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Challenges:

Leadership Development:
Leadership development needs to be a critical strategic initiative. HR professionals are faced with being expected to provide the essential structures, processes, tools, and points of view to make the best selection and develop the future leaders of the organization. The WFPMA reports that, "Across the globe leadership development has been identified as a critical strategic initiative in ensuring that the right employees are retained, that the culture of the organization supports performance from within to gain market position, and that managers are equipped to take on leadership roles of the future so that the organization is viable in the long term." Modern organizations are in dire need of a new generation of leaders who will drive organizational growth and transformation to enable their organizations to come out on top in an increasingly competitive economic scenario. For an organization to be bu ilt to last, the foremost lever is to develop organizational capability along with individual competency. Therefore, a comprehensive competitive strategy will also elaborate on the organizational capability development approach to be used and how desired leadership behaviors will be inculcated within the organization. The Leadership Paradigm Today The principles of military leadership can be translated to the business leadership context. There are three complementary concepts which together create high performance teams:

Leadership Followership

Partnership A thought-provoking question is whether our overarching focus on effective individual leadership sometimes overshadows adequate focus on effective followership. In this context it can be said that the most important characteristic of effective followership is the courage to give honest feedback. In a discussion on the implications of the lack of effective followership several examples from the recent financial meltdown were shared, which highlighted how the crisis could have been averted by honest feedback from the followers. Through this discussion, it was apparent that in todays connected world, top -down communication and command and control approaches are no longer adequate. Along with leadership, organizations need to also provide equal importance to followership and partnership. It is this lack of focus on followership and partnership that has led to a crisis of leadership in the corporate world, despite millions of dollars being s pent on leadership development programs. From Leader Development to Leadership Development We need to reflect on the difference between leader development and leadership development. All organizations need to develop great leaders with the ability to work in a team environment and collaborate with their peers. Most of our so called leadership development programs instead take an individualistic approach, by focusing on leader development. This is a rather elitist approach, since today, the leadership paradigm no longer resides in a person or a role. Rather, leadership is more of a collective process that needs to be democratized. Therefore, the need of the hour is for HR to create the conditions for leadership to flourish within the social network of the organization by spreading leadership capacity and democratizing leadership. Thus, the focus needs to move from developing individual human capital to collective social capital.

Choosing Strategic Leaders What to Look For Explore how the HR professional can support the identification and development of strategic leadership capability within the organization. The following characteristics should be important selection drivers:

Alignment of personal values to the organizational values Tolerance for ambiguity Social judgment and the ability to challenge status quo Commitment to personal transformation Self-awareness and self-regulatory skills Knowledge Networking skills

HR and Strategic Leadership Things to bear in mind For HR professionals who are looking at strategic leadership development within their organization:

The world is moving from individual to collective focus There is a need to broaden the organizational definition of leadership from individual leaders influencing followers towards shared goals to building collective capacity to create a sense of direction, alignment and commitment within the collective. For Example, collective creation of leadership charters, converting strategic objectives of organization into shared leadership objectives and case conferences that tackle burning business issues collaboratively as ways for the organization to arrive at a shared understanding of the situation along with shared priorities for action. Identifying what is motivating the current organizational culture takes time, effort and honesty Many organizations choose to headhunt leaders from outside and put them in the new environment. Inevitably, the success rates of these externally handpicked leaders are often limited also, many of them move out for greener pastures in no time. To create a sustainable culture that supports business needs, the organization needs to be ready to invest time and effort in honestly evaluating their priorities and current realities and then embarking on a strategy-aligned leadership development effort. Be clear how your business priorities reflect into leadership priorities Leadership priorities must flow directly from the business priorities therefore, the business strategy must determine the leadership development strategy. Ian warned HR professionals to resist the temptation of putting together a hodgepodge of best practices from other companies into a disjointed leadership development framework. If you are not interested in changing things around, dont be interested in leadership Ian highlighted how all leadership development efforts will lead to change within the organization. Therefore, leadership development efforts without an appetite and tolerance for change may not serve its purpose. Obtain top management buy-in for strategic leadership development efforts Strategic leadership development efforts need to be initiated in alignment with top management and with their deep involvement for them to be successful. The business is your customer in leadership development NOT the leader or HR Many organizations tend to put together a set of competency models, 360 degree surveys, assessment tools, psychometric tools and coaching into a disconnected program that is intended to impress the participating leaders or make HR look good. Ian emphasized how all leadership development efforts need to be pitched with the business as the key customer. Unless these efforts are linked to the strategy and needs of the business, the potential for real impact will be limited.

Strong and strategically aligned leadership is clearly at the heart of exceptional organizational performance. However, in the future years, our understanding of the leadership paradigm may need to expand to bring in elements of followership and partnership. In this context, strategic leadership development becomes a collective endeavor and a strategic imperative tied in closely to the business needs. Seven trends identified as as driving leadership development in the 21st Century: 1. Organizations must prioritize investments in leadership development. Without effective leadership development, corporations and government agencies are at risk due to multiple factors To mitigate these risks, the vigorous and ongoing application of leadership development is essential in applying focused

leadership development, high-impact organizations often create a leadership council or steering committee that is comprised of senior leadership, HR leaders and business-unit leaders to motivate, engage and develop talent. 2. Organizations must create and implement both a leadership strategy and leadership development strategy. : Effective leadership development requires a strong leadership strategy not just the implementation of programs. Without proper leadership, even the best and boldest strategies die, their potential never realized. Because leadership is more than the individuals in leadership positions, a leadership strategy defines the companys leadership requirements, including the num ber of leaders and at what levels these leaders should be, as well as the skills, behaviors and capabilities these leaders should have and will need going forward. 3. Leadership competencies must be renewed. : Traditional leadership competencies still matter but are evolving to accommodate the changing competitive landscape of the 21st century. Our research revealed five critical factors that are shaping leadership competencies:

The need for innovative and creative approaches to doing business and managing talent; The need for agile and flexible organizations and leaders; Global competition; People management know how; and, Diverse employee needs.
4. Leadership must be globalized: Companies everywhere are modifying their business plans to expand their footprints internationally. In addition, globalization will intensify unlike any previous time in our history Companies have to move from hierarchical, top-down leadership models to inclusive, participatory global leadership styles. These global forces require that leaders of the 21st century have a global perspective, are willing to embrace diversity and cultural differences, and look beyond their immediate geography to solve problems. 5. Being technologically savvy is key to leadership effectiveness.: Technological savvy has rapidly become an integral aspect of todays leadership effectiveness Technology facilitates communication among leaders and employees, regardless of their physical location or when the communication needs to occur Leading virtually is already a reality, and requirements to lead geographically dispersed units and teams will only increase. Technology will play a major role in dealing effectively with this challenge. 6. Leadership development now targets all leader audiences : Our research validates that targeting all leader levels for development is a best practice Today, more and more bestpractice companies are committing to developing their emerging leaders7, front- line leaders and midlevel leaders as much as they develop executives, senior leaders and high potentials because they recognize leadership is a key component of jobs at all levels. 7. Leadership development solutions need to evolve as a process, not a one-time event: To achieve lasting and substantial benefits, leadership learning experiences must apply to real organizational issues and take place in small, collaborative cohorts. This approach to learning mimics how leaders work together in the workplace formally and informally. The goal of leadership development ultimately involves action, not knowledge. Development means providing leaders with ongoing learning opportunities to learn from their work, rather than taking them away from their work to learn.

Change Management:
Change management is an approach to shifting/transitioning individuals, teams, and organizations from a current state to a desired future state. It is an organizational process aimed at helping change stakeholders to accept and embrace changes in their business environment or individuals in their personal lives. In some project management contexts, change management refers to a project management process wherein changes to a project are formally introduced and approved. Change management uses basic structures and tools to control any organizational change effort. The goal is to maximize benefits and minimize the change impacts on workers and avoid distractions. Organizational change is a structured approach in an organization for ensuring that changes are smoothly and successfully implemented, and that the lasting benefits of change are achieved. In the modern business environment, organizations face rapid change like never before. Globalization and the constant innovation of technology result in a constantly evolving business environment. Recent phenomena such as social media and mobile adaptability have revolutionized business and the effect of this is an ever increasing need for change and therefore change management. The growth in technology also has a secondary effect of increasing the availability and therefore accountability of knowledge. Easily accessible information has resulted in unprecedented scrutiny from stockholders and the media. Prying eyes and listening ears raise the stakes for failed business endeavors and increase the pressure on struggling executives. With the business environment experiencing so much change, organizations must then learn to become comfortable with change as well. Therefore, the ability to manage and adapt to organizational change is an essential ability required in the workplace today. Organizational change can have many faces. But regardless of the type, the critical aspect is a companys ability to win the buy-in of their organizations employees on the change. To effectively implement organizational change consists of a four -step process. First, recognizing the changes in the broader business environment. Second, developing the necessary adjustments for their companys needs. Third, training their employees on the appropriate changes. And fourth, winning the support of the employees with the persuasiveness of the appropriate adjustments. This four-step process is change management in its essence, and organizational change in practice.

Challenges in Managing Change:


The process of change has impact on the whole organization and on all individuals working there. Change processes influence What the organization does The way the organization does things The way all business units of the organization communicate and share information.

This shows clearly the complexity and scope of change management:

Human resource management has an important role in any change process. Change always needs people: for developing objectives, for identifying the need for change, for developing solutions and for implementing these solutions. Technology can support and influence change, but it can never replace people. Another challenge of managing change is that there is no chance to undo mistakes once they were made. If you allocate resources in an inefficient way, you still have the option to provide additional resources in order to achieve your objective. If you once failed to make your employees participate in the change process, you will hardly be able to motivate them again.

Barriers in Managing Change


There are many models for systematically managing change processes. So why are there problems in successfully implementing change? It is a well-known insight that top management support is one of the critical success factors for any change effort. If top management does not buy in why should anybody else? Nevertheless, there are some more barriers that could hinder successful change: Barriers of Perception: Stereotypes in analysis: We see what we expect to see. Difficulties to identify and to analyze the core of the problem / the real cause of the problem. Too narrow scope of the problem: Problems are approached with a one-sided view that focuses on particular aspects only. Lacking ability to see all sides of the problem. Information overload: Difficulties to distinguish between relevant data and available data.

Misjudgments: People think they take into consideration all data they can get hold on; however, they actually do not really exploit all information that is available. Perceptual problems most often occur during analysis of the own situation (internal analysis, identification of internal weaknesses) and during evaluation of options. This may lead to a sub-optimal solution that does not really tackle the causes of the problem. The result is a waste of resources in terms of financial resources, time and commitment. Emotional Barriers: Risk-aversion: Fear to make mistakes or to fail. Lack of ability to process incomplete or contradictory information: Solving complex problems is never easy. Incomplete information may lead to an elimination of promising ideas.

Preference to evaluate existing ideas instead of generating new ideas. Early evaluation of suggestions may sort out creative ideas. Early ideas often base on incomplete information. That makes it easier to reject them. Normally people find it much easier to come up with reasons for rejecting an idea than with reasons for supporting and idea.

Not taking time for thinking: In many projects, people are not able to lean back and think about a problem because they feel under pressure to deliver results quickly. These emotional barriers may cause serious problems in change processes since they hinder the generation of new ideas and approaches. Nevertheless, the critical question of any change Are we doing the right things? requires open discussion, new and unconventional approaches. Brainstorming activities may be of help here. Cultural Barriers: Taboos: Particular issues may have the character of a taboo in an organization. Hence, they are extremely difficult to analyze and to change. More focus than imagination: Children are more creative than adults are. A potential reason is that our culture attaches great importance to targeted thinking. Thus, we virtually unlearn how to be imaginative and creative with our ideas. Problem solving is seen as a serious matter: There is no place for humor in the process of problem solving; hence, there will not be much freedom for creativity. Reasons and intuition: It is generally accepted in business life that critical reasoning, objective analysis, logic, figures and facts are good things. Intuition and fun are seen as sub-optimal. In our personal life, however we are used to base many important decisions on our intuition and our feelings for instance choice of friends and partners. Tradition and change: It is a challenging task to overcome traditions. This is especially true when employees do not see the relation between their traditions and an existing problem. On the other hand, traditions can be the basis for personal commitment in change processes. These cultural barriers hinder the development and evaluation of solutions for problems in the organization. Moreover, they limit options for new approaches in change processes. Environmental Barriers Lack of support: Many people perceive changes as a threat for their personal status. Changes move the whole organization as well as every single employee out of their comfort zone. Therefore, there will always be some people who tr y to stop or ignore the process. Lack of ability to accept criticism: Those who create new ideas may set up new barriers when they ignore justifiable criticism. The ability to accept criticism is a major precondition for establishing trust and for gaining support. Managers who always know the answer: Some managers are successful because the have good ideas and are able to implement them. But only those, who listen to their employees, will be able to use their creativity as well. Such environmental barriers have effects on all phases of change. The can create a feeling of togetherness and mutual support as well as of egoism and competition. Cognitive Barriers: Use of wrong terminology: The use of language and terminology that is appropriate for the receivers of the message can support creativity and motivation. Sticking to strategies: There are many strategies for problem solving and for managing change. However, they are often applied wrongly to rigid or not rigid enough. Lack of complete and correct information: This is a major problem that cannot really be solved. The probably best solution is a balanced mix of information and creative ideas. Like environmental barriers, cognitive barriers can influence all phases of change projects.

Approaches for Solutions:


The implementation of any change process has effects on the employees in an organization. Hence, there is a feedback from the change process to the people involved. Their experiences with a particular change project will have impact on further actions and their acceptance of further changes.

Examples of Organizational Change:


1. 2. 3. 4. 5. Mission changes, Strategic changes, Operational changes (including Structural changes), Technological changes, Changing the attitudes and behaviors of personnel

well as deep social understanding about leaderships styles and group dynamics. As a visible track on transformation projects, Organizational Change Management aligns groups expectations, communicates, integrates teams and manages people training. It makes use of performance metrics, such as financial results, operational efficiency, leadership commitment, communication effectiveness, and the perceived need for change to design appropriate strategies, in order to avoid change failures or resolve troubled change projects. Successful change management is more likely to occur if the following are included: 1. Benefits management and realization to define measurable stakeholder aims, create a business case for their achievement (which should be continuously updated), and monitor assumptions, risks, dependencies, costs, return on investment, disbenefits and cultural issues affecting the progress of the associated work. Effective Communications that informs various stakeholders of the reasons for the change (why?), the benefits of successful implementation (what is in it for us, and you) as well as the details of the change (when? where? who is involved? how much will it cost? etc.). Devise an effective education, training and/or skills upgrading scheme for the organization. Counter resistance from the employees of companies and align them to overall strategic direction of the organization. Provide personal counseling (if required) to alleviate any change-related fears. Monitoring of the implementation and fine-tuning as required.

2.

3. 4. 5. 6.

Change is inevitable and is occurring more rapidly than at any other time in history. The process of implementing change in organizations is difficult to say the least. Employees tend to resist change for very legitimate reasons, including a lack of understanding change in general.

Measuring HR Effectiveness:
Too many business leaders and executives still view HR as a non-strategic cost centre instead of a core, profit-contributing function. This is especially true during the tough economic times of the past few years which have put more organizational demand on the revenue generating business functions and more of a focus on cost saving for the other functions. Unfortunately most organizations still view HR as a transactional cost centre which has forced them to downsize the function and do more with less. HR is still faced with the challenge of capacity with the reduced number of resources resulting in less focus on new HR and Talent initiatives and innovations for their organization. Many HR functions have spent the past few years transforming themselves to be HR Business Partners. Unfortunately within many organizations this change was in name only with HR simply renaming their HR Generalists, Managers and Directors as HR Business Partners. These same HR professionals who were HR Managers one day were given the new title as an HR Business Partner. It was merely a window dressing exercise as organizations were seldom training, coaching, developing and equipping their HR talent with the capabilities and tools to walk, talk and deliver as a true HR Business Partner. One of the most common complaints about HR is that many professionals lack the forward thinking, strategic advisory focus needed to be an effective business partner. They dont spend the time to understand the business they support and focus more on transactional HR activities that dont have the impact the business desires. HR Business Partners need to be trusted advisors to the businesses and leaders they work with. They need to be effective coaches and remain aware of their critical role as to effectively assess workforce capabilities and enable planning for future needs. HR must be focused on becoming a trusted advisor to their business to empower managers to drive improved organizational performance. Productivity, quality, service, absenteeism, and turnover are all measurable and they are related to the way activities are performed in an organization. Yet, there is a long-standing myth that one cannot really measure what the HR function does. That myth has hurt HR departments in some cases, because it suggests that any value added by HR efforts is somehow mystical or magical. None of that is true; HRlike marketing, legal, or financemust be evaluated based on the value it adds to the organization. Defining and measuring HR effectiveness is not as straightforward as it might be in some more easily quantifiable areas, but it can be done. Effectiveness for organizations is often defined as the extent to which goals have been met. Efficiency is the degree to which operations are done in an economical manner. Efficiency can also be thought of as cost per unit of output. To be effective, organizations must be able to achieve their goals, but must reach them using limited resources efficiently. For example, providing on-site child care for all employees might help an employer to achieve an effectiveness goal of reducing turnover, but it could be too expensive (reducing efficiency of expenditures) for that employer to implement. Other departments, managers, and employees are the main customers for HR services. If those services are lacking, too expensive, or of poor quality, then the organization may have to consider outsourcing some HR activities. The HR department is an organization within an organization. What it does (or does not do) affects the entire organizational system. To function effectively, HR needs a clear vision of what it does and whom it serves. That perspective should unify the HR staff and provide a basis for making decisions. HR can position itself as a partner in an organization, but only by demonstrating to the rest of the organization that there are real links between what HR activities contribute and organizational results. To demonstrate to the rest

of the organization that the HR unit is a partner with a positive influence on the bottom line of the business, HR professionals must be prepared to measure the results of HR activities. Then the HR unit must communicate that information to the rest of the organization. Measurement is a key to demonstrating the success of the HR activities. The contribution of the HR units efforts to organizational effectiveness and the efficiency of the departments activities s hould both be measured. Studies of large and medium-sized firms in the United States have found relationships between the best HR practices and reduced turnover and increased employee productivity. Further, those practices enhanced profitability and market value of the firms studied. A high-quality, highly motivated workforce is hard for competition to replicate, which is an advantage that improves organizational effectiveness. Data to evaluate performance can come from several sources. Some of those sources are already available in most organizations, but some data may have to be collected. Considered here are using existing HR records, an HR audit, HR research for assessment, and exit interviews.

Assessing HR Effectiveness Using Records With the proliferation of government regulations, the number of required records has expanded. Of course, the records are useful only if they are kept current and properly organized. Managers who must cope with the paperwork have not always accepted such record-keeping requirements easily. Also, many managers feel that HR records can be a source of trouble because they can be used to question past managerial actions. Another view of HR record-keeping activities is that HR records serve as important documentation should legal challenges occur. Disciplinary actions, past performance appraisals, and other documents may provide the necessary proof that employers need to defend their actions as job related and nondiscriminatory. Records and data also can provide a crucial source of information to audit or assess the effectiveness of any unit, and they provide the basis for research into possible causes of HR problems. The HR Perspective reports on a study of the effectiveness. Jac Fitz-Enz, who studies HR effectiveness, has suggested some diagnostic measures from records to check the effectiveness of the HR function. Note how each of the following measures requires accurate records and a comprehensive human resource information system: -HR expense per employee -Compensation as a percent of expenses -HR department expense as a percent of total expenses -Cost of hires -Turnover rate -Absence rate -Workers compensation cost per employee

Workplace Diversity:
The world's increasing globalization requires more interaction among people from diverse cultures, beliefs, and backgrounds than ever before. People no longer live and work in an insular marketplace; they are now part of a worldwide economy with competition coming from nearly every continent. For this reason, profit and non-profit organizations need diversity to become more creative and open to change. Maximizing and capitalizing on workplace diversity has become an important issue for management today. Diversity Defined Diversity is generally defined as acknowledging, understanding, accepting, valuing, and celebrating differences among people with respect to age, class, ethnicity, gender, physical and mental ability, race, sexual orientation, spiritual practice, and public assistance status. Diversity issues are now considered important and are projected to become even more important in the future due to increasing differences in the U.S. population. Companies need to focus on diversity and look for ways to become totally inclusive organizations because diversity has the potential of yielding greater productivity and competitive advantages (SHRM, 1995). Stephen G. Butler, co-chair of the Business-Higher Education Forum, believes that diversity is an invaluable competitive asset that America cannot afford to ignore (Robinson, 2002). Managing and valuing diversity is a key component of effective people management, which can improve workplace productivity (Black Enterprise, 2001).Demographic changes (women in the workplace, organizational restructurings, and equal opportunity legislation) will require organizations to review their management practices and develop new and creative approaches to managing people. Changes will increase work performance and customer service. Women in the Workplace The need to understand diversity is also driven by women in the workplace. Today's workforce has the highest levels of employment participation ever by women. The number of dual income families and single working mothers has increased. Change in the family structure means that there are fewer men and women in traditional family roles (Zweigenhaft and Domhoff, 1998). Therefore, diversity issues cut across both race and gender. Organizational Restructuring There have been significant changes to organizations as a result of downsizing and outsourcing, which has greatly affected human resource management. Work practices have changed due to the impact of globalization and technology and there is a trend toward longer working hours (Losyk, 1996). Generally speaking, reorganizations usually result in fewer people doing more. Legislation Federal and State equal opportunity legislation make discrimination in workplaces illegal. These laws specify the rights and responsibilities of both associates and employers in the workplace and hold both groups accountable. Benefits of Diversity in the Workplace Diversity is beneficial to both associates and employers. Although associates are interdependent in the workplace, respecting individual differences can increase productivity. Diversity in the workplace can reduce lawsuits and increase marketing

opportunities, recruitment, creativity, and business image (Esty, et al., 1995). In an era when flexibility and creativity are keys to competitiveness, diversity is critical for an organization's success. Also, the consequences (loss of time and money) should not be overlooked. Challenges of Diversity in the Workplace There are challenges to managing a diverse work population. Managing diversity is more than simply acknowledging differences in people. It involves recognizing the value of differences, combating discrimination, and promoting inclusiveness. Managers may also be challenged with losses in personnel and work productivity due to prejudice and discrimination and complaints and legal actions against the organization (Devoe, 1999). Negative attitudes and behaviors can be barriers to organizational diversity because they can harm working relationships and damage morale and work productivity (Esty, et al., 1995). Negative attitudes and behaviors in the workplace include prejudice, stereotyping, and discrimination, which should never be used by management for hiring, retention, and termination practices (could lead to costly litigation). Taking full advantage of the benefits of diversity in the workplace is not without its challenges. Some of those challenges are: Communication Perceptual, cultural and language barriers need to be overcome for diversity programs to succeed. Ineffective communication of key objectives results in confusion, lack of teamwork, and low morale. Resistance to change there are always employees who will refuse to accept the fact that the social and cultural makeup of their workplace is changing. The weve always done it this way mentality silences new ideas and inhibits progress. Implementation of diversity in the workplace policies this can be the overriding challenge to all diversity advocates. Armed with the results of employee assessments and research data, they must build and implement a customized strategy to maximize the effects of diversity in the workplace for their particular organization. Required Tools for Managing Diversity Effective managers are aware that certain skills are necessary for creating a successful, diverse workforce. First, managers must understand discrimination and its consequences. Second, managers must recognize their own cultural biases and prejudices (Koonce, 2001). Diversity is not about differences among groups, but rather about differences among individuals. Each individual is unique and does not represent or speak for a particular group. Finally, managers must be willing to change the organization if necessary (Koonce, 2001). Organizations need to learn how to manage diversity in the workplace to be successful in the future (Flagg, 2002). Unfortunately, there is no single recipe for success. It mainly depends on the manager's ability to understand what is best for the organization based on teamwork and the dynamics of the workplace. According to Roosevelt (2001), managing diversity is a comprehensive process for creating a work environment that includes everyone. When creating a successful diverse workforce, an effective manager should focus on personal awareness. Both managers and associates need to be aware of their personal biases. Therefore, organizations need to develop, implement, and maintain ongoing training because a oneday session of training will not change people's behaviors (Koonce, 2001). Managers must also understand that fairness is not necessarily equality. There are always exceptions to the rule. Another vital requirement when dealing with diversity is promoting a safe place for associates to communicate (Koonce, 2001). Social gatherings and business meetings, where every member must listen and have the chance to speak, are good ways to create dialogues. Managers should implement policies such as mentoring programs to provide associates access to information and opportunities. Recommended steps that have been proven successful in world-class organizations are: Assessment of diversity in the workplace Top companies make assessing and evaluating their diversity process an integral part of their management system. A customizable employee satisfaction survey can accomplish this assessment for your company efficiently and conveniently. It can help the management team determine which challenges and obstacles to diversity are present in the workplace and which policies need to be added or eliminated. Reassessment can then determine the success of the diversity in the workplace plan implementation. Development of diversity in the workplace plan choosing a survey provider that provides comprehensive reporting is a key decision. That report will be the beginning

structure of your diversity in the workplace plan. The plan must be comprehensive, attainable and measurable. An organization must decide what changes need to be made and a timeline for that change to be attained. Implementation of diversity in the workplace plan the personal commitment of executive and managerial teams is a must. Leaders and managers within organizations must incorporate diversity policies into every aspect of the organizations function and purpose. Attitudes toward diversity origi nate at the top and filter downward. Management cooperation and participation is required to create a culture conducive to the success of your organizations plan. Conclusion A diverse workforce is a reflection of a changing world and marketplace. Diverse work teams bring high value to organizations. Respecting individual differences will benefit the workplace by creating a competitive edge and increasing work productivity. Diversity management benefits associates by creating a fair and safe environment where everyone has access to opportunities and challenges. Management tools in a diverse workforce should be used to educate everyone about diversity and its issues, including laws and regulations. Most workplaces are made up of diverse cultures, so organizations need to learn how to adapt to be successful.

Compensation:
Compensation management is more than providing a paycheck and cost of living increases. In many organizations, employee performance relative to organizational goals serves as the basis for compensation. Whether brought on by economic difficulties, changes in technology or other business factors, compensation remains a human resources challenge.

Understanding Todays Workforce The workforce of today comprises the traditional worker, baby boomers, Gen Y, and Gen Xers. All of them not only work differently, they have different lifestyles, work ethics, and levels of diversity; and each group may prefer one type of compensation over another. There are those just entering the workforce with imaginations full of top salaries, those who are more realistic on whats really out there, and those who are unsure of what to expect. As the employer, it falls to you to face these employee compensation challenges and, often, it can be difficultespecially in changing economic times.

Stand Up to the Challenge Everyone wants more money, and that includes your employees. Some may want a higher position, title, or even a better office space. There are those who pray for a benefit plan that includes healthcare or retirement options. Some long for flex time to help balance their work and home lives. Then there are those that want the world and, no matter what you do, you may not be able to please these types.

To help you face employee compensation challenges, consider the following:

Identify the Employee First off, you need to understand each employee and his desires and needs. This can easily be done via an employee salary/compensation survey. Bright Hub writer Linda Richter offers an excellent (and free) employee compensation/benefit survey you can use to determine the feel of your employees. Make these mandatory for each employee and you can keep them anonymous. Once you have completed surveys, you can analyze them to identify individual employee wants. Identify Groups From the employee surveys, therell most likely be a pattern. One group may want days off with pay or flexible working hours where others may want more money, etc. Try to break the surveys into categories such as: - More Money - Specific Benefits - Working Schedules - Opportunity - Training & Education The next challengewhat to offer in employee compensation to keep everyone happy?

Compensate Within Groups

Not everyone is of either the vanilla or chocolate ice cream variety, and some surveyed employees may fall into more than one group. Whatever their desires, the managers must deal with compensation challenges personally; its best to do this during the annual review process. However, if you can tell your employees are really unhappy, you may want to tackle this challenge immediately.

Once employers identify the wants and needs of their employees, it's time to face some employee compensation challenges. While it may not be possible offer everything suggested here, with the various options provided, there's sure to be one or a combination of compensation items that could be implemented now to make the employees happy and build a stronger workforce.

Making Your Employees Happy:


Below is where most people will fall as far as the group scale along with tips on what you can do to improve your compensation issues:

More Money Group You must be realistic here; after all, you cant just hand out wages you cant affordyoull go out of business. Make a budget on what you can afford across the board based on positions held and employee performance review positives and negatives. As an employer, you may decide to offer a 3% raise across the board, but is that really fair? Really dig deep into your performance appraisals to identify those who really hit the mark and reward them for it with a salary increase that reflects their performance. For those that miss the mark, you can always face this employee compensation challenge by switching their incentives to another groupperhaps more training. Specific Benefits Youll also have a group that pleads for healthcare, retirement benefits, an office with a view, or even a company vehicle. If you cant afford healthcare benefits across the board, offer up small compensation tha t employees can use toward obtaining their own policy. Realistically, you cant offer one group healthcare and not the rest. As far as retirement options, ask your liability insurance carrier what types of retirement benefit programs are out there most likely there is one you can afford to offer. For other incentives, if you can accommodate a request such as a company vehicle or better office, and if the employee review demands it, why not consider honoring the request? Working Schedules To some employees, they need time for their kids and familiesit is indeed what is most important to them. Consider things like job-sharing or four work days with one off, preferably a Monday or Friday. This group of people can be easily accommodated if you review their surveys and then speak to them as a groupas a group, agreements can be captured to meet life balances for each employee. Opportunity There are those who feel theyve been in the same position for quite a long time and theyre probably right! Analyze your promotion policy and see who has been missed. Based on performance reviews, even a change in title with a little more responsibility can go a long wayeven a business card can mean a lot to an employee that wants recognition. For long-term employees that want to really grow with the company, consider their value and what youd do if they leftpromote when deserved to face this employee compensation challenge. Training & Education Some employees want either in-house or outside training to help them go further with the company. Others may want educational benefits for a local college so they can rise to a better position. Whatever the reason, offering training or educational benefits will only enhance your workforceso consider these wisely before denying them. When facing employee compensation challenges, there are some things you just can't do such as playing favorites, ignoring requests, and not offering annual performance reviews. Learn here how to be realistic about the challenges of compensating your employees in today's workforce. Employee Compensation Challenges - What You Can't Do

In todays world of tackling employee compensation benefits, there are some things you can and cant do, including: Favoritism You cant offer money, benefits or opportunities to only those you like. Be fair across the board or youll lose valuable employees. Saying No You also shouldnt immediately say no to any compensation request. Implement surveys and follow through on those surveys. Find out whats important and to whom before you say no. Employees that realize youll be offering nothing will walk. Be Realistic While all of these compensation tips sound great, you have to be realistic with what you can afford even if you have a varied group of wants and needs. If you have to decide between the expense of raises or promotions, consider the promotion but perhaps offer a small one-time incentive and explain the expense limitations to your employees. Never leave your employees in the dark just wonderingthe imagination is a powerful thing. Performance Reviews Your employees want guidance and they also want to know how theyre doing or at least how you think theyre doing. Whether you use a standard employee review form or a 360 degree performance review, do use reviews and make sure they come at regular intervalsperhaps based annually after hire date.

Follow Through Whatever path you decide to take when facing employee compensation challenges, make sure what you promise you follow through with. Nothing will make your employees lose trust in you more than if you dont deliver on promises.

Considering the needs and wants of all your employees is essential for a happy work environment. Survey, analyze, and reward where you can, and dont do what you cant afford. If you cant afford to offer something, let your employees know whywhether its budget or other constraints; chances are theyll understand and youll retain a happier group of workers.

Work Culture:
Culture Change
Organizational cultures are comprised of behavior patterns that are reinforced by people and systems over time, and are often best viewed through the lens of your employees. There are many indicators that can help you determine how your companys culture is functioning. Look closely at your employees words and actions, and the resulting conse quences of these behaviors. Careful observation will help you develop an accurate picture of how your culture operates. Cultures are formed regardless of your management teams desire for the company to embody a particular type of attitude. How your employees work, talk, manage and solve problems often becomes cemented in your companys culture as a result of the way leaders respond to everyday situations. And, leaders often do what they do simply because thats the way it has always been done.

Understanding the Impact of Culture


Your senior leaders need to have a solid grasp of the behaviors that drive the company before they undertake an effort to change its culture. Leaders who are change-focused understand that the single biggest challenge to implementing change is entrenched culture. Thats why it is key to know and understand your employees behaviors, and how those behaviors shape your companys culture. If your objective is to truly transform the way your company operates, you must first identify th e source of your groups behavioral patterns. Prior to initiating behavioral changes, take a hard look at your definition of culture and whether your companys current culture will aid in or impede the realization of your corporate vision.

Cultural Entrenchment
Your organization suffers a number of unfavorable consequences when employees become entrenched in the established ways of doing things. While they may not be able to point to the reasons they are conducting themselves as they are, they are still resistant to change, preferring to continue with business as usual. As a result, they resist new behaviors, thereby impeding strategy execution and the deployment of performance improvement initiatives. Further, your organizations ability to achieve a return on investment on new people, assets and ideas is encumbered by the constraints of the old way of doing things. The impact on your leadership will be significant unless your team understands the behaviors that got them where they are.

Obstacles to Culture Change


Obstacles to realizing the vision occur when your leadership teams underestimate the power of the existing culture and how long it took for the structure of the culture to become entrenched in the company. When leaders underestimate resistance to change, its often because they have failed to recognize where the source of the resistance originated. As a result, the organizations vision is often sabotaged, with middle management excluded from change efforts. CLGs approach ensures effective coaching of front-line supervisors as owners of current and future cultures. With buy-in at all levels, youll have a clearer vision of why certain barriers exist.

Evolving into a performance culture:


Taking an organizations culture from an underperforming entity to one that can be defined as having a performance culture is a situation senior leaders often face. Its an active process, one that is both led and managed. Its aim is to he lp the company achieve a competitive advantage by enabling it to better execute its strategy. An organization without a performance-oriented mindset faces more challenges than one aligned to create conditions that focus employees on performance. A Culture of Underperformance Hinders Results The lack of a performance culture makes it difficult for your business to deliver on its current commitments, and hampers directional change when a different business model is necessary to implement change. When performance increases are called for, but your culture is diametrically opposed to them, employee satisfaction tends to be low. Performance Cultures Challenge Top People Senior leaders who create high performance workplaces know that their top people require the personal challenges that are found in a high performance culture. Accordingly, they are charged with the responsibility to ensure that their organization is strategically positioned to achieve stated objectives. To that end, you must also recognize that your companys culture must function in a manner that is re ceptive to growth. Your culture determines how quickly decisions are made, how easily problems get solved, how resilient people are when faced with adversity and how quickly customer needs are met. Thats why it is crucial to have a strategy that reinforce s a performance-based culture. Tim Hockey, Group Head, Personal Banking and Co-Chair, TD Canada Trust (TDCT), tells us about the challenges of managing talent in a large retail organization. He credits the banks efforts to create a caring performance culture to align the efforts of 31,000 dispersed employees with producing sixteen quarters of steadily improving financials. TDCT promotes a culture where clear goals are set, performance is measured and rewarded, and employees are given the ample support they need to succeed, In fact, the bank did a study of one thousand managers that clearly showed how working steadily over time toward clear goals strengthens employee engagement and commitment from year to year. The results showed a strong correlation between employee satisfaction, customer satisfaction and financial results. Hockey also points to the success of strategic recruiting efforts. TDCT may send up to 22 executives to a recruiting session at the Richard Ivey School of Business, for example, with a focus on making personal connections rather than giving speeches. He looks for candidates who fit the organizations values and who will thrive in the caring performance culture he promotes. Coaching without a performance culture is unfocused, but a performance culture without coaching is unfair, says Hockey. At TDCT, the drive for results is balanced with a commitment to coaching and support integral to the caring side of the banks culture. David Maister in his book, Practice What You Preach, (3) uses concrete statistical methods to show that results are actually caused by better leadership skills and human resource practices. One of this articles authors personally experienced the same results during his tenure as Senior Vice President at Hudsons Bay Company. Whenever store managers were switched, a weak one would routinely ruin financial performance while better ones raised even poorly performing stores by solid margins. Unfortunately, finding enough strong leaders is a growing problem, given the increasing demand and current demographics.

Need for a Global Perspective :


The globalization of business does not grab news headlines anymore. These days, it is an essential prerequisite for the survival of any company. In this context, many prominent firms have globally integrated their management system with global business strategies and objectives. It is not difficult at all to see these activities: global group purchasing, global standardization of production, global account management, global finance and global accounting system, which are necessary for an integrated global management system on the surface of a firms value chain. Analogous issues are also arising in the area of HR management. How can we manage HR in a globally integrated way? Can anyone provide some sufficient and effective solutions to do this. Findings from global HR study What does it mean to be a global HR organization? As large and small companies continue to expand their global footprint, the question strikes at the heart of every HR function. The question to explain how HR organizations are evolving to meet the needs of a global business and workforce. Eighty-five global companies participated in the study from North America, Europe, and Asia-Pacific. Research Highlights Being global is about having a global mindset and capability, not just structures or systems. Depending on where work is done at global, regional, and local levels, compani es are taking a portfolio approach based on specific criteria. Increasingly, a companys most critical global capabilities (e.g., leadership) are managed through a global, centralized approach to drive consistency, focus, and effectiveness. Regional hubs are emerging as a way to drive both strategy and efficiency in diverse, complex organizations. Talent management is still managed primarily at a local business unit (BU) level _ but for many companies, global integration of these programs is a top priority. In many instances, HR is leading rather than lagging the business in terms of developing and building global HR strategy and structures. Many companies are focused on upgrading the capabilities of their HR staff to effectively support global business. In some organizations, were seeing a shifting in the roles of HR centers of expertise (COEs) and business partners to better respond to business needs.

HR is playing a growing role in the shaping of corporate ethics and social responsibility, serving as a steward of organizational values. Progress has been made to drive standardization and efficiencies in HR; however, significant opportunities remain in both program management and service delivery. A rigorous approach to HR governance, including establishing clear metrics, plays a vital role in managing risk and maximizing HR effectiveness on a global basis. What it means to be global HR organization? Business globalization, cross-border trade and investment have accelerated over the last decades. Since 1950, world trade has increased 20 fold. There is no doubt that the current economic slowdown is affecting the pace of how companies are globalizing, but most experts believe globalization will continue. themselves as global. Implications for HR The implications for HR are significant in terms of both managing the global workforce and operating as a global function. Results confirm that few HR organizations are operating on a truly global basis. Rather, many are taking a portfolio approach, where work is done at global, regional and local levels, depending on the needs of the organization. When managing global HR, leading companies address four disciplines, with a clear rationale for each on the degree and scope of global influence. These disciplines will be explored in greater detail in this report. Strategy and program design: finding right balance Most organizations struggle with developing a global HR strategy that meets the diverse needs across businesses and geographies. While 93 percent of organizations reported having a clearly defined strategy, in many cases this strategy applies to their primary operating region. Only 49 percent of respondents indicated that their strategy spans all of their operating regions. Program design: A two-pronged approach Results indicate that many organizations conduct program strategies and design based on a two-pronged approach. There is a core set of programs managed primarily at the global level. Typically, these programs focus on a critical segment of the population or involve strategic principles that require enterprise-level oversight. Other programs are managed predominantly at the local country level and may have specific legal or regulatory mandates that require more local involvement. Still, the relatively high predominance of activities occurring at the local level suggests that many organizations have not taken significant action to manage programs on a more standardized basis. Shifting from local to regional/global HR strategy While each companys HR strategy is unique, top global organizations use a decision framework to determine the appropriate balance of global, regional, and local HR roles. The trend among organizations is to shift program strategies and design from the local country level to regional or global levels to drive a more strategic approach and to take advantage of economies of scale. Design Organization design: HR leading the way Our research indicates that in many instances, HR is leading rather than lagging the business in terms of organization design. This is driven in large part by the growing recognition that the companys most critical human capital priorities require a consistently global approach in strategy and design. Thirty percent of companies described their HR organization structures as global (defined as global COEs who manage program strategy and design, and a global HR operations group that manages centralized/regional HR service centers and/or outsourced providers). The largest percentage of companies (43 percent) described their HR structures as two-tiered (defined as specific accountabilities that reside at corporate, such as leadership development, and others that reside at the divisional or regional level, such as compensation). The fewest number of companies described their HR structures as traditional functional departments, replicated by either region or division (13 percent and 11 percent, respectively). Shift in HR Roles and Capabilities

Many organizations are facing significant capability gaps in HR, so there is a concerted effort to upgrade the skills of both business partners and COEs. Interestingly, the skills and expectations of these two roles are converging as HR tries to better support business leaders and their urgent talent needs. Aon Hewitts research reveals a significant degree of overlap in the capability gaps identified for HR business partners and COE/corporate staff. Skills such as strategic thinking, influencing leaders, and managing change are expectations of both roles. Most Critical Capability Gaps

Service delivery and technology While the HR function has made significant progress in driving efficiencies in service delivery, most of this activity has occurred within companies main operating regions. Fewer organizations have been able to achieve service delivery efficiencies at the regional or global level. While the current economic situation has prompted organizations to drive efficiencies through improved service delivery, there are still significant opportunities for greater standardization. Overall, participants reported great variability in the way they administer programs; however, the most prevalent approach to program administration is still at the local country level. HR efficiency and costs vary considerably by region. Global technology deployment continues to be priority Despite the economic slowdown, companies continue to invest in and deploy global HRMS and talent management technology. There are significant differences in the perceived effectiveness of these systems, as the graph below indicates. While 78 percent of respondents reported their HRMS to be Mostly or Very Effective, satisfaction for talent management systems decreases to 67 percent. A key factor driving this lower effectiveness is the lack of integration of talent management processes that feed into these systems. Integration of these processes is a top priority for many organizations over the next one to two years. Governance and metrics: pushing beyond basics Effectively managing the complexities of a global HR organization requires a concerted focus on governance. Our findings indicate that the vast majority (83 percent) of respondents have a clearly defined governance model in place for HR. Yet, only 39 percent of respondents have governance solutions that span all their regions. The prevalence of specific activities and their global reach is outlined in the graph to the left. For leading companies, governance goes beyond HR councils and leadership meetings. Best-in-class governance is tied to business outcomes and focuses on making critical decisions regarding fiscal discipline, risk management, and policy creation. Metrics: focus is on effectively leveraging data Leading companies maintain their human capital edge by using workforce analytics to monitor progress and drive decisionmaking. Yet, among many organizations, there is a continued struggle to track consistent, meaningful measures. While 88 percent of respondents in our Global HR Study track key workforce-related metrics, only half are doing this on a global basis. For the most part, the metrics that are being tracked are very traditional. However, a smaller subset of organizations is tracking more outcome-related metrics, such as new hire performance ratings and high-performer turnover. This is an encouraging sign of a more robust approach to human capital analytics.

Taking action to improve global HR capability While its clear that companies are well along the journey toward HR globalization, this study reinforces the notion that going global is not the panacea for all of HRs challenges. As the complexity of globalization increases, HR will need to be more deliberate and focused on critical areas that provide the greatest impact for business. The questions that follow provide a good starting point to understand where your organization stands versus the four global disciplines reviewed in our study. At any stage of globalization, HR organizations can and need to think about how to enhance their global capability for today and the future. Opportunities will vary depending on whether a company is just starting to expand beyond headquarters borders or well immersed in globally integrated operations.

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