Professional Documents
Culture Documents
PROGRAMME : EXECUTIVEDIPLOMA in
PROJECT MANAGEMENT
MODULE : MODULE 8:
Organizational Development and Human
Resource Factors
MATRIX ID : JX78946HP702
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Module 8: Organizational Development and Human Resource Factors
Table of Contents
1 Introduction Summary...................................................................................................3
2 Human Capital Management........................................................................................4
2.1 Basic Functions of Human Capital Management......................................................4
2.2 Human Capital Management as a growing importance factor in an organization’s
growth 5
2.2.1 Adhering and adapting to employee’s needs.......................................................5
2.2.2 Increasing responsibility in the evolution of a Manager.....................................6
2.2.3 Legal matters.......................................................................................................6
2.2.4 Consistency.........................................................................................................7
2.2.5 Expertise.............................................................................................................7
2.2.6 Increasing cost of Human Capital Management ................................................8
3 Human Capital Management moves from operational to strategic...........................8
3.1 Human Capital Management Challenges................................................................10
3.1.1 Economic and Technological Change...............................................................11
3.1.2 Workforce Availability and Quality..................................................................11
3.1.3 Demographics and Diversity.............................................................................12
3.1.4 Organizational Restructuring............................................................................13
4 Human Capital Management and the Organizational Culture ...............................13
4.1 Organization/ Industry Life-Cycle Stages and HCM Strategy explaining Appendix
1 15
5 HCM as a strategic business contributor to improve the organization...................17
5.1 Strategies to improve the organization....................................................................19
5.2 Linking the HCM Strategies and Plans to the Organization for Effective Strategic
Contribution...................................................................................................................22
6 Final Summary..............................................................................................................24
7 Appendixes.....................................................................................................................26
8 Bibliography (information not used directly but used to supplement information)
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9 References (text you actually used but not entirely)..................................................28
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Module 8: Organizational Development and Human Resource Factors
1 Introduction Summary
Human Capital Management is regarded as an important function in your
organization. How would you use the theories learnt to improve this resource-
capital management in your organization?
There are three key enablers to have an effective management: people, process
and technology. Out of these key three enablers, the most important component is people.
With people, your organization’s key strategic capital would always be its human capital
because people capital defines the organization as well as it is also a reflection of either a
success which does not necessarily guarantee success. However, the combination of an
effective strategy and sound investment of human capital management does serve as the
without it, a company would cease to exist. This paper on Human Capital Management
development, will show how HCM has moved from an administrative role to a strategic
factors such as hierarchical management, focus intensive on processes, and too inward
organizational focused.
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Module 8: Organizational Development and Human Resource Factors
Management must look beyond the administrative activity role and more into
then have a formalized design of a human capital management system that is meant to
manage effectively the use of human talent from the aspect of recruitment, compensation,
system, an organization is then able to bring in the necessary human capital resources for
the work required by the organization and compensate them for their task. In addition,
should problems arise, they would be able to meet the challenges in managing human
capital with the proper planning and measure put in place as a result of proper strategic
planning.
focuses on the policies and practices in managing the people resource activity in a work
internal organization that focuses on the policies and strategies in managing people
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Module 8: Organizational Development and Human Resource Factors
• Records maintaining
2006)
Human capital management is viewed today as becoming more and more critical
creating the organization because human capital management talks about the
without it, no organization can provide competitive advantage in today’s business world.
The factors below will illustrate the dynamic growing importance of human
The employee today faces a lot of personal responsibilities like health care, family care
including child and elderly care as well as family vacation planning. The today’s worker
also seeks to balance between the working life and individual personal pursuits. As such,
the HCM is central to planning, controlling and executing such policies designed to
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Module 8: Organizational Development and Human Resource Factors
accommodate the demands of the employee’s needs as well as balancing the employer’s
The role of management today has evolved from not only just managing the work activity
of the human capital and processes but has gone beyond. The today’s manager looks at
the complexities and demands in challenges to businesses such as local and foreign
scientific research and development. As a result, HCM is tasked with developing and
matching that with the competency of the human capital. This results in strategic
decisions being made with concern to matters of recruitment, compensation, training and
personnel development.
The introduction of fair and proper legislation has increased the importance of human
• Social Security benefits (employee’s provident fund and social medical security)
• Labor relations
• Compensation
• Work safety
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Module 8: Organizational Development and Human Resource Factors
The points above are some of the policies that has entrenched the importance of having a
proper HCM in not performing administrative but also in a strategic role in managing
today’s human capital. However, should these policies be infringed, this would result in
costly back-pay awards, class action legal suits, and legal penalties.
2.2.4 Consistency
because it can be viewed as either unfair or uneven. Without the consultation of the
HCM, the compensation structure can be viewed as uneven and unfair. HCM keeps the
level of consistency equal because they ensure the stability of fairness when it comes to
2.2.5 Expertise
In today’s organization they face many challenges, many of which are external in nature,
for example, competition. As a result, HCM is tasked with coming up with new ideas in
are one of those responses. Compensation packages developed with attractive benefits
and bonuses, and organization’s stock purchase plan or given stock options to employees,
loans for housing, academic and training. HCM also looks into the employee matching
and selection process. They have to look into subjective and objective interviews,
knowledge, abilities, attitudes, and personality traits). This is for HCM to evaluate a
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Module 8: Organizational Development and Human Resource Factors
candidate’s ability to solve problems under pressure must have team spirit, logical
selection of potential employees. With this regard, the knowledge base of the skilled
human capital department is needed to ensure the ongoing advancement in human capital
management.
increasing demand for businesses globally and advancement in technology, the highly
skilled employee today has become a valuable asset. As a result, budgetary expense for
The traditional role of HCM has today been increased to not look only at
administrative and daily operations but to a more strategic role. HCM has now moved to
and executing the human capital management strategies and practices. For HCM to
execute the new role in strategy, they must look into developing their skills and attitudes.
As such, the human capital development would be able to lead change, facilitate business
growth and enhance innovation across the organization. In doing so, the human capital
department would start a changes process strategically executing at the same time the role
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Module 8: Organizational Development and Human Resource Factors
The role of the change agent here is to manage the transformation of the
employee. HCM is regarded as the vanguards and the vehicle of an organization’s culture
and are also the main contributors to identification and implementation of change
processes. In Figure 1, Ulrich (Ulrich 1998) differentiates four roles for the up-to-date
HCM derived from two dimensions. The first dimension represents the focus of HCM
and it ranges from operational to strategic. The second dimension reflects the human
capital activities and distinguishes between managing human capital processes and
managing people. Crossing these axes we arrive at the four roles of HCM: strategic
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Module 8: Organizational Development and Human Resource Factors
For HCM to excel in a new role, strategy, the HCM professional has to be
developed and be transformed. Not only will HCM take on the operational role but they
will also undertake a strategic role in leading change, augment innovation and assist the
organization growth and success. Thus, the change transformation happens for HCM at a
strategic level enabling HCM to be a change agent as well as a strategic partner. For
professionals have to develop new skills such as guiding and supporting. These skills are
then used to add value to building the competence skills at senior director level. This
program is called “High impact Program for HR People”. Central to this program are
and
Powell 2004).
become very challenging as well. Not only does the HCM professional
Workforce 2020, the study has indicated issues concerning the labor
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Module 8: Organizational Development and Human Resource Factors
• Organizational restructuring
In most parts of the world today, there is significant labor demand due
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Module 8: Organizational Development and Human Resource Factors
package, now it is not the case. Today, the workplace is a more diverse
and female as well. HCM today has had to adapt to a different working
environment.
and working single parents. With the decline of the traditional family,
where there is only a single income earner and usually male, the
relocation and transfer which some employees maybe less than willing
alleviate this situation, important HCM legislation are put in place that
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Module 8: Organizational Development and Human Resource Factors
Organizations today are differently structured than it was the past few
result, jobs are redesigned and this affects the employee. As an agent
consequence of change.
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culture.
with the different life cycle of an organization from the view of a start
For example, the human capital management strategy will differ from
years old vs. a company that is like IBM or HP. If you look at Appendix
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Module 8: Organizational Development and Human Resource Factors
1997)
Embryonic
At this stage is where the entrepreneurial character exists in the organization. As the
organization is still at infancy and starting, the amount of resources in terms of capital
individuals who already have the necessary skill-sets. Personnel training and
Growth
the need for stability to sustain its growth. This juncture is where
necessary attracting and recruiting talent and not just deal with
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Shakeouts
At this level as the industry reacts to rapid growth, not all organization
term and long term inducements targeting high potential and niche
Maturity
At this stage of the cycle, the organization should be stable and thus
maturity stage of the organization, this would also the human capital
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Decline
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Module 8: Organizational Development and Human Resource Factors
style. As such, today not only has the human capital professional has
1997)
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Module 8: Organizational Development and Human Resource Factors
back end role in administration and operations now they are needed as
take into account the HCM issues they have to face. HCM professionals
are needed to be part of the discussions as you look into matters such
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into new ways to align the organization and its work with the strategic
(Ulrich 1998)
financial cost and benefit of the HCM effort. For example, to reduce
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does more than its typical activity and task performance but it also
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Module 8: Organizational Development and Human Resource Factors
outsourcing, the service level contract must define the activity clearly
5.2 Linking the HCM Strategies and Plans to the Organization for Effective
Strategic Contribution
plans. Figure 3 will show the relationship among variables that will
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Module 8: Organizational Development and Human Resource Factors
Figure 3
Business strategy affects strategy and HCM plans as well. When an organization
decides to further improves itself or decides on a different business strategy, the HCM
must be able to support the strategy by coming up with adequate HCM planning so that it
can well coordinated with the organization’s business strategy if there is any
HR,
differentiation. (Porter 1980) Figure 2-4 will show the different HCM
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Module 8: Organizational Development and Human Resource Factors
Figure 2-4
6 Final Summary
matters of human capital management. The right incentive and the right planning would
allow the project manager to have the necessary resources in order to complete the task
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Module 8: Organizational Development and Human Resource Factors
set forth by the project manager. Over the years, human capital management has moved
from the administrative and operational aspect of an organization and now has become a
strategic contributor to the organization. The right strategic plan for the organization and
different stages of organization growth allows the HCM professional to plan and execute
now viewed as more of a profit center and away from its past view as an activity based
cost center. By being a strategic contributor, human capital management would be able to
activities that can be outsourced such as payroll and data management, better returns of
investment on labor with proper recruitment planning and avoiding other large costs
thereby allowing the HCM professional deployed to other more important and strategic
tasks.
“The most effective project managers are developed day-to-day, not year-to-year or
project mistake-to-project mistake. Mistakes will happen, even with the best of
mentoring, however, project managers with strong mentors should find their people
effectiveness continually improving. The benefit is that the company and everyone
connected to the project shares in those gains.” Neal Whitten (Whitten 1999)
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7 Appendixes
Appendix 1
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Module 8: Organizational Development and Human Resource Factors
2. Ulrich D (1998) A New Mandate for Human Resource. Harvard Business Review
January- February 1998, pp.125-134
6. “The Missing M & A Link,” TheWall Street Journal, October 7, 1997, A1.
7. Linda Davidson, “Measure What You Bring to the Bottom Line,” Workforce,
September 1998, 34—40.
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1. Richard W. Judy and Carol D’Amico, Workforce 2020: Work and Workers in the
21st Century (Indianapolis: Hudson Institute, 1997).
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