Functional area 01—Business Management

Dealing with situations that are uncertain, unclear, or chaotic

1. Be Honest and Consistent When someone asks you a question, give them an honest answer. Don't dance around the issues. Have your employees' backs and make them feel safe. If it is a topic that you don't have the authorization to discuss - then be honest and tell them that. Just be consistent and don't share any confidential information with anyone within the department. Every leader has their favorites and those they can bounce their ideas off. In this situation, you can't - because if you do and others find out, your leadership reputation and creditability will be tarnished, and their loyalty towards you may begin to wane. Honesty and consistency are key success factors to create engagement during uncertain times. 2. Meet Often and Evaluate Mindset Minimize distractions by having formal meetings with your department and sharing any insights you may have. These types of meetings are not only about providing status reports that channel out of your own senior staff meetings, but also about the opportunity to genuinely engage with your employees. These meeting are not to be rushed. They are intended to slow down the chaos and bring together the people that must be on your side in order to get through the uncertainty. Take the time to talk things out and bring down the intensity and lighten the mood. Get to know what your employees are thinking about and begin to evaluate their mindset. Having a strong understanding of how the uncertainty may be disrupting performance, attitudes, etc., will give you the insight you need to learn about your employees - but more importantly what you need to do to step up your game and deliver what is required to ensure you never lose touch with what matters to them. In the end, you want your employees to know that you genuinely care and that you can connect with them on multiple levels. 3. Listen and Pay Close Attention Leading through uncertainty is a critical experience not only for you - but more so for your employees. As such, make it memorable and be extremely mindful through broadened observation so they can positively embrace it. Often you or your executive assistant will catch wind of the break room discussions and the rumor mill that is flowing throughout the office. In fact, you may begin to hear things that people are saying about your mishandling of the uncertainty that may upset you and make you to feel the need to defend yourself. Remain calm and allow the situation to organically unfold. Listen and pay careful attention to everything that is taking place - not just in your department but also in other departments. Take your notes to the next staff meeting and compare them with those of your colleagues. Allow the collective knowledge that comes from all departments and their leaders to provide you with greater insights that can help you anticipate the unexpected and best prepare you to handle tension from employees - and neutralize it so that engagement can remain strong. You have to live this type of critical experience in order to truly master it and it takes a tremendous amount of mental toughness to endure the journey. 4. Create and Share Key Learning Moments My experience in leading through uncertainty has taught me that if I can effectively and consistently deliver steps 1-3, then I have the self-awareness - through broadened observation to create key learning moments and share them with employees. Employees know when you are mindful of their concerns, but also when you have the ability to take a potentially negative situation and make something positive from it. This takes a tremendous amount of commitment and focus - but it's a powerful way to keep your employees engaged and believing in you. Beyond formal meetings, quick impromptu huddle sessions where you can share key learning moments help you create a culture around the uncertainty that is focused on promoting the positive impact that can be gained from any situation. It also allows you to further gauge the maturity of your employees and how much uncertainty they are capable of handling. Be intentional about collaboration, making sure you give employees the room to ask questions and extract key learning moments that stimulate engagement. 5. Reveal Your Executive Presence Your composure, how you react to the negative hallway dialogue, how you handle the politics and the effects of the uncertainty - all will reveal your true leadership style and approach. Each is an opportunity to unleash your impression as a leader. Always be present and be compassionate, yet decisive - and never stop engaging with your employees, who more often than not experience the uncertainty through a different lens and therefore have opinions that may not always be in alignment with yours. In the end, you cannot go at leadership alone. It's all about people, how you treat them and show your genuine compassion and commitment to their careers, their development and discovering their full potential. When you have executive presence, you can slow down and see and seize opportunities more clearly. You are able to make smarter decisions and can begin to anticipate the needs of your employees more clearly. When this happens, employee engagement becomes second nature regardless of workplace circumstances. Times of uncertainty will always reveal your maturity as a leader. Therefore, see it as an opportunity to advance your leadership by serving others, rather than as a setback to your own agenda and career expectations. Keeping employees engaged and focused when there is uncertainty all around them can seem like a daunting challenge - but less so for the forthright leader who listens attentively to their employees' needs, makes themselves available and shares with them often, and conveys to them a consistent and confident executive presence. 1. Plan for Specific Scenarios Before They Happen HR professionals can't predict the future but they can have a plan ready to go when employees and managers look to them for answers on how to navigate these difficult situations. Contingency planning is especially important in the world of work. The economy, the political climate and several other factors impact how your business operates. Take an economic downturn, for instance. If the Dow were to drop significantly, it would likely require your organization to make staffing changes. Meanwhile, policy changes like new legislation around the gig economy and data privacy can impact employees' day-to-day routines, so it's important to stay up-to-date on what's going on outside the office so that you can better prepare your workforce. Contingency planning also means preparing for unlikely and potentially frightening events, like natural disasters and widespread illnesses. In the case of the former, it may be worth conducting training that helps workers know what to do if, say, an earthquake hits or tornado strikes (e.g., how to evacuate, where to seek shelter, etc.). You might also take proactive measures to purchase office rental insurance or move all paper files onto the cloud. Meanwhile, for health-specific cases, contingency plans might include rethinking how your business operates if employees need to work remotely for an extended period of time to limit risks. Conducting a "trial run" of sorts can ensure employees have the tools they need to work from home effectively. That way, if and when the time comes when they must avoid going into the office, they are prepared to continue working effectively from home. It will also be important to develop a plan for these employees who need to quarantine themselves. Brainstorm ways to keep them feeling engaged in their work and included on the team. 2. Communicate with Workers Early and Often As employee expectations continue to change, organizations are placing increased emphasis on transparency. Many companies are sharing information that was once considered confidential with their employees, from business financials to data around diversity and inclusion. Communicating with transparency shows employees you value them and want to keep them updated on what's happening across the organization. Transparent communication is especially important when dealing with unforeseen circumstances because it empowers organizations to build trust and gain respect from employees. Telling your staff how and why you're making certain decisions or taking specific actions will give them peace of mind that HR is there to protect them—whatever the circumstances may be. Prepare ahead of time so you are not scrambling when everyone is looking to you for answers. Most of what you would need to communicate can be preplanned so that you are only making minor adjustments when you need to act. Take the current global health scare: The probability that you will have not just one, but multiple employees contract the coronavirus seems inevitable based on current information available. Have you thought about what you plan to say to them, their colleague, an entire office or even your customers? Conversely, have you trained your employees on what to communicate or how to act when they are faced with a customer who may be coughing and sneezing or showing other signs of flu symptoms in your stores? Protecting your employees and your brand require thoughtful consideration, planning, and training. But it's not just HR that must communicate with employees—it's also imperative that managers and leads are comfortable speaking with their teams about these issues. Train managers on how they can effectively communicate these various scenarios to employees. In the event that a member of your company is diagnosed with the virus, be prepared to communicate this information truthfully and sensitively to your staff without shaming these individuals. When they return to work, pay attention to how they are reacclimating and make sure their colleagues treat them with respect. 3. Lead by Example HR leaders and C-level executives set the tone for the company from the top down. For organizations to succeed, senior leaders need to practice what they preach. Executives who fail to lead by example will leave workers confused about how they should act. For example, if you advise staff to put their health first by avoiding unnecessary business travel, but then ignore your own advice by boarding a plane across the country for a conference a few days later, you will likely send a mixed message. When leaders model appropriate behaviors, their employees know exactly what's expected of them. This allows them to focus on their work rather than spending time and energy second-guessing company policies. 4. Allow for More Flexibility There has been a growing trend towards flexible work schedules over the last decade. This benefit not only helps employees successfully manage their work-life balance, from cutting down commute times to ensuring working parents can pick their kids up from school, it also provides employees with the support they need during times of uncertainty. For example, allowing employees to work from home or encouraging them to take time off if they aren't feeling well gives them an opportunity to recover and come back feeling refreshed and well-rested. Offering paid sick leave enhances productivity and reduces turnover. It's also proven to slow the spread of disease. And during times of crisis, employers shouldn't shy away from strictly enforcing rules around coming into the office. If someone is exhibiting signs of a cold, encourage them to work from home or even take time off to get better. If your sick policy is not robust enough to account for current health scare, or lead employees feel they have to come to work because of lack of pay or fear of disciplinary action, it's time to revisit your practice—even if only on a temporary basis. Consider scenarios where employees may be uncomfortable working in close proximity to their colleagues who have traveled, even domestically, or attended conferences, concerts or other large gatherings of people. Allowing fearful employees to work from home will help them to be more productive and focus on their surroundings. But beyond offering location flexibility and paid sick time, organizations must actually foster a culture that empowers employees to work from anywhere in the event that the office closes for an extended period of time. Make sure every employee is reachable via multiple modes of communication, including phone, email and chat. Some organizations might even invest in portable technology or implement remote working policies that provide clarity and empower employees to act. Most importantly, employees must understand that they won't be penalized for working from home. 5. Offer Learning Courses on Relevant Topics Of course, uncertain circumstances often require employees to make some adjustments to their day-to-day schedules, and it's up to HR to provide them with the tools they need to carry on with their regular tasks. Learning and development programs that are accessible from anywhere can give employees the guidance they need to continue to thrive on the job. For example, if your organization has adopted a more flexible work from home policy, a learning course on how to stay productive when working remotely can help employees manage their tasks and stay engaged. Meanwhile, online courses about stress management and mindfulness can help employees navigate worrisome situations—while simultaneously equipping them with important soft skills for the future of work. 6. Readjust Your Goals In times like these, it's important to understand that change is inevitable. Instead of attempting to minimize issues that are beyond your control, embrace these challenges by adjusting your organizational goals accordingly. Encourage employees and managers to be adaptable and be there to support and guide them along the way. Be sure to also apply these adjustments to other stakeholders, such as customers or suppliers. For example, be open to rescheduling client meetings where travel is required. Consider hosting purposeful and engaging virtual meetings instead. And if your organization is planning to attend a large conference, or is hosting its own, be realistic about your sales, marketing and client expectations given that some people—including your own employees— may not want to travel.

Business elements of an organization (for example: other functions and departments, products, competition, customers, technology, demographics, culture, processes, safety and security)

What are the 7 key elements of organizational structure? These elements are: departmentalization, chain of command, span of control, centralization or decentralization, work specialization and the degree of formalization.

Existing HRIS, reporting tools, and other systems for effective data reporting and analysis

A human resource information system (HRIS) is software that provides a centralized repository of employee master data that the human resource management (HRM) group needs for completing core human resource (core HR) processes. An HRIS stores, processes and manages employee data, such as names, addresses, national IDs or Social Security numbers, visa or work permit information, and information about dependents. It typically also provides HR functions such as recruiting, applicant tracking, time and attendance management, performance appraisals and benefits administration. It may also feature employee self-service functions, and perhaps even accounting functions. In some ways, an HRIS can be considered a smart database of employee information. The interaction of the data, the processes that can be performed and the reporting capabilities make the data stored in the system more accessible and usable. HRIS benefits An HRIS enables the HR department to spend less time on clerical tasks, helps ensure the accuracy of employee data and can enable employees to take a greater role in the management of their information. Having a centralized repository for employee data removes the need to store paper files, which can be easily damaged, as well as the need to search through large paper-based employee files to find information. Depending on the type of HRIS software, it may generate various reports, provide ad hoc reporting capabilities and offer HR analytics on important metrics such as headcount and turnover. Modern HRIS software also offers visualization capabilities for employee data, such as automatically rendered organizational charts or nine-box grids. When an HRIS has employee or manager self-service, the process for making employee master data or organizational changes becomes more efficient and uses less time than with paper-based requests. Approval workflows enable changes to be approved or rejected, with the necessary individuals automatically notified. An HRIS might also offer mobile capabilities that extend self-service and provide additional flexibility for remote workers. HRIS security and privacy An HRIS also helps secure employee data and keep information private. When using paper forms or spreadsheets, information can easily be accessed by people who may not have the authority to access it. An HRIS can secure information so that it can only be accessed by authorized individuals. Data security and privacy are important factors when handling sensitive personal information, especially in countries like Germany or France, where works councils have a strong role in protecting employee data. With the exception of lock and key, protecting paper records can be extremely difficult. Types of HRIS software A variety of HRIS systems are available and aimed at different types of customers, ranging from small and medium-sized businesses (SMBs) all the way up to large enterprises. Usually, the difference is in the range and depth of features for each process area. While most HRIS systems cover a large portion of the processes described above, many HRIS systems aimed at small to medium-sized enterprises (SMEs) have less depth of functionality in each feature than those aimed at large enterprises. In this way, the HRIS market is similar to the automobile market. All automobiles will get a driver from A to B, but major differences exist in the quality and amenities offered. HRIS functions As an HR tool, an HRIS usually features modules to handle the following tasks: Master data management (MDM) Organizational management, such as positions and departments Employee and manager self-services Absence and leave management Benefits administration Workflows Performance appraisals Recruiting and applicant tracking Compensation management Training tracking (as opposed to a learning management system [LMS]) and organizational development Reporting and basic analytics An HRIS provides a comprehensive set of human resource management functionalities to serve most HR needs. Without this, unsecured or paper-based documents or spreadsheets are required to store data. Manual data entry can cause errors and manual cross-checking of documents and spreadsheets can be time-consuming and sometimes confusing, especially with a lack of standardization in how data is captured and stored. Even when a specific system is purchased to cover a process -- such as benefits administration -- it may mean manually entering employee data changes to keep the system up to date. If multiple systems are used, data re-entry may be required for each system, or users may need to export data from one system, change it and then import it into another system. In some instances, payroll can be part of an HRIS. However, many vendors either don't have payroll as part of their HRIS offering, or -- as with Oracle, Workday and SAP SuccessFactors -- they sell payroll as a separate system that integrates with their HRIS. Importance of HRIS An HRIS can play a critical role in enabling compliance -- for example, to store regulatory data for a country, such as U.S. equal employment opportunity information or U.K. Working Time opt-out -- and can offer a means of gaining insight into the workforce. Both are important and, in some industries, are interwoven. In addition, downstream integration of systems that require employee data, such as payroll or LMS, and the immense time savings from having integrated applications means an HRIS can serve a critical role, since data entry in multiple systems -- a reality for organizations without an HRIS -- can lead to costly errors or reduced employee engagement. As one example, suppose a company that manually enters HR data mistakenly overpays employees or gives out too much vacation time. That company will find employee engagement negatively affected if the error is reversed, a situation that could be avoided with an HRIS. The difference between an HRIS and an HRMS Exact definitions for HRIS and human resource management system (HRMS) vary, but many experts take the view that an HRMS offers greater functionality by adding talent management and human capital management (HCM) options to human resource information systems. The talent management functions often include: Employee onboarding processes Succession planning Career development planning Learning management The HCM functions often include: labor tracking, typically as a system that tracks all necessary work and distributes that work to workers, often in hourly roles, such as in manufacturing plants; time entry and evaluation; and workforce management. HRIS analysts HRIS analysts are highly trained professionals with skills in both IT and HR, who are responsible for managing the HRIS and presenting relevant and beneficial data on employee productivity, attendance, training and pay. HRIS analysts also ensure IT departments adhere to HR regulations as well as provide necessary resources to employees and arrange for appropriate equipment updates. Large organizations may employ several HRIS analysts to focus on specific HR tasks, such as employee benefits, compensation or training. In general, HRIS analysts ensure efficient organization and presentation of information concerning all features of HR functions within a company. Some specific benefits HRIS analysts provide include: Customer service for both the employee users of the HRIS and the management users. Advice based on analysis of HRIS processes and outcomes from someone who specializes in the program and its performance. Data entry for the large amounts of employee information that is gathered. Assurance that employee information and data is kept confidential and secure. Increased accuracy due to the analyst's editing and confirming of data before it is reported. At this time, HRIS analysts are not required to possess any sort of certification. However, in order to be competitive in the job market and increase salary potential, it is suggested that applicants provide proof of their excellence in the field and commitment to HR by obtaining certifications such as the Professional in Human Resources (PHR) or Senior Professional in HR (SPHR) certifications -- both from the Human Resources Certification Institute (HRCI) -- and the Human Resources Information Professionals (HRIP) certification form the International Association for Human Resource Information Management (IHRIM).

Legislative and regulatory knowledge and procedures

HR Management: Laws and Regulations Laws and regulations at the federal, state, and local levels regulate how companies conduct staffing. Title VII of the 1964 Civil Rights Act banned most discriminatory hiring practices. Three sensitive areas of legal concern that managers must comply with are equal opportunity, affirmative action, and sexual harassment, described in the following sections. These areas, as well as other laws, impact all human resource practices. Equal Employment Opportunity Individuals covered under Equal Employment Opportunity (EEO) laws are protected from illegal discrimination, which occurs when people who share a certain characteristic, such as race, age, or gender, are discriminated against because of that characteristic. People who have the designated characteristics are called the protected class. Federal laws have identified the following characteristics for protection: Race, ethnic origin, color (for example, African American, Hispanic, Native American, Asian) Gender (women, including those who are pregnant) Age (individuals over 40) Individuals with disabilities (physical and mental) Military experience (Vietnam‐era veterans) Religion (special beliefs and practices) The main purpose of the EEO laws is to ensure that everyone has an equal opportunity of getting a job or being promoted at work. Affirmative action While EEO laws aim to ensure equal treatment at work, affirmative action requires the employer to make an extra effort to hire and promote people who belong to a protected group. Affirmative action includes taking specific actions designed to eliminate the present effects of past discriminations. Employees are also protected by the Equal Employment Opportunity Commission (EEOC), which was established through the 1964 Civil Rights Act, Title VII. The scope of authority of the EEOC has been expanded so that today it carries the major enforcement authority for the following laws: Civil Rights Act of 1964. Prohibits discrimination on the basis of race, color, religion, national origin, or sex. Civil Rights Act of 1991. Reaffirms and tightens prohibition of discrimination. Permits individuals to sue for punitive damages in cases of intentional discrimination and shifts the burden of proof to the employer. Equal Pay Act of 1963. Prohibits pay differences based on sex for equal work. Pregnancy Discrimination Act of 1978. Prohibits discrimination or dismissal of women because of pregnancy alone, and protects job security during maternity leaves. American with Disabilities Act. Prohibits discrimination against individuals with physical or mental disabilities or the chronically ill, and requires that "reasonable accommodations" be provided for the disabled. Vocational Rehabilitation Act. Prohibits discrimination on the basis of physical or mental disabilities and requires that employees be informed about affirmative action plans. Most employers in the United States must comply with the provisions of Title VII. Compliance is required from all private employers of 15 or more persons, all educational institutions, state and local governments, public and private employment agencies, labor unions with 15 or more members, and joint (labor‐management) committees for apprenticeship and training. Sexual harassment Few workplace topics have received more attention in recent years than that of sexual harassment. Since professor Anita Hill confronted Supreme Court nominee Clarence Thomas on national television over a decade ago, the number of sexual harassment claims filed annually in the United States has more than doubled. Since 1980, U.S. courts generally have used guidelines from the Equal Employment Opportunity Commission to define sexual harassment. Sexual harassment is defined as "unwelcome sexual advances for sexual favors, and other verbal or physical conduct of a sexual nature." Sexual harassment may include sexually suggestive remarks, unwanted touching, sexual advances, requests for sexual favors, and other verbal and physical conduct of a sexual nature In a 1993 ruling, the Supreme Court widened the test for sexual harassment under the civil rights law to whether comments or behavior in a work environment "would reasonably be perceived, and is perceived as hostile or abusive." As a result, employees don't need to demonstrate that they have been psychologically damaged to prove sexual harassment in the workplace; they simply must prove that they are working in a hostile or abusive environment. Sexual harassment is not just a woman's problem. Recently, a decision handed down by the U.S. Supreme Court broadened the definition of sexual harassment to include same‐sex harassment as well as harassment of males by female coworkers. In the suit that prompted the Court's decision, a male oil‐rig worker claimed he was singled out by other members of the all‐male crew for crude sex play, unwanted touching, and threats. From management's standpoint, sexual harassment is a growing concern because it intimidates employees, interferes with job performance, and exposes the organization to liability. Organizations must respond to sexual harassment complaints very quickly because employers are held responsible for sexual harassment if appropriate action is not taken. The cost of inaction can be high. The Civil Rights Act of 1991 permits victims of sexual harassment to have jury trials and to collect compensatory damages in cases where the employer acted with "malice or reckless indifference" to the individual's rights. Employers can take the following steps to help minimize liability for sexual harassment suits: Offer a sexual harassment policy statement. This statement should address where employees can report complaints, assure confidentiality, and promise that disciplinary action will be taken against sexual harassers. Provide communication and training programs for supervisors and managers. These programs should emphasize that sexual harassment will not be tolerated. Conduct fair, impartial investigations and base actions on objectively gathered facts. The complainant must be insulated from the kinds of behavior that prompted the complaint. Other employment laws Several other laws impact staffing practices as well. The Fair Labor Standards Act specifies the minimum wage, overtime pay rules, and child labor regulations. The Employee Polygraph Protection Act outlaws almost all uses of the polygraph machine for employment purposes. Privacy laws provide legal rights regarding who has access to information about work history and job performance for employees in certain jurisdictions. Under the Whistleblower Protection Act, some employees who publicize dangerous employer practices are entitled to legal protection. Table lists additional federal laws that shape HRM practices.

Risk management

HR Risk Management - Top 8 Sources of Human Resource Risk Workplace Culture. From our experience, there are two major types of workplace culture. Workers Comp Injuries, Medical Costs, and Lost Productivity. Employment-related Lawsuits. Employee Benefits Liability. Theft & Embezzlement. Training & Competency. Turnover. What is HR risk assessment? Risks are inevitable and organizations have a moral and legal obligation to attend to the safety and well-being of those they serve, those who work for them and others who come into contact with their operations. This is known as "Duty of Care." Five Steps of the Risk Management Process Step 1: Identify the Risk. The first step is to identify the risks that the business is exposed to in its operating environment. Step 2: Analyze the Risk. Step 3: Evaluate or Rank the Risk. Step 4: Treat the Risk. Step 5: Monitor and Review the Risk. What is HR Risk Management? Simply stated, risk management involves looking out for potential risks to your business and figuring out the best solutions to handle them. Running a business comes with a variety of unique risks that could cause problems for your company. Risk management specialists try to anticipate and prepare for potential risks that are most likely to happen. HR risk management focuses on the specific risks employees pose to the business. This could involve risks around improper employee management, employee behavior, or the way you hire and lose employees. Proper HR risk management doesn't just focus on entry-level employees. Everyone from part-time employees to c-level managers are taken into account to help HR measure risks and potentially stop problems before they start. Why Risk Management Matters HR risk management should be an important part of any business regardless of industry or size. Essentially, a comprehensive risk management plan should have a place on your business' overall roadmap to success. Employees play a pivotal role in the success of a company. You could have a fantastic product or service, but if you don't have the right employees, your business won't be able to succeed. If a potential problem occurs, a well-prepared business plan that utilizes risk management may be able to minimize the potential impact. Some of the areas of impact include reduced earnings, lost time, and even negative impacts on important customers and employees. A good HR risk management strategy could help you find ways to deal with problematic employees, make good hiring decisions, and help you better manage people across your organization. Common HR Risks and How to Solve Them Now that you know a bit about risk management in the HR space, we can take some time to talk about some of the more common problems you'll find and how you can mitigate them. It's important to note that every organization has its own unique needs. These strategies and suggestions are meant to be a baseline you can use to ensure that you're planning against risks the right way. If you want to create a true strategy around HR risk management, be sure to pay attention to these issues: Compliance and Regulations If you work in HR, you're well aware of the complicated laws that can surround employment. This is why it's very important for people in HR to be aware of local labor laws and regulations to ensure that they're compliant. All of your HR processes should be regularly audited to ensure that you're as compliant as possible. HR professionals who want to ensure that they're always compliant with the latest laws should follow these important tips: Stay Up to Date on Legal News Did your state legislature pass a new law around family leave? Was there a recent update on what can be considered a reasonable accommodation for an employee with a disability? Laws can change seemingly overnight, and if you aren't aware of any new changes, you could be at risk for a lawsuit or fines. Subscribe to local legal publications and set up news alerts for employment law so you can ensure that you stay in the know. Sync with IT New technology may make employees more efficient, but it also leaves you vulnerable to new potential problems with security and compliance. Talk to people in IT about the best way to keep devices secure. Educate your employees on the right way to share sensitive data that is tied to important client information. Bring in Outside Help Do you want to ensure that your company's HR practices are as up to date as possible? Are you worried about neglecting an important compliance issue? Staying compliant in a constantly changing world can be difficult. This is why we recommend bringing in outside sources to help your organization with compliance issues. It's always a good idea to get an employment lawyer to look over contracts and HR policies to ensure that you're staying compliant. You may even want to consider hiring a compliance specialist on a contract basis to fill in any holes your plan may have. Talent Acquisition HR plays a significant role in staffing. People in HR often handle recruiting, order background checks, and can have some say in who gets hired and who employers pass on. Hiring people is very important, but it comes with its own unique risks if it's not handled properly. Improper resource planning could lead to understaffing, or even worse, overstaffing employees. Scrambling to bring in new hires or letting go of people can cause a lot of chaos in the workplace. If you want to hire the right people and keep employees happy, make sure you follow these important tips: Build a Solid Recruiting Program Having the right structure around recruiting could help drastically reduce some of the problems associated with bringing on new people. Getting referrals from already trusted employees could make the vetting process a lot easier. Encourage employees to recommend people they know for roles and make it easy for them to submit internal suggestions. Focus on building up a pipeline of potential contractors and direct hires so you can reach out to them when you need to bring on somebody in a hurry. When you already have a robust group to pick from, you won't have to scramble to fill a spot on the team. Revamp Your Onboarding Process Does it seem like it takes a while for employees to get up to speed on certain important tasks? Before you put blame on the new hire, take some time to evaluate your onboarding process. A confusing onboarding process can make it difficult for employees to understand how to do important tasks, and may make prioritizing tasks nearly impossible. Talk to some recent hires to hear their feedback on your hiring process. Get management involved and see what they would change about the way you bring on employees. Cut Your Losses Have several people complained about the work of a certain employee? Is there an employee that still struggles with basic job tasks months after they've been hired? Are you dealing with someone that just isn't a good fit for the company? It doesn't take long for HR to find a problem employee, but it can take them a long time to actually deal with them. Sometimes it's best to cut your losses instead of spending precious time and money trying to salvage an employee that isn't working. Some HR representatives are hesitant to fire people because they don't want to deal with the paperwork and potential risks of letting someone go. However, if you've done everything right on your end such as performance improvement plans (PIPs), formal warnings, etc., there's no use in prolonging the inevitable. Leadership Have you ever heard the phrase that people don't quit jobs, they quit managers? It may be a cliche, but it also has some truth to it. If your organization has shaky leadership, you'll start to see problems pop up in other areas. Eventually, you may lose business, employees, or even professional clout because your managers and people in leadership aren't doing their jobs well. As an HR leader, you have a unique responsibility in ensuring that managers are doing right by their employees. If you want to mitigate potential problems in management, consider these strategies: Hold Managers Accountable If you notice that a lot of employees are leaving a certain department or if there's a dip in work quality, then it's time to have a serious talk with managers. There are some things that will be out of your manager's control, but overall, many can and should be held responsible for the work employees in their department produce. Don't be afraid to have a one-on-one talk with a manager that could be causing issues. They may not be aware that there's a problem or could be eager for help in solving an issue. Train Your Managers It's far too common for businesses to assume that managers automatically know the right way to deal with employees. That's why it's important for people in HR to take the time to periodically check-in with managers and train them. Hold quarterly training sessions that can reinforce the right way to handle employee conflicts. Ask employees to give feedback about their managers so you can see if they're lacking in some areas. Make Managers Cultural Ambassadors Employees are going to follow the lead of their managers. It'll be difficult to say that everyone needs to dress professionally and on time when their managers come in late and wear stained jeans to the office. Your business' culture is very important to your brand and your employees. The managers you hire should exude certain important tenets of your culture. When you check in with managers, stress the importance of making sure that they represent the company's culture at all times. Employees will soon follow their lead, and you could see the entire team improve. Employee Development Managers should play an important role in the growth and professional development of their employees. However, involving HR in the process can help ensure that everything is being handled properly. Employees who feel like they aren't growing won't hesitate to leave the company. If they end up not leaving, they could grow bored and complacent. Eventually, you'll see their work suffer. Employee growth isn't just important for individuals, it's good for your organization, your products, and your clients. Happy employees that feel like they're growing are more likely to stay at your company, and they're able to produce better work. If you want to ensure that your employees are growing, try to implement these strategies: Give Employees Opportunities to Learn A lot of companies claim that they encourage employee development, but they do very little to help their employees grow. Don't expect your employees to only learn outside of office hours, give them ample opportunities to grow at work. Consider giving employees a set amount of hours a week to devote to learning a new skill. Look for opportunities for online training courses from sites like Khan Academy or look for educational webinars people can use. Remember, employees can be an important educational resource of their own. Hold monthly lunch-and-learn meetings and encourage employees to do a quick presentation on an important topic. Empower Managers to Help Employees Grow It isn't uncommon for people to view HR as a barrier that could hinder employee growth. Show everyone at your organization that isn't the case by working with managers to help ensure that their employees can reach their growth goals. Managers should be interested in the growth of their employees. Encourage them to ask employees about their future work goals during their check-ins. Once managers find out what employees want to learn and how they want to grow, work on a plan with them to help make their goals possible. Find courses they can take and consider what kind of work you can give them that can help them grow. Take it a step further and make assessing and reaching certain goals a part of your annual performance review. Give employees extra incentive to reach their goals by tying it to bonuses and potential office perks.

Employee communications

HR communications can help make employees feel like they matter to the organization. HR gives employees the information they need to thrive, such as how the company works, the benefits of contributing their best effort to the company, any training opportunities, and policy changes. Employee communication is often defined as the sharing of information and ideas between the management of an organization and employees and vice versa. It is essential for an organization's success that there are many different channels available to communicate with your employees as well as your customers. 10 Tips to Improve HR Communication in the Workplace Create a long-term internal communications plan. ... Create an all-in-one communication system. ... Encourage face to face communication. ... Make company culture the focus. ... Share engaging content. ... Implement surveys. ... Strategize an onboarding process for new employees. Employee Communication: Definition Employee communication is often defined as the sharing of information and ideas between the management of an organization and employees and vice versa. It is essential for an organization's success that there are many different channels available to communicate with your employees as well as your customers. Social media definitely has certainly increased the scope of communication. With the advent of social media, the number of options for communication has increased. You can share information among your employees almost instantaneously. As the speed of communication increases the challenges for communicating effectively also change. Email, face-to-face communication, live chats there are so many different channels for effective employee communication. But also, what works for one organization may not work for the others. You need to identify what mode of communication works perfectly within your organization. Employee communication has changed over the years, in the past decade most parts of the communication was face-to-face. Now we have a plethora of different channels of communications. Effective communication is where your employees are well informed and all the functions run smoothly in the organization. Organizations need to create a world-class, engaging communication program. They should leverage feedback received from the Human Resources department to improve their internal channels. Learn more: Employee engagement survey questions template Modes for employee communication There are multiple channels that can be used for employee communication, but we have shortlisted these 3: 1. Traditional methods Traditionally communicating with your employees has been a top-down process. Management creates policies, procedures, etc. and they are circulated amongst the employees. These traditional methods are only one way of communication. To achieve desirable results it is important, channels of communication should be two ways. Papers and memos and traditional ways are all good, but the world is evolving and so should your practices. 2. Email All most all organizations across the globes communicate with their employees via emails or instant messaging for their daily communications. From updates to latest organizational developments your employees can stay informed and up to date at all times. The advantage of emails messaging is the speed of communication and the ability to communicate with everyone in the organization at the same time. A big disadvantage though could be people assuming the tone. 3. Cell phones and social media Your employees carry a very powerful tool of communication with them and that is the cell phone. These days phones are no longer attached to the desk. Cell phone technology enables your employees to stay in touch with whatever that is happening within the organization even if they work remotely. One powerful platform that organizations have adopted as a part of employee communication is social media. Your employees can access these platforms from literally anywhere. These sites are definitely increasing the usage of handheld devices also allowing everyone to be constantly in touch with anything that goes around within the organization. Learn more: Company communication evaluation survey template Importance of effective employee communication Employee communication is no rocket science, but if not done correctly can surely have a negative effect. But let's not go that way, let's keep things positive, here is how having effective employee communication benefits: Employee engagement: If you communicate regularly with your employees and in an effective manner they are much more engaged with the organization and have a more positive attitude towards their work and the organization. Consistency: If your employees understand know what they are wanting to achieve in a particular in the organization, you as an organization can see a much more consistent approach and less tendency of people coming up with interpretations of what they think of what you have said. Feedback: Regular communication invites people to get into a healthy discussion. Communication is a dialogue after all and dialogue would need two people communicating, expressing their concern or giving feedback. This facilitates a culture of sharing ideas and knowledge. Understanding of organizational goals: Effective communication helps employees understand how they can align their professional goals with that of the organization. They can understand how they can fit into a bigger picture. Change is the only constant: True! But are your employees adaptable to sudden changes? If the employees are communicated to effectively about the change around them they respond positively to it. It also helps identify champions in your organization, ones who are willing to accept change and rise. 5 Tips to improve employee communication Most organizations plan meticulously how to best engage their external audience, but they conveniently forget about their most important constituency: employees. High performing organizations make sure employee communication is their priority and this is one of the reasons they stand out! Here are the top 5 tips to improve employee communication in your organization 1. Communicate with clarity Overusing jargon or technical terms will only lead to more misunderstanding. Be clear while communicating. 2. Set the tone Management and leadership of the organization need to set the tone right. The need to be accessible and they need to understand that there is a certain relation between strategic employee communications and organizational goal achievement. 3. Know your employees You don't need to communicate differently with different employees, you just need to know your employees. To understand the perception of your employees surveys them regularly. 4. Use multiple channels Most people need to hear or read the message multiple, least the message is lost in translation. Distribute your message through various channels so that it reaches people well within time. 5. Measure the effectiveness No communication should be without a set objective, else the purpose of communication is entirely lost. There are many ways to facilitate communication, but what's the point if it falls on deaf ears. Make sure you regularly measure the engagement and ask employees if the communication strategy works. QuestionPro Workforce is trusted by many organizations to monitor, measure, and improve their employee experience (EX) processes. Sign up to see the benefits it offers.

Corporate governance procedures and compliance

HRM can be involved in the corporate governance in four basic areas such as selection of leaders, designing of benefits and incentives, structuring of control systems particularly board of directors, and fixing of dysfunctional corporate structure. Corporate governance is a set of standards, policies and procedures by which an organization is controlled or directed. ... Human resource (HR) personnel must support their company's corporate governance policy to foster a healthy culture and prevent legal liabilities. As such, HR governance is the part of (corporate) governance that regulates HR management and leadership in organizational units at all levels. Both the external/internal HR governance framework and the managerial behavior it regulates originate from the influence of multiple actors. Compliance means adherence. Thus, Statutory Compliance means adhering to rules and regulations. Statutory Compliance in HR refers to the legal framework that an organization should adhere to in dealing with its employees. Corporate governance essentially involves balancing the interests of a company's many stakeholders, such as shareholders, senior management executives, customers, suppliers, financiers, the government, and the community. To have a working HR governance structure in place helps to align human resources management with an organization's overall strategy and its vision, mission, and values; to treat employees fairly, consistently, and in compliance with the law; to identify best practices; and finally also to control expenses and risks.

Ethical and professional standards

Human resources professionals must adhere to the strictest code of ethics and integrity in all employee interactions. ... They must keep employee and company information in the strictest confidence, and protect the integrity of company proprietary information when dealing with employees or individuals outside the company. What are HR ethics? Adhere to the highest standards of ethical and professional behavior. Measure the effectiveness of HR in contributing to or achieving organizational goals. Comply with the law. Work consistent with the values of the profession. Strive to achieve the highest levels of service, performance and social responsibility. SHRM Code of Ethical and Professional Standards in Human Resource Management IntroductionCode of EthicsSHRM Bylaws A Guide to Developing Your Organization's Code of Ethics A Guide to Developing Your SHRM Chapter's Code of Ethics Member Discipline Process As the world's largest human resource management association, the Society for Human Resource Management (SHRM) has a responsibility to set and support ethical standards for the human resource profession. Our Bylaws (Section 3) state that, "The purposes of the Society shall be to promote the use of sound and ethical human resource management practices in the profession...to be the voice of the profession on human resource management issues ...to facilitate the development and guide the direction of the human resource profession ...and to establish, monitor and update standards for the profession." Our original Code of Ethics was first developed in 1972 and was last modified in 1989 to reflect our name change from the American Society for Personnel Administration to our current name. This package includes a new Code of Ethical and Professional Standards in Human Resource Management. The Code was written entirely by SHRM members and volunteer leaders with the assistance of the Ethics Resource Center (ERC) and SHRM staff. The ERC is a non-profit, nonpartisan educational organization located in Washington, DC. Hundreds of members and leaders shared in the process through focus groups and individual interviews representing a cross-section of our membership, participation on code development teams, and by providing feedback on code drafts. This Code of Ethical and Professional Standards in Human Resource Management is one part of an overall ethics initiative undertaken by SHRM. The Code will be supplemented by resources and services which SHRM members can use to promulgate ethics programs within their own organizations or chapters. Communications and Education strategies for initial and continuous training will be put into place as well as an infrastructure for enforcement and advice/counseling. The standards outlined in our new Code of Ethical and Professional Standards in Human Resource Management, together with integrated ethics program components, are designed to provide guidance and support in your daily work. Introduction to Code of Ethics More than 300,000 SHRM members around the globe look to the Society for their vision and their values. In this role, SHRM assumes a responsibility to serve its members and the public with integrity. To fulfill this responsibility, SHRM is committed to conducting all operations in accordance with the SHRM code of ethics. SHRM's Bylaws Our Bylaws are the Society's Operating Manual. They define: Composition of the Board of Directors and how it will function; Roles and duties of directors and officers; Rules and procedures for holding meetings, electing directors, and appointing officers; Conflict of interest policies and procedures; and Other essential association governance matters. SHRM Bylaws Major Issues in Ethical Management Harming Some While Benefitting Others. HR managers do much of the screening while the hiring process is still on. ... Equal Opportunity. ... Privacy. ... Compensation and Skills. ... Labor Costs. ... Opportunity for New Skills. ... Fair Hiring and Justified Termination. ... Fair Working Conditions.

Qualitative and quantitative methods and tools for analytics

Quantitative Data Businesses use various quantitative data gathering methods to track productivity. The data can be used to rank employees and work units, and to award raises or promotions. Additionally, you can also use such data to justify the termination or discipline of poorly performing workers. If you operate a manufacturing company, for example, you may track quantitative data that details the number of units that each worker produces over a particular period of time. Service companies often track the number of worker-client interactions on a daily basis. You can gather data over long periods of time such as a month, quarter or year. Some businesses, however, prefer to review production data on a daily basis to ensure that workers are being productive at all times. Qualitative Data Qualitative reports contain human observations. Some human resources professionals spend time silently observing workers and recording information about their behaviors, work habits and the types of obstacles that workers must overcome to perform their jobs effectively. When gathering such data, you should minimize interactions with the subjects of your observations. You could cause productivity to increase or decrease by interacting with workers, in which case, your report will contain unreliable data. To reduce your own workload, ask each departmental supervisor to compile qualitative data reports. To eliminate bias in the reporting, appoint two or more people to assess the performance of each employee. Assessments In some instances, qualitative reports may contradict the information contained in quantitative reports. A departmental manager, for example, may write a glowing report about a particular individual, while the statistical reports may characterize the same individual an inefficient worker. Therefore, you should carefully review both reports before making any HR decisions. Broken machinery, staff shortages and other distractions may cause an individual's productivity to drop. A qualitative report would contain explanations of these events, while a quantitative report on the same worker would simply show production statistics. Considerations Producing and reviewing quantitative and qualitative reports can prove time consuming and expensive. However, compiling detailed performance reports, and keeping them on file, protects your business from legal disputes with former employees. Additionally, some businesses might be able to cut costs after addressing long-standing production issues that only come to light in performance reports. You must, however, ensure that you do not allow performance reporting to consume so much of your time and your money that you realize no overall benefit from the analyzing the data.

Change management theory, methods, and application

The Four Kinds of Change: Mission Changes. Did you know that the team who made Instagram had previously developed a product called Burbn? Strategic Changes. A strategic change is a change in how the company tackles a problem. Operational Changes. Technological Changes. Managing Organizational Change LIKESAVEPRINTEMAIL REUSE PERMISSIONS Overview Change management is the systematic approach and application of knowledge, tools and resources to deal with change. It involves defining and adopting corporate strategies, structures, procedures and technologies to handle changes in external conditions and the business environment. Effective change management goes beyond project management and technical tasks undertaken to enact organizational changes and involves leading the "people side" of major change within an organization. The primary goal of change management is to successfully implement new processes, products and business strategies while minimizing negative outcomes. OverviewBackgroundBusiness CaseThe Roles of Management and HRSteps in the Change Management ProcessOvercoming Common ObstaclesEncountered in Implementing ChangeManaging Varied Types ofMajor Organizational ChangeLegal IssuesGlobal Issues This article discusses the management of large organizational changes that may have far-reaching impacts on the organization and its workforce, including the following topics: The nature and extent of organizational change. The business case for a systematic approach to change management. The roles of management and HR during major change initiatives. Steps to take in managing organizational change. How to overcome common obstacles encountered during organizational change. Legal and global considerations in managing change. This article also highlights some of the special issues and challenges in implementing certain types of major organizational change, including mergers and acquisitions, downsizing, bankruptcy, business closure, outsourcing, and changes within the HR function. Background To keep pace in a constantly evolving business world, organizations often need to implement enterprisewide changes affecting their processes, products and people. Change is a fact of life in businesses today. It can be difficult, and people often resist it. But to develop an agile workplace culture, organizations should follow a systematic approach to managing major change. Organizational development experts have established approaches for successfully navigating through change. See How to Manage Change. Organizational leaders must identify and respond quickly to market changes and unexpected challenges, but most are not in a position to create an agile culture. Yet agile leadership—from CEOs down to line-level managers—separates high-performing from lower-performing organizations. Companies that consistently outperform competitors in profitability, market share, revenue growth and customer satisfaction reported much greater agility than lower performers. See Don't Just Adapt to Change—Lead It. Business Case The rate of major organizational change has accelerated dramatically in this decade. Global research and advisory company Gartner reports that the average organization has undergone five enterprise changes in the past three years and 73% of organizations expect more change initiatives in the next few years.1 As change initiatives have become more frequent and widespread, the importance of managing individuals through change has gained credence. Major changes can affect organizations across all levels. Many corporate leaders have concluded that failing to manage employees through change can be costly: Employees who are dissatisfied with or upset by change are generally less productive. An employer that is serious about change management should develop a communication plan, a road map for change sponsors, integrated training programs and a plan for dealing with resistance. See SHRM Foundation Report a Primer for Change Management. HR should be involved in major organizational changes from the beginning and can assist by influencing the following: Improving employees' understanding of change. Increasing communication between management and employees. Identifying and mitigating risks. Enhancing employee satisfaction. Boosting trust between management and employees. Improving employee skills and proficiency through change-related training initiatives. See How Leaders Can Help Employees Accept Technology Changes. The Roles of Management and HR Business managers who want to undertake major transformation to stay competitive must work with HR staff to gain employee acceptance and support. MANAGEMENT'S ROLE Having the right leadership and buy-in from the executive team is critical to unifying the organization behind a common strategic direction. Another key is making sure all managers are equipped to coach their direct reports toward commitment. One-on-one conversations help individual team members analyze how the change will affect them, determine their level of commitment and choose how they will act. Questions managers should address with employees include: What is changing? Why is it changing? How will it affect your area? How will it affect you directly? See Changing the Change Rules at Google. Unfortunately, many managers are not adept at change management. The lack of change management skills among managers can make change initiatives difficult to achieve. A Towers Watson Change and Communication ROI Survey found that 87 percent of employers train managers on effective change management; however, only one-quarter of those employers found the training to be effective.2 To increase managers' skills, HR should provide training that is tailored to the specific change initiative and the competencies necessary to lead successful change. See Leadership Critical to Organization Change Efforts and Senior Leader Accountability: Critical to Successful Change. HR'S ROLE HR can play a dual role in change management by initiating and leading the change and by serving as a facilitator for changes that other leaders and departments initiated. See What is HR's Role in Managing Change? and HR Can Improve Employee Buy-In for Organizational Change. The HR department performs a variety of functions associated with the communication, implementation and tracking of major changes. Most commonly, HR professionals assist employees by serving as a point of contact for questions and concerns and by explaining any impact on staffing. In addition, HR often coordinates meetings and communications about the change and related initiatives. Other common HR roles and responsibilities include: Providing initial employee communications about changes. Developing training programs. Preparing informational documents. Assessing readiness before the change. Analyzing potential impact. HR can also play a strategic role in change management by calculating the post-implementation return on investment by identifying key performance indicators (KPIs) to be measured and by tracking and communicating these results. By championing change, HR can help the organization increase buy-in, comfort and support for change across departments, thereby increasing the success of change initiatives. See Managing Organizational Change with an HR Department of One. Steps in the Change Management Process Organizations should systematically prepare for and implement major organizational change. John Kotter, a Harvard Business School professor, developed a well-known and widely adopted approach for managing organizational change. This approach, updated in Kotter's book Accelerate, involves the following eight stages:3 1. "Create a sense of urgency." Successful transformation efforts usually begin when leaders examine the market for changes that may lead to new competitive realities for the organization. These changes can stem from demographic shifts, social trends, new technology, market or competitor changes, or new government regulations. The leaders should explain that a potential crisis or major opportunity is imminent, and they should encourage frank discussion throughout the organization. Creating a sense of urgency that the status quo is no longer acceptable is essential to gain the workforce's energetic cooperation. 2. "Build a guiding coalition." Once employees feel a sense of urgency, leaders should establish a group with enough power to lead the change. Members need substantial authority based on position, expertise, credibility and leadership, as well as effective management skills and proven leadership abilities. This coalition must learn to work together based on trust and set a common goal. Many guiding coalitions build trust through offsite meetings, joint activities and conversation. 3. "Form a strategic vision and initiatives." The guiding coalition should craft a clear vision for the future, motivate people to take appropriate actions and coordinate their actions. An effective vision is imaginable, desirable, feasible, focused, flexible and communicable, according to Kotter. Creating an effective vision takes time and can be a challenging process, but the end product provides a clear direction for the future. 4. "Enlist a volunteer army." Once the guiding coalition has developed the vision, its members should provide extensive communications about how the change will improve the business and how those improvements will benefit employees. Key elements in effective communications include simplicity, use of examples, multiple forums, repetition, explanation of apparent inconsistencies and two-way communication. The group should model the behavior expected of employees. 5. "Enable action by removing barriers." To empower workers to support change and act on the vision, change leaders should identify and remove obstacles. Four categories of important obstacles are: Formal structures that make it difficult for employees to act. A lack of needed skills. Personnel or information systems. Supervisors who discourage actions toward implementing the new vision. 6. "Generate short-term wins." Successful and enduring change takes time, which can be discouraging to employees at all levels of the organization. To maintain urgency, leaders should create conditions that support early successes and visible improvements. The key is to actively search for opportunities to score early achievements and to recognize and reward those who made these accomplishments possible. Good short-term wins have unambiguous results, are visible to many people and are clearly related to the change effort. 7. "Sustain acceleration." Until major changes are embedded in an organization's culture (which could take up to a decade), they remain vulnerable to resistance and regression. It is important to use the early successes as a foundation for larger challenges and to revise all systems, structures and policies that do not fit the change vision. HR can consolidate gains by hiring, promoting and developing employees who can implement the transformation vision. Additionally, the change process can be reinvigorated with new project themes and change agents. 8. "Institute change." The final stage in Kotter's model for successful change is linking the changes to two key components of corporate culture—norms of group behavior and shared values. Another model for organizational change includes a four-phase change management process: Define—Align expectations regarding the scope of the change as well as timing and business impact. Plan—Understand how the change will impact stakeholders and design a strategy to help them navigate it. Implement—Engage with leaders and associates to execute the change. Sustain—Work with leaders and employees to track adoption and drive lasting change. A large global retailer uses this model to increase the speed and impact of change initiatives while reducing the downturn of performance, thereby achieving desired outcomes quicker. Overcoming Common Obstacles Encountered in Implementing Change Organizations can have a clear vision for changes and a technically and structurally sound foundation for making changes, but the initiatives can still flounder due to obstacles that arise. Employee resistance and communication breakdown are common obstacles faced during major organizational change. See How to Avoid Common Mistakes in Change Management. EMPLOYEE RESISTANCE Successful change starts with individuals, and failure often occurs because of human nature and reluctance to change. Employees may also lack the specific behavioral traits needed to adapt easily to changing circumstances, which could decrease employee engagement and effectiveness and put organizational productivity at risk. How organizations treat workers during a change initiative determines how successful the change—and the organization—will be. There are six states of change readiness: indifference, rejection, doubt, neutrality, experimentation and commitment. Organizations about to embark on a transformation should evaluate workforce readiness with assessment instruments and leader self-evaluations to identify the areas in which the most work is needed. Leaders should have a solid strategy for dealing with change resistance. Some actions to build employee change readiness include: Developing and cascading strong senior sponsorship for people-focused work. In the absence of visible sponsorship, leaders should build alliances, meet business needs and promote wins. Developing tools and information for front-line supervisors and managers. Organizations should involve them early—train them, prepare them and communicate regularly. Coaching employees to help them adapt and thrive during change. Rewarding desired behaviors and outcomes with both tangible and intangible rewards. Relying on insights from both those in the field and subject-matter experts. See Is Change Stressing Your Workers? Turn to a Millennial and Wanted: Workers Who Can Adapt to Change. COMMUNICATION BREAKDOWN Sometimes decisions about major organizational changes are made at the top management level and then trickle down to employees. As a result, why and how the company is changing may be unclear. According to a Robert Half Management Resources survey, poor communication commonly hinders organizational change-management efforts, with 65 percent of managers surveyed indicating that clear and frequent communication is the most important aspect when leading through change. To avoid this problem, HR should be involved in change planning early to help motivate employees to participate. Effective communication promotes awareness and understanding of why the changes are necessary. Employers should communicate change-related information to employees in multiple forms (e.g., e-mails, meetings, training sessions and press releases) and from multiple sources (e.g., executive management, HR and other departments). See Why United Airlines' Lottery-Based Bonus Idea Fell Flat. To avoid communication breakdowns, change leaders and HR professionals should be aware of five change communication methodologies—from those that provide the greatest amount of information to those that provide the least: "Spray and pray." Managers shower employees with information, hoping they can sort significant from insignificant. The theory is that more information equates to better communication and decision-making. "Tell and sell." Managers communicate a more limited set of messages, starting with key issues, and then sell employees on the wisdom of their approach. Employees are passive receivers, and feedback is not necessary. "Underscore and explore." Managers develop a few core messages clearly linked to organizational success, and employees explore implications in a disciplined way. Managers listen for potential misunderstandings and obstacles. This strategy is generally the most effective. "Identify and reply." Executives identify and reply to key employee concerns. This strategy emphasizes listening to employees; they set the agenda, while executives respond to rumors and innuendoes. "Withhold and uphold." Executives withhold information until necessary; when confronted by rumors, they uphold the party line. Secrecy and control are implicit. The assumption is that employees are not sophisticated enough to grasp the big picture. Experts estimate that effective communication strategies can double employees' acceptance of change. However, often companies focus solely on tactics such as channels, messages and timing while failing to do a contextual analysis and consider the audience. Some of the specific communication pitfalls and possible remedies for them are the following: The wrong messengers are used. Studies have found that employees tend to trust information from managers. Understanding the organization's culture will dictate who is the best messenger for change—the manager, the senior executive team or HR. The change is too sudden. Leaders and managers need to prepare employees for change, allow time for the message to sink in and give them an opportunity to provide feedback before a change is initiated. Communication is not aligned with business realities. Messages should be honest and include the reasons behind the change and the projected outcomes. Communication is too narrow. If the communication focuses too much on detail and technicalities and does not link change to the organization's goals, it will not resonate with employees. Executive leaders and HR professionals must be great communicators during change. They should roll out a clear, universal, consistent message to everyone in the organization at the same time, even across multiple sites and locations. Managers should then meet both with their teams and one on one with each team member. See Say What?! Honing Communication Skills at the Top. Leaders should explain the change and why it is needed, be truthful about its benefits and challenges, listen and respond to employees' reactions and implications, and then ask for and work to achieve individuals' commitment. See Keep it Clear: Three Ways to Help Communicate Change in Your Organization and Managing Organizational Communication. OTHER OBSTACLES Employee resistance and communication breakdowns are not the only barriers that stand in the way of successful change efforts. Other common obstacles include: Insufficient time devoted to training about the change. Staff turnover during the transition. Excessive change costs. An unrealistic change implementation timeline. Insufficient employee participation in voluntary training. Software/hardware malfunctions. Downturn in the market or the economy. See How Leaders Can Help Employees Accept Technology Changes. Change management experts have suggested that unsuccessful change initiatives are often characterized by the following: Being too top-down. Executives relate their vision of what the end result of the change initiative should be, but do not give direction or communication on how the managers should make the change happen. Being too "big picture." The organization's leaders have a vision of the change but no idea of how that change will affect the individuals who work there. Being too linear. Managers work the project plan from start to finish without making even necessary adjustments. Being too insular. Most organizations do not seek outside help with change initiatives, but businesses may need objective external input or assistance to accomplish major changes. Successful change management must be well-planned, well-timed and well-integrated. Other critical success factors include a structured, proactive approach that encompasses communication, a road map for the sponsors of the change, training programs that go along with the overall project and a plan for dealing with resistance. Change leaders need to be active and visible in sponsoring the change, not only at the beginning but also throughout the process. Turning their attention to something else can send employees the wrong message—that leaders are no longer interested. See Executive Briefing: How to Combat Change Fatigue and Dan Heath: Find the 'Bright Spots' to Generate Change. Managing Varied Types of Major Organizational Change Organizational change comes in many forms. It may focus on creating new systems and procedures; introducing new technologies; or adding, eliminating or rebranding products and services. Other transformations stem from the appointment of a new leader or major staffing changes. Still other changes, such as downsizing or layoffs, bankruptcy, mergers and acquisitions, or closing a business operation, affect business units or the entire organization. Some changes are internal to the HR function. In addition to the general framework for managing change, change leaders and HR professionals should also be aware of considerations relating to the particular type of change being made. The subsections below highlight some of the special issues and HR challenges. MERGERS AND ACQUISITIONS A merger is generally defined as the joining of two or more organizations under one common ownership and management structure. An acquisition is the process of one corporate entity acquiring control of another by purchase, stock swap or some other method. Nearly two-thirds of all mergers and acquisitions (M&As) fail to achieve their anticipated strategic and financial objectives. This rate of failure is often attributed to HR-related factors, such as incompatible cultures, management styles, poor motivation, loss of key talent, lack of communication, diminished trust and uncertainty of long-term goals. HR professionals face several challenges during M&As, including the following: Attempting to maintain an internal status quo or to effect change—either to facilitate or thwart (in the case of a hostile takeover) a possible merger or acquisition, as instructed by upper management. Communicating with employees at every step in the M&A process with appropriate levels of disclosure and secrecy. Devising ways to meld the two organizations most effectively, efficiently and humanely for the various stakeholders. Dealing with the reality that M&As usually result in layoffs of superfluous employees. This process entails coordinating separation and severance pay issues between the combining organizations. Addressing the ethical dilemmas involved, such as when an HR professional may be required to eliminate his or her own position or that of a co-worker or an HR counterpart in the combined organization. DOWNSIZING Successfully implementing a layoff or reduction in force (RIF) is one of the more difficult change initiatives an HR professional may face. Tasks HR professionals will need to undertake include: Planning thoroughly. Each step in the process requires careful planning, considering alternatives, selecting employees to be laid off, communicating the layoff decision, handling layoff documentation and dealing with post-layoff considerations. Applying diversity concepts. HR should form a diverse team to define layoff criteria and make layoff selections. Addressing the needs of the laid-off. This step involves reviewing severance policies, outplacement benefits, unemployment eligibility and reference policies. Dealing with the emotional impact. HR professionals should understand and prepare for the emotional impact of layoffs on the downsized employees and their families, on the managers making layoff decisions, on other HR professionals involved, and on remaining employees and managers working with the post-layoff workforce. In some situations, an HR professional may even be responsible for implementing his or her own layoff, a case calling for the utmost in professional behavior. Managing the post-layoff workforce. See Managing Downsizing by Means of Layoffs and Drive Team Performance Using Organizational Transformation BANKRUPTCY Filing for a business bankruptcy and successfully emerging from the process is generally a complex and difficult time for all parties. HR may have to cut staff, reduce benefits, change work rules or employ a combination of such actions. A major strategic concern during a Chapter 11 bankruptcy is retaining key personnel. Compassion, frequent communication and expeditious decision-making will help reduce the stress an organization's employees are likely to experience during this difficult organizational change. Showing genuine respect for people and treating them with honesty, dignity and fairness—even as difficult decisions are being made about pay, benefits and job reductions—will drive the success or failure of an organization post-bankruptcy. See Managing Human Resources for a Company in Bankruptcy. CLOSING A BUSINESS OPERATION Businesses make the difficult decision to close all or part of their operations for many reasons, including economic recession, market decline, bankruptcy, sale, a realignment of operations, downsizing, reorganization, outsourcing or loss of contracts. HR professionals will play an integral role during such business closures, from developing the plan for the closure through the final stages of shutdown. Some of HR's major responsibilities during this type of organizational change are listed below: Following facility-closing notification laws. HR must determine whether and to what extent the business must comply with notification requirements under federal or state laws for mass layoff and facility closings. HR will also lead the announcement process and participate in all aspects of employee communications, which may include all-employee meetings, written announcements and media interviews. Announcing the closure news. HR has an important role to play in anticipating and responding to workforce reactions by having as much information and resources on hand as possible. To avoid hostilities or other destructive behavior, HR should consider using an employee assistance program or an outplacement firm. Providing employee benefits information. After the shock of the announcement subsides, the most frequently asked questions involve benefits, including unemployment compensation, health care continuation, pension plan issues, and retirement plan distributions and rollovers. Coordinating outplacement services. Offering outplacement services for departing employees may enable business owners and managers to provide much-needed support and protect the organization's reputation. If financially feasible, the organization may offer departing employees outplacement services from a private outplacement consulting firm or, in some states, a state agency. Negotiating with unions. In unionized facilities, employers have a duty to bargain about the effects of a business closure decision. These negotiations typically involve assistance benefits, seniority issues, pension plan issues and employment opportunities at facilities not affected by the closure. Costing the closure. Anticipating the costs of a business closure is critical from an early stage of the process and will fall heavily on HR. This procedure involves assessing the cost of winding down employee benefits, assistance benefits, payroll and administrative costs, severance payments, union demands, unresolved employee claims or charges, security precautions, and any closing notification penalties. Disposing of company property. HR should know the organization's policy for disposal of company property and respond to employees' requests for office furniture, equipment, machinery and other tangible business assets. If the business does not sell or transfer assets or is not in debt to creditors, HR may help determine whether to give items to employees, community groups, schools or other potential recipients. Complying with legal requirements. Numerous legal issues surround the closing of a business. Depending on the number of employees and the employer's commitments to employee benefits programs, legal compliance may require following closing-notification requirements, sending out COBRA notices and termination letters, issuing final paychecks, making any required severance payments and communicating unemployment compensation. HR must know how to comply with the laws and avoid litigation risks. OUTSOURCING For several reasons, including cost savings and freeing staff to focus on more strategic efforts, an organization may decide to outsource HR or other business functions. Outsourcing is a contractual agreement between an employer and a third-party provider whereby the employer transfers the management of and responsibility for certain organizational functions to the external provider. Many types of outsourcing options are available to employers, from outsourcing one aspect of a single function to outsourcing an entire functional department. This change can have a similar impact on employees as downsizing or closing a department. When deciding whether to outsource, an organization should carefully consider questions about its needs in a particular functional area, current processes, business plan and outsourcing options, including: Does the situation merit outsourcing? Is the department providing excellent service with existing staff and processes? Is it meeting the organization's needs? Can the affected department handle outsourcing without disrupting operations? Will the CEO and top management team support and pay for an outside vendor? How might an outsourcing arrangement fall short of expectations? How can such risks be mitigated? During an HR outsourcing process, HR professionals may be asked to identify solutions to guide organizations through vendor selection and management of the outsourcing relationship. See Outsourcing the HR Function. CHANGES WITHIN HR HR professionals frequently help other parts of the organization respond to change, but what happens when the HR department becomes the epicenter of change? These kinds of transformations, such as moving to a shared services model, integrating with another HR function following a merger or delivering new services to new clients, can be more difficult for HR professionals to manage than other types of organizational changes. During major changes within the HR function, HR should do the following: Lead by example. Do exactly what HR asks other leaders and managers to do during major change initiatives. Remember that HR professionals' responsibilities never cease. The HR department must continue to serve employees while contending with the discomfort, confusion and demands that department-specific change creates. Keep in mind that few organizational changes occur in isolation. If senior leaders decide to implement an HR shared services model, for instance, the information technology, finance and procurement functions also could move to a similar model or initiating efficiency projects. Measure the degree to which HR staff is prepared to change before plunging into the change. HR leaders should assess staff readiness and engagement through interviews and surveys. After evaluating the results, they should make necessary adjustments in staff readiness and engagement levels before proceeding. Realize that most HR transformations require fresh, or refreshed, talent. HR leaders can fire and hire, or they can retrain and develop. Legal Issues In addition to managing the "people side" of organizational change initiatives, HR professionals should keep leadership informed of any applicable employment laws and the potential legal implications of various types of change. Typically, HR will be responsible, in consultation with legal counsel, for ensuring compliance with pertinent federal, state, local and international employment laws and regulations. Legal compliance requirements may vary considerably based on the nature of the change initiative, the location(s) and size of the organization, whether the employer is unionized, and other factors. Federal laws that may apply to particular organizational change initiatives include: Title VII of the Civil Rights Act of 1964. Age Discrimination in Employment Act (ADEA). Americans with Disabilities Act (ADA). National Labor Relations Act (NLRA). Worker Adjustment and Retraining Notification Act (WARN) of 1988. Employee Retirement Income Security Act (ERISA). Health Insurance Portability and Accountability Act (HIPAA) of 1996. Consolidated Omnibus Budget Reconciliation Act (COBRA). See Federal Statutes, Regulations and Guidance. HR professionals may also be responsible for negotiating contracts with unions, service providers or vendors. In such cases, they need to be familiar with key contract terms and issues and be able to represent the organization's interests effectively in contract negotiations and management. See Conducting Effective Business Negotiations. Global Issues Significant organizational changes can create ongoing conflict between two locations in the same country. But conflict is more likely to occur, and is harder to address, when differences in language, time zones, institutions and business practices exist. According to research conducted by the Economist Intelligence Unit, companies will continue to become larger and more global, handling operations in more countries than they do today.4 Culturally based assumptions about customer needs, infrastructure, competitive threats and other factors make it more difficult to find common ground during a cross-cultural change initiative. What differentiates an organization's products or services in one country may not be the same elsewhere, and the strengths that it has in its home market may not be easily replicated in other countries. Common problems in cross-cultural change initiatives include: Lack of a partnership approach. It is natural for an organization to consider its home market and its largest customers when planning change efforts. However, those voices can easily drown out the needs of employees or clients in distant markets, including those that could have high growth potential. By partnering with all employees and clients from the beginning and considering future potential for revenue, profit and growth, an organization can build an approach to change that integrates the patterns of past successes with future directions. Misreading similarities and differences in markets. Multinational organizations might project solutions suitable for one country onto another country or assume that customers abroad want to behave "more like us." To make matters more complicated, foreign products may have considerable appeal in some markets but often for reasons that only make sense in the local context. Companies may expect the same competitive landscape, yet the largest competitive threats may come from companies that are unknown back at headquarters. Not enough accountability. Establishing accountability at the local level is difficult when employees lack a sense of ownership for a new initiative. This situation can be exacerbated by the typical matrix organizational structure at many global companies. Employees who report into both a global business unit and a local management structure frequently pay the closest attention to the managers they encounter every day who are most likely to affect their futures. Leaders of global change initiatives should consider these potential problems and plan to address them in advance. They will be far more likely to avoid change-related pitfalls; achieve their objectives; and build business partnerships characterized by mutual learning and superior business results.

Vision, mission, values, and structure of the organization

The vision, mission, and values statements form the foundation for all activities in an organization. The vision statement describes what the organization will become in the future. It is a broad and inspirational statement intended to engender support from stakeholders. The mission statement defines how the organization differentiates itself from other organizations in its industry. It is more specific than the vision statement and is intended to show how stakeholders' needs will be satisfied. The values statement defines how people in the organization should behave. It provides a guideline for decision making.