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Posted on March 14th, 2013, by

Formulating strategic objectives and programming of organization/development process
The most successful transformations in business occur when the energy of the entire organization is aimed at and supports the same objective. This requires:
Identification of the organization’s best and most strong sides;
Understanding of what further positive changes can be implemented;
Planning of what should be implemented in the first place and further;
Achieving the result that meets expectations.

In this situation, the company needs to implement the tools of Key Performance Indicators (KPI), which are the tool for monitoring the progress towards the strategic objectives of the company. Therefore, the work on strategy is of great importance – strategic objectives should be clearly defined, non-contradictory and compatible with each other.
For the analysis of the company it is more effective to formulate the Key Performance Indicators (KPI), focusing the entire company on strategic objectives, thus developing a comprehensive and balanced scorecard. Therefore, the selection of indicators and determining their target values is conducted based on the objective to achieve clear and measurable strategic results for the planning period. Everything that has no strategic value is not included in the KPI (performance indicators) or used as an indicative figure (Nankervis, 2008; Noe, 2009).
Key prerequisites for the successful implementation of KPI system lie in the clear definition of people responsible for each of the developed indicators, setting a time frame for achieving the target value on each indicator, and binding the motivation to these values.

Main stages of work on implementing key performance indicators include (Hetrick, 2009):
1. Specification of strategies: specification of strategic initiatives; formalization of strategic objectives; holding strategic sessions.
2. Setting up the Management System: optimal allocation of responsibilities and powers; binding KPI to specific departments, functions, processes; adjustment of business processes to fit the strategy.
3. Development of the system of indicators: identifying KPI; defining mechanisms of calculation, analysis and adjustment.
4. Motivation: binding remuneration system to the developed KPI; agreement of personal values with specialists.
In the result, the company could obtain agreed objectives of the owners and managers, a set of KPI to focus the effort on, useful strategic and practical initiatives, a clear structure and division of responsibilities and powers, and motivation system aimed at achieving the KPI.

HR audit aimed at minimizing risks of HR/ER management

In our opinion, in current case, HR audit should first focus on headcount optimization, i.e. optimal determination of the quantity of the staff, which is produced by using various techniques of quantity norming.
Every competent manager seeks to save the resources needed to conduct business. Expenditures on personnel make up a significant portion of the costs of most companies, so the optimization of personnel quantity is an important task, which is necessary for effective business and can’t be just narrowed to personnel reduction.
Optimization of the number of personnel in the discussed case is possible by means of (Freyens, 2010):
optimization of key business processes and organizational structure in the units;
hiring more qualified personnel;
improving productivity;
regular assessment of employees’ loading;
norming of the working hours;
creating an effective system of personnel management inside the organization;
organizing information events for the existing staff.
In the end, the HR consultant can also provide the organization with the draft of project on organizational structure regulation designed for the future periods, which takes the implemented changes into account.

Development of corporate competency diversified model

The model of competencies is a set of core competencies (knowledge, skills and attitudes) required from employees to successfully achieve the strategic objectives of the company. First of all, it is necessary to assess the three types of competencies specific for the organization and describe the skills needed for effective work in this or that position: corporate competence (corporate requirements for all employees; employees’potential for career growth in this company; attitudes and motivation of the staff); managerial competence (the readiness of the employee to perform managerial functions; managerial skills and abilities necessary for successful leader) and functional (professional) competence (the readiness of the employee to work effectively in a concrete position) (Clardy, 2008).

Due to the fact that each organization has its own specificities, which are sometimes crucial for its success and competitiveness in the market, standard competency models are inefficient in practice. Competencies must be consistent with the strategic plans of the company and be adapted to the corporate culture of the company. Developing a competency model, the company should (Hetrick, 2009):
attract employees who better meet the needs of the organization development (criteria for selection of managers is consistent with company’s strategy);
set the criteria for appraisal and evaluation of the staff;
consider that competency model is the basis for building a complex system of training and allows the organization to keep track of successful projects in personnel development, which are consistent with the strategy of the company;
define criteria for the formation and development of personnel reserve of the company (in particular, leadership positions should be taken by manager who are mostly experienced in this position);
form a unified corporate image of the employee, as a competency model is a tool for managing corporate culture;
keep in mind that competency model is an integral part of creating a system of motivation of employees (basing on a competency model, transparent motivation system can be formed which meets the development strategy of the company).
The development of a competency model meeting the professional needs of a wide range of users can be possibly based on a structural approach. For developing a competency model and forming a feeling inside the employees that the model used is the product and property of their own, it is necessary to involve the staff in developing the model and provide awareness in everything that relates to the model. In order to understand the value and relevance of a competency model for the performance of each employee and the organization as a whole, the entire process of creating a competency model should be presented as a clear and common aim for all the personnel. To achieve such a state, it is necessary to carry out the full analysis of the work content and roles, which takes into account and predicts changes that could affect the performance of employees in future (Clardy, 2008; Noe, 2009).
Thus, developing a competency model is a process which combines ideas about what is going on with working functions now, and what will happen with them in the future. It is very important that future users are involved in the work at least at some stages of competency model development and contribute to the process. Obviously, the competency model should be useful to employees and clear in descriptions. The factors of competence productivity should be tested, and their significance should be shown and proved to the staff before the model is applied.
When the competency model is already put into operation, HR experts should constantly maintain the users through training and improvement of the tools applied by the model. It is also important to ensure continuous improvement in the trust of the personnel towards the relevance of the model not only for the present, but also for the future.

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