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Institutional Effectiveness: Global Governance in Human resource

Lecture # 1

Let us solve jigsaw puzzle Institutional Effectiveness Governance in Human resource

Background
Lehman Brothers A case of Canadian Government A Case of Government of Pakistan

Lehman Brothers
Lehman Brothers filed for bankruptcy on September 15, 2008. Largest bankruptcy filing in U.S. history with over $600 billion in assets Lehman shares tumbled over 90% on September 15, 2008. One hundred and fifty eight (158) years, Lehman Brothers survived in multiple business cycles and Great Depression.

 Operating Principles
Demonstrating a Commitment to Excellence

Ensuring That Their Organization Is a True Meritocracy

Demonstrating Smart Risk Management Preserving and Strengthening the Culture Always Acting With an Ownership Mentality Building and Protecting Their Brand Maximizing Shareholder Value

Case of Canadian Government

Prime Minister Stephen Harper in 2009 announced changes in the governance structure for the management of human resources in the Public Service of Canada. The changes will focus and streamline the organizational structure for human resources management and provide Deputy Ministers with the primary responsibility for managing the people in their own departments and agencies.

The Prime Minister's Advisory Committee on the Public Service provided clear advice on the need for a restructuring of how the Public Service manages human resources in its February 2008 report. The Committee found that the existing human resources governance regime is "overly complex, with multiple players and a resulting burden of duplicative and often unnecessary rules".

The Committee recommended changes in the human resources governance structure to make it:
simpler, more streamlined and more coherent.

A Case of Government of Pakistan

2800 British Civil Servants established and maintained rule in the Sub-Continent Now there are:
Around 4 million employees on Payroll of the government Alone 2 million on pay roll of FG 140,000 employees alone in Pakistan railway

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Institutional Effectiveness

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Effectiveness
Effectiveness means the capability of producing an effect In management, effectiveness relates to getting the right things done. Peter Drucker says that effectiveness is an important discipline which can be learned and must be earned.

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Institutional Effectiveness
Institutional Effectiveness (IE) has been defined by IE pioneer Peter Ewell (1985) as
"A comparison of results achieved to goals intended."

Definition of IE
The ability of an institution to match its performance to established purposes as stated in its mission (Alfred et al) An internal process of planning and evaluation that is intended to ensure that the organizations performance matches its purposes. A global process that uses assessment strategies to demonstrate accountability (Midlands Technical College, p.ix).

Systematic, explicit, and documented process of measuring performance against the mission in all aspects of an institution (SACS, 2005, p. 9) Intentional process of ascertaining the level of achievement of an institutions mission and its educational goals and objectives (SACS, 2005, p. 8)

SACS = Southern Association of Colleges and Schools

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What IE is all about?

Provides information to document progress/status, for decision making, and to determine improvements Provides data to support planning and evaluation of performance, learning, service/support functions

Basic questions addressed by IE?

What objectives are intended? Are they being achieved? What does organization want to accomplish? How are we progressing?

Purposes
Clarification of Mission

Improvement
Identification of Priorities Planning and Decision Making

Enhance Reputation
Historical Record

What Does Institutional Effectiveness Include?

Planning Assessment Program Review Research & Institutional Data

The Cycle is Continuous

Design

Resources

Conduct conversations about organization status Identify organization's strengths

Evaluate

Conduct

Determine areas for targeted improvement Monitor progress

Components of IE Process
1. 2. 3. 4. 5. 6. Planning Budgeting Accountability and Assessment Feedback Mechanisms Coordination IE Program Support

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Core Concepts
Resources
Stakeholder Needs

Mission

Results

Costs
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Governance

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Governance
Governance is the activity of governing. It relates to decisions that:
define expectations, grant power, or verify performance.

It consists either of a separate process or of a specific part of management or leadership processes. Sometimes people set up an institution to administer these processes and systems.

In the case of a business or of a non-profit organisation, governance relates to:

consistent management, cohesive policies, processes and decision-rights for a given area of responsibility.

For example, managing at a corporate level might involve evolving policies on privacy, on internal investment, and on the use of data. An exercise of powerpolitical, financial, judicial, and administrative to manage the public affairs of a country at all levels

The World Bank defines governance as

the exercise of political authority and the use of institutional resources to manage society's problems and affairs

The Worldwide Governance Indicators project of the World Bank defines governance as
The traditions and institutions by which authority in a country is exercised.

Parameters of Good Governance

Basic Parameters Vision and Mission Participation Transparency Accountability

Global governance
In contrast to the traditional meaning of "governance", some authors like James Rosenau have used the term "global governance" to denote:
the regulation of interdependent relations in the absence of an overarching political authority.

The term can however apply wherever a group of free equals need to form a regular relationship.

Global governance or world governance is the political interaction of transnational actors aimed at solving problems that affect more than one state or region when there is no power of enforcing compliance The term is used to designate all regulations intended to organize human societies on a global scale

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Governance in HR

What is governance?
Mercer defines HR Governance as the act of leading the HR function and managing related investments to:
optimize performance of the organization's human capital assets; define stakeholders and their expectations; fulfill fiduciary and financial responsibilities; mitigate enterprise HR risk; align the function's priorities with those of the business; and assist HR executive decision making.

Why Governance matters in HR?

HR executives face significant challenges, including managing a global function Realizing returns on technology Accelerating the pace of organizational change Leveraging human capital strategically Reforming management practices in response Most HR Managers dont challenge the stereotype HR practices. They rather create governance issues

Benefits of establishing a workable HR governance structure

Clear reporting structures role clarity and value-adding HR activities and decisions at each level of the organisation logical decision making boundaries and controls integration and alignment with business priorities clarity around an organisation's tolerance of duplicative activities transparency of process and resultant employee trust/commitment demonstrable evidence of HR's value to the business.

History of HR Governance
The term "HR governance was conceived in the mid-90s to answer:
Question of whether an organization can manage itself without regulation?

HR Governance: Definition
HR governance" is an emerging organizational practice, there is currently no commonly acknowledged definition.

HR governance is the act of leading the HR function and managing related investments to:
optimize performance of the organizations human capital assets; fulfill fiduciary and financial responsibilities; mitigate enterprise HR risk; align the functions priorities with those of the business; and enable HR executive decision making.

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Is governance a strategic objective?

No
Governance is not a strategic objective. It is a systematic approach to management that enables the function to achieve strategic and operational objectives.

This is just tip of the iceburg

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Let us assess your interest in the HR governance

5/1/2012

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Assignment # 1

Email me your CVs carrying your photo Write a report on:

Civil Service Reforms in UK Civil Service Reforms in Singapore Civil Service Reforms in Canada Civil Service Reforms in Pakistan

Questions ? & Answers ?

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