelyseek to understand their employees better. The danger behind Cappellis ideahowever, would be the ethics behind selectively slicing job descriptions intoareas where the organization consciously define job scopes of high value and

1 Defined as companies with high employee costs as a percentage of sales and low investment incapital (BCG 2005),


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low value to the company. Those that fall under the low value quadrant wouldthen be denied opportunities for staff development and be expected to leave atany point in time.

The ethical way to promote Cappellis idea is by being transparent in presenting what is expected and offered between these two jobs areas. Thiswill allow the employee opportunities and benchmarks to move from one areaof employment to the next, especially towards better advancement and value tothe company.

How the Best Organizations OperateWith data quoted from Accenture Human Capital Development Framework implementations and study done on Forbes best 100 employers to work for, 10attributes 2 were discovered to positively influence employee engagement, twoof which warrants further discussion.

The first is Human Capital Infrastructure , that is, the groundwork to ensurethat managers are provided with the correct manpower resources and theappropriate tools for the same resources to function effectively. An efficientsupport structure needs to be in place to ensure rapid performance andconfidence in the ability of the company to help the employee to perform.

The human capital infrastructure must include up to date and accurateinformation that will allow the projection resource usage (tracking workload),analyzing productivity and more importantly use the information to justify aswell as cross reference performance review matrices. In order to create thisinfrastructure for direct feedback between employee

performance/utilization/state of mind, the human resource department can nolonger work behind closed walls but be part and parcel of the workforce. Tofurther reduce the gap and eliminate boundaries between human resources andthe workforce it is also recommended that members of the human resourcesteam comprises actual vertical experts that are able to relate to and understandthe requirements of the business and market.

Secondly, Human Capital Strategy ensures that HR programs are consistentand fair for all individuals. An engaged workforce can accept meritocracywhen it is well documented and performance criteria readily accessible. When

policies are inconsistent and there are perceived unfairness in treatment andcareer advancement between business units, the situation creates resentmentand lack of faith in the basic fairness of the company. As such, it is highlyimperative that the organization publishes job grade ranking and establish it asa standard across business units.

Having said that, the IT industry is unique that within the same vertical of business, sub branches have different market forces that make it almostimpossible to align the whole organization (due to the demand/supplydynamics that is tied to the specific technology i.e. SAP, Microsoft or if we

2 See bibliography on Harnessing an Engaged Workforce, Accenture Outlook

An engaged workforcecan accept meritocracy when it is well documented and performance criteriareadily accessible. When policies are inconsistent and there are perceived unfairness in treatment and career advancement between business units,the situation createsresentment and lack of faith in the basic fairnessof the company


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take knowledge domains networks vs. mainframe). The challenge lies not indetermining remunerations (this will be affected by external market forces),

but in creating:a) A fair and transparent career development plan inline with

corporate strategies and objectives. b) A performance plan that promotes meritocracy and correlation

between performance and succession.

In the 1997 Mckinsey study dubbed as a A War for Talent, they surveyed6,500 managers from 56 mid size to large American corporations, and a followup survey in 2000 canvassed 13,000 executives from 112 large U.S companiesconcluded that the calibre of the companys talents will determine the level of success of the organization. The study prescribed new ways of thinking abouttalent management while reflecting on old thought processes. The table belowemphasizes 5 areas of thought and the contrasting values of the 2 viewpoints.

Thinking The Old Way The New Way

Talent Mindset Having good people is one of many important performancelevers HR is responsible forpeople management includingrecruiting, compensation,performance reviews, andsuccession planning

Having the right talent throughout theorganization is a critical source of competitive advantage. Every manager starting with the CEO is responsible forattracting, developing, exciting, andretaining talented people; indeed everymanager is explicitly accountable for thestrength of the talent pool he/she builds

Employee ValueProposition

We expect people to pay theirdues and work their way up theline before they get the top jobs and big bucks. We have astrong value proposition thatattracts customers

We think of our people as volunteers andknow we have to try to deliver on theirdreams now if we are to keepThem We also have a distinctive employeevalue proposition that attracts and retainstalented people

Recruiting Recruiting is like purchasing;its about picking the best froma long line of candidatesWe hire at entry levels only,primarily from the same 6 or 7schools

Recruiting is more like marketing andselling; its a key responsibility of allManagers We hire at all levels entry, mid,and top and look for talent in everyconceivable field

GrowingLeaders

Development is trainingDevelopment happens whenyou are fortunate enough toget a really good boss

Development happens through a series of challenging job experiencesand candid, helpful coaching Developmentis crucial to performance andretentionand it can be institutionalized

Differentiation Differentiation underminesteamwork

We shower our top performers withopportunities and recognition. We developand nurture mid-performers. We help ourlower performers raise their game or wemove them out or aside

Source: Mckinsey & Co.


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For companies that are running people based businesses, the personnel aresynonymous with talent and in order to excel beyond the boundaries andhorizon of its forebears, one needs to inculcate the correct culture of growthand a performance based environment for the people to spread their wings andsupplement the existing business strategies and objectives.

However, focusing on talent is insufficient, more importantly, the organizationmust reinforced talent management with the required nurturing and supervisionor it may turn into an Enron debacle where executives had free reign of thecompany. Such that Enron was exemplified for an organization that valuesaccreditation over character through its large hiring of MBAs from establishedB-schools. Sterling Livingston in The Myth of Well-Educated Managers,Harvard Business Press, wrote that many MBA students lack the will tomanage however aspire towards better career prospects. 3 Short of spellinggreed on their foreheads one can only surmise that talent is a gift but it must beaccompanied with attitude, ethics and passion. The balance comes in having anorganization that is capable of building leadership with the character for excellence without the penchant for scrutiny from jurisprudence.

Why do people Leave?

ExpectationsAccording to Gallup Corporations Q12, series of questions that reflectemployee satisfaction and commitment to the company:

I know what is expected of me at work , came out tops.

However, expectations work both ways, not only does the employee need toknow what is expected of them, 4 the employer have to reciprocate byunderstanding the employees expectations.

The first error in expectation managemen t often happens during therecruitment and interview process. Due to staffing constraints (the reason whyrecruitment was done!) or desperation in staff replacement, the interviewer may embellish the corporations ability to function in fundamental areas of employment. Likewise the interviewee repeats the same mistake byacquiescing to oddly or openly defined job descriptions and responsibilities.

A thorough interview process is often overlooked with the assumptions that

since one would only require an employee with a series of skills; any senior personnel may handle the task. Unfortunately, interviewers are often incapableof providing information such as micro-expectations, work dynamics andmicro-culture of other departments or the company as a whole. Always ensurethat the most relevant interviewers handle the interview process.

3 Mintzberg, Henry, Managers Not MBAs4 Which is already hard enough, according to a 2004 Gallup poll of Thailands workforce, only 1in 5 of employees know what is expected of them


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As brutal as this sounds, if the company is still in a state of flux, by all meansdetail the challenges that the employee will face. State clearly, workload,different roles and responsibilities and more importantly emphasizeareas/situations that the candidates will be uncomfortable in. By providingonly broad swaths, the organization is delaying the inevitable or worst,creating false hopes and expectations that were never verbalized. A disgruntledor disengaged employee will mean further productivity losses as well asdisruptions to the company from frequent staff resignations.

LeadershipJim Collins in his book, Good to Great notes that one of the essentialingredients for taking a company to greatness is having "Level 5" leaders,executives in whom extreme personal humility blends paradoxically withintense professional will; ferocious resolve, and the tendency to give credit toothers while assigning blame to themselves. BCG Way - The Art of Developing Leadership" by Hiroshi Kanno also highlights five abilitiesrequired for executives - strong will, courage, insight, tenacity, and softleadership-for showing the vision, sharing the dream, and attracting people.

Such qualities are rare, and more often than not leadership has been entrustedto individuals who have one or more of the attributes above but rarely a

prerequisite to have them all. The emotional attitude of the immediatesupervisors has been cited as one of the most prevalent reason why staffsleave. Lack of Emotional Intelligence 5 and constant outbursts, rumour mongering as well as a demeaning attitude towards staff create toxic work environments. Common mistakes include attributing negative situations as areflection of the organization as a whole to their subordinates. Essentially, this

places the supervisor to the same level of the staffs, projecting helplessnessand reducing confidence that subordinates have towards the leader. Unlessotherwise noted, the manager/team lead should only limit all negativecomments within the management council or within parties of the same or higher level. Better still would be to address the situation and recommendactions to restore as well as understand it better.

5 Daniel Goleman popularized Emotional Intelligence and he identified 5 criterias for anindividual which is emotionally capabled

To identify and name one's emotional states and to understand the link betweenemotions, thought and action

To manage one's emotional states to control emotions or to shift undesirableemotional states to more adequate ones

To enter into emotional states associated with a drive to achieve and be successful To read, be sensitive to and influence other people's emotions To enter and sustain satisfactory interpersonal relationships

Level 5 Leaders,executives in whomextreme personal humility blends with intense professional will,

ferocious resolve and thetendency to give credit while assigning blame tothemselves Jim Collins


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Leadership is highly important in creating confidence, according to RosabethMoss Kanter, there are fundamentally 3 levels of confidence: Confidence inone self, confidence in your teammates and finally, confidence in the system .The 3 rd level includes having confidence in the organizational structures androutines for accountability, collaboration, and initiative. Not only do leadersneed to look at the bigger picture and accept change rather than the contrary,they would also have to be sufficiently mature in explaining concerns as wellas well drivers behind processes rather than enforcing conformity as anundeniable truth. The question to ponder on is how could you best work withthe process rather than against it? The organization has to promote a culture of open discussion that focuses on improvements rather than gripe and groan onthe inefficiencies. The conform or die culture leads to stagnation and rust.

Secondly, leaders imbue culture into the organization and it must primarilyconsist of accountability and trust, one depends on leaders for advice andvalues that the organization upholds. Secondly, one also look upon leaders asmentors and exemplars of honour and respect, failing which the lack of confidence towards the leader as well as the system will devolve theorganization into sympathetic dejection, creativity ebbs and productivity non-existent as unquestionable rules reign over every action where inaction (fromfear of breaking rules and meeting consequences) meekly preferable over nascent initiative. Finally, the organization must eschew the practice of installing narcissistic leaders.

Narcissistic Leaders, whose energy, self-confidence and charm lead theminexorably up the corporate ladder, are terrible managers. They resist acceptingsuggestions, thinking it will make them appear weak, and they do not believethat others have anything useful to tell them. Narcissists are biased to takemore credit for success than is legitimate, Hogan and his co-authors write,and biased to avoid acknowledging responsibility for their failures and

shortcomings for the same reasons that they claim more success than is their due.~ excerpt from The Dark Side of Charisma

Lack of Career DevelopmentIn order to build a fulfilling and attractive career development plan, HR folkshave to be the strategic partner with the senior management and in order to doso requires the necessary business skills to understand strategy as well as their roles in implementing it. According to Nancy Rothbard of Wharton, "If topmanagement doesn't see value in having HR as a strategic partner, and if HR can't think out of the box in that role, then the partnership is probably notgoing to happen." Without which, the whole HR department would function nomore than an administrative body where that function can be easilyoutsourced.

A career development plan ensures that staffs have a sense of purpose anddirection to strive towards higher goals rather than seek those challenges andopportunities outside of the company. One would rather have people (assets)who are champions and winners (that will continue to grow and bring in more

profitability) than be fuelled by complacency (fixed assets, or worst sunken


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costs). As such, organizations would have to move their mindset from fixedasset development to higher yielding investment platforms with human capitalmanagement.

However, Andy Grove from Intel in Only the Paranoid Survive has this tosay about career development nobody owes you a career. Your career isliterally your business. You own it as a sole proprietor. You have oneemployee: yourself you need to accept ownership of your career, your skillsand the timing of your moves nobody can else do that for you.

It is when organizations can accept and understand the dynamics of free agentinclinations of skill-based employees that they can better address the issue of staff retention.

EmpowermentWith 1 for 1 odds of winning, your returns are as much as your investments;with empowerment, the odds are limitless. 6 Kotter highlighted the following

problems to empowerment succinctly within the diagram below:

Failure may hurt the organization, but fear of failure will cripple it, along thesame token, people who are cowed by factors outlined above will slowly butsurely maim the organization. The investment is no longer akin to fix assets,

but synonymous to continuously placing more money on stocks while theorganization is in a depression!

6 It is not the authors intention to equate human capital investments with gambling.Unfortunately, with the nature of human resource management, the association is rather tempting.

Failure may hurt theorganization, but fear of failure will cripple it


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One of the many ways towards empowerment starts by including staff in thestrategic development of the company. Therefore taking the reigns of destinyaway from an autocratic management and into the hands of employees. Hereare some tips to empower the people who work for you:

Encourage innovative thinking. Regularly demonstrate respect for employees.

Delegate, and dont micromanage. Extend trust. If you are dissatisfied with the result, identify the cause and

work on it. Encourage risk-taking and be tolerant of failures. Spread decision-making authority around.

Empowerment could be summarily reduced as an individual with a confidentstate of mind compared to a debilitating helplessness in determining ones fatewithin the company to meet KPIs. Faced with such a scenario, morale becomesan issue. The fastest way to fix the problem is by reducing KPI expectations

but would not it be better to truly empower your staffs, than to fake themeasurement of performance.

Placing employees where they work best, matching experience and/or preference is also quoted as a basis for empowerment. This is achieved byunderstanding both emotional types as well as aptitude of your employees.According to the Gallup Corporation, an employees strengths can be dividedinto 2, talent vs skills. Talent is inherent to the person while skills can betaught. With the correct combination, it separates a happy and productiveemployee against someone who is working just for money. However, the samehigh measures for performance still apply, we expect nothing less.

Human Capital Development

Companies must now focus on intangible assets7

and the most important of which is Human Capital- The collective knowledge, experience andattributes of employees that they choose to invest in their workplace . While theconsulting model of charging by time and material can infer profitability of anemployee, the common challenge that organizations face is ascertaining Returnon Investment on Human Capital Investments i.e. training and staff development. 8 Without such justifications, allocations for training and career development have been lacklustre if not a knee jerk reaction to projectrequirements.

Another axe to grind would be the issue of employee loyalty as organizationsare constantly plagued by resignations after investing heavily on expensive

trainings and certification. The argument here is that the situation is

7 Weatherly quoted 4 intangible assets, human capital the collective knowledge and experienceof employees. Structural Capital codified knowledge within the organization (patents,copyrights, methodologies), Social Capital (relationships within the organization that facilitatestransfer of knowledge Collegial networks, team relationships, culture) and OrganizationalCapital The companys external relationships (License agreements, customers, brandcredibility). Among the 4, Human capital is the most fragile, as well as influencing the growth of the other 3 intangible assets.8 Mercer Human Resource Consulting 2003, Human Capital Institute 2002


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symptomatic of something larger and should the working environment beconducive and nurturing towards the staffs advancement (both viacompetitiveness and opportunities), there should be no reason for a staff toleave.

Hence, to alleviate the situation training bonds are introduced. Unfortunately,this is both counter productive to the working environment and implies that theemployers trust towards the employee is non-existent to the point that itrequires legal assurance. Secondly, the underlying message delivered is thatthe employees are required to work their way out of the bond, both negativeconnotations. To the company, a training bond is insurance that warrantspotential return on investments. Often however, wasted as trainings aresporadic and lacks the momentum and commitment to reach identified goals.

Introducing retention bonuses as well as perks for acquired certification andqualifications would be a better solution; this is both inline with general HR

practices (particularly with recruitment) and creates an environment of excellence. It is important that training is based on constant collaboration andalignment between the companys strategic direction and the vertical of knowledge to be attained. Like all endeavours, there are no hard and fast ruleswith regards to quantum of perks; each engagement requires constant pruningand evaluation of policies to fit the area of work that the employee is in. TheIT industry is a challenge in itself as market forces are driven by differentverticals of technology that are further fuelled by demand for that technology.Considering that each vertical has their own market rates the organization thatfails to react to this constant flux will risk losing their staffs, even WITHtraining bonds.

There is no reason why poachers would be unwilling to pay for the traininginvestment made by the prospects originating company, essentially because

the premium makes up for time incurred. In order to avoid unnecessary staff movements, the CFO, HR and Technology departments would have to work closely to ensure competitiveness as well as necessary budgets for staff development, not forgetting all the elements discussed within this article.Without which, employees will react negatively towards any form of trainingand constantly search for avenues to avoid the limelight, choosing to reside

below the radar in complacency. An organization where the employees exhibitopportunistic flight/flee reactions is a sure sign that major weaknesses in theorganization requires immediate rectification.

As a whole, the company would have to work doubly hard to ensure staff retention for both continuity and consistent performance. There will naturally

be an interplay of employer-employee relationships that requires closeobservation. For instance, does the employees character includes loyalty, or is that personnel simply too comfortable in his current position? Organizationshave to celebrate performing staff but censure inactivity, in order to do so, akeen eye is required to understand what priorities drive the individuals andwhether they are a diamond in the rough or just plain rocks.

It is important that training is based onconstant collaborationand alignment betweenthe companys strategic direction and the vertical

of knowledge to beattained


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Training should be aligned with the following 3 areas:o Relevant to the existing project implementation.o Relevant to the companys technological and strategic pathso Relevant to the individuals career development and interests.

Failing which, most training will go to waste, a survey by A.T Kearneyshowed that the individual in their daily work uses only 20% of the knowledgegained from trainings attended. This implies that the organization would haveto seriously consider a concerted training development plan as the first stage inrecouping the investment made. Simply said, frequent entry and exist tradesleads to high management costs and reduces profit taking to the short term.

RemunerationsRemunerations and rewards are important factors, as we cannot deny theimpact so much as we can attempt to deny gravity. Fundamental to anyorganization is the ability to be a consistent paymaster. Malaysia has had along battle with employers that abuse their own employees with delayed if notno payments to the Employee Provident Fund. Regardless of the rational

behind such decisions, the outlook to the industry as a whole is far reaching.Bad employers breed bad employees. The negative experience creates ademoralized and cynical work force and devalues the consistent element thatsustains any organization loyalty. The Malaysian Government has to comedown hard on defaulters to ensure that there will be no more abuse of thissystem. As of 2005, EPF has issued 403 civil actions against corporations ascompared to 14000 suits in 2004, however, there were no mention of theefficacy in terms of returning the funds to EPF subscribers.

Adopting Maslows Hierarchy of Needs, at the lowest level will be aconsistent paymaster, the 2 nd level is reflected by timely provisioning of increments and at the 3 rd level bonuses. The final level warrants a highlytransparent remuneration scheme where employee performance is measurableand performance criteria readily available as well as being reflective of thefinancial standings of the organizations. Meeting employee expectations at alllevels and avoids any implication of unfairness.

The biggest faux pas that an organization can commit is a disjoint betweencorporate and employee expectations, one cannot harp on increasing earningsand revenues without consistently reflecting those achievements to theemployees. To further exacerbate the situation of people leaving for greener

pastures, remunerations have taken a sharp hike over the years, most notable of

Consistent Paymaster, timely, No EPF or Tax fraud.

Yearly Increments

Bonuses

Performance based perks,profit sharing, ownership


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which is the area of SAP Consultancy with an increase of 36.5% between 2004and 2005. The table below provides some information of salary movement for major job descriptions within the Malaysian IT industry for 2004 and 2005.

Title Qualifications/No. of YearsExp

Job Description Salary in2004for CentralRegion(KL/SEL)(min max)

Salary in2005for CentralRegion(KL/SEL)(min max)

%

AnalystProgrammer

Degree2

Design, code & test programs tosupport the Application

2500-3500 2500-3500 0

SystemsAnalyst

Degree3 - 5

Systems Analyst Perform systemsfeasibility studies, analysis &design to meet user requirements& application. Work closely withengineers & technical support toresolve customer issues. Provide technicalapplication support to users

3600-5000 4000-5500 10.5

TechnicalConsultant

Degree2-3

Effective & efficient trackingproblems & changes.Continuity of ownership &documentation of IToperational problems fromoccurrence to resolution,including post resolution analysis.Provide solutions toIT-related service problems.

3000-5000 3500-5000 0

SAPConsultants

Degree3 5

Provide and roll out applicationsupport on SAP system.Maintenance of comprehensive &accurate documentation &services that conforms fully withestablished policies, standards,procedures & guidelines

3500-6500 5000-8000 36.5

IT Manager Degree4 6

Troubleshoot & assist theorganization in any IT matters or problems. In tune with all the new

ITdevelopments in the requiredfields.

4000-6000 4500-7000 14.6

IT ProjectManager

Degree3 5

Plan, direct & execute projectmanagement activities for anarea/division. Monitor progressagainst schedule & project budget.May allocate or assist in theallocation of appropriate resourcesto deliver project results.

4000-6500 5000-8000 24.0

Source: Kelly Services (M) Sdn Bhd.

Management now scrambles to meet market expectations, employee needswhilst juggling company profitability, this further heightens the requirementsfor a performance-oriented approach to remunerations. The issue with

performance-based pay is balancing between a system that coddles mediocrestaff and a capitalistic approach to job rewards. At both ends we may haveextremes of failures, the former, institutions that lives off complacency whilethe latter sees risks of abuse.


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To ameliorate the situation, Konig and Miller (Gallup 2003) recommend thatnot only should expectations be clearly stated but pay by performance systemsmust be transparent.

Their performance-measurement systems consist of a limited number of metrics -- usually between three and six.

Associated compensation is clear and straightforward: For every perfect boxan employee assembles, he gets $1; for every project he leads, he gets $1,000;for engaging his clients, he gets $500. Made simple and communicatedeffectively, plans like this clarify what is expected from each employee ineach role.

As such, organizations are left with 2 choices, be totally transparent in profitreporting and operations, or manoeuvre clandestinely hoping that the personnelinvolved are sufficiently proficient in cloak and dagger management.

A New Beginning Organizations need to continuously analyze and reinvent themselves, focusingon people and the supporting infrastructure for the people. Self-healing andself- learning the organization has to behave like a sentient being, capable of reasoning, awareness and introspection to achieve ascendancy.

In order to self-heal, the organization requires openness to accept criticismsand a willingness to learn from mistakes. A culture of discourse as well asmentoring for the new generation of leaders .To self learn the organizationmust no longer allow the migration of hard earned knowledge and intelligence,wasting time on retraining when the same energy can be well used for improvements. One way to achieve this is through building confidence towardsthe company via clear roadmaps of growth and direction.

Confidence can further be achieved by helping the employee aid the employer.It comes as no surprise that one of the major reasons for an employee to leaveis the lack of expectations and the necessary resources to do the job, or worst,

processes within the company that dishevels momentum and any good naturedintension by the staff. By all means, stop the bleeding before it becomes

profuse, detect the weaknesses and open your eyes, ears and heart to even thesmallest of cries.

We have also worn down the traditional model of having a separate humanresource and finance department. All dealings with regards to personneldepartment will require a concerted effort between Finance, Human Resources

and the immediate superiors that the employees interact with. Why wastecrucial company resources hiring human resource staffs to do nothing morethan administrative duties revolving around leave entitlements and punctuality.HR should outsource all administrative duties and focus on crucial strategicelements fine tuning recruitment, staff retention, business and marketcompetitive research, resource management, matching talents as well as skillsand career development.


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When personnel are assets and the companys growth directly tied to theassets performance, the CFO would have to invest and budget for HumanCapital Development, ensuring that the very asset are well maintained andcontinues to perform. Again, the human resource department can no longer function as a separate entity that peruse over KPI Score cards but operatewithin the functional area of the employee to gain both direct feedback andinstant input on the progress of the human capital.

Leaders need to be inculcated from within, let them grow and flourish but atthe same time play the talent game and fish for assets that can further improveon your existing stable from outside the company. The important point toremember about leaders is that they are what they are because they havefollowers, not mercenaries. Finally, a strong sense of responsibility andhumility is required to breed loyalty and respect. No longer can anorganization function with narcissistic leaders 9 or emotional speechmakerswith larger than life visions but lacking the gumption or the required focus todrive through their ideas. Lesser still are leaders who win situations throughunscrupulous tactics or power plays where the end justifies the means. Weneed great leaders, visionaries and champions with the professionalism to beremembered as a gentleman, thus creating a legacy of leaders to guide theorganization into the next century.

To end, the road to a winning, lasting and profitable organization begins withthe people.

Authors email: [email protected]


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Appendix

Forman ,David C. ; HARNESSING THE ELUSIVE ASSET:Developing IntangibleOrganizational Capital, Sage Learning Systems, Chair, Human Capital Institute EducationBoard

Weatherly, L. The value of people. SHRM Research Quarterly. 3, 2003.

Cantrell, S; Benton, J. M. Harnessing the Power of and Engaged Workforce , AccentureOutlook, April 2005

Kanter , Rosabeth M; Confidence - How Leaders Create Winning Streaks (and Avoid Losing Streaks). Harvard Business School Publishing Virtual Seminar

Koning , Guido M.J. de; Miller, Jane , Giving Them What They Deserve - Your companys pay system should reward your best people -- not drive them away. Gallup Corporation

Cappelli, Peter Rethinking Employee Retention in a Competitive Economy , Harvard BusinessReview, 2000

Managing Change and Transition , HBS, 2003

Mintzberg, Henry, Managers not MBAs , 2003

Gladwell, Malcolm The Talent Myth , The New Yorker, 2002

Michaels, Ed; Handfield-Jones, Helen; Axelrod, Ben The War for Talent , Harvard BusinessPress, 2001

The War for Talent Organization and Leadership Practice , Mckinsey & Co, 2001

Kelly Services, Malaysia Salary Guide 2005 , www.kellyservices.com.my

Kelly Services, Malaysia Salary Guide 2004 , www.kellyservices.com.my

News clips, www.kwsp.gov.my

Collins, Jim; Good to Great

Robert Hogan, Robert Raskin, and Dan Fazzini , The Dark Side of Charisma

Goleman, Daniel; Emotional Intelligence

Grove, Andy S.; Only the Paranoid Survive , Harper Collins Business

Is Your HR Department Friend or Foe? Depends on Who's Asking the Question ,Knowledge@Wharton, 2005

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