HR in an age of austerity

 

Debbie Meech, HR Director, Cable & Wireless and Graham White, HR Director, Westminster City Council discuss some of the issues facing HR personnel in a difficult financial climate. Interesting observations about Human Resources functions on generating positive sentiments about organizations during times of downturn and job cuts.

What really motivates us

Adapted from Dan Pink's talk at the RSA, illustrates the hidden truths behind what really motivates us at home and in the workplace. Interesting research work showing how higher rewards not always leads to higher or better performance for knowledge workers. 

Makes you wonder if we need to review and redesign performance management philosophy and Organizations reward approach. Higher performance need not always be driven by higher rewards, economic behavior is also a function of purpose of work and inherent satisfaction which a job provides.

I am reminded of Herbert Simon's Satisficing approach where he pointed out that human beings lack the cognitive resources to maximize: we usually do not know the relevant probabilities of outcomes, we can rarely evaluate all outcomes with sufficient precision, and our memories are weak and unreliable. A more realistic approach to rationality takes into account these limitations: This is called bounded rationality. 

These observations & studies are good indicator why our approach towards human behaviour model continue to be a limiting approach due to perceptual / cognitive behaviour which is more heuristic, unique and situational.

7 Talent Management Practices to Help You Survive a Downturn

Guest Post by Sean Conrad

To weather an economic downturn, companies need to focus on their core business and strengths, reduce unnecessary costs and be more efficient. Here are 7 talent management practices every company should implement to get the most out of their workforce.

1. Align Goals and Track Everyone's Progress

You need to make sure that every employee's goals are aligned with organizational goals. You also need to regularly monitor progress on goals so you can take corrective action as required. Finally, you need to be able to quickly and effectively communicate any change in focus, priorities or tactics. Your talent management system should allow you to quickly communicate changes that impact organizational goals to everyone who has a linked individual goal.

2. Conduct Regular Employee Reviews to Keep Employee Performance On Track

Employee performance reviews give employees an opportunity to talk with their manager about what they are doing well, areas for improvement, skill gaps, career plans, goals, competencies, development needs and more. It's one of the most effective ways to keep performance on track.

They also help managers and HR identify low performers and take action to improve their performance, so the company can get the most out of all its resources.

Finally, employee reviews make it easier for managers and HR to make critical decisions about workforce restructuring and right-sizing if/when needed. By providing a history of employee performance they allow managers and HR to accurately identify high and low performers and employees with critical knowledge/experience/skills.

3. Provide Ongoing Feedback to Maximize Performance

Ongoing feedback helps everyone maximize their performance. It allows for quick corrective action, so managers and employees can address any issues while they are still small. To formalize this process, you might want to do quarterly or semi-annual reviews instead of just annual ones.

4. Invest in Performance-Based Development

Make sure you're getting value from your investment in employee development. Start from your employees' performance appraisals and use them to identify skill gaps, so you can be sure you're offering the right, targeted learning activities. You should also consider which competencies are key to your organization's success and target training to build strength in these. Finally, you should always measure the change in employee performance ratings that results from a learning intervention to make sure your training is effective.

5. Identify and Reward High Performing Employees

Knowing who your high performing and high potential employees are is always critical. While you may not be able to reward them with salary increases, bonuses or other monetary rewards during an economic downturn, you can still demonstrate your organizational commitment to them and recognize their contributions through other means. These are the employees you can't afford to loose; make sure you're acknowledging their performance and potential.

6. Have a Succession Plan

Your organization needs to be prepared to replace people in critical roles at all times. It's even more vital in a downturn, when a vacant leadership position or shortage of a critical skill could cripple your organization. A talent pool based succession plan helps your organization to identify the critical skills and competencies it needs to succeed over the long term, not just the leadership roles it may need to fill. It then helps you identify and groom your high-performing and high-potential employees to fill these needs when they arise.

7. Be as Efficient as Possible

In an economic downturn, no organization can afford inefficient processes. Systems that automate your talent management processes make these processes more efficient and cost effective. Many companies realize a return on their investment in talent management software in the very first year – often enough to more than cover the cost of the new system. They also usually see an increase the quality and value of their processes, typically resulting in higher employee satisfaction and engagement.

Sean Conrad is a Senior Product Analyst at Halogen Software, one of the leading providers of talent management solutions. He can be reached at sconrad@halogensoftware.com

Managerial Decision making

Critical managerial decision making is the key to superior performance at work.One has to refer to critical Data, past records and performance metrics and analysis before making decisions .Mc Kinsey study tries to assess the various factors which influence decision making at work. Executives often end up referring to wrong sources, which lacks scientific rigor and credentials in its finding, for arriving critical decisions. Just because one strategy works for a particular organization may not prove to be equally effective for other enterprises.

Unfortunately, many of the studies are deeply flawed and based on questionable data that can lead to erroneous conclusions. Worse, they give rise to the especially grievous notion that business success follows predictably from implementing a few key steps. In promoting this idea, authors obscure a more basic truth—namely, that in the business world success is the result of decisions made under conditions of uncertainty and shaped in part by factors outside our control. In the real world, given the flux of competitive dynamics, even seemingly good choices do not always lead to favorable outcomes.

The halo effect is especially damaging because it often compromises the quality of data used in research. Indeed, many studies of business performance—as well as some articles that have appeared in journals such as Harvard Business Review and The McKinsey Quarterly and in academic business journals—rely on data contaminated by the halo effect. These studies praise themselves for the vast amount of data they have accrued but overlook the fact that if the data aren’t valid, it really doesn’t matter how much was gathered or how sophisticated the analysis appears to be.

This reliance on questionable data, in turn, gives rise to a number of further errors in logic. Two delusions—of absolute performance and of lasting success—have particularly serious repercussions for business strategists.

It’s actually a real problem which many strategist face and typically too much of analysis may lead to complicated or erroneous conclusions if the context of the reference is not verified. Sometimes a single factor can be picked up as a major perceived thereat and instead of finding a meaningful and objective solution based on organizations own reality decisions may be unduly influenced by halo impressions.