Human Capital Management (HRIS) is an organisational journey rather than a destination. Most organisations are yet to embark on the journey, and have not yet gained an appreciation of the substantial benefits to be gained along the way. This paper sets out the major stages organisations go through on the journey towards highly effective Human Capital Management.
We have identified 6 discrete Stages organisations progress through on the Human Capital Management Journey. Most organisations are at Stage 1 or Stage 2. Following is an overview of the 6 stages. What follows is a breakdown of each stage, the typical characteristics of each stage and initiatives required to move to the next stage…
Stage 1: No Performance Management or fragmented approach
Little Management understanding of Performance Management, most only have an understanding of appraisals
Low understanding of alignment of Human Capital to Strategy
Paper based appraisal system with little link to strategy
Little or no visibility of completion rates
Little or no visibility of the quality of objectives
Little or no visibility of the number of employees that are aligned to a strategic theme or strategic pillar
Different processes in different parts of the organisation
Staff not focused on objectives, strategy or any other organisation metrics
Management is performed by “put-out-the-fire” techniques with no methodology or sustained approach
Development and training is fragmented and uncoordinated resulting in misdirected training expenditure not tied to the organisations needs.
Benefits to the Organisation:
None or little. Appraisal based systems can actually decrease confidence in line management making it more difficult to implement an automated Performance Management system or move to higher level Human Capital Management processes.
Initiatives to move forward:
Educate CEO/COO/CFO on the concept of Performance Management being clear that it is now a foundation process for Human Capital Management.
Demonstrate an automated system to CEO/COO/CFO so that they can understand how effective Performance Management can be in aligning employees to required outcomes.