The Process of Integrating HR Functions with Management Functions

Redesigning Human Resource Processes

This process defines the roles, activities, and responsibilities of the HR staffs, managers, and employees in achieving targeted results. The common mission is the right person with the right capability doing the right work in the right environment. In many companies, people management processes are being similarly redesigned to match the new flexible, horizontal, organization paradigm. This paradigm may positioned leader to serve the employees and employees to serve the customers. This is means that the customer to be on the top and the leader to be on bottom. This design will allow ultimate customers satisfaction and increase the overall performance.

Performance and Rewards

Performance planning and review have a primary purpose to help employees understand how their work affects the success of the business. Emphasis is on aligning individual and team expectations with business strategy–interpreting the relevance of business values, mission, vision, objectives, and action plans. Individuals and teams build a shared understanding of expected performance. Managers enable improved performance through coaching, providing resources such as training, and feedback on results. Performance is recognized and rewarded, in flexible ways that fit the circumstances.

Annual salary adjustments merely used as an adjustments for market value. Many companies focusing on individual incentives, gain-sharing, and profit sharing. Job evaluation processes defining salary levels of jobs are being simplified, often with fewer and broader salary bands and increased focus on linking base pay with capabilities and their market value. Many companies are adopting multi-source feedback on performance and capabilities, including inputs from peers/team members, multiple managers or technical experts, and customers. In this way, performance and development are blended, with a focus on self-directed improvement in capabilities. The process is driven and maintained by employees and their managers, not by the human resource function. Performance management is thereby integrated with the business.

Staffing

Many leading companies are applying processes to match talent with changing requirements. Critical skills mix and staffing issues are being faced in many companies. The response is to adopt a strategic staffing process that will guide recruiting, movement, targeted development, and separation of employees–the flow of talent in relation to future requirements. The process typically defines future requirements, through analysis of staffing drivers, head count changes, and capabilities required. It may involve actions to improve staffing utilization, through work flow changes, shifting work to higher value, and reassigning talent. Where requirements fluctuate, it helps balance peaks and valleys, and considers appropriate use of part-time, contract, and other contingent work force. Ultimately, it defines gaps and surpluses of talent and required staffing actions to correct these.