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SHRM Module 3

prepare SHRM

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LICENSE AGREEMENT FOR SHRM HRMP™ LEARNING SYSTEM STUDENT

MATERIALS

By using these SHRM HRMP™ Learning System student materials (the ―Materials‖), the user
(―User‖) hereby agrees as follows:

(i) That the Society For Human Resource Management (SHRM) is the exclusive
copyright owner of the Materials.

(ii) Provided that the required fee for use of the Materials by User has been paid to
SHRM or its agent, User has the right, by this License, to use the Materials solely for his/her
own educational use.

(iii) User has no right to make copies, in any media, of the materials, or to sell, or
sublicense, loan, or otherwise convey or distribute these materials or any copies.
Module 3: HR Service Delivery
Acknowledgements ................................................................................................................... vii
Welcome to the SHRM HRMP™ Learning System ................................................................... ix
Getting Started ........................................................................................................................ ix
SHRM HRMP™ Learning System Structure ........................................................................... x
Learning System Development ............................................................................................ xiii
Information About Certification ........................................................................................... xiv
HR Certification Institute HRMP™ Knowledge Base ........................................................... xv

Section 3.1: Program Creation, Implementation and Management .........................................3

Introduction ..................................................................................................................................5
Overview of HR Service Delivery........................................................................................... 5
HR as Administration Expert and Employee Advocate ...............................................................7
Create New and Implement Existing Programs and Processes ............................................... 8
Phases of Service Delivery .................................................................................................... 10
Phase 1: Service Delivery Formulation ......................................................................................10
Alignment to Organizational Strategy ................................................................................... 11
Identifying Multiple-department HR Service Delivery Applications ................................... 12
Shared Service Considerations .............................................................................................. 13
Phase 2: Service Delivery Communication ................................................................................14
Advocacy and Influence ........................................................................................................ 14
Developing Communication Plans ........................................................................................ 21
Phase 3: Service Delivery Implementation ................................................................................24
Expert Implementation .......................................................................................................... 25
Phase 4: Evaluation of Services .................................................................................................26
Implementing Feedback and Response Mechanisms ............................................................ 27
Service Delivery Improvement ..................................................................................................27
Delivery Improvement Approaches....................................................................................... 28
The Plan, Do, Check, Act (PDCA) Leadership Model ......................................................... 28
Service Delivery and Organizational Development ...................................................................30
Implementing Organizational Development Initiatives ........................................................ 30
Organizational Values and Goals .......................................................................................... 32
HR Service Delivery and Project Management .........................................................................33
Managing Service Delivery Projects ..................................................................................... 33
Project Management .............................................................................................................. 38
Practice Questions ......................................................................................................................40

Section 3.2: Recruiting and Hiring Processes............................................................................45

Introduction ................................................................................................................................46
Recruiting-Related Activities .....................................................................................................46
Employment Branding and Marketing .................................................................................. 47
Branding and Marketing Concepts ........................................................................................ 50
Recruiting .............................................................................................................................. 51
Documentation for Recruiting ............................................................................................... 57
Selection and Retention Considerations ................................................................................ 62
Talent Acquisition and Mobility Services ..................................................................................71
The Search for Talent ............................................................................................................ 71
Factors Influencing Talent Acquisition Approaches ............................................................. 75
Implementing Recruiting Plans ..................................................................................................79
Phases .................................................................................................................................... 79
Recruiting Needs Analysis .................................................................................................... 80
Formulating a Strategy .......................................................................................................... 81
Implementing Tactically and Strategically ............................................................................ 81
Monitoring the Strategy ......................................................................................................... 82
Flexible Staffing Programs.........................................................................................................83
Flexible Staffing Alternatives ................................................................................................ 83
New Employee or Transferee Orientation Services ...................................................................89
Onboarding and Assimilation Overview ............................................................................... 89
Orientation as an HR Service Delivery Process .................................................................... 91
Practice Questions ......................................................................................................................94
Section 3.3: Local and International Labor Laws and Practices ............................................98
Introduction ................................................................................................................................99
The Influence of Legal Systems ............................................................................................ 99
Legal Areas Affecting HR Service Delivery ....................................................................... 100
Laws Affecting HR Service Delivery ......................................................................................100
Laws Affecting Remuneration............................................................................................. 102
Laws Affecting Benefits ...................................................................................................... 106
Laws Affecting Employment Terms and Conditions .......................................................... 108
Laws Affecting Working Conditions .................................................................................. 110
Industrial Relations .............................................................................................................. 111
Local Laws Affecting Treatment of Employees .................................................................. 113
Electronic Service Delivery ................................................................................................. 114
Intellectual Property Considerations ........................................................................................115
Intellectual Property Protection Considerations .................................................................. 115
Identifying Applicable Intellectual Property Law to Incorporate into HR Service Delivery
Processes .............................................................................................................................. 116
Practice Questions ....................................................................................................................118

Section 3.4: Remuneration and Benefits ..................................................................................123

Introduction ..............................................................................................................................124
Laws Affecting Remuneration and Benefits ............................................................................125
Examples of Specific Legal Issues ...................................................................................... 128
Following Local Remuneration Practices to Remain Competitive ..................................... 130
Implementing Total Rewards Programs ...................................................................................134
Types of Compensation ....................................................................................................... 136
Objectives of Total Rewards System................................................................................... 137
Implementing Retirement Plans .......................................................................................... 140
Perquisites ............................................................................................................................ 142
Manage Employees Leaving and Returning to the Organization.............................................144
Manage Employees Leaving the Organization .................................................................... 144
Manage Employees Returning to the Organization ............................................................. 145
Practice Questions ....................................................................................................................149
Section 3.5: Using Technology and Tools to Deliver HR Services .........................................154
Introduction ..............................................................................................................................155
Technological Factors.......................................................................................................... 155
Managing Technology..............................................................................................................157
Trends in Technology .......................................................................................................... 157
New Technology Processes ......................................................................................................161
Human Resource Information Systems (HRIS) .................................................................. 161
Knowledge Management Systems....................................................................................... 166
Communication Platforms ................................................................................................... 170
Practice Questions ....................................................................................................................174
Bibliography .............................................................................................................................177
Index .........................................................................................................................................190
Acknowledgements
SHRM acknowledges its volunteer leaders and project team members for their valuable
contributions to the SHRM HRMP™ Learning System:

Lead Subject Matter Experts

Kendal Callison, MBA, GPHR Lorelei Carobolante, GPHR, SCRP, SGMS
Callison & Associates LLC Global and Intercultural Communication
Kirkland, Washington Design Consultant
President & CEO, G2nd Systems®
San Diego, California

Subject Matter Experts

Oluwafunke Amobi, MBA, ACIPD Geoff De Lacy, FAICD, FloD, FAHRILife

General Manager Director, Polaris Consulting
Organisation and Talent Development Melbourne, Australia
MTN Nigeria Communications Limited
Lagos, Nigeria Almiro dos Reis Neto
President, Franquility
Akin Ayoola São Paulo, Brazil
Chief Human Resource Officer
Oando Plc Brian J. Glade, SPHR, GPHR
Lagos, Nigeria Managing Director, Global Strategy and the
Americas Region
Pablo Caffe Association of Executive Search Consultants
Senior Manager, Human Resources, Univeg (AESC)
Expofrut S. A. New York, New York
Rio Negro, Argentina
Gregory Komarow, GPHR, SPHR
Laura Lea Clinton, GPHR Director Compensation & Benefits,
Workforce Transition Advisor Cleveland Clinic – Abu Dhabi
CARE USA Abu Dhabi, United Arab Emirates
Atlanta, Georgia
Jerry Liao, MBA
Peyman Dayyani, MBA, CIPD, SPHR, Chairman of International Affairs
GPHR Committee
Vice President of Organizational Chinese Human Resource Management
Development and Human Capital (CHRO), Association (CHRMA)
Mobile Communication Company of Iran Taipei, Taiwan, R.O.C.
(MCCI)
Tehran, Iran
Subject Matter Experts (continued)

Mary MacDonald Lav Kumar Shelat

Global HR Professional, Retired Group Vice President HR
Bonita Springs, Florida Avantha Group
Gurgaon Haryana, India
Jean-Louis Mutte, GPHR
Managing Director Antony Thomas
Amiens School of Management, France Senior Management/Director Across South
Amiens, France East Asia/Middle East
Dubai, United Arab Emirates
Oliver Nnona
Principal Consultant Linda Wan, Ph.D.
Profiliant Development Resources Ltd. Senior Regional Consultant
Lagos, Nigeria Development Dimensions International
Taiwan
Rolf Philipp Roesen Taipei City, Taiwan
International HR Director Europe, Asia-
Pacific & Japan Judith A. Wierman
Illumina Cambridge Ltd. Director & Senior HR Global Business
Lausanne, Switzerland Partner
Nalco Company
Craig Tao Rong Naperville, Illinois
HR General Manager
Maersk Line Shipping
Shanghai, China

Program Development Team

Brian Dickson Dave Lord
Chief, Organizational Programs & Strategic Instructional Designer
Partnerships Society for Human Resource Management
Society for Human Resource Management (SHRM)
(SHRM) Alexandria, Virginia
Alexandria, Virginia
Tiffany Pryor
Matthew Konetschni Manager, Curriculum Development
Director, Development and Training Society for Human Resource Management
Society for Human Resource Management (SHRM)
(SHRM) Alexandria, Virginia
Alexandria, Virginia
Cornelia Springer, CAE
Instructional Design, Consultant
ePath Learning, Inc. Real Time Process Solutions, LLC
New London, Connecticut Lorton, Virginia
Module 3: HR Service Delivery

Welcome to the SHRM HRMP™

Learning System
Welcome to the SHRM Human Resource Management Professional
(HRMP)™ Learning System! This learning system represents a significant
investment in your career. Whether you are using these materials to prepare for
the HR Certification Institute’s HRMP certification or to advance your
professional development, you will find that it is comprehensive, and easy to use.

The HRMP certification was developed by the HR Certification Institute to meet

the needs of human resource (HR) professionals throughout the world while
adopting a universal perspective with respect to the HR discipline. Both these
materials and the certification exam address HR management principles that
transcend geographical boundaries.

The SHRM HRMP Learning System is intended to cover the Knowledge Base assessed by the
HR Certification Institute examination. The system’s contents may not compare exactly to the
exam and there will be some content tested in the exam that is not included in the learning
system. SHRM makes no claim that the use of this material guarantees passage of the HR
Certification Institute certification examination.

Getting Started
 You have already purchased and obtained this module through the Online
Learning Center. Note that the complete SHRM HRMP Learning System
is comprised of four modules.
 Be sure to familiarize yourself with the Online Learning Center
(https://www.epathcampus.com/SHRM/onlinelearningcenter/login/), where
you can find all modules purchased to date, as well as additional learning

aids, practice tests, E-flashcards and case studies. If you have not already
done so, take the Online Learning Center Orientation by clicking on the
corresponding link.
 First, go to the Practice Tests on the Online Learning Center and take the
Test Your Knowledge – Readiness Test. This will help you determine
how to focus your study.
 Next, carefully read and study this module, Module 3: HR Service
Delivery. Return to the Online Learning Center as directed in the module.
 When finished with this module, take the Module 3 Practice Test on the
Online Learning Center, and use the flash cards and case studies for
additional practice.
 When ready, take the HRMP Certification Practice Test on the Online
Learning Center.
 Purchase and study additional SHRM HRMP Learning System modules
as needed.

The learning system offers many features that allow you to learn in the way that
you feel most comfortable.

SHRM HRMP™ Learning System Structure

This SHRM HRMP Learning System is not a textbook; it is a learning process.
By using all of the available materials and resources, you will be well-versed in
the four domains that comprise the HR Certification Institute’s Knowledge Base.

The learning system consists of a set of modules that are based on the four
domains in the HR Certification Institute’s HRMP Knowledge Base. In the
following table, the percentages represent the proportion of HRMP certification
test questions that are based on the domains.

SHRM HRMP Learning System HR Certification Institute’s Knowledge

Modules Base Domains

Module 1: HR as a Business Leader HR as a Business Leader (32%)

Module 2: People Development and People Development and Talent

Talent Management Management (29%)

Module 3: HR Service Delivery HR Service Delivery (23%)

Module 4: Measurement Measurement (16%)

Learning System Modules

Each section in the SHRM HRMP Learning System modules begins by stating
the behaviors, skills and knowledge from the Knowledge Base that are addressed
in that section.

In addition to the content, each module contains a variety of helpful tools,

including:
 Practice questions throughout to help check your understanding of the
content as you progress.
 A bibliography that provides a list of print and Internet resources related to
the content.
 An index that quickly directs you to essential topics.
 Terms defined in the glossary display as blue text the first time the term is
used in a section.
 Icons that call your attention to specific content. These icons appear as
follows:

Indicates important content to which you should pay special attention.

Links to a website or suggests an additional reading source for a topic.

Directs you to other portions of the SHRM HRMP Learning System (such
as other modules and sections).

Directs you to the Online Learning Center.

Indicates practice questions to check your understanding of the content as

you progress through a module.

Online Learning Center

As a purchaser of a SHRM HRMP Learning System module, you have access to

the Online Learning Center at:

https://www.epathcampus.com/SHRM/onlinelearningcenter/login/

This website provides a variety of resources:

 Supplementary materials
 Full HRMP knowledge base
 Case studies
 Online and printable glossary
 E-flashcards
 Practice tests
o Test your knowledge – readiness test
o Practice test for each module (with individual item feedback)
o HRMP certification practice test

© 2011 SHRM xii

Module 3: HR Service Delivery

Be sure that you use all of the components of the SHRM HRMP Learning
System. Together, the components will help you learn and retain key content
and prepare for the certification exam.

Make use of the Online Learning Center at:

https://www.epathcampus.com/SHRM/onlinelearningcenter/login/

Learning System Development

The SHRM HRMP Learning System materials were developed by The Society
for Human Resource Management (SHRM) using the HR Certification Institute’s
Knowledge Base as a guide. Other than providing the Knowledge Base, the HR
Certification Institute had no role in the development of the learning system.

SHRM assembled a development team to create this learning system. The

development team included:
 SHRM staff
 Subject matter experts (SMEs) from around the world
 An instructional development firm that includes content and software
developers
 Editing and word-processing specialists

Each team member brought a special perspective and talent to the development
effort.

Revisions to the materials are regularly scheduled to ensure that the learning
system content is updated as the HR profession changes.

© 2011 SHRM xiii

Module 3: HR Service Delivery

Information About Certification

Many of you have already made the decision to take the HRMP certification
exam. Others may be considering whether certification is valuable at this point in
their career. There are many reasons to consider certification:
 Professional certification establishes credibility. Earning the HRMP
credential shows that a person has mastered the HR Knowledge Base and
has remained current on HR developments through the recertification
process.
 Certification recognizes professional achievement. It is a visible reminder
to co-workers and senior management of the holder’s expertise.
 Certification elevates the status of the HR profession. As the number of
certified HR professionals grows, so does the status and prestige of the
certification.
 Certification allows you to make a greater contribution to your
organization’s success. The knowledge and visibility you gain provide you
with an opportunity to make a difference in your organization.

From a practical standpoint, there are other individual advantages:

 Certification provides a sense of personal satisfaction by undertaking and
succeeding in a difficult endeavor.
 A highly valued certification gives you a distinct advantage in the job
market. Similarly, when you are hiring, certification gives you an extra
measure of confidence in a candidate.
 Certification moves with you as you change organizations and careers.

© 2011 SHRM xiv

Module 3: HR Service Delivery

HR Certification Institute HRMP™ Knowledge Base

At the foundation of the learning system materials and the HR Certification

Institute exam is a Knowledge Base. This Knowledge Base represents the HR
Certification Institute’s most recent study of the HR profession expressed as
behaviors, skills and knowledge required to fulfill human resource
management responsibilities that are universal and transcend global
boundaries.

For your convenience, the Knowledge Base for Module 3: HR Service

Delivery is provided on the following pages. The full Knowledge Base is
available on the Online Learning Center
(https://www.epathcampus.com/SHRM/onlinelearningcenter/login/) website,
and is also available on the HR Certification Institute website
(http://www.hrci.org).

Module 3 Knowledge Base

Below are the behaviors, skills and knowledge required for mastery of content
related to Module 3: HR Delivery Service. The percentage after the heading
represents the percentage of questions on the HRMP exam based on the
Knowledge Base domain defined by the HR Certification Institute on this module.

Module 3: HR Delivery Service (23%)

Purpose Statement for HR Service Delivery:

HR professionals as administration experts and employee advocates should

possess a combination of behaviors, skills and knowledge to implement existing
programs accurately and consistently by using effective HR service delivery
methods that support sustainable organizational growth and include: creating an
environment where all employees can find answers to HR questions; using
effective communication plans, HR technology and tools; identifying HR service
delivery methods used by one group that may be applicable across the
organization; defining and implementing compensation and benefit programs,
and; managing employee arrivals and departures as appropriate.

Important behaviors for successful HR service delivery:

01. Develop and implement effective HR marketing, branding, recruiting, and hiring processes

02. Establish programs that support a balance between employees’ professional and personal
lives (work/life balance)

03. Conduct research to analyze the workforce (for example, skills available locally, salary
requirements)

04. Use HR technology and tools to deliver HR services (for example, payroll, employee self-
service, social networking and human resource information systems [HRIS])

05. Plan and implement employee benefits programs

06. Develop and implement salary and bonus programs (compensation plans) and other forms of
employee recognition

07. Plan for and integrate new employees into the organization (for example, new-hire
orientation and training [on-boarding])

© 2011 SHRM xvi

Module 3: HR Service Delivery

08. Manage programs to meet employees’ needs (for example, expatriates, disability challenges,
family care, employee health and safety)

09. Manage employees who are returning to the organization (for example, people returning
from maternity leave, expatriates returning home, people ending sabbaticals, or employees
returning from layoffs)

10. Manage employees leaving the organization (for example, dismissals, layoffs and retirement)

Important knowledge and skills for successful HR service delivery:

01. Industry trends in HR (for example, population statistics, economics, sources of talent)

02. Industry benchmarks for compensation (for example, salary surveys, benefit packages)

03. Local labor conditions, including laws, legislation and international practices

04. Organizational needs and practices (for example, organizational vision, mission, ethics and
values)

05. Employee mobility, domestic and international

06. Forecasting techniques (for example, determining staffing needs for the future)

07. Methods for conducting surveys

08. Recruitment practices in different markets

09. Techniques and methods for organizational planning

10. Evaluation of HR information systems (HRIS) and technology (for example, their use for
payroll, talent development, and personnel data)

11. Project management (for example, goals, timetables, deliverables and procedures)

12. Negotiation techniques

© 2011 SHRM xvii

Module 3: HR Service Delivery

13. Interviewing techniques

14. Effective communication practices, locally and globally (for example, interpersonal skills,
listening, speaking and cross-cultural communication)

15. Persuasion

16. Giving advice to employees when appropriate

17. Supporting ideas and concepts to the appropriate audience

18. Analysis and assessment (for example, analyses of trends in the labor market, evaluating
salary surveys)

19. Methods to identify and work on priorities

20. Outsourcing effectively (for example, analysis of organization’s staff capacity and capability,
and managing outsourced services)

© 2011 SHRM xviii

Module 3: HR Service Delivery

3.1: Program Creation,

Implementation and
Management
This section covers the following information from the
Knowledge Base:

Behaviors: 02. Establish programs that support a balance between employees’

professional and personal lives (work/life balance)

03. Conduct research to analyze the workforce (for example, skills

available locally, salary requirements)

08. Manage programs to meet employees’ needs (for example,

expatriates, disability challenges, family care, employee health
and safety)

09. Manage employees who are returning to the organization (for

example, people returning from maternity leave, expatriates
returning home, people ending sabbaticals, or employees
returning from layoffs)

10. Manage employees leaving the organization (for example,

dismissals, layoffs and retirement)
Module 3: HR Service Delivery

Skills & Knowledge: 01. Industry trends in HR (for example, population statistics,
economics, sources of talent)

04. Organizational needs and practices (for example, organizational

vision, mission, ethics and values)

09. Techniques and methods for organizational planning

11. Project management (for example, goals, timetables, deliverables

and procedures)

14. Effective communication practices locally and globally (for

example, interpersonal skills, listening, speaking and cross-
cultural communication)

15. The ability to influence others

16. Giving advice to employees when appropriate

17. The ability to promote ideas and concepts (advocacy)

19. The ability to identify and work on priorities

Source: HR Certification Institute

Section 3.1: Program Creation, Implementation and
Management
Introduction ....................................................................................................................................5
Overview of HR Service Delivery ...............................................................................................5

HR as Administration Expert and Employee Advocate .............................................................7

Create New and Implement Existing Programs and Processes ....................................................8
Phases of Service Delivery .........................................................................................................10

Phase 1: Service Delivery Formulation ......................................................................................10

Alignment to Organizational Strategy........................................................................................11
Identifying Multiple-department HR Service Delivery Applications ........................................12
Shared Service Considerations ...................................................................................................13

Phase 2: Service Delivery Communication ................................................................................14

Advocacy and Influence .............................................................................................................14
Developing Communication Plans .............................................................................................21

Phase 3: Service Delivery Implementation ................................................................................24

Expert Implementation ...............................................................................................................25

Phase 4: Evaluation of Services ..................................................................................................26

Implementing Feedback and Response Mechanisms .................................................................27

Service Delivery Improvement ...................................................................................................27

Delivery Improvement Approaches ...........................................................................................28
The Plan, Do, Check, Act (PDCA) Leadership Model ..............................................................28

Service Delivery and Organizational Development ..................................................................30

Implementing Organizational Development Initiatives .............................................................30
Organizational Values and Goals ...............................................................................................32
HR Service Delivery and Project Management ........................................................................33
Managing Service Delivery Projects ..........................................................................................33
Project Management ...................................................................................................................38

Practice Questions ........................................................................................................................40

Module 3: HR Service Delivery Section 3.1: Program Creation, Implementation
and Management

Introduction
Human resource (HR) service delivery is a priority for HR executives.
―Essentially, the HR function provides the advice and services that enable
organizations to get things done through people. It is in the delivery business.‖
(Armstrong 2006). Human resource management (HRM) is a core function of
business which provides a vital service to employees.

This section will cover:

 An overview of HR service delivery
 An overview of HR’s roles in service delivery
 The four phases of service delivery
 Service delivery improvement
 Service delivery and organizational development
 HR service delivery and project management

Overview of HR Service Delivery

Many organizations design HR service delivery processes on an individual basis
without consideration of their relationship to other processes. Organizations do
this in an attempt to optimize the process; however, many HR processes are
interdependent. As a result, these processes may need to be revised to increase
alignment of HR strategy with business strategy. Additionally, inefficient
processes might be outsourced because there are now outsourcing alternatives for
almost every service delivered by HR.

HR service delivery may be complicated by an organization’s infrastructure,

organizational culture, and events such as mergers and acquisitions (M&As).
Figure 1-1 illustrates how HR service delivery has transformed over the past
several years.

Figure 1-1. HR Service Delivery Transformation (Macdonald and Levesque 2010)

This section presents a process for creating, implementing and managing HR

programs and processes. It can be applied to create new programs and processes,
revise existing programs and processes, prepare to outsource services, or integrate
programs and processes due to M&As. The manner in which HR addresses these
situations influences how services are delivered to the organization (Towers
Watson 2010), (Deloitte 2011), (Price Waterhouse Coopers 2006), (Wirt 2006).
Figure 1-2 provides an overview of the HR service delivery model.

Figure 1-2. HR Service Delivery Model (Macdonald and Levesque 2010)

HR as Administration Expert and

Employee Advocate
David Ulrich devised an HR Model that defined four main roles for HR:
 HR as a strategic business partner
 HR as a change agent
 HR as an employee advocate
 HR as an administration expert (Ulrich 1998)

This topic will explore HR’s roles as an administration expert and as an employee
advocate or champion.

For more information about Ulrich’s model and competencies for HR

professionals, see the following sections:
 Section 1.8: Creating an Effective Strategic HR Organization
examines Ulrich’s model in more detail.
 Section 2.1: HR Competencies and Their Applications examines
competencies for HR professionals.

Create New and Implement Existing Programs and Processes

The HR department’s main purpose is to serve the organization. HR contributes to
the success of the organization by creating and implementing programs and
processes that support the business and help the organization to be profitable. In
order to achieve this, HR leaders must have an understanding of the business—
how it operates, who the external customers are, and why they buy products or
services. Additionally, HR leaders should have a basic understanding of the
different internal functions in an organization such as finance, marketing, sales
and engineering (Weingarden 2008).

Understanding Internal Customer Needs

To most effectively serve an organization, HR must have an understanding of its

internal customer—the organization’s employees and management. HR’s business
is to serve and that service is based on customer desires. Because HR relies
significantly on customer satisfaction, it is vital that HR not presume that its
customer base will remain constant. Remember, many HR functions can be easily
outsourced.

When developing programs and policies, HR must proactively seek customer

support and feedback (advice, comments, responses and opinions). Applying
simple employee classification techniques to identify the different internal
customer segments served by HR has become an important baseline to improve
understanding of customer needs and to use the information to serve them better.

HR can use common criteria such as age, gender, geographic location and other
relevant factors to classify employees in terms of the services that are most
applicable. Having an effective relationship with the internal customer helps HR
predict customer needs and improve credibility (Lockwood 2006), (Han, et al.
2006).

Identify and Create Applicable Programs

Once customer needs have been established HR must identify programs or

processes to meet those needs (Mathis and Jackson 2007) (Ulrich 1997).

Development of Functional Delivery Methods

To understand how to develop a service delivery process and mechanism best

suited for each segment, the HR professional should leverage knowledge about
the organizational environment including the different types of employees, their
locations and needs, and any common requirements. After identifying customer
needs, it is HR’s responsibility to develop programs or processes that deliver
value to the customers. It is important to align each HR service delivery method
or channel with how the employee segment wants to be served or can be reached
most effectively.

Communication and Motivation

Once the program or process has been developed, HR must communicate its
existence to customers and motivate them to embrace the new program or
process. According to Shel Holtz, author of Corporate Conversations: A Guide
to Crafting Effective and Appropriate Internal Communications: ―No one
changes unless they are motivated. Motivation requires a compelling reason to
change.‖ (Holtz 2003) Therefore, it is important to communicate the reason that
the new program or process was developed and how customers’ acceptance can
help contribute to the organization’s success (Lockwood 2010), (Society for
Human Resource Management, 2007 Change Management Survey Report 2007).

Phases of Service Delivery

The challenge is to define an HR service delivery model that fits the specific
needs of the organization. HR’s approach should focus on creating and
implementing a comprehensive HR strategy that aligns with HR investments and
resources to develop and deliver services. These services must support core
business processes that align with the organization’s strategic objectives and
changing needs (Deloitte 2009), (Lissak, et al. 2009).

Transforming an organization’s HR service delivery model can help the

organization focus on important business issues and provide more effective and
efficient support to the strategic goals of the organization. In fact, a 2009 HR
Transformation survey conducted by Deloitte found that more than 84 percent of
150 global companies were either currently transforming their HR service
delivery models or planning to do so (Deloitte Touche Tohmatsu 2008).

This section will outline a four-step service delivery model that consists of the
following phases:
 Phase 1: Service delivery formulation
 Phase 2: Service delivery communication
 Phase 3: Service delivery implementation
 Phase 4: Evaluation of services

Phase 1: Service Delivery Formulation

The first phase in transforming an organization’s HR service delivery model is to
formulate a development plan that can guide the organization through the process.
When formulating the plan, HR leaders must think strategically and consider the
following:
 The organization’s goals and objectives
 The organization’s strategic plan

 Customer needs
 The market environment
 Current and emerging trends

The result will be an initiative that supports the organization’s overall business
strategy and creates a new culture that improves organizational performance
(Deloitte Touche Tohmatsu 2008), (Power, Desouza and Bonifazi 2006), (Towers
Watson 2009).

Alignment to Organizational Strategy

HR leaders must be analytical when formulating and developing a new or revising
an existing HR program or process. It is important to understand and analyze the
workforce to be sure that the program or process meets the employee’s
professional, and sometimes even personal, needs.

Achieving strategic alignment of HR programs with the organization’s goals,

strategies and needs should start with evaluating existing programs and potential
new ones in context with how each fits and supports at least one aspect of the
organization’s strategic direction. At times, HR projects that seem appealing (and
may even appear expedient) may ultimately not support the organization’s
priorities.

Thus, HR leaders must implement a monitoring and validation system to ensure

that HR programs and plans align with strategic direction and priorities. This
approach ensures that every expense, resource and activity is reviewed based on
how each aligns to the organization’s directives and desired business results.

During the formulation and development stages, HR leaders should:

 Analyze the organization’s strategic goals.
 Perform a needs analysis.

 Conduct brief interview sessions with stakeholders.

 Identify gaps between current HR capabilities and organizational needs.

Once these steps are completed, it is important to review the data and analyze the
results. The findings should be used to identify objectives that align with the
organization’s goals, strategies and needs. Next, strategies and tactics that support
the objectives should be developed. HR leaders may then use the identified
strategies and tactics to develop an HR program or process that aligns with the
organization’s strategy (Society for Human Resource Management, Aligning
Workforce Strategies With Business Objectives 2009), (Armstrong 2006).

See Section 4.2: HR Management and Evaluation for information about

capturing, analyzing and presenting data.

Identifying Multiple-department HR Service Delivery

Applications
When developing HR programs and policies, HR leaders should consider working
collaboratively with other departments including finance, sales, marketing and
engineering. These departments are also creating programs and processes that
align with organizational goals.

For example, a strong relationship between the HR and finance departments is

essential during the due diligence phase of an M&A. Many organizations do not
involve HR in due diligence processes because they fail to consider the people-
related risks associated with M&As. Towers Watson, a global professional
services company, conducted two surveys on the people-related risks in M&As.
While only 11 percent of participants reported that HR was involved at the due
diligence stage, the evidence supported significant organizational benefit for early
HR involvement in M&As. This means that HR and finance should work together
when developing M&A processes to ensure they align with each other and with
organizational goals (Towers Watson 2010).

To review the report describing the results of the Towers Watson survey, please
review: http://www.towerswatson.com/assets/pdf/2494/2494.pdf.

Shared Service Considerations

The shared services model was developed by Dave Ulrich, a professor of business
administration at the University of Michigan, to:
 Promote HR expertise
 Cut administrative costs
 Reduce transaction errors
 Generate increased employee satisfaction with basic HR processes.
 Deliver improved services companywide

This model divides HR tasks and expertise into three discrete components shown
in Figure 1-3:

Figure 1-3. The Shared Services Model

When developing HR programs and policies, HR should consider consolidating

functions under the Shared Services model (Business Week Research Services
2007), (Grossman 2010), (Society for Human Resource Management, Staffing the
Human Resource Function 2011).

To learn more about Ulrich’s HR shared services model, please review:

http://www.shrm.org/Publications/hrmagazine/EditorialContent/2010/0910/Pages/09
10grossman.aspx.

Phase 2: Service Delivery Communication

The second phase consists of creating and implementing an effective
communication strategy. Effective communication is essential for the successful
implementation of HR programs and processes (Cook 2008).

Advocacy and Influence

As an employee advocate, an HR professional plays a pivotal role in an
organization’s success through the support, sponsorship and encouragement of its
employees. This advocacy includes expertise in how to create an environment
where employees are happy and motivated to contribute to the organization’s
vision, mission and goals. Ulrich and Brockbank emphasize the importance of
HR’s advocate role; HR professionals spend an average of 19 percent of their
time managing employee relations issues. Listening to, understanding and
empathizing with employee needs is the cornerstone of HR work (Armstrong
2006).

Cultivating effective methods for goal setting, communication, and empowerment

through responsibility and follow-through builds employee commitment to the
organization. An HR professional facilitates the establishment of the
organization’s culture and cultivates employees’ competencies and commitment
to serve internal and external customers effectively.

The HR professional should be credible (respected, admired, listened to) and

active (facilitating, offering points of view, taking a position, challenging
assumptions). An HR professional with these skills has the ability to motivate and
influence employees and promote the overall success of the HR department and
the organization (Lockwood 2010).

Forms of Communication

Employees can be effectively reached through formal and informal

communication channels that exist in every organization. HR professionals should
be adequately aware of the types of communication channels that exist, how to
leverage these to maximize effectiveness of messages from HR, and how to
collect incoming messages for HR.

Formal and Informal

Communication in an organization generally falls into one of two categories:

formal or informal.
 Formal communication is communication that is officially authorized by
the organization (such as publications, training materials and website
information).
 Informal communication is the unofficial communication that occurs
between employees every day (such as personal and phone conversations,
e-mails, instant messages and casual meetings). Most communication in an
organization is informal.

Communication Channels

Communication How communication moves through an organization.

channels

Communication travels in a variety of directions in an organization.

 Downward: From top executives to employees
 Upward: From employees to top executives

 Horizontal: Among co-workers, within teams or across functions

 Network: Following a predetermined hierarchical pattern
 Gossip: Dissemination of facts, opinions, suspicions and rumors

Remote and Virtual Communication

Organizations are increasingly relying on remote and virtual communication.

When using virtual or audio-only communication methods, nonverbal aspects of
communication are lost. Thus, it is important to accurately manage verbal aspects
of communication.

For more information about forms of communication, see the following sections:
 Section 1.4: Core Functions and Relevance to HR provides information
on the different types of communication platforms.
 Section 1.5: The Influence of Organizational or Corporate Culture
provides information about intercultural communication and accent
clarity.

Communication Skills

To communicate effectively in an organization, HR professionals must possess

effective communication and interpersonal skills. Suggestions for developing
these skills include:
 Establishing adequate channels of communication—being (physically)
accessible and available
 Providing consistent and regular communication
 Following communication with actions that are consistent with the message
 Demonstrating an awareness of different communication styles

See Section 1.5: The Influence of Organizational or Corporate Culture to

learn more about communication styles.

As many organizations now work virtually across functions and geographies,

there is a need to improve cultural competence in communication. HR
professionals must be aware of the implications for cross-cultural and intercultural
communication.

Communicating Across Cultures and Languages

Effective cross-cultural sensitivity and communication is necessary to build and

maintain business relationships across cultures. For example, lack of cross-
cultural sensitivity in the performance appraisal process may result in a negative
effect on communication, morale, and teamwork, as well as an increase in
employee turnover.

English is considered the international language of business; however, not

everyone speaks English fluently. Therefore, International English is an important
business communication tool.

International A mode of communication increasingly used in international

English businesses where non-native English speakers speak English with
native English speakers. International English requires the
avoidance of culturally laden language such as cultural shortcuts,
metaphors, jargon, slang and idiomatic phrases. (Society for
Human Resource Management, Selected Cross-Cultural Factors
in Human Resource Management 2008)

To learn more about International English and cross-cultural factors that affect HR,
please review: http://www.shrm.org/Research/Articles/Documents/September 2008
Research Quarterly - Selected Cross-Cultural Factors in Human Resource
Management.pdf.

Nonverbal Cues

There are numerous ways that people communicate without words; through
gestures, facial expressions, dress, silence, touch and amount of personal space. It

is important to recognize that nonverbal cues (communication, sometimes referred

to as body language and gestures) have different meanings in different cultures.
For example, the meaning of a hand gesture or tilting of the head might be
positive in one culture, while the same hand gesture may be negative or even
offensive in another culture.

See Section 1.5: The Influence of Organizational or Corporate Culture for

more information about nonverbal communication.

Recognizing Intercultural Communication Influences

Intercultural communication is communication involving people from any

culture interacting with anyone else from another culture and/or multiple cultures
at the same time.

Effective intercultural communication relies on the following:

 Acquiring familiarity with explicit culture (such as dress or food)
 Developing a basic understanding of a culture’s beliefs and actions
 Striving to communicate in a culturally neutral, inclusive manner with an
attitude of curiosity supported by motivation to learn, rather than one of
presumption

Do not assume that simply being comfortable with an explicit culture—what is

usually taught as cultural business etiquette or different accents—conveys complete
cultural acceptance. Developing effective intercultural communication skills requires
awareness of one’s own cultural presumptions (to avoid idiomatic or other
presumptive communication styles), time, empathy and a sincere receptiveness to
new ideas.

One member of the Society for Human Resource Management (SHRM) Global
HR Expertise Panel has extensive experience in HR management and global roles
in the Middle East and Africa. The following are his observations on developing
intercultural communication skills:

―…Our people needed to overcome [intercultural] challenges with new

competencies, such as learning to be more patient, becoming more active
listeners (rephrasing sentences a number of times) and being more aware
of word usage with people for whom English was their second language.
Since we did not have the luxury of body language and emotions to
convey the message, effective communication was our most challenging
task.‖ (Society for Human Resource Management, Global Talent for
Competitive Advantage 2010)

See Section 1.5: The Influence of Organizational or Corporate Culture for

more information about culture and its effects on organizations.

Leadership Theories

Communication and leadership are interrelated skills. To effectively communicate

as a leader, one must have an understanding of leadership theory.

Several different theories have developed over the years to describe the
characteristics that make an effective leader. Figure 1-4 presents these theories in
chronological order to show how they have progressed over time.

Theory Description
 Leaders are born and not made.
Trait
 Leaders possess different traits than average people.
theories
 There are identified personal traits common to effective
leaders.
 Leadership can be learned.
Behavioral
 How a person behaves determines leadership effectiveness.
theories
 Two dimensions of leadership behavior emerged from studies:
o Consideration (employee-centered behavior)
o Initiating structure (job-oriented behavior)
 One popular theory is Blake-Mouton’s theory.
 The theory is known as Situational Leadership II.
Situational
 Managers must use different leadership styles depending on
leadership theory
the situation.
 One popular theory is Hersey-Blanchard’s theory.
 Similar to situational leadership theory.
Contingency
 Leadership ability depends on leadership style and situational
theories
factors.
 Leaders don’t change leadership style, but rather the factors
surrounding a situation.
 Fred Fiedler's theory identifies three factors that help create a
positive leadership environment:
o Leader-member relations
o Task structure
o Position power (authority)

Figure 1-4. Leadership Theories (continued to next page)

Theory Description
 Good leaders inspire others to follow them.
Transformational
 Characteristics of transformational leaders include:
leadership
o Charisma
o Inspiration
o Stimulation
o Individualism

Figure 1-4. Leadership Theories (concluded)

For more background on situational leadership and the current tools available to
organizations and HR professionals, refer to the following Ken Blanchard Companies
website: http://www.kenblanchard.com.

No matter which leadership theory an organization adopts, the organization’s

culture can have an effect on how it is implemented. Following are some
common issues that can affect leadership styles:
 Gender differences that are instilled in an individual over a lifetime
 Generational characteristics that exist among different age groups
 Cultural norms that differ from location to location
 Emotional intelligence (sometimes referred to as EQ) that affects an
individual's sensitivity to the emotions of others

While it is important to recognize these issues and how they affect an organization,
it is equally important to avoid making generalizations based on them.

Developing Communication Plans

When developing a program or process for implementation, it is important for the
organization to develop a communication plan. HR should communicate openly
with employees throughout the entire implementation process. Direct, clear and

consistent communication increases the effectiveness of the message, strengthens

relationships and establishes trust.

An effective communication plan should include the following elements:

 Audience: Identify the recipient for the message. Note that there may be
multiple audiences in the organization and across different locations. The
message may need to be customized to meet specific organizational or
cultural needs. For example, managers operating in an advisory role may
require more information than other employees.
 Message: Clearly and concisely describe the information to be shared.
 Medium: The method by which the information will be shared, such as a
large group meeting or through the organization’s website or virtual
meeting technology. Different methods can be used for different audiences.
 Desired result: How the communication will help the organization achieve
the objective(s) of the initiative. In fact, the desired results may differ by
audience. For example, the desired result for a manager may be to
understand, implement and advise employees on the initiative, while
employees are only required to understand and implement it.
 Timing and frequency: Defines when and how often the communication
will occur. For example, HR may wish to communicate at the following
points during the implementation process:
o At the onset, to understand employee needs
o During implementation, to educate employees affected by the
initiative and to reinforce involvement, motivation and enthusiasm
o At strategic points during implementation, to obtain constructive
feedback (advice, comments, responses and opinions) about the
initiative for continuous improvement
 Person responsible: Identify the HR professional(s) responsible for
creating and delivering the message. Different people might be responsible
for delivering the message during different phases or through different
mediums.

Messages should be developed that include the following considerations:

 Organization: Messages should be well organized so that answers to HR
questions are easy to locate.
 Standardized versus localized: HR leaders need to decide whether the
same message should be communicated throughout the organization, or if
the message should be localized to fit the context of country, region or
local conditions.
 Regional (multiple locations): The cultural distance between HR leaders
at headquarters and employees in different and remote locations can affect
how the message is perceived. Frequent and interactive communication
with regional employees can help ensure that they receive the message as
intended.
 Obstacles: Most plans will encounter some kind of obstacle. Obstacles that
impede the implementation of a communication plan include the failure to
communicate, technological problems, and the inability to manage the
communication process itself. HR professionals need to be prepared for
these types of obstacles by developing an appropriate contingency plan.
 Contingency theories: Based on the contingency theories of leadership,
there is no single, most effective way to communicate a message.
Communication is affected by factors such as the size, age, values,
language, culture and history of the organization. According to this theory,
it is believed that implementation of alternative actions or nontraditional
methods may be required to achieve communication goals (Towers Watson
2009), (Deloitte Touche Tohmatsu 2008), (McCain, Ed. D. 2007), (Mayo,
et al. 2009), (Society for Human Resource Management, Management
Series Part III - Effective Employee Communication Practices 2006).

The Walt Disney Company uses a storytelling model to preserve and

communicate the organization’s culture. Using this model, leaders use stories to
share the organization’s traditions, history and values with employees (called cast
members). This nontraditional method of communication is not only entertaining,
it offers several benefits:
 Gives employees an emotional connection to the organization.
 Makes the culture more meaningful and personal.
 Provides a memorable shared history of the organization.
 Perpetuates Walt Disney’s vision.

―Every leader also is telling a story about what he or she values through
their actions and behaviors,‖ said Disney Institute’s Scott Milligan, SPHR.
―We judge ourselves by our intentions, but others judge us by our
behaviors.‖ (Society for Human Resource Management, Service Excellence
Isn't Magic; It's Hard Work 2009)

Phase 3: Service Delivery Implementation

The third phase is the implementation of the overall initiative. The success of this
phase depends on two essential HR competencies:
 HR as a talent manager/organizational designer: Effective HR
professionals implement the operational aspects of managing people and
organizations efficiently through technology, shared services and/or
outsourcing. This operational work ensures credibility if executed
accurately and strengthened by consistent application of policies.
 HR as a culture and change steward: Successful HR professionals
facilitate change by defining and leading the development of disciplines to
make changes happen throughout the organization (Ulrich, Brockbank, et
al. 2008).

For more information about competencies for HR professionals and change

management, see the following sections:
 Section 2.1: HR Competencies and Their Applications examines
competencies for HR professionals.
 Section 2.2: Sustaining Organizational Culture and Managing
Change examines change management techniques.

Expert Implementation
The implementation phase is essential. Successful implementation can affect how
the HR department is viewed in the organization. For example, an HR department
that is perceived as an overhead department by organizational members can
improve its status and be recognized as a strategic business leader through expert
implementation (Stevens 2005).

Supporting Managers During Implementation

The HR department is typically in charge of several highly visible, organization-

wide processes such as retirement plans, remuneration and benefits, and
performance management. Most managers outside of HR may only utilize these
processes once a year. As a result, it is HR’s responsibility to provide the
necessary information and support to managers as they make fact-based decisions
about these processes. Each interaction with outside managers is an opportunity to
improve credibility and visibility of the HR department. To achieve this goal, HR
provides managers with clearly defined procedures that are concise, easy to
understand and delivered in a timely manner (Sage 2010).

Tools for Implementing Services

When implementing new or restructured services, new programs and procedures

may be incompatible with the existing organizational culture and practices. As a
result, clearly defined procedures are required to ensure effective implementation

and minimize liabilities. The following are some tools HR might use to
effectively implement services (Johnson and Gueutal 2011),
(Wright 2008):
 Training programs
 Handbooks
 Web portals
 Webinars
 Job aids
 Forms
 Decision support tools
 Coaching and mentoring

For more information about tools for implementing services, see the following
sections:
 Section 2.5: Talent Management and Facilitating Groups provides
information about coaching and mentoring techniques.
 Section 2.6: Training and Educational Programs provides information
about developing and promoting learning opportunities for employees.

Phase 4: Evaluation of Services

The fourth and final phase focuses on evaluation of the implemented services.
Successful organizations frequently measure how programs and policies affect
their employees. A properly developed and implemented evaluation helps ensure
that the program or policy aligns with organizational goals and strategies.
Evaluation also helps identify any inadequacies so the organization can improve
programs and policies as needed (Towers Watson 2009), (Deloitte Touche
Tohmatsu 2006), (Deloitte Touche Tohmatsu 2008).

Implementing Feedback and Response Mechanisms

There are many different formal and informal mechanisms HR can implement to
evaluate a program or process. HR can also develop custom mechanisms for
gathering employee feedback (advice, comments, responses and opinions). One
approach commonly applied to training and development is Kirkpatrick’s four
levels of evaluation. This model, developed in the 1950s, consists of the following
four steps (Society for Human Resource Management, Organizational
Development: A Strategic HR Tool 2007):
1. Reaction
2. Learning
3. Behavior
4. Results

For more information about Kirkpatrick’s model, please review:

http://www.kirkpatrickpartners.com/OurPhilosophy/tabid/66/Default.aspx.

Service Delivery Improvement

HR can use the information gathered about how the program or process was
received by employees and managers to identify areas for improvement (Stevens
2005), (Armstrong 2006).

Delivery Improvement Approaches

While there are different approaches HR can use to improve service delivery in an
organization, it is important that the approach chosen incorporates the following
elements:
 The approach should be integrated with the phases of service delivery
(presented earlier in this section).
 The approach should apply measurement results (such as employee
satisfaction and retention) to strengthen its effectiveness.
 HR should communicate and implement results while incorporating
necessary adjustments.
 HR should observe and record the results.

See Module 4.2: HR Measurement and Evaluation for information about

observing and recording evaluation results.

The Plan, Do, Check, Act (PDCA) Leadership Model

One example of a delivery improvement approach is the ―plan, do, check, act‖
leadership model (PDCA) proposed by W. Edwards Deming in the 1950s. This
four-step model for continuous improvement is intended to help HR coordinate
service delivery improvements by utilizing evaluation measurements to confirm
the effectiveness of the program or process. Figure 1-5 presents an illustration of
this model.

Figure 1-5. The PDCA Leadership Model

 Plan: Identify the quality goals and policies, and then design the quality
plans. This phase identifies the problems and generates solutions to deliver
desired results.
 Do: Communicate the quality plan and educate employees on the new
quality system. When implementing the solutions, starting on a small scale
if possible, to determine if it is viable.
 Check: Execute a design review and total quality audit. The design review
checks product and service development at various points in the process.
The total quality audit validates quality plans and quality results to identify
future opportunities for improvements. The total quality audit is dependent
upon a measurement system being in place.
 Act: Implement changes on a larger scale based on the results of the
previous step. This phase has two elements—motivation and suggestions.
(Dahlgaard, Kristensen and Khanji 2002)

Service Delivery and Organizational

Development
Organizational A planned process that uses the principles of behavioral science
development to improve the way an organization functions.

Organizational development (OD) enhances employee engagement through

planned activities designed to provide employees with the necessary skills to meet
current and future job demands. HR has several important roles when
implementing OD activities in an organization. HR can add value to the
organization and promote success of the activities by:
 Maintaining alignment with organizational strategies and goals
 Focusing on communication
 Serving as a change agent for the organization
 Ensuring consistent implementation of the initiative throughout all parts of
the organization
 Evaluating the implementation and documenting future improvement
possibilities

Managing change is an essential focus of OD. Adapting to change is necessary for

an organization’s survival (Worley and Cummings 2008), (Society for Human
Resource Management, Introduction to the Human Resources Discipline of
Organizational and Employee Development 2008).

Implementing Organizational Development Initiatives

OD initiatives and activities generally fall into the following categories:
 Interpersonal: Interpersonal initiatives are developed to help establish the
skills and knowledge necessary for developing effective working
relationships among employees. These initiatives help employees learn
how to work effectively in groups and solve problems.

 Procedural: Procedural interventions focus on the consistent and efficient

administration of the organization’s policies and procedures. Procedural
interventions often involve activities such as policy and procedure
manuals, job design, work-flow analysis, technology implementation and
system change.
 Structural: Structural interventions and initiatives focus on the execution
of complex structural changes in the organization. These initiatives prepare
employees for the change, educate them about the new organizational
structure and restructure the organization in response to the change.
Structural interventions frequently occur during M&As or when
downsizing.
 Centralization: Centralization is the degree to which decision-making
authority is restricted to higher levels of management in an organization. In
centralized organizations, HR leaders at headquarters make policy
decisions and direct HR initiatives. Global organizations tend to have a
centralized organizational structure.
 Decentralization: Decentralization is the degree to which decision-making
authority is given to lower levels in an organization’s hierarchy. In
decentralized organizations, HR leaders at headquarters make policies
which are implemented by local HR staff. Multinational and transnational
organizations tend to have a decentralized organizational structure (Worley
and Cummings 2008).

See Section 2.2: Sustaining Organizational Culture and Managing Change for
more information about organizational development and change management
disciplines.

Organizational Values and Goals

Values are principles, standards or qualities that are considered important to an

organization. They describe what is important in context with how the
organization operates internally and externally.

Organizational Values and goals that reflect an organization's philosophy and

values guide its organizational effectiveness.

Organizational Objectives that an organization wishes to achieve.

goals

The following are some examples of highly regarded organizational core values
and goals:
 Prioritizing the customer or constituent
 Treating employees as you would treat your customers or constituents
 Conducting business fairly and ethically
 Fostering creativity
 Collaborating as a team to achieve goals
 Demonstrating innovation
 Valuing safety and security

See Section 1.2: Values and Ethics for more information about organizational
values and goals.

HR Service Delivery and Project

Management
HR is required to manage many projects associated with their responsibilities
including retirement plans, remuneration and benefits, employee development and
OD (Grossman 2009).

Managing Service Delivery Projects

Project An endeavor to accomplish a specific objective through a unique
set of interrelated tasks and the effective utilization of resources.

Project A methodical approach to planning and guiding project processes

management from start to finish.

The quality of project management influences the success or failure of a project.

Every project, regardless of its size, possesses the following characteristics:
 A defined goal to be achieved.
 Objectives that outline a path to achieve the goal.
 A definition of the scope (the work that needs to be completed to achieve
the organizational benefits of the project) (Melton 2007).
 A series of tasks and activities that must be completed to meet the
objectives.
 A schedule, or phases, with defined start and end dates.
 A budget that sets limits on the dedicated use of both monetary and human
resources.

Project Phases and Service Delivery Roles

Most projects follow a similar pattern of phases from beginning to completion.

Figure 1-6 shows one example of a project life cycle. There are numerous project
life cycle models available. All of these models include a defined project start,
defined project end, planning phases and implementation phases.

Figure 1-6. Project Life Cycle

The following list describes these project phases including the roles for service
delivery of HR initiatives:
 Conception:
Typically, the organization’s executive team selects and prioritizes the
projects to be developed. It is important for HR executives to be an active
part of that team. Once an HR project is established, HR leaders are
responsible for establishing project goals and objectives that support the
strategic needs of the organization.
 Selection of manager and team:
HR leaders select a project manager with the organizational and
interpersonal skills required to oversee the project. The project manager
has overall responsibility for the project, manages day-to-day tasks and
oversees the project from beginning to completion. The HR manager
decides which roles are required and defines the special knowledge or
skills individual team members must possess (Grossman 2009). The
project manager assigns the appropriate HR resource.

 Planning, scheduling, monitoring and controlling:

This is the most labor intensive project phase. During this phase, the
project team determines what tasks must be completed, organizes the
project and manages the resources required. An effective project manager
creates an environment where team members are accountable for their
responsibilities and feel a sense of duty to complete their respective tasks
on time (Stevens 2005). The project manager should also determine
specific points throughout this phase to evaluate progress, ensure the
project is on schedule and address any issues that have arisen.
 Completion:
During this phase, the project comes to completion and the new or revised
HR initiative is launched in the organization.
 Post-project evaluation:
During this final phase, the overall effectiveness of the initiative is
assessed against the objectives that were defined at the beginning of the
project.

Organizational Concerns

Generally, organizations have three primary concerns involving the management

and implementation of projects:
 Missing the project deadline
 Going over budget
 Delivering a project that is out of scope (Melton 2007), (Grossman 2009)

Communication Strategy

Effective communication is important to a project’s success. There must be open,

clear and direct communication between the project manager and the team to
ensure that tasks, roles and responsibilities are understood and fulfilled.

There must be communication outside of the project team as well. The project
manager should identify the project stakeholders and implement early and

continuing communication with them about the project. This proactive

communication can benefit the project in the following ways:
 Creates excitement.
 Generates advocates.
 Increases employee satisfaction.
 Decreases rumors (Society for Human Resource Management 2006),
(Heneman and Coyne 2007).

While the project manager has the most responsibility for communication, all
team members can participate by talking positively about the project. Some other
methods for communicating information about a project include organization-
wide e-mails, video conferences, podcasts, posters, blogs and websites (Finney
2008).

Using Project Planning Tools

Project managers use a variety of tools to schedule, organize and coordinate tasks
during a project. Figure 1-7 lists and describes some popular tools.

Tool Description

Gantt chart A horizontal bar chart that graphically displays project activities in sequential
order and plots them against time. It helps managers plan, coordinate and track
specific tasks in a project. Also called a milestone or an activity chart.

Figure 1-7. Project Management Tools (continued to next page)

Tool Description

Fishbone A chart that visually illustrates the root causes of problems and their potential
diagram effect on the project. It can be used by the project team to stimulate
brainstorming and problem solving. Also called the cause and effect or
Ishikawa diagram.

PERT chart PERT stands for program evaluation and review technique. A graphical
illustration is used to manage very large complex projects with a high degree of
task dependency. It uses shapes and arrows to depict the relationship and
sequence of activities. Also called critical path method (CPM or PERT/CPM).
The relationship of tasks to time is not as immediately obvious as with Gantt
charts.

RACI chart RACI stands for responsible, accountable, consulted and informed. It is a chart
that supports the effective allocation of roles and responsibilities among
different members of the project team. It lists activities and the name of the
person associated with each activity; it also identifies if that person is
responsible, accountable, consulted and informed.

Event chain Like the Gantt chart, this model uses horizontal bars to depict the sequence of
activities. It also includes red arrows to identify risks associated with a specific
task or time interval.

Run chart A line graph used to visually depict high and low points in activity over a
specified period of time. Frequently used to illustrate trends and cycles.

Figure 1-7. Project Management Tools (Melton 2007), (Bartlet II, Ph. D. and Bartlet, M.S.
2008), (Six Sigma 2010-2011) (concluded)

Software Applications for Project Management

There are a number of software applications available to help project managers

with tracking and reporting. These applications can be purchased and loaded onto
a computer. Microsoft® Project, a desktop system that functions similarly to
Microsoft® Office products, has traditionally been a popular tool for project
management. However, real-time, dynamic tools that utilize Web 2.0 features are
now available, such as MindJet and solutions by Matchware (Society for Human
Resource Management, Successfully Transitioning to a Virtual Organization:
Challenges, Impact and Technology 2010). These desktop systems are typically
used in smaller organizations.

Web-based systems are used in larger organizations or in organizations that have

many geographical locations. Web-based systems, such as @Task, Basecamp and
Project Insight, can be accessed from any computer and do not need to be loaded
onto a specific computer (Bartlet II, Ph. D. and Bartlet, M.S. 2008).

Review McKinsey & Company’s report ―Building the Web 2.0 Enterprise:
McKinsey Global Survey Results‖ for more information about how organizations are
using Web 2.0 tools: http://www.mckinseyquarterly.com.

See Module 4: Measurement for information about tools used in HR.

Project Management
To summarize, effective project management requires the following:
 Knowledge of the organization and its strategic goals.
 Familiarity with project phases and service delivery roles.
 An understanding of organizational behavior.
 Knowledge of project management skills.
 Effective communication skills.
 Project planning and tracking skills (Kerzner, Ph.D. 2009).

Maintaining Work/Life Balance

Work/life balance The balance between an employees work life and personal life.

The importance of maintaining a balance between one’s professional life and

personal life is often overlooked. It is important for managers to use their time
effectively so they can accomplish more, yet still have time for personal pursuits,
exercise, socialization and family. Likewise, managers should encourage others to
find a balance between work and life so the team will function at optimal
performance (Society for Human Resource Management, Work/Life Balance
Series Part I: Revisiting The Work/Life Balance Agenda 2007).

―Give me a manager who truly has the ability to stretch my potential, who
recognizes my contributions, and who isn’t afraid to deliver bad news or give me
constructive feedback. Enhance the experience with great communications and
good work/life balance and I’m hooked.‖

Diane Hammer, HR Generalist, Fidelity Investments

(Fields 2001)

Practice Questions

Directions: Choose the best answer to each question.

1. A project manager would be more inclined to use a PERT chart rather than a Gantt chart
when the manager needs to
a. assign particular tasks to team members.
b. monitor the exact time each step of a project takes.
c. plan the details of a project.
d. show the crucial path of a project.

2. Decentralization of authority works most effectively in organizations where

a. economies of scale are important.
b. operating units need to collaborate.
c. employee turnover is high.
d. decision-making ability is expected of all employees.

Use the following information to answer questions 3 and 4.

A warehouse distribution organization has been concentrating on coaching and developing its
employees. The manager of the distribution department adjusts his leadership style to what is
necessary for each employee, depending on the employee’s level of job development and
maturity. The manager of the marketing department does not change his leadership style, but
rather changes the factors surrounding a situation to manage the marketing department
employees.

3. Which leadership theory is the distribution manager following?

a. Blake-Mouton’s managerial theory
b. Hersey-Blanchard’s situational theory
c. Fiedler’s contingency theory
d. Transformational leadership theory

4. Which theory is the marketing manager following?

a. Transformational leadership theory
b. Blake-Mouton’s managerial theory
c. Fiedler’s contingency theory
d. Hersey-Blanchard’s situational theory

5. A company surveyed its customers to determine their satisfaction levels with various
operations in the organization. Findings show that there have been numerous delays in
response to customer inquiries, and that the delays were the result of reporting structures
limiting communication to proper channels. Which organizational development approach
should be evaluated to avoid future delays?
a. Interpersonal
b. Procedural
c. Structural
d. Technological

6. Which of the following activities illustrates the advocacy role assumed by an HR

professional?
a. Creating an employee handbook
b. Protecting whistleblowers from discharge
c. Evaluating the bottom-line contribution of HR programs
d. Assisting employees with their goals and objectives

Practice Question Answers

1. d (p. 37)
2. d (p. 31)
3. b (p. 20)
4. c (p. 20)
5. c (p. 31)
6. d (p. 14)

3.2: Recruiting and Hiring

Processes

This section covers the following information from the

Knowledge Base:

Behaviors: 01. Develop and implement effective HR marketing, branding,

recruiting and hiring processes

02. Establish programs that support a balance between employees’

professional and personal lives (work/life balance)

03. Conduct research to analyze the workforce (for example, skills

available locally, salary requirements)

07. Plan for and integrate new employees into the organization (for
example, new-hire orientation and training [on-boarding])

Skills & Knowledge: 01. Industry trends in HR (for example, population statistics,
economics, sources of talent)

05. Employee mobility, domestic and international

06. Forecasting techniques (for example, determining staffing needs

for the future)
Module 3: HR Service Delivery Section 3.1: Program Creation, Implementation
and Management

08. Recruitment practices in different markets

11. Project management (for example, goals, timetables, deliverables

and procedures)

12. Negotiation techniques

13. Interviewing techniques

14. Effective communication practices, locally and globally (for

example, interpersonal skills, listening, speaking and cross-
cultural communication)

15. Persuasion

17. Supporting ideas and concepts to the appropriate audience

18. Analysis and assessment (for example, analysis of trends in the

labor market, evaluating salary surveys)

20. Outsourcing effectively (for example, analysis of organization's

staff capacity and capability, and managing outsourced services)

Source: HR Certification Institute

Section 3.2: Recruiting and Hiring Processes
Introduction ..................................................................................................................................46

Recruiting-Related Activities ......................................................................................................46

Employment Branding and Marketing .......................................................................................47
Branding and Marketing Concepts .............................................................................................50
Recruiting ...................................................................................................................................51
Documentation for Recruiting ....................................................................................................57
Selection and Retention Considerations .....................................................................................62

Talent Acquisition and Mobility Services ..................................................................................71

The Search for Talent .................................................................................................................71
Factors Influencing Talent Acquisition Approaches ..................................................................75

Implementing Recruiting Plans ..................................................................................................79

Phases .........................................................................................................................................79
Recruiting Needs Analysis .........................................................................................................80
Formulating a Strategy ...............................................................................................................81
Implementing Tactically and Strategically ................................................................................81
Monitoring the Strategy .............................................................................................................82

Flexible Staffing Programs..........................................................................................................83

Flexible Staffing Alternatives ....................................................................................................83

New Employee or Transferee Orientation Services ..................................................................89

Onboarding and Assimilation Overview ....................................................................................89
Orientation as an HR Service Delivery Process .........................................................................91

Practice Questions ........................................................................................................................94

Module 3: HR Service Delivery 3.2: Recruiting and Hiring Processes

Introduction
This section examines the techniques human resource (HR) professionals use to
provide service delivery of recruiting and hiring processes in an organization. These
techniques include:
 Developing and implementing effective HR branding, marketing, recruiting
and hiring processes for the organization.
 Supporting the recruitment and hiring processes and integrating new
employees into the organization.
 Using forecasting techniques and an understanding of industry trends to
improve HR branding, marketing, recruiting and hiring processes in the
organization.
 Analyzing the organization's staff capacity and capability, and managing
outsourced services.

Recruiting-Related Activities
Figure 2-1 illustrates the three components of recruiting quality.

Figure 2-1. The Three Components of Recruiting Quality (Hornung 2007)

Sourcing Identifying candidates who are qualified to do a job by using

pro-active recruiting techniques.

Recruitment The process of attracting, screening and hiring qualified people

for a job.

Sourcing is the precursor to recruitment. Sourcing identifies a pool of potential

candidates from inside the organization, outside the organization, or both, who are
qualified for a position (Gomez-Mejia, Balkin and Cardy 2009). Recruitment is the
process of enticing candidates to apply for a position.

Employment Branding and Marketing

Organizations build a competitive advantage in recruiting by combining the same
practices used to market products and services with people strategies. This approach
is referred to as employment branding (Yates and Sejen 2011).

Employment The process of turning an organization into an employer of

branding choice.

―By implementing a well-aligned employment brand, organizations can increase

their likelihood of attracting and retaining employees that best fit their culture.‖

Tim Brown, SPHR

Society for Human Resource Management (SHRM) Special Expertise
Staffing Management Panel Member
(Society for Human Resource Management, The Employer Brand: A
Strategic Tool to Attract, Recruit and Retain Talent 2008)

The Employment Brand

An effective employment brand generates the notion that the organization is a great
place to work among current employees and essential external stakeholders. At the
core of the employment brand is the value proposition which reflects the
organization’s culture, structure, viewpoints and employee affiliations (Society for
Human Resource Management, the Employer Brand: A Strategic Tool to Attract,
Recruit and Retain Talent 2008).

―[Employment] brand is about capturing the essence of an organization in a way

that engages current and prospective talent. It expresses an organization’s value
proposition—the entirety of its culture, systems, attitudes and employee
relationships, providing a new focal point for the company.‖

Manmohan Bhutani
Vice President, People and Operations, Fiserv India
(Society for Human Resource Management, The Employer Brand: A
Strategic Tool to Attract, Recruit and Retain Talent 2008)

Building a brand is about spreading a message. Employment branding uses many of

the same marketing, communication and performance technology tools used to
market products and services. When building an employment brand, the messaging
creates the image of what it is like to work at the organization.

See Section 1.7: HR—A Cornerstone of the Business to learn more about how
to build a brand.

Brand Management

Once in place, organizations must manage their brand. This includes periodically
evaluating the brand to ensure that it continues to portray the desired image of the
company. The Bernard Hodes Group developed the Hodes 360 Process for brand
management:
1. Assess:
o Determine the strength of the existing employer brand.
o Evaluate the competition.
2. Strategize:
o Create a distinct, appropriate and believable brand message.
o Identify methods for communicating that message to target audiences
(specific groups of people).
3. Implement:
o Communicate the brand to target audiences.
4. Measure:
o Monitor progress to determine which strategies work, which strategies
don’t work, and areas for improvement (Hornung 2007).

Brand management and marketing are essential factors in increasing brand strength
and improvement in the organization’s long-term financial performance (Martin and
Hetrick 2006).

Employment Marketing Approaches

In addition to branding, there are several employment marketing approaches an

organization can employ to attract talent.

Diversity Recruitment Marketing

This is an approach to recruitment marketing targeted at creating and maintaining a

diverse multicultural workforce. This approach encompasses best practices for
advertising and branding an organization to attract and retain culturally diverse
employees (de Morsella 2007).

In 2008, Society for Human Resource Management published its first iteration of
the Global Diversity Readiness Index, or G-DRI. The tool ranks and rates 47
countries along 39 separate indicators in five broad categories: national diversity,
workplace diversity, social inclusion, government inclusion, and legal
framework. To download this tool, visit: http://www.shrm.org/gdri.

Branding and Marketing Concepts

As mentioned earlier, employment branding is a strategy used by organizations to
communicate their message to internal and external stakeholders. Organizations use
their brand identity (visible elements of the brand) to market or advertise their
organization’s values and culture to potential customers and employees (Society for
Human Resource Management, Branding: How Can We Develop an Employment
Branding Strategy? 2007).

HR is responsible for understanding the organization’s staffing requirements which

includes monitoring any changes in staffing. HR uses this understanding of staffing
for forecasting HR supply and demand and analyzing trends.

Forecasting A tool used to plan for the future needs of a business or other
operation. In HR, it is usually focused on predicting future
employment needs. Also defined as identifying expected future
conditions based on information about the past and the present;
predicting.

Some current trends in the labor market include:

 Workers of retirement age are returning to or remaining in the workforce.
 Workers are unwilling to relocate due to economic and housing concerns.
 Employers are using extra caution when interviewing and examining
candidates to ensure the correct choice.
 Employers are replacing low-performing employees from a talent pool of
qualified, available workers.
 Employers are rehiring workers they were forced to layoff.
 Employers are creating new green (environmentally conscious) jobs.
 Employers are adding jobs that utilize social media to promote the brand
(Grasz 2009), (Society for Human Resource Management,
CareerBuilder: Employers Expect Uptick in 2010 Hiring 2010), (Society
for Human Resource Management, Future Insights: The Top Trends
According to SHRM's HR Subject Matter Expert Panels 2009).

To learn more about the top trends in HR and hiring, please review:
http://www.shrm.org/Research/FutureWorkplaceTrends/Documents/09-0700
Workplace panel_trends_sympFINAL Upd.pdf

Once the organization’s future needs are determined, HR can begin recruiting. As
mentioned earlier, recruiting is the process of identifying potential employees and
encouraging them to apply for job openings. Recruiting can be done internally,
externally or be a combination of both. Once the organization identifies an acceptable
candidate, the hiring process can begin. HR may also consider outsourcing
specifically identified positions or job functions.

Recruiting
The recruiting and hiring process is a reciprocal relationship between the hiring
organization and the candidate. It is important for both parties to establish a
foundation of value, mutual commitment and trust (Prichard 2007).

Recruitment Objectives and Selection Criteria

The objective of recruiting is to attract appropriate, qualified applicants to meet the

organization’s goals. In order to attract the most appropriate applicants, HR must
complete the following tasks:
 Conduct a job analysis to identify the tasks and responsibilities required to
adequately perform the job.
 Create a job description describing the work activities required to perform the
job.
 Identify the job specifications the employee must possess to adequately
perform the job.

Together, these three elements make it easier for HR professionals to establish

selection criteria and evaluate applicants.

Recruitment Methods and Sources

Once an organization understands the type of candidate they are trying to recruit, the
next step is to select appropriate sources to identify prospective candidates. The
organization can choose either to consider looking within the organization or to seek
them from the general labor pool.

A summary of commonly used internal recruitment methods is shown in Figure 2-2.

Method Description

Inside moonlighting Moonlighting refers to an employee who holds a second job outside
of normal working hours. Inside moonlighting occurs when a
worker is enticed to take on a second job in the organization. Inside
moonlighting is ideal when there is a short-term need and the
amount of additional work is minimal. Moonlighting is so common
in some organizations that HR departments have had to establish
moonlighting policies.

Job bidding This method allows employees to indicate an interest in a position

before one becomes available.

Job posting This system is used to encourage employees to respond to internal

promotional opportunities for which they have the skills and
interest.

Nominations This is the process by which managers are asked to nominate high
performing individuals as candidates for internal roles.

Skill banks and skill These are computerized systems of talent or skill inventories that
tracking systems can furnish a list of qualified people.

Succession planning A strategy to identify internal potential talent in an organization and

to establish developmental plans to help prepare individuals for
promotional roles.

Employee referrals The process where current employees supply prospects from among
their families and friends to fill job openings.

Figure 2-2. Internal Recruitment Methods (Laroche and Rutherford 2006), (Society for Human
Resource Management, Recruiting Internally and Externally 2009), (Arthur 2005)

Figure 2-3 summarizes some common external recruitment methods.

Method Description

Community Venues and events that increase awareness of the organization’s

awareness brand (such as participation in community volunteer programs, job
fairs or school events)

Educational Recruiting done at both the secondary and college level

recruiting

Employer website A section of an employer’s website, often including an online

application process

Government agencies Online and on-site services between employers and job seekers

Job boards (bulletin Websites that allows employers to post job openings and prospective
boards) employees to apply for positions online. Examples include:
 www.monster.ca, www.canadajobs.com, and
www.workopolis.com in Canada
 www.monsterindia.com, www.naukri.com, and
www.clickitjobs.com in India
 www.bumeran.com for Latin America in general, with
separate sites for some countries
 www.monster.com, www.jobster.com, www.latpro.com,
www.yahoo.com, www.indeed.com and
www.theladders.com in the United States

Figure 2-3. External Recruiting Sources (continued to next page)

Method Description

Job fairs Events where employers can meet potential applicants. Job fairs:
 Can reduce recruiting costs by up to 80 percent.
 May be scheduled on holidays or weekends to reach college
students and the currently employed.
 Are especially useful for smaller, less well-known
employers.
 Appeal to job seekers who wish to locate to a particular area
and those wanting to minimize travel and interview time.

Media advertising Newspapers, trade journals and magazines.or radio and television
spots that focus on the position and the image of the employer

Online social Online sites such as Facebook, LinkedIn, MySpace and ZoomInfo
networks and blogs used to expand an organization’s talent database, extend the
employment brand and acquire top talent

Open house An event where walk-in applicants are invited to visit and learn
about an organization directly

Outplacement Services that maintain job sites or job boards for individuals
services displaced due to layoffs

Personal networking Contacting and developing relationships with people in various

locales who can share information, contacts and other data that can
help identify prospective candidates

Figure 2-3. External Recruiting Sources (continued to next page)

Method Description

Referrals Candidate referrals from recent hires, current high performers,

retirees, high performers who have left the organization and
association colleagues.

The Internet Using online technology for recruiting to a wide audience; includes
electronic résumé and job-listing banks

Third-party recruiters Agencies contracted to seek out candidates (even those not actively
seeking alternate employment) possessing required qualifications

Trade and professional Placement services or job clearing-houses offered to membership

associations

Figure 2-3. External Recruiting Sources (Laroche and Rutherford 2006), (Society for Human Resource
Management, Variety of Strategies Used To Attract Diverse Applicants 2008), (Taleo 2008), (Prichard
2007), (Society for Human Resource Management, Recruiting Internally and Externally 2009),
(Arthur 2005) (concluded)

―In 2009, one out of four HR professionals said their organization used social
networking sites like Facebook and Twitter to look up candidates before inviting
them for an interview. In 2008, only 3 percent of organizations said they used
social networking sites for recruitment.‖

SHRM Poll: Interviewing Do’s and Don’ts for Job Seekers

(November 2009) (Society for Human Resource Management, The
Effect of High-Tech Solutions and Social Networking on the Recruiting
Process 2010)

For specific examples of the recruiting methods used in China, Singapore, India,
Latin America, United Kingdom and Western Europe, please review:
http://www.shrm.org/Publications/StaffingManagementMagazine/EditorialConte
nt/Pages/0704_overman_global.aspx.

Recruitment Effectiveness

It is important for HR to evaluate the effectiveness of the organization’s recruitment

efforts. Metrics can be used to study the organization’s overall recruitment efforts or
on a per-source basis for more accurate feedback.

See Module 4: Measurement to learn about the metrics used to evaluate

recruitment effectiveness.

Documentation for Recruiting

The performance of employees is fundamental to an organization’s success. All jobs
in an organization should support the organization’s mission, goals and objectives.
Additionally, the organization’s jobs should interrelate synergistically. The degree to
which an employee comprehends his or her role in an organization directly influences
stakeholder return on investment (ROI) (Society for Human Resource Management,
Job Analysis: How do I Conduct a Job Analysis to Ensure the Job Description
Actually Matches the Duties Performed by the Employee in the Job? 2010).

One way an organization helps ensure that an employee understands his or her role in
the organization is through formal documentation. Good job documentation serves as
a common reference point for both the employer and the employee or perspective
employee (WorldatWork 2007).

Figure 2-4 provides an overview of the documentation process, including the

relationships between job analysis, human resource planning, recruitment and
selection.

Figure 2-4. Relationships Between Job Analysis, Human Resource Planning,

Recruitment and Selection (Byars and Rue 2010)

Job Analysis and Documentation Methods

Organizations must first analyze the job in order create a job description. A thorough
job analysis begins with a review of job data including duties, responsibilities,
requirements, work environment and other factors (Arthur 2005).

Figure 2-5 presents a process for completing a job analysis.

Figure 2-5. Steps in Job Analysis (Dessler 2010)

The final product from a job analysis is a thorough understanding of the job’s
essential functions that includes:
 A comprehensive list of all duties and responsibilities
 A percentage of time spent for each group of tasks
 The job’s relative importance in comparison with other jobs
 The knowledge, skills, abilities (KSAs) needed to perform the job
 The conditions under which the work is completed

The three essential elements included in a job analysis are commonly

abbreviated as KSAs:
 Knowledge—base of information necessary for task performance
 Skills—level of proficiency needed for task performance
 Abilities—capabilities necessary to perform the job

It is important to remember that a job analysis is conducted on job functionality, not

on the person doing the job (Society for Human Resource Management, Job Analysis:
How do I Conduct a Job Analysis to Ensure the Job Description Actually Matches the
Duties Performed by the Employee in the Job? 2010).

Click the following links to view sample job analysis forms available from
Society for Human Resource Management:
 Job Analysis: Template #1:
http://www.shrm.org/TemplatesTools/Samples/HRForms/Articles/Pages/C
MS_001973.aspx
 Job Analysis: Template #2:
http://www.shrm.org/TemplatesTools/Samples/HRForms/Pages/JobAnalysi
sForm.aspx

Job Description

As previously mentioned, the outcome of a job analysis is a job description. A job

description is an important tool for HR planning, recruitment, selection, training and
developing employee objectives, performance evaluation, remuneration and career
planning. The primary purpose of a job description is to distinguish the essential
functions (fundamental duties and responsibilities) to successfully perform that job
(Arthur 2005). To determine if a function is essential, HR professionals must:
 Consider the written job analysis.
 Take into account the judgment of supervisors and others who have knowledge
of the job.
 Calculate the amount of time spent performing the function.
 Consider the consequences of replacing the employee currently performing the
job.
 Consider the work experience of past employees who performed the job.
 Consider the current work experience of employees performing similar jobs.

It is vital for organizations to create written job descriptions that accurately reflect
current job duties and responsibilities (Society for Human Resource Management,
Job Analysis: How do I Conduct a Job Analysis to Ensure the Job Description
Actually Matches the Duties Performed by the Employee in the Job? 2010).

Click the following links for information about job descriptions available from
Society for Human Resource Management:
 Instructions for developing a job description:
http://www.shrm.org/TemplatesTools/HowtoGuides/Pages/DevelopaJobDe
scription.aspx
 A job description database:
http://www.shrm.org/TEMPLATESTOOLS/SAMPLES/JOBDESCRIPTIO
NS/Pages/default.aspx
 A job description template:
http://www.shrm.org/TemplatesTools/Samples/HRForms/Articles/Pages/C
MS_011001.aspx

Job Specifications

A job specification is a logical outcome of a job description; it lists the qualifications

necessary for satisfactory job performance. Additionally, job specifications may also
describe the physical demands of the job and work environment. This information is
necessary to determine what accommodations might and might not be possible for
disabled (incapacitated, restricted) job candidates (WorldatWork 2007), (Society for
Human Resource Management, Job Analysis 2009).

Guidelines for Writing Job Descriptions and Specifications

Once the job analysis has been completed, formal job descriptions and specifications
must be developed based on the duties and responsibilities identified.

For examples of guidelines on writing formal job descriptions and specifications,

please visit Society for Human Resource Management::
 http://www.shrm.org/TemplatesTools/Samples/PowerPoints/Documents/
Forms/AllItems.aspx, then select 08-PPT-Job Descriptions_FINAL
from the list of sample presentations
 http://www.shrm.org/hrdisciplines/staffingmanagement/Articles/Pages/C
MS_006205.aspx

Job Competencies

Job competencies The knowledge, skills and behaviors (KSAs) that will help an
employee succeed in a specific job.

Job competencies list the KSAs an employee must possess in order to complete a
particular job. They are the crucial success factors needed to perform in a particular
job or specific functional area. Job competencies typically correlate with job
performance (Society for Human Resource Management, Practitioner Competencies,
n.d.), (Stevens 2005). Specific job competencies vary from organization to
organization.

Selection and Retention Considerations

Selection The method for choosing the most suitable candidate for a job.

Once HR has identified a pool (group) of qualified applicants (based on the job
analysis and job description), it is time to gather the remaining information required
to make a selection decision.

Implementing Existing Selection Processes

A typical selection process is depicted in Figure 2-6. The process is designed to

narrow an applicant pool down to a selected few. At each step, additional information
is gathered about prospective candidates to assist the employer in making the
decision.

Figure 2-6. Typical Selection Process

It is important to note that this is just an example of a selection process used by some
organizations. Not all organizations conduct all of the steps in the order indicated. An
overview of each step follows.

Step 1: Analyzing the Résumé

The first step after recruitment has occurred is to review candidates’ résumés, also
called curricula vitae (CV), and compare them against the job specifications. This
step allows organizations to identify applicants who fit the minimum selection
criteria. Efficient prescreening by HR professionals during this step helps the
organization save time by interviewing only qualified candidates.

A checklist for reviewing résumés is available in Society for Human Resource

Management’s sample forms database. Please visit:
http://www.shrm.org/TemplatesTools/Samples/HRForms/Articles/Pages/1CMS_
003759.aspx.

Step 2: Interviewing

The interview is typically an in-person meeting where a representative from the

organization, usually a manager, asks the candidate a series of questions to determine
if the candidate meets the needs of the vacancy or job opening. Because most
organizations rely on interviews more than other parts of the selection process to find
qualified candidates, HR must ensure that interviewers are properly trained in
interviewing techniques and skills. Attention to this area could undoubtedly improve
the validity of the selection process.

Examples of traditional interview questions:

 Do you prefer to work alone or in a group?
 What are your greatest strengths or weaknesses?
 What did you enjoy most/least about your last position?
 How would you describe yourself as a person?
 What kind of books and other publications do you read?
 Where do you want to be in five years?
 Why should I hire you?
 How well do you work under pressure/stress/tight deadlines?
 How would your co-workers or supervisor describe you?
 Describe the best boss you’ve ever had.
 Walk me through your work history.
(Hoevemeyer and Falcone 2005)

The Society for Human Resource Management provides sample interview

questions by commonly used categories from the following website:
http://www.shrm.org/TemplatesTools/Samples/InterviewQuestions/Pages/default
.aspx

Step 3: Reference Checking and Background Investigation

Employers use reference checks and background investigations as a means of

obtaining information about a candidate from sources other than the candidate.
 Reference checks are used to verify previous employment and learn about the
applicant’s aptitude and character. Employers perform these checks by
contacting the applicant’s former employers, learning institutions and personal
references.
 Background investigations are conducted to determine if the candidate may be
unqualified for a position due to a record of criminal conviction, motor vehicle
violations, poor credit history, or misrepresentation regarding education or
work history (Society for Human Resource Management, Conducting
Background Investigations and Reference Checks 2010).

Additionally, some organizations choose to conduct nondiscriminatory formal pre-

employment assessments to ensure applicants have the required skills to successfully
perform the job. Common assessment methods include:
 Psychometric tests: Mental measurement tests used to gain an understanding
of the individual and to help predict future job performance.
 Assessment centers: Not necessarily a physical site, but a series of tools and
exercises (such as in-basket tests, role-plays or psychological inventories)
designed to assess a candidate’s competency in relation to a particular job or
potential role within an organization (Zaccaro 2010), (Edenborough 2005).

Click the following links to view additional information located on the Society
for Human Resource Management website:
 Employment reference check forms (phone):
o http://www.shrm.org/TemplatesTools/Samples/HRForms/Articles/Pag
es/1CMS_002175.aspx
o http://www.shrm.org/TemplatesTools/Samples/HRForms/Articles/Pag
es/1CMS_002173.aspx
o http://www.shrm.org/TemplatesTools/Samples/HRForms/Articles/Pag
es/CMS_019909.aspx
 Employment reference check forms (mail):
o http://www.shrm.org/TemplatesTools/Samples/HRForms/Articles/Pag
es/1CMS_002144.aspx
o http://www.shrm.org/TemplatesTools/Samples/HRForms/Articles/Pag
es/1CMS_022521.aspx
 Tools for performing background investigations:
o http://www.shrm.org/
hrdisciplines/staffingmanagement/Pages/background.aspx

Step 4: Offering

Once the employer has determined the most qualified candidate for the position, an
employment offer is made. An employment offer is an oral or written communication
that formally offers the applicant the job. If the employer did not conduct pre-
employment testing, the applicant may receive a contingent offer. This means that the
offer is contingent on the candidate passing a test or other requirements (Gatewood,
Feild and Barrick 2011).

To learn more about employment offers, please review: http://www.shrm.org/

hrdisciplines/staffingmanagement/Pages/empoff.aspx.

Negotiation

Some candidates attempt to negotiate salary, bonuses and/or benefits when offered a
position by a potential employer. HR professionals should be prepared to negotiate
(Society for Human Resource Management, What Salary Are You Seeking? 2007).

Negotiation The process of bargaining with one or more parties to arrive at a

solution that is acceptable to all.

Figure 2-7 lists culture-specific characteristics needed by managers for effective

cross-cultural negotiations.

Country/Region Manager Characteristics

 Preparation and planning skills
United States
 Ability to think under pressure
 Judgment and intelligence
 Verbal expressiveness
 Product knowledge
 Ability to perceive and exploit power
 Integrity

Figure 2-7. Culture-Specific Characteristics Needed by Managers for

Effective Cross-Cultural Negotiations (continued to next page)

Country/Region Manager Characteristics

 Dedication to job
Japan
 Ability to perceive and exploit power
 Ability to win respect and confidence
 Integrity
 Listening skills
 Broad perspective
 Verbal expressiveness
 Persistence and determination
China (Taiwan)
 Ability to win respect and confidence
 Preparation and planning skills
 Product knowledge
 Interesting
 Judgment and intelligence
 Preparation and planning skills
Brazil
 Ability to think under pressure
 Judgment and intelligence
 Product knowledge
 Ability to perceive and exploit power
 Competitiveness

Source: Adapted from Adler, Nancy J. International Dimensions of Organizational Behavior. 2nd
Edition. Boston, Massachusetts: PWS-Kent Publishing, 1991, p187, and from material provided by
Professor John Graham, School of Business Administration, University of Southern California, 1983

Figure 2-7. Culture-Specific Characteristics Needed by Managers for

Effective Cross-Cultural Negotiations (Hodgetts, Luthans and Doh 2005) (concluded)

Retention

Once the organization has spent time and effort recruiting an employee, it is
important to focus attention on post-hire results such as the initial job performance of
new hires and their retention rates (Breaugh 2009). Without effective retention
strategies and practices, organizations may risk losing talented individuals which will
have negative consequences on the organization (including lost work time and the
additional time required to rehire and retrain).

HR is responsible for many of the practices that contribute to retention. Therefore, it

is important for the HR department to address retention in an organization by using
simple, uncomplicated and effective approaches (Society for Human Resource
Management, Managing for Employee Retention 2010). To retain employees for the
long term, HR should:
 Motivate engagement in the job.
 Offer a strong performance incentive system.
 Create a culture where innovation and problem solving are encouraged
(R. J. Vance 2006).

To learn more about retention, please review: http://www.shrm.org/hrdisciplines/

staffingmanagement/Pages/retention.aspx.

Work/Life Balance and Retention

Work/life balance The balance between an employee’s work life and personal life.

Another way that HR professionals promote retention and employee satisfaction is by

helping employees effectively manage work, family and personal life. According to a
global survey by the International Bar Association’s Global Employment Institute
(GEI) (International Bar Association’s Global Employment Institute (GEI) 2011) HR
leaders ranked ―work/life balance as a key [vital] factor in acquiring and retaining
talent globally‖ second on their list of 10 issues ranked in order of importance.

Obviously, balancing work and family is a vital factor in employee satisfaction. In the
book, Managing Employee Retention, Jack Phillips and Adele Connell note that
―fewer employees are willing to work an excessive number of hours, cope with
unusual working conditions, or tolerate highly stressful or demanding situations
(Phillips, Ph. D. and Connell, Ph.D. 2003).‖ Organizations typically implement
work/life programs for one or more of the following reasons:
 To attract and retain talent
 To retain female employees (especially those of child-bearing age)
 To increase morale and job satisfaction
 To increase productivity
 To increase commitment and engagement
 To reduce health care costs
 To combat employment-related depression and stress-related illnesses
 To attract investors
 To be a good corporate citizen

HR helps promote work/life balance by implementing the initiatives. According to

WorldatWork, ―there are seven major categories of organizational support for
work/life effectiveness in the workplace. These categories encompass compensation
[remuneration], benefits and other HR programs…The seven major categories are:
 Workplace flexibility
 Paid and unpaid time-off
 Health and well-being
 Caring for dependents
 Financial support
 Community involvement
 Management involvement/culture change interventions (WorldatWork 2007)‖

The challenge for HR is that work/life balance has different meanings for different
employees. Thus, it is important to understand the organization’s culture and to
determine which work/life balance initiatives will be valued most by employees.

To learn more about common types of work/life balance initiatives, please

review: http://www.shrm.org/Research/Articles/Articles/Pages/Work_Life_20
Balance_20Series_20Part_20I__20Revisiting_20The_20Work_Life_20Balance_
20Agenda.aspx.

Talent Acquisition and Mobility Services

In 2010, professional services giant Deloitte conducted a year-long study of
approximately 1,800 global executives titled, "Managing Talent in a Turbulent
Economy: Where Are You on the Recovery Curve?" Relevant findings of the
study indicate that:

―Although many business leaders are not convinced that the worst of the
global economic crisis is over, there is no better time than the present for
top executives to ramp up their recruiting of top talent, launch new in-
house programs for training future leaders, and map out a formal
succession plan covering the CEO or other top officials.‖ (Wharton
School of the University of Pennsylvania 2010)

A basic tenet in talent acquisition (staffing) is that what works for one organization
may not work for another. As a result, there are many approaches available from
which to choose. An organization must carefully select an approach that aligns with
its strategy, vision and mission.

The Search for Talent

Following are examples of common approaches to talent acquisition.

Generic Talent Acquisition Framework

This approach reflects the actions an organization takes to locate talent to fulfill
current and future operational needs. Talent is managed as a single resource across

the entire organization. The objective is to advance progress of the organization’s

strategic goals over the long term.

This framework follows the following conceptual structure:

 Identify the human capital requirements necessary to realize the organization’s
vision.
 Compare requirements to present skill and competency levels in the
organization.
 Formulate new short- and long-term staffing requirements.

War for Talent Principles

The ―war for talent‖ principles are based on a 1997 study by McKinsey & Company
that projected that talent would be the most important business resource over the next
two decades. Under this approach, the following five talent management principles
are essential for organizations to attract and retain top talent:
 Build a belief that people are valuable assets.
 Design a competitive employee value proposition.
 Redesign the organization’s recruiting strategies with a focus on talent.
 Cultivate employee leadership and talent development throughout the
organization.
 Acknowledge and reward high-potential performers (McKinsey & Company
2001), (Scullion and Collings 2006).

To learn more about the ―war for talent‖ principles, please review:
http://autoassembly.mckinsey.com/html/downloads/articles/War_For_Talent.pdf.

Talentship

Talentship is a decision science created by John Boudreau and Peter Ramstad in 2004
that helps managers make better talent management decisions. The decision making
framework is based on three main measures:
 Influence: Identify pivotal roles where replacing talent will provide the most
organizational benefit.

 Effectiveness: Determine whether the organization’s policies and practices

align with strategies and have the desired results.
 Efficiency: Establish how much the organization must invest financially on
talent in order to receive a performance benefit (Society for Human Resource
Management, 'Talentship' Requires Analytical Approach to Management
Decision Making 2007), (Boudreau and Ramstad 2004), (J. W. Boudreau
2003).

To learn more about talentship, please review:

http://digitalcommons.ilr.cornell.edu/cahrswp/40.

Talent on Demand

The talent-on-demand approach was created by Peter Cappelli. Organization’s using

this talent management approach attempt to anticipate the talent needed and then
design a plan to acquire the talent required to meet those needs (Cappelli 2008).

Workforce Mobility

Mobility An HR term that refers to employees and their families who

move from one location to another.

To compete in the global business market today, organizations must be able to

manage their workforces appropriately and efficiently. Workforce mobility helps
organizations ensure that the most appropriate employees fill offices and positions.
Workforce mobility increases individual productivity by attempting to ensure that the
most qualified person is doing each job in each location (Society for Human Resource
Management, HR's Expanding Global Frontier Brings Benefit Challenges 2008).
Organizations use several different forms of assignment to deploy their workforce.
HR professionals are responsible for supporting workers as they move from one
office (or role) to another.

 New hires:
Organizations may choose to recruit and relocate an individual with
appropriate skills for the job. HR can help new hires in their transition by
offering services such as home sale assistance, home purchase assistance,
moving allowances and household goods shipping (Blumenberg 2010).

 Transfers:
Organizations may choose to relocate a current employee with the appropriate
knowledge and skills to a new location. This type of transfer can be
temporary, long term (more than a year) or permanent. HR’s role in
supporting transfers is to provide appropriate training (language or
intercultural communication), assistance with housing, and making the
appropriate remuneration and benefit adjustments for the new location.
Support for transferred employees will be discussed in more detail later in this
section.

 Temporary assignments:
Organizations may also choose to temporarily relocate an employee.
Temporary assignments typically last between six months and one year. HR
supports temporary transfers by providing appropriate training (language,
cross-cultural or intercultural communication) and assistance with housing.

 Business trips (project support):

Organizations may also fill a position by having the employee travel
frequently to a location but not relocate. For international or cross-border
travel, HR may need to support the employee by providing training on
language or cross-cultural communication (Scullion and Collings 2006).

Factors Influencing Talent Acquisition Approaches

A variety of factors can influence an organization’s approach to talent acquisition.
Each of the following factors has a direct bearing on an organization’s talent
acquisition plan:
 Strategic plans:
HR professionals must have knowledge of the organization’s strategic plan,
and the strategic plans of business units to design a talent acquisition approach
that is in alignment.
 Integration strategy:
An organization’s approach to management (whether it is centralized or
decentralized) can affect the organization’s talent acquisition plan in several
different ways. The approach will:
o Determine what types of jobs are needed in different locations (for
example, organizations with centralized management will hire fewer
managers at remote locations).
o Influence how jobs are filled (for example, whether an organization
transfers a current employee with the appropriate skills or hires a local
candidate with the same skills).
o Influence the team assembled to develop the plan (for example, whether
the HR team at headquarters will develop the plan in isolation or involve
local HR leaders in the planning).

Approach to Talent Acquisition

Organizations tend to develop characteristic orientations toward staffing headquarters

and subsidiary operations. Howard V. Perlmutter (Perlmutter 1969) described the
staffing orientations listed below in the late 1960s:
 Ethnocentric: Headquarters maintains tight control over operations by staffing
essential positions in subsidiaries with headquarters personnel.
 Polycentric: Host-country nationals (HCNs) usually staff and manage the
local subsidiary. HCNs do not usually get promoted to headquarter positions.

 Regiocentric: This is a regional approach to managing operations.

Communication and coordination are high in the region but not as high
between the region and headquarters. Talents are considered within the region.
 Geocentric: Management talent comes from any location in the organization
(Scullion and Collings 2006), (Vance and Paik 2006).

Organizational Growth Strategies

Talent acquisition is also directly influenced by how an organization decides to

expand its business. An organization’s talent pool is directly affected by the addition
of new acquisitions or locations. Some common organizational growth strategies and
the implications for talent acquisition include:
 Expansion: The reason for expansion determines the most effective staffing
approach (for example, whether to use international assignees, local nationals
or globally mobile employees).
 Merger and acquisition (M&A):
o New talent resources become part of the organization.
o Retention of essential talent is a central issue.
o HR involvement adds value in the due diligence process.
 Joint venture: The type of joint venture, what the partnership agrees to and
the people that the partner contributes (for example the number of employees
and their skill sets) all influence talent acquisition.
 Greenfield operation:
o A new site must be staffed.
o Due diligence is important to understand local laws and regulations.
o This can be a huge effort, especially when the local labor market is
underdeveloped.

 Strategic alliance:
o Depending on the type of alliance, this could either have no influence or
considerable staffing influence.
o In many strategic alliances, employees remain with their own
organizations.
o If a new venture is formed as a result of the alliance, then talent acquisition
plans are directly affected.

External Factors

When an organization’s operations include operating in another country, HR

practitioners must understand the ramifications of the country’s laws, as well as local
and regional practices. HR must research each country’s practices and consult with
local experts to ensure that these factors are fully considered in the talent acquisition
plan. Some common external factors and how they can be addressed in the talent
acquisition plan include:
 Local and regional labor markets: Develop local or regional talent to be a
resource to the entire organization.
 Global labor markets: Ensure that staffing decisions reflect strategic global
needs rather than short-term fluctuations in local markets.
 Local culture and values: Recognize that a staffing decision can be perceived
differently across cultures.
 Legal issues: Research and understand the ramifications of the country’s laws.
 Relationships with alliance partners: Address these unique staffing
challenges on a case-by-case basis.
 Competitive factors: When competing for essential resources, it is acceptable
to use country and industry benchmarks to ensure that quality talent is retained
and available when needed.
 Safety and security: Understand that terrorism and other security factors
which threaten candidate and employee safety can make talent acquisition
problematic.

Social Responsibility

Social responsibility An organization's voluntary obligation toward the good of the

environment in which it operates.

Today, organizations are becoming more aware of some of the ramifications of their
own social practices. They are also becoming more aware of how practices of other
organizations affect the environment, societal issues and sustainable practices. Many
organizations are now including social responsibility as one of their core
organizational strategies.

See Section 1.2: Values and Ethics to learn more about social responsibility.

Information Technology

While technology does not necessarily affect the number and types of jobs or the
sources of labor, it does greatly facilitate communication across geographically
dispersed locations and helps to ensure the proper deployment of talent. The
following technologies are commonly used in organizations and influence talent
acquisition.
 Intranet: Web-based communication available only within the organization
o Allows collaboration among geographically dispersed sites
o Creates awareness of how centralized decisions affect subsidiaries
 Internet: Web-based communication between the organization and the outside
world
o Facilitates informed decisions about potential assignments through access
to cultural and practical information about a country
o Assists employees to proactively address the logistical issues of
international assignments, such as school enrollment, transportation and
housing
 E-mail: Electronic text messages via the Internet or intranet
o Facilitates the establishment and maintenance of professional relationships
across locations

o Enables effective communication across disparate time zones

 Knowledge management systems: A system for gathering, documenting and
sharing important information to improve the performance of employees and
the organization.
o Preserves ―lessons learned‖ as talent moves from location to location.
o Allows talent in one location to learn from the successes and failures of
other locations.
 Online conferencing: Meeting at a distance using teleconferencing, computer-
based videoconferencing or a combination
o Allows geographically dispersed teams to meet without travel costs
o Fosters collaboration across locations
 Human resource information systems (HRIS):
o Allows employees to quickly access HR information.
o Helps HR assign the right people with the right skills to the right job at the
right time.

Implementing Recruiting Plans

A plan is only as good as its implementation and success depends on the support of
those expected to carry it out.

Phases
The overall recruitment planning process consists of several distinct phases:
 Analyzing the organization’s workforce (conducting a needs analysis)
 Formulating a strategy (including tactical objectives) that aligns with the
organization’s strategic objectives
 Implementing the strategy
 Monitoring to ensure successful implementation (Society for Human Resource
Management, Engaging in Strategic Planning 2010)

The following content looks at each of these phases in more detail.

Recruiting Needs Analysis

Workforce Identifying and analyzing what an organization needs to achieve
planning its goals in terms of the number, type, and quality of its
employees.

As part of implementation, HR must analyze the organization’s workforce and

determine the steps it must take to prepare for future needs. This process is referred to
as workforce planning. Workforce planning provides HR leaders:
 A strategic foundation for making HR decisions
 The ability to anticipate change
 A strategy for responding to current and anticipated workforce issues (Society
for Human Resource Management, Practicing the Discipline of Workforce
Planning 2010)

As part of workforce planning, HR will conduct a needs analysis.

Needs analysis Assessing the present situation to determine the steps necessary
to reach a desired future goal.

There are a variety of reasons why HR professionals performs needs analyses

(including identifying compensation strategies or determining training needs);
however, in workforce planning, a needs analysis is conducted to answer questions
that shape an organization’s staffing strategy. Figure 2-8 illustrates the basic staffing
needs analysis process.

Figure 2-8. The Staffing Needs Analysis Process

Formulating a Strategy
Tactical objectives Objectives focused on closing high-priority gaps in the short-term
(as opposed to the long-term) strategic HR objectives; they
specify in concrete and measurable terms which gaps must be
closed and when.

Once HR understands the organization’s staffing needs, a recruitment strategy is

formulated. As part of the strategy, HR leaders create tactical objectives that:
 Provide a distinct short-term goal for the staffing function.
 Create a foundation for the recruiting strategy.

Tactical objectives are created to address high-priority gaps identified during the
needs analysis process.

To learn how to write specific, measurable, achievable, realistic and timely

(SMART) tactical objectives, visit http://www.hr.ecu.edu.au.

Implementing Tactically and Strategically

Next, HR will implement the tactical objectives and recruiting strategy. To implement
the recruiting strategy successfully, HR leaders must prepare managers for

implementation. While HR leaders will continue to provide direction and assistance,

it is the managers involved in the hiring process who will ultimately implement HR's
recruiting initiatives. Common challenges for the implementation of a strategic plan
include:
 Quality of communication
 Alignment with organizational goals
 Support from leadership
 An organizational structure that adapts to change
 Effective management of resources
(Society for Human Resource Management, Engaging in Strategic Planning
2010)

Communicating the Benefits

It is important that HR leaders broadly communicate the benefits of a recruiting

strategy. Understanding the benefits will motivate employees to align their recruiting
efforts with the organization’s recruiting strategy and to achieve tactical objectives
(Society for Human Resource Management, Engaging in Strategic Planning 2010),
(Society for Human Resource Management, Recruiting Internally and Externally
2009).

Monitoring the Strategy

During implementation of the recruitment strategy, HR should monitor the strategy’s
effectiveness. HR should establish a mechanism to monitor and evaluate progress
toward achievement of tactical objectives. The mechanism should:
 Ensure that the organization is progressing toward the strategic objectives.
 Allow HR leaders to take corrective actions as needed.

Staffing and recruiting systems and tools exist that can help HR leaders measure the
effectiveness of the recruitment strategy (Society for Human Resource Management,
Engaging in Strategic Planning 2010).

See Section 4.2: HR Measurement and Evaluation to learn more about the
systems and tools available to help HR leaders measure effectiveness.

Flexible Staffing Programs

Flexible staffing Use of alternative recruiting sources and workers who are not
regular employees. This is also known as alternative staffing.

Flexible Staffing Alternatives

No workforce planning and recruitment strategy is complete without consideration of
flexible staffing alternatives. Traditionally, HR has marketed and recruited for
conventional full-time positions where the organization directly hires, supervises and
provides remuneration and benefits to regular employees. However, there are many
other staffing alternatives available. These alternatives are especially useful when
there are shortages of available workers, seasonal upturns and downturns which
require temporary solutions, and in situations when a specific skill-set is required for
a finite project.

Examples of flexible staffing alternatives that organizations may implement include:

 Schedule flexibility (examples include flextime, compressed workweek and
job sharing)
 Location flexibility (also known as telecommuting)
 Outsourcing relationships (Society for Human Resource Management,
Managing Flexible Work Arrangements 2009)

The following content focuses on outsourcing relationships. To learn more about

the other types of flexible staffing alternatives, please review:
 Society for Human Resource Management:
http://www.shrm.org/Research/Articles/Articles/Pages/
ManagingFlexibleWorkArrangements.aspx
 Families and Work Institute: http://familiesandwork.org

Outsourcing

Outsourcing Transferring certain business functions outside of the

organization so the organization can focus on core activities
(examples of outsourced functions include data processing,
telemarketing and manufacturing).

Outsourcing occurs when an organization develops a relationship with a third-party

vendor for the supply of products, services or component parts. Outsourcing
challenges the HR department to be more flexible and creative in recruiting talent
(Weatherly 2005).

Outsourcing provides several benefits to an organization:

 Accessing special skills and knowledge
 Enhancing the organization’s ability to respond quickly to customer demands

Organizations generally do not outsource their core competencies—the essential

activities that create the organization’s distinctive value.

Organizations must make cautious outsourcing decisions to avoid the following:

 Unintentionally surrendering strategic capabilities
 Impeding internal employee growth and development
 Declining internal employee morale as more functions are outsourced

Because organizations may be liable for noncompliance of outsourced functions, HR

should be cautious when selecting a third-party contractor.

Stages of Outsourcing

To ensure the most appropriate and productive use of outsourcing, HR managers

should rely on a thoughtful, well-tested process. Figure 2-9 provides an example of a
process that can be used to select an outsourcing partner.

Steps Description

Analyze needs and define A team consisting of representatives from all

goals potential departments who will interact with the
vendor defines the project goals and expectations.

Define the budget Plan for the use of outsourcing resources in the
annual budget by defining how the services will be
paid for and determining the expected financial
ROI.

Create a request for An RFP is a written request asking vendors to

proposal (RFP) describe and submit a proposed solution and prices
that fit the organization’s requirements.

Send out/publish the RFP The RFP, including submission instructions and
deadline, is distributed; distribution must provide
open and free opportunity unless there are special
conditions.

Evaluate proposals Develop a set of criteria to systematically evaluate

each proposal. Criteria will differ based on the
organization’s size, priorities and industry.

Figure 2-9. Example Process for Selecting an Outsourcing Partner (continued to next page)

Steps Description
 A team systematically evaluates the proposals.
Choose a vendor
 Vendor presentations may be requested.
 A vendor is selected who best meets
organizational needs.
 Communicate the outcome to both the winners
and losers.
 Provide losers with feedback.

Negotiate a contract Work with legal counsel to create a written contract which
outlines the contractor’s services such as essential
deliverables, schedule, payment terms, performance
standards and training expectations.

Figure 2-9. Example Process for Selecting an Outsourcing Partner (concluded)

Deploying an Outsourcing Solution

Once the outsourcing partner is selected and the contract is approved, the final step is
to deploy the solution. Deployment is a team effort between the organization and the
vendor. Effective communication and project management are essential to the success
of the solution.

Even the best outsourcing partner needs careful management, support and guidance.
It is the organization’s responsibility to communicate expectations, define project
roles, and monitor and manage the outsourcing partner for the life cycle of the project
(Society for Human Resource Management, A Governance Approach to Managing
HR Vendors 2010). Figure 2-10 lists some common project activities that must be
managed.

Project Activities Description

Initial project planning Stakeholder meeting to review the contract and establish
meeting priorities

Employee briefing Internal employee meeting to communicate roles and

responsibilities and address any concerns

Regular communication Regularly scheduled communications such as status

and reporting reports or project meetings

Problem resolution Negotiation and resolution of unique and unexpected

issues

Sign-off and acceptance Formal checks and balances required for payment
procedures

Periodic management Regularly scheduled status reports from management,

reports typically quarterly

Figure 2-10. Common Project Management Activities (continued to next page)

Project Activities Description

Improvement plans Plans designed to guide improvement of vendor

processes

Rewards and incentives Incentives that encourage vendors to keep improving

for performance their services

Figure 2-10. Common Project Management Activities (concluded)

Measuring Outsourcing Effectiveness

Upon completion of the project, the organization will evaluate the effectiveness of the
outsourcing initiative. Most organizations use metrics to evaluate whether or not the
outsourcing initiative fulfilled the established goals. Metrics also help organizations
identify areas of success and areas for future improvement (Hayes 2009).

See Module 4: Measurement to learn about the metrics used to evaluate

outsourcing effectiveness.

HR’s Role in Flexible Staffing

HR may be involved directly in outsourcing—by contracting out HR processes—or

indirectly. Because of its role in developing and monitoring relationships with
external stakeholders and supporting the organization’s corporate social responsibility
program, HR may also be required to evaluate vendor performance on such issues as
employee legal rights or environmental responsibility.

New Employee or Transferee

Orientation Services
Research suggests that half of all outside hires fail within the first two years. One way
organizations can improve this statistic is to improve and implement robust new hire
programs. Formal orientation programs ease the adjustment phase for new and
transferred employees as follows:
 Makes them feel welcome and fosters a feeling of belonging
 Introduces them to the organization, including history, culture and values,
goals and organizational structure
 Serves a social role by introducing employees to co-workers and other
individuals in the organization
 Provides an understanding of organizational expectations
 Describes future opportunities for personal growth and development
 Prepares them to perform their jobs
 Allows them to begin contributing to the organization’s strategic goals
(Bauer 2010)

Many organizations view orientation as a one-day event. Organizations that view it as

an ongoing process that can last up to a year are more successful and have lower
turnover rates (Society for Human Resource Management, Managing the Employee
Onboarding and Assimilation Process 2009).

Onboarding and Assimilation Overview

Orientation services consist of two essential components: onboarding and
assimilation.

Onboarding The process to help new employees learn about the organization's
policies, procedures, and culture in addition to their job
responsibilities. Also known as new employee orientation.

Assimilation The process of becoming a member of a team, organization or

culture.

Employee onboarding is essential for improving productivity, building loyalty and

helping employees become successful early in their careers with the new
organization. Onboarding and orientation services are also important for employees
who are relocated within their own country or assigned to another country. The
onboarding process enables employees to become familiar with their new location,
organization, job and culture. Many organizations incorporate social activities into
this process.

Assimilation is the longer-term process of acclimating to the new organization and

becoming a committed member of the organizational team (Society for Human
Resource Management, Managing the Employee Onboarding and Assimilation
Process 2009).

Although onboarding and assimilation generally occur in sequence, they eventually

merge into a single process that continues throughout an employee’s relationship with
the organization. Many top companies have started extending the onboarding process
for the first six months, which is typically the amount of time an employee takes to
make his or her decision to stay at the company. This process involves both physical
and cultural issues. Note that cultural issues can apply to in-country relocations and
international assignments, although they may be less obvious in the first context
(Society for Human Resource Management, Retention Strategies for the HR
Professionals 2008).

Beyond Onboarding: Integration into the Organization

Integration programs go beyond traditional onboarding programs and can last up to

two years (Society for Human Resource Management, Managing the Employee
Onboarding and Assimilation Process 2009). Integration programs address more
strategic issues than orientation and onboarding programs and focus on retention.
Successful integration into the organization increases productivity, reduces turnover

and increases retention (Society for Human Resource Management, Retention

Strategies for the HR Professionals 2008).

Organization and New Hire Benefit Implementation

While it is important to provide new hires with an orientation to the organization and
their employment benefits, organizations have learned that onboarding is more than a
one-day interaction where new employees sit and complete their new-hire paperwork
(Society for Human Resource Management, Managing the Employee Onboarding and
Assimilation Process 2009).

Orientation as an HR Service Delivery Process

An employee’s training and development begins with orientation. HR has the primary
responsibility for delivering the organization’s orientation program.

There are three basic goals of orientation programs:

 Provide important organizational information
 Review policies, procedures and benefits
 Provide a work context

Orientations are more than just a chance to process paperwork and procedures quickly
(Bauer 2010). Successful orientation programs deliver value by incorporating the
following elements:
 New hires are active participants.
 Orientation is more than just a one-day process.
 Information is communicated on an ongoing basis to avoid overburdening the
new hire.
 An orientation checklist is provided to help ensure that all important
information is communicated.

The Orientation Timeline

HR must prepare for the employee’s arrival before the first day of employment. HR
must also plan to support the employee all the way through assimilation. The content
that follows provides some examples of actions HR professionals can take throughout
the stages of the orientation process to ensure that it is effective.
 Before first day: Begin the process after the employee accepts the offer but
before the employee’s actual start date. Examples of advance strategies
include:
o Inviting the employee for a tour of the facility (or community in the case of
relocation)
o Sending benefits information, organizational charts and other company
literature to the new hire for pre-reading
o Sending a welcome gift (such as flowers, a coffee mug or a shirt with the
company logo) to the new hire
o Assigning a mentor to contact the new hire before the first day to answer
basic questions (Society for Human Resource Management, Managing the
Employee Onboarding and Assimilation Process 2009)
 First day: ―Studies conducted by the Corporate Leadership Council indicate
that it's important for new employees to quickly acclimate to their new work
environment. It's also important for these employees to start building rapport
with colleagues so they can begin to assimilate into existing workgroups. By
doing so, new employees experience a sense of purpose within their new
organization, and the transition into this organization is less disruptive
(Money-Zine.com 2007-2010).‖ In addition to delivering basic information
and completing the necessary paperwork, HR should strive to incorporate the
following strategies into the employee’s first day:
o Greet the employee warmly.
o Have the employee’s workstation or office ready.
o Provide the employee with an agenda (an overview of what to expect on
the first day).
o Provide essential supplies.

o Provide a tour of the facility as well as a map or floor plan to help the
employee navigate.
o Introduce essential staff members and provide organizational or
departmental charts.
o Supply the employee with company literature and required documents.
o Supply access materials (such as keys or access passes).
o Invite the employee to lunch.
o Provide a functioning workstation.
o Avoid inundating the employee with too much information.
o Identify an employee who can assist the new hire as needed (Bauer 2010),
(Arthur 2005).
 Beyond the first day: Over the next month or two, HR should continue to
reinforce essential information. Gradually introduce the employee to all staff.
Determine if the employee has any unanswered questions or concerns.
 First year: HR should ensure that all necessary information has been shared
with the employee. Address any remaining unanswered questions or concerns
(Society for Human Resource Management, Managing the Employee
Onboarding and Assimilation Process 2009).

Practice Questions

Directions: Choose the best answer to each question.

1. The three essential elements included in a job analysis are

a. responsibilities, tasks and reporting structure.
b. knowledge, skills and abilities.
c. competencies, qualifications and procedures.
d. reporting structure, pay range and essential job functions.

2. Which of the following statements about job specifications is true?

a. They summarize the most important features of a job.
b. They describe working conditions.
c. They list the qualifications necessary to perform the job.
d. They list all of the essential functions of the job.

3. Employees are given a chance to indicate an interest in an announced internal position

through
a. job posting.
b. skill tracking.
c. succession planning.
d. job analysis.

4. Which of the following is NOT a goal of orientation?

a. To provide remedial skills training
b. To establish relationships with co-workers
c. To understand organizational expectations
d. To gain a feeling of belonging

5. Assimilation is the ongoing process of

a. enabling an employee to become a committed member of the organizational team.
b. familiarizing an employee with a new location to ease entry into a new company,
job, or culture.
c. learning the language of the host country to improve communication.
d. managing the physical relocation of an employee and his or her family.

Practice Question Answers

1. b (p. 59)
2. c (p. 61)
3. a (p. 52-56)
4. a (p. 89)
5. a (p. 90)

3.3: Local and International

Labor Laws and Practices

This section covers the following information from the

Knowledge Base:

Behavior: 03. Conduct research to analyze the workforce (for example, skills
available locally, salary requirements)

Skills & Knowledge: 03. Local labor conditions, including laws, legislation and
international practices

05. Employee mobility, domestic and international

Source: HR Certification Institute

Section 3.3: Local and International Labor Laws and
Practices
Introduction ..................................................................................................................................99
The Influence of Legal Systems .................................................................................................99
Legal Areas Affecting HR Service Delivery ............................................................................100

Laws Affecting HR Service Delivery ........................................................................................100

Laws Affecting Remuneration .................................................................................................102
Laws Affecting Benefits ...........................................................................................................106
Laws Affecting Employment Terms and Conditions ...............................................................108
Laws Affecting Working Conditions .......................................................................................110
Industrial Relations ..................................................................................................................111
Local Laws Affecting Treatment of Employees ......................................................................113
Electronic Service Delivery .....................................................................................................114

Intellectual Property Considerations .......................................................................................115

Intellectual Property Protection Considerations .......................................................................115
Identifying Applicable Intellectual Property Law to Incorporate into HR Service Delivery
Processes ..................................................................................................................................116

Practice Questions ......................................................................................................................118

Module 3: HR Service Delivery 3.3: Local and International Labor Laws
and Practices

Introduction
The legal systems in an organization’s home country and in the countries and regions
in which it operates affect human resource (HR) service delivery. The legal and
regulatory environment is complex. How and where an organization does business
affects the HR department, and HR professionals are challenged to deliver services
that comply with multiple legal systems.

This section covers:

 Laws affecting HR service delivery
 Intellectual property considerations

The Influence of Legal Systems

HR professionals should seek expert legal and regulatory advice for both specific
legal disciplines and the laws of specific countries, both proactively and reactively, to
increase awareness and avoid possible litigation. When concerns or issues arise, HR
must work with legal counsel to mitigate the consequences.

The complexities of legal and regulatory issues are also reflected in the legal
profession. Lawyers are able to practice law within pre-determined geographies and
specialties. HR professionals may seek advice from more than one lawyer. Or, the
organization’s legal counsel may engage additional experts.

In addition to your organization’s legal counsel, other sources for information about
local laws and regulations include:
 Chambers of commerce
 Law schools (both the school’s library and faculty)
 Consultants
 Legal firms
 Industry associations

Legal Areas Affecting HR Service Delivery

Many federal laws, common law and international law help define the relationship
between organizations and employees. These laws protect and secure the rights of
employers as well as employees (both belonging to and not belonging to unions). The
HR department is responsible for delivering programs and services to help ensure that
the entire organization and its managers and supervisors remain compliant.

This section will provide an overview of how local and international laws and
practices affect the HR service delivery in the following areas:
 Remuneration and benefits
 Employment terms and conditions
 Working conditions
 Industrial relations
 Employee legal rights
 Electronic service delivery
 Intellectual property

Laws Affecting HR Service Delivery

The Online Learning Center, Learning Aids contain a self-directed activity. The
purpose of this activity is to provide a framework for your own exploration of
your organization’s legal environment. The activity includes three worksheets.
Each worksheet poses questions that pertain to one dimension of the legal
environment. Use these worksheets as one method to establish the parameters of
your legal environment.

An organization’s legal environment is complex. Governmental entities (for example,

nation states, cooperative regions containing multiple nation states, state or provinces
within the nation state and smaller localities like cities) have various laws and
regulations. Specific industries have rules and regulations under which organizations

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must comply. Thus, the legal environment for an organization may encompass many
sets of laws and regulations.

Figure 3-1 illustrates one potential situation where the laws associated with employee
relations may originate from multiple sources. This example assumes that the
organization has operations in three countries and participates in a single industry. In
this example, there are nine potential origination points for laws or regulations.

Figure 3-1. Potential Origination Points for Legal Concerns

Complying with all applicable laws and regulations represents the minimum
requirements for service delivery.

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Laws Affecting Remuneration

Remuneration (also called compensation) laws describe the conditions for how
employees are compensated. These laws vary greatly by country.

HR’s role in delivering remuneration programs is extensive. HR leaders should be

thoroughly familiar with the legal and regulatory environment associated with the
delivery of compensation programs.

There are numerous online sources about labor law and social security programs.
The websites listed below provide some examples:
 The International Social Security Association:
http://www.issa.int/
 Social Security Programs Throughout the World:
http://www.ssa.gov/policy/docs/progdesc/index.html

With respect to remuneration, legal aspects of HR’s service delivery responsibilities

include:
 Posting notices about employees’ rights in areas of the workplace that are
conspicuous and accessible to all employees
 Following the laws and regulations that govern numerous aspects of employee
records management including how these records are protected and shared,
what information is kept, and when and how the records are disposed of
 Assisting with conflict resolution (informal and formal procedures for hearing
and resolving employee complaints)
 Training employees on the basic concepts of equal employment opportunity,
harassment and other aspects of employee relations to raise awareness of
lawful, appropriate and respectful conduct in a diverse workforce (Society for
Human Resource Management, Introduction to the Human Resources
Discipline of Employee Relations 2008)
 Conducting research to understand and analyze the workforce and to ensure the
organization’s remuneration policies are compliant and in alignment with legal
requirements and industry standards

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Salary Ranges

Salary range The lowest and highest wages paid to employees who work in the
same or similar jobs.

HR uses market data from surveys to establish the maximum, minimum and midpoint
of the pay range. Pay ranges vary depending on the organization’s promotion policy,
pay increase policy and other administrative and legal considerations.

To calculate the range spread for a job, subtract the minimum amount from the
maximum and then divide that figure by the minimum. Figure 3-2 illustrates the
formula for calculating the range spread for a job.

Figure 3-2. Formula for Calculating Range Spread

Figure 3-3 illustrates the calculation of the range spread for a job with a minimum
annual salary of $45,000 and a maximum of $65,000.

Figure 3-3. Range Spread Example

Typical range spreads are:

 Non-exempt positions—40 percent
 Exempt positions—50 percent
 Executive positions—60 percent

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In general, lower-level jobs typically have a narrow range between minimum and
maximum salaries while the salary ranges for higher-level jobs will be wider.
Because people in entry-level jobs have more promotion possibilities, they tend to
stay in entry-level positions for shorter periods of time, narrowing their pay range.
People at higher-level jobs tend to stay in their jobs and therefore range for a longer
period of time. Also, the learning time to achieve midpoint competence is less for
lower-level jobs.

Compa-ratios

Assuming that pay ranges are based on the market average, compa-ratios are an
indicator as to how actual wages match, lead or lag behind the market.

HR uses the compa-ratio calculation to identify where each employee is relative to

midpoint. This is achieved by dividing an employee’s pay level by the midpoint of
the pay range. Figure 3-4 illustrates the compa-ratio calculation.

Figure 3-4. Compa-ratio Calculation

Figure 3-5 illustrates the compa-ratio calculation where the employee’s pay rate is
$30,000 and the midpoint of the pay range is $28,000.

Figure 3-5. Compa-ratio Example

Figure 3-6 describes compa-ratio results and their meanings.

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Compa-ratio Meaning
 Wages fall below the midpoint.
Below 100%
 Occurs when:
o Employee is new to organization or position
o Employee is performing poorly
o Organization adopts a lag strategy with regard to pay
 Wages exceed the midpoint.
Above 100%
 Occurs when:
o Organization adopts a lead strategy with regard to pay
o Managers are not following salary-increase policies
o Employee is long-tenured and/or a high performer

Figure 3-6. Compa-ratios and Meanings

A compa-ratio tool is available at http://www.shrm.org/TemplatesTools/Samples/

Metrics/Documents/Compa%20Ratio%20Calculation.xls.

Base Pay

Most employees receive some type of base pay, either in the form of an hourly
wage (for each hour worked) or a salary (a uniform amount no matter how
many hours are worked).

Hourly employees are classified as non-exempt and are subject to overtime premiums
(WorldatWork 2007).

Collective bargaining, employee representation and government mandates protect

employees in most parts of the world from actions that affect their wages. Unions
play a strong role in many countries, and works councils (not to be confused with
unions) also offer worker protections.

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Minimum Wage

Minimum wage The lowest hourly, daily or monthly salary employers must
legally pay to employees or workers.

Governments typically set a minimum wage for a country or economic region and
adjust it annually. Setting a minimum wage is intended to provide employees with
decent minimum standards and fairness in the workplace.

The following items typically are not included in minimum wage calculations:
 Overtime
 Subsidy for working under extreme conditions (including night shift, high
temperature or hazardous or remote environments)
 Statutory insurance and benefits

Laws Affecting Benefits

Benefit laws describe the benefits provided to employees as part of their employment.
As with remuneration, these laws vary greatly by country. Examples of laws that fall
under this category include:
 Leave entitlements (including public holidays, maternity, parental, sick and
annual leave)
 Statutory benefits (including retirement, death and disability, workers’
compensation, health care, social security, severance and other mandated
employee benefits)

HR leaders should be thoroughly familiar with the legal and regulatory environment
associated with benefit programs (both benefits accorded to employees through
government-sponsored programs and those offered through the organization).

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There are numerous online sources for legal information regarding benefits. The
websites listed below provide some examples:
 International Federation of Pension Funds Administrators:
http://www.fiap.cl/p4_fiap_eng/site/edic/base/port/front_cover.html
 Towers Watson Benefits Reports (by country):
http://www.watsonwyatt.com/wwdsemea/default.asp?ID=21165&search=on
&country=all_countries

HR is responsible for understanding the legal aspects surrounding benefit programs

and delivering these services to employees in accordance with the legal requirements
of the employee’s location:
 Government-provided benefits (including health care and retirement), usually
paid for through taxes
 Government-mandated benefits provided by employers (including vacation and
legal holidays)
 Benefits provided voluntarily by the employer (such as health care where
government-supplied health care is not satisfactory or not provided)
 Benefits offered in response to market practice (including transportation
allowances or meal vouchers)
 Taxation of benefits
 Social security benefits
 Paid time off (including vacation/holiday leave, public holidays, family leave
and sick leave)
 Retirement programs
 Severance
 Health and welfare insurance (including health care, disability, and life
insurance)

Section 3.4: Employee Benefit Program and Compensation Plan Service

Delivery covers service delivery of benefits programs in more detail.

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Laws Affecting Employment Terms and Conditions

Employment laws reflect the minimum legal requirements that organizations use for
determining employment conditions. HR leaders must be familiar with the legal and
regulatory parameters and seek legal expertise when new legal or regulatory
requirements occur or when the organization implements strategic changes to
employment conditions.

Employment Contracts

HR is often responsible for providing new hires with employment contracts.

Employment contracts are usual in most countries, although the form of the
agreement varies. Listed below are few examples:
 Employees in the European Union (EU) are guaranteed under EU Directive
91/533 the right to a written description of employment terms within two
months of hiring. This could include a pay slip. If no written contract is
provided, a contract is implied.
 Chinese law requires that employees receive written contracts within one
month of hiring. In the absence of a written contract, a contract is implied.
 In Mexico, written contracts are required for all levels of staff including
temporary and part-time workers.
 In Portugal, contracts may be verbal or implied by the fact that an employee is
receiving a paycheck.
 In the United States, the principle of at-will employment means that individual
employment contracts are the exception rather than the rule.

Employment contracts frequently include an initial probationary period. In some

countries, such as Australia, trial periods are implied by law. In other countries, HR is
not obligated by law to establish probationary periods for new employees; on the
contrary, they are often prohibited from doing so unless explicitly agreed to in an
employment contract. Additionally, the maximum length of a probationary period,
notice and severance requirements with respect to terminating probationary
employees vary by country.

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Implied Contracts

Implied contracts have terms derived from statutory or common law, from collective
agreements, or from local norms for the job, employer and country. The terms of
implied contracts vary by country.

Amending Contracts

Employment terms are defined by contract. Therefore, an employer must amend the
contract to change employment terms (for example, pay, hours and duties). In certain
situations--under a collective bargaining agreement, for example--an employer’s
options for changing contracts may be limited.

The Employee Handbook

Organizations typically have a set of rules that define the expectations and conduct of
managers and employees. While laws and regulations define minimum expectations,
organizations write their own rules. These rules can be written policies or handbooks.

The HR function is often responsible for writing the policies and handbooks, and
understanding the informal practices. Organizational HR policies, practices and
procedures influence:
 Employment conditions (including attendance, dress/appearance and conduct)
 Work events (transactions including hiring, leaves of absence, termination and
redundancy)

Please review the Towers Watson website for reports that provide a practical and
comprehensive overview of individual and collective employment relationships,
and employment terms and conditions by country: http://www.watsonwyatt.com/
wwdsemea/default.asp?ID=21172&search=on&country=all_countries.

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Laws Affecting Working Conditions

Global organizations must comply with international standards regarding
occupational safety and health (OSH) (if their countries have ratified these standards),
as well as regional and local laws. These laws assure employees’ rights to a safe
workplace and environment.

In the International Labour Organization (ILO) health, safety and environment (HSE)
guidelines, every employee has a right to a safe workplace, environment and competent
supervision, among others. Due to the nature of HSE regulations and the need to ensure
strict compliance, HR plays a primary role in managing the accountability process.

In 2011, there were approximately 70 ILO Conventions and Recommendations

addressing OSH issues. These standards fall under four basic categories of protection
as described in Figure 3-7.

Figure 3-7. ILO Categories of OSH Conventions

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The health and safety of employees is an important component of HR service

delivery. Legal aspects of HR’s service delivery responsibilities for employee health
and safety include:
 Managing accountability processes (such as accident prevention, compliance
with laws and regulations, disciplinary actions, etc.)
 Conducting occupational safety and health risk assessments
 Aligning hiring practices to include appropriate skills for employees and
leaders
 Implementing people development initiatives to ensure all employees have
applicable skills and knowledge with respect to workplace safety and health
 Assuring the organization has appropriate communication initiatives to
proactively monitor and improve workplace conditions
 Eliminating or reducing nonconformance through leadership visibility and
accountability, internal audits and continuous engagement of all stakeholders
 Benchmarking the organization’s health and safety initiatives in comparison to
direct competitors and organizations considered to have the best practices

Industrial Relations
Richard Hyman offers the following definition of industrial relations:

"…the study of the processes of control over work relations; and among
these processes, those involving collective worker organisation and
action are of particular concern." (Eurofound 2009)

In their book International Human Resource Management, Dowling, Festing and

Engle describe industrial relations groups from the perspective of multinational
enterprises (MNEs). Their observations apply for other organizations as well. They
offer two general points for consideration with regards to these groups:
 It is difficult to compare industrial relations systems and behaviors across
national boundaries. The concepts may change considerably when translated
from one industrial relations context to another.

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 It is important to recognize that no industrial relations system can be

understood without an appreciation of its historical origin.

According to Dowling, Festing and Engle, trade unions may limit an organization’s
strategic choices in the following three ways:
1. Influencing wages to the extent that cost structures may become uncompetitive
2. Constraining the ability to vary employment levels at will
3. Hindering or preventing global integration of operations

Trade unions are concerned about the implications from the following MNE
characteristics:
 Formidable financial resources
 Alternative sources of supply
 The ability to move production facilities to other countries
 An opaque decision making structure and an obscured division of authority
 Production facilities in many industries
 Superior knowledge and expertise in industrial relations
 The capacity to withhold investment in plants or facilities, thus making them
obsolete or economically non-competitive

Trade unions have responded to these concerns by forming international trade

secretariats (ITSs), lobbying for restrictive national legislation and trying to achieve
regulation by international organizations (Dowling, Festing and Engle, Sr. 2009).

Industrial labor groups have many names. The scope of these labor organizations
varies from country to country. Here are a few possibilities:
 Labor inion
 Trade inion
 Works council
 Worker committee

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Local Laws Affecting Treatment of Employees

Anti-discrimination, harassment and fair work laws vary by country. These laws may
be influenced by cultural and societal norms. HR professionals should have a
thorough understanding of anti-discrimination, harassment and fair work laws for all
jurisdictions in which the organization has a presence.

It is often the HR professional’s responsibility to deliver services consistent with

corporate culture to ensure employees of their care and also to be seen as a preferred
and best-practice employer.

See Section 2.3: Developing Proactive Employee Relations and Programs to

learn more about the following:
 Changes in workplace demographics
 The concept of equal employment opportunities

Employee Rights Laws

Efforts have been made by international institutions such as the ILO and the
Organisation for Economic Co-operation and Development (OECD), to address
employee rights through international laws and standards. The ILO standards, in
particular, serve as the foundation for the vast majority of employment laws and
acceptable leadership practices throughout the world, and they should, therefore, play
an essential role in HR service delivery. It is important for HR professionals to
understand the evolution of these labor principles and, more importantly, their
influence across an enterprise’s worldwide operations.

Human rights standards promulgated by the ILO, many of which relate directly to
worker rights, provide the foundation of many of the employment-related laws with
which global HR organizations must comply. The ILO has adopted more than 180
conventions and more than 190 recommendations. They cover such topics as basic
worker rights, industrial relations and conditions of work.

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There are two distinct types of ILO standards:

 Conventions are international treaties that are legally binding once ratified.
 Recommendations are nonbinding guidelines designed to assist countries
in the implementation of ratified conventions.

Please see the ILO website to review conventions and recommendations:

http://www.ilo.org/global/standards/introduction-to-international-labour-
standards/conventions-and-recommendations/lang--en/index.htm.

Section 2.3: Developing Proactive Employee Relations and Programs

provides additional information about ILO standards.

Electronic Service Delivery

Electronic service delivery refers to the delivery of HR services using technology.
Electronic service delivery can range from communicating benefits information
online to the implementation of self-service technologies to transferring employee
databases across borders (Zeidner 2008). HR professionals should be aware of
government laws and regulations that govern the use of electronic service delivery.

Legal aspects of HR’s electronic service delivery responsibilities include:

 Implementing programs that protect employees, stakeholders and the public
from identity theft and other personal privacy concerns (Society for Human
Resource Management, Guarding Against Identity Theft: HR’s Role 2010)
 Instituting Human Resource Information Systems (HRIS) controls to ensure
compliance and protection of sensitive data by establishing appropriate
security access controls and privacy rights (Johnson and Gueutal n.d.)
 Understanding and enforcing the rules governing the use of electronic
signatures (Society for Human Resource Management, Obtain Handwritten
Signatures on Agreements Employers Intend to Enforce 2011)

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Section 3.5: Using Technology and Tools to Deliver HR Services provides

additional information about electronic service delivery.

Intellectual Property Considerations

Intellectual An original invention or something created by the mind that is
property usually protected by patents, trademarks or copyrights.

Intellectual Property Protection Considerations

The World Trade Organization (WTO) is currently focusing on issues that protect
intellectual property rights essential to the international trading system. WTO’s
agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS)
attempts to narrow the gaps in the way rights are protected around the world and
bring them under common international rules. The agreement establishes minimum
protection levels that each government has to provide to fellow WTO members.

The TRIPS agreement covers five common issues:

 How basic principles of the trading system and other international intellectual
property agreements should be applied.
 How to give adequate protection to intellectual property rights.
 How countries should enforce those rights adequately in their own territories.
 How to settle disputes on intellectual property between members of the WTO.
 Special transitional arrangements during the period when the new system is
being introduced (World Trade Organization 2011).

Section 1.5: Core Functions and Relevance to HR describes organizational

assets that may be protected as intellectual property.

Figure 3-8 describes other important examples of copyright legislation.

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Legislation Key Provisions

Berne Convention, This convention was the first to establish recognition of copyrights
1886 among sovereign nations.

Universal Copyright This convention was developed by UNESCO (the United Nations
Convention, 1952 Educational, Scientific and Cultural Organization) as an alternative
to the Berne Convention for those entities that disagreed with
aspects of the Berne Convention but still wished to participate in
some form of multilateral copyright protection.

Trade-Related Aspects Obliges WTO members to grant and enforce:

of IP Rights (TRIPS)  Patents lasting at least 20 years
Agreement, 1994  Copyrights lasting up to 50 years (Hill 2010)

World Intellectual This treaty was signed and ratified by more than 90 countries. It
Property Organization ensures that computer programs are protected as literary works;
Copyright Treaty, creates copyright protection for databases, and; prohibits
1996 circumvention of protections.

Figure 3-8. Key Copyright and Intellectual Property Conventions and Treaties

Identifying Applicable Intellectual Property Law to

Incorporate into HR Service Delivery Processes
The type of intellectual property dictates the protection required. In addition to
copyright, there are a few other types of intellectual property with which HR
professionals should be familiar:
 Trademark and service mark: A word, phrase, symbol or design that
identifies and differentiates the maker or provider of goods and/or services.
 Trade secret: Information that has economic value to an organization’s
competitors if known to them. Organizations make reasonable efforts to keep
this information secret.

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and Practices

As part of the initial offer to the preferred candidate, signing a confidentiality or non-
disclosure agreement is required to protect the organization’s proprietary information.
HR is often involved in implementing training programs to address the protection of
trade secrets (Society for Human Resource Management, Type of Intellectual
Property Dictates Protection Needed 2008).

For additional information on this topic, please review the World Intellectual
Property Organization (WIPO) website: www.wipo.int.

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and Practices

Practice Questions

Directions: Choose the best answer to each question.

1. As an HR professional, what is the best approach for handling legal concerns and issues?
a. Stay informed about new laws concerning HR issues.
b. Use law school and professional association sources to formulate new
organizational policies and procedures.
c. Use impartial third parties (such as mediators and arbitrators) as often as possible
to negotiate employee disagreements.
d. Consult with your organization’s legal counsel both proactively and reactively.

2. Which aspect of the legal environment assures an employee’s right to a safe workplace
and environment?
a. Anti-discrimination, harassment and fair work laws
b. Compensation and benefits laws
c. Employment laws
d. Occupational safety and health (OSH) laws

3. Which aspect of the legal environment addresses minimum wage and overtime pay
issues?
a. Anti-discrimination, harassment and fair work laws
b. Remuneration laws
c. Employment laws
d. Occupational health and safety laws

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and Practices

4. Which of the following is NOT a strategy for protecting organizational proprietary

information?
a. Provide training instructing employees not to discuss company activities or display
sensitive company documents in public places.
b. Have all employees promise to safeguard company secrets.
c. Place all company information on the intranet websites.
d. Have contractors and employees sign confidentiality and nondisclosure
agreements.

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and Practices

Practice Question Answers

1. d (p. 99)
2. d (p. 110-111)
3. b (p. 102-106)
4. c (p. 116-117)

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Module 3: HR Service Delivery 3.3: Local and International Labor Laws
and Practices

3.4: Remuneration and

Benefits

This section covers the following information from the

Knowledge Base:

Behavior: 02. Establish programs that support a balance between employees’

professional and personal lives (work/life balance)

05. Plan and implement employee benefits programs

06. Develop and implement salary and bonus programs

(compensation plans) and other forms of employee recognition

08. Manage programs to meet employees’ needs (for example,

expatriates, disability challenges, family care, employee health
and safety)

09. Manage employees who are returning to the organization (for

example, people returning from maternity leave, expatriates
returning home, people ending sabbaticals, or employees
returning from layoffs)

10. Manage employees leaving the organization (for example,

dismissals, layoffs and retirement)
Module 3: HR Service Delivery 3.3: Local and International Labor Laws
and Practices

Skills & Knowledge: 02. Industry benchmarks for compensation (for example, salary
surveys, benefit packages)

03. Local labor conditions, including laws, legislation and

international practices

07. Methods for conducting surveys

14. Effective communication practices locally and globally (for

example, interpersonal skills, listening, speaking and cross-
cultural communication)

18. Analysis and assessment (for example, analysis of trends in the

labor market, evaluating salary surveys)

Source: HR Certification Institute

Section 3.4: Remuneration and Benefits
Introduction ................................................................................................................................124

Laws Affecting Remuneration and Benefits ............................................................................125

Examples of Specific Legal Issues ...........................................................................................128
Following Local Remuneration Practices to Remain Competitive ..........................................130

Implementing Total Rewards Programs .................................................................................134

Types of Compensation ............................................................................................................136
Objectives of Total Rewards System .......................................................................................137
Implementing Retirement Plans ...............................................................................................140
Perquisites ................................................................................................................................142

Manage Employees Leaving and Returning to the Organization .........................................144

Manage Employees Leaving the Organization ........................................................................144
Manage Employees Returning to the Organization .................................................................145

Practice Questions ......................................................................................................................149

Module 3: HR Service Delivery 3.4: Remuneration and Benefits

Introduction
Remuneration Money paid for work including wages, commissions, bonuses,
overtime and pay for holidays, vacations and sickness.

Benefits Coverage that employees receive in addition to a salary (such as

health insurance).

Implementing an organization’s remuneration (also referred to as compensation) and

benefits system is a fundamental responsibility for human resource (HR) leaders.
Most remuneration and benefits philosophies have the same basic objectives:
 Attract, motivate and retain effective employees.
 Increase the employee’s commitment to an organization, including improved
productivity, work quality and competitiveness.
 Maintain remuneration and benefits that are competitive in the industry, yet
cost effective for an organization.
 Provide tax-effective purchase of insurance and benefits.

Implementing an organization’s remuneration and benefits system can become more

complicated if the organization operates in multiple regions or countries, because
laws and regulations that affect remuneration and benefits differ by jurisdiction. The
challenge for HR is to establish and maintain equitable salaries and benefits across an
organization’s geographically dispersed operations. An organization’s remuneration
and benefits philosophy should remain uniform and consistent across all subsidiary
locations, over time, and as the organization grows and changes structurally and
culturally (Briscoe, Schuler and Claus 2008), (Garvey 2005).

Total rewards Financial and non-financial benefits employees see as valuable.

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Module 3: HR Service Delivery 3.4: Remuneration and Benefits

Remuneration and benefits are frequently referred to as total rewards. An

organization’s total rewards program not only includes all forms of financial and non-
financial remuneration and benefits that employees receive from their employers, but
also opportunities for personal and professional development, and initiatives that
promote the organization as a good place to work (including work/life programs and
recognition) and generate valuable business results (Heneman and Coyne 2007).

This section will cover:

 Laws affecting remuneration and benefits
 Implementation of total rewards programs
 Implementation of retirement plans
 Perquisites
 Management of remuneration for employees leaving or returning to the
organization

Laws Affecting Remuneration and

Benefits
The SHRM Online Learning Center, Learning Aids contain a self-directed
activity. The purpose of this activity is to provide a framework for your own
exploration of your organization’s legal environment. The activity includes three
worksheets. Each worksheet poses questions that pertain to one dimension of the
legal environment. Use these worksheets as one method to establish the
parameters of your legal environment.

Compensation and benefits laws describe the conditions for how employees are
remunerated and the benefits provided to employees as part of their employment.
These laws vary greatly by country. Examples of laws that fall under this category
include:
 Minimum wage requirements
 Application of overtime pay rates
 Protection from wage discrimination

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Module 3: HR Service Delivery 3.4: Remuneration and Benefits

 Regulations regarding how wages are taxed

Standardization of benefits is challenging due to variations by country. Certain

benefits are legally required and cannot be altered by an organization. Although an
organization may want to apply the same benefit policies across an organization and
its subsidiaries to maintain equity, it is challenging to do so. For example, a benefit
mandated in one country may not be legally required for employees in another
country or even considered valuable based on local customs. Figure 4-1 describes
some common benefits variations across countries.

Description Examples

Benefits that are These benefits are administered  Typically health care and
government and provided directly by the retirement benefits
provided government, usually paid for  May also include life
through taxes. insurance, disability insurance
or unemployment insurance

Benefits that are These benefits are provided by  Specific types of leave
government employers by law.  A certain amount of annual
mandated vacation
 Statutory holidays

Benefits that are Benefits provided voluntarily by  Additional health care benefits
voluntary the employer may not be totally  Additional annual vacation
(discretionary) discretionary because days
competitive practice or employee
relations may exert pressure on
the employer.

Figure 4-1. General Benefit Variations Across Countries (continued next page)

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Description Examples

Benefits that are These benefits are offered and  Car or car/transportation
market practice adjusted compared to the external allowance
market.  Child care vouchers
 Meal vouchers

Tax treatment of Benefits are taxed differently by Examples include varied taxes for:
benefits country.  Cash and non-cash
compensation
 Benefits
 Perquisites

Figure 4-1. General Benefit Variations Across Countries (concluded)

There are numerous online sources for legal information regarding remuneration
and benefits. The websites listed below provide some examples:
 The Global Legal Information Network (GLIN) is a public database of official
texts of laws, regulations, judicial decisions and other complementary legal
sources contributed by governmental agencies and international organizations:
http://www.glin.gov
 NATLEX, the database of national labour, social security and related human
rights laws and legislation is maintained by the International Labour
Organization’s (ILO's) International Labour Standards Department:
http://www.ilo.org

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Module 3: HR Service Delivery 3.4: Remuneration and Benefits

Examples of Specific Legal Issues

Following are some examples of legal issues that affect remuneration and benefits.

Leave Entitlements

Law and regulations for time off with pay vary by country. Figure 4-2 provides
examples of the statutory time off with pay (paid vacation days and mandated paid
holidays) for 21 of the richest countries around the world.

Figure 4-2. Examples of Time Off with Pay by Country (Ray and Schmidt 2007)

As you can see, France is the most generous, with 30 days, and the United States is
least generous with zero mandated days. Note that Figure 4-2 shows the minimum
days mandated by law. The average number of paid vacation days may actually be
higher due to factors such as additional bank holidays in a specific region or state, or
the number of year’s seniority an employee has earned.

Discriminatory Actions

Anti-discrimination, harassment and fair work laws vary by country. These laws are
influenced by cultural and societal norms. HR professionals must have a thorough

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Module 3: HR Service Delivery 3.4: Remuneration and Benefits

understanding of all laws related to discriminatory actions for all jurisdictions where
an organization has a presence.

Section 2.3: Developing Proactive Employee Relations Programs describes

anti-discrimination, harassment and fair work laws and considerations.

Legal Wage Parameters

The laws and regulations pertaining to remuneration vary by country. HR leaders

must be thoroughly familiar with the entire legal and regulatory environment
associated with all aspects of remuneration.

Section 3.3: Local and International Labor Laws and Practices describes
minimum wage and overtime laws and considerations.

Other Family Issues

The pressures exerted by family issues directly affect an employee’s productivity and
morale. An organization’s total rewards program assists with these issues by creating
an environment that helps employees balance their family needs with organization’s
operational needs. Examples of methods for facilitating work/life balance include:
 Non-traditional scheduling options (including compressed workweeks,
flextime, job sharing and telecommuting)
 Child care facilities in the workplace
 Child care referral programs
 Flexible hours for working parents
 Flexible spending accounts for child care and medical expenses
 Adoption assistance
 Elder care referral program
 Employee assistance programs
 A concierge service for employee errands (for example, dry cleaning picked up
and delivered to the workplace)

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Module 3: HR Service Delivery 3.4: Remuneration and Benefits

 Wellness and fitness programs (Heneman and Coyne 2007), (Gamlem 2007),
(Pacific Bridge, Inc. 2007), (Long 2008), (WorldatWork 2007)

Data Protection

There are international, regional and country specific laws pertaining to personal data
security and accessibility. HR leaders should work closely with legal counsel to
comply with these requirements.

To learn more about data privacy and security, review the International Data
Protection Legislation Matrix:
http://www.accurateinformationsystems.com/docs/International_Data_Protection
_Laws.pdf

Following Local Remuneration Practices to Remain Competitive

Expatriate An employee who has been transferred from their country of
citizenship (home country) to live and work in another country
(host country).

International A person who moves to a new country to work on an

assignee international assignment.

Inpatriate A foreign employee who is on a work assignment in the country

where an organization's headquarters are located.

Local nationals Employees or other people who are citizens of the country where
a person is working on an expatriate assignment. Also referred to
as host country nationals.

Considerations such as determining pay and benefits for expatriates and international
assignees and employees from different countries (including inpatriates and local
nationals) also affect total rewards programs. In these situations, HR must incorporate
varying country approaches and differing levels of pay and benefits; manage
problems including multiple currencies, exchange rates, inflation rates, tax systems

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Module 3: HR Service Delivery 3.4: Remuneration and Benefits

and rates, and consider different local standards and costs of living (Briscoe, Schuler
and Claus 2008).

An organization may need to pay an employee under a new system that is competitive
with local practices (Neijzen and DeBruyker 2010). Before implementation, HR must
make practical tactical decisions that will support the strategy, including:
 Determining the best mix of employees in the new location—balancing local
nationals, short- and long-term international assignees, outsourcing and
independent contractors
 Designing appropriate rewards programs
 Establishing policies, practices and guidelines, and deciding an approach to
standardization and localization

Organizations new to the international marketplace must answers the following

questions when establishing locally competitive remuneration policies (Briscoe,
Schuler and Claus 2008):
 Which other companies are they competing with for talent?
 Should remuneration and benefits programs conform with headquarters or to
local practices?
 Will this be a permanent or temporary policy?

When developing the organization’s compensation structure for expatriates,

inpatriates, international assignees and local nationals, HR must determine how the
organization’s remuneration rates will compare to the rates of pay in the relative
marketplace. Organizations generally take one of the following four approaches:
 Match: Pay rates comparable to those of the relative marketplace
 Lead: Pay rates that are higher than the relative marketplace
 Lag: Pay rates lower than those of the relative marketplace
 Combination: Use a combination of the preceding three options
(Society for Human Resource Management, Compensation Philosophy: What
are the Advantages or Disadvantages of a Lead, Match or Lag Compensation
Strategy? 2008)

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Module 3: HR Service Delivery 3.4: Remuneration and Benefits

Please review the Society for Human Resource Management website to learn
more about these four approaches to compensation:
http://www.shrm.org/TemplatesTools/hrqa/Pages/ CMS_024253.aspx.

Methods

Many organizations rely on surveys to collect the information necessary to help

remain competitive.

Pay Surveys

Organizations use pay surveys to collect information on prevailing market rates.

These surveys include topics such as incentive plans, overtime pay, starting wage
rates, base pay, pay ranges, shift differentials and vacation and holiday practices.

Once an organization has decided that a pay survey is needed, HR leaders must
decide how to design and conduct the survey. Figure 4-3 illustrates the continuum of
pay survey choices.

Figure 4-3. Continuum of Pay Surveys

Please review the Society for Human Resource Management website to learn
more about salary surveys:
http://www.shrm.org/hrdisciplines/compensation/Pages/salsurvey.aspx.

Pay Ranges

Pay ranges The upper and lower bounds of possible compensation for
employees whose jobs fall in a pay grade. Pay ranges are created
for each pay grade.

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Module 3: HR Service Delivery 3.4: Remuneration and Benefits

Pay grade Used to group jobs that have approximately the same relative
internal worth and are paid at the same rate or within the same
pay range.

The data gathered from pay surveys are used to establish the minimum, maximum,
and midpoint of the pay range. Once ranges are established, calculating compa-ratios
helps HR leaders determine if compensation policies are being implemented as
intended.

Section 3.3: Local and International Labor Laws and Practices describes
ranges and compa-ratios in more detail.

Figure 4-4 shows a typical pay structure using monthly salary figures.

Range Midpoint
Grade Minimum Midpoint Maximum
Spread Difference

34 $3,519 $4,398 $5,278 50% 14%

33 $3,087 $3,858 $4,630 50% 14%

32 $2,708 $3,384 $4,061 50% 14%

31 $2,375 $2,969 $3,563 50% 14%

30 $2,083 $2,604 $3,125 50% 14%

Figure 4-4. Typical Pay Structure

Broadbanding

Broadbanding A way to combine several salary grades or job classifications

with narrow pay ranges into one band with a wider salary spread.

Module 3: HR Service Delivery 3.4: Remuneration and Benefits

Some organizations use broadbanding to simplify pay ranges and pay grades and
make them more manageable. In this approach, the spread of the pay ranges is
greater and there is less overlap with other pay ranges. Broadbanding evolved
because organizations wanted to reduce the levels in their hierarchies and move
decision-making closer to the point where necessity and knowledge exist in
organizations. Although this approach may include fewer level-promotion
opportunities, it allows more flexibility for pay increases and career growth
without specific job promotion.

Figure 4-5 shows an example of broadbanding with minimums and maximums for
each band.

Figure 4-5. Broadbanding

Implementing Total Rewards Programs

Organizations implement a total rewards strategy to provide employees with
monetary, beneficial and developmental rewards. A total rewards strategy combines
the organization’s remuneration and benefits programs with personal and professional
growth opportunities to create an environment that fosters employee motivation and
productivity (Society for Human Resource Management, Total Rewards: What are
Total Rewards Strategies? Can You Give Me Some Idea on How to Develop a Total
Rewards Strategy? 2008).

Module 3: HR Service Delivery 3.4: Remuneration and Benefits

HR leaders work with leaders and employees to create the organization’s total
rewards approach. It is important for organizational leaders to support this strategy in
order to be successful.

Most HR leaders take a four-step approach to developing a total rewards strategy.

Figure 4-6 illustrates this process.

Figure 4-6. Total Rewards Strategy Development Process (Heneman and Coyne 2007)

 Assessment: The project team evaluates an organization’s current

remuneration and benefits system:
o Surveys employee opinions and beliefs about the current system
o Reviews rewards-related literature and competing organizations’
practices
o Generates ideas for improvement
o Creates a report documenting recommendations for the new total rewards
system

Module 3: HR Service Delivery 3.4: Remuneration and Benefits

 Design: Leaders work with the project team to identify which reward strategies
best align with the organization’s vision, mission, values and objectives.
Strategies can include:
o Remuneration for achievement of goals
o Benefits
o Flexible work schedule
o Additional time off
o Personal and professional development opportunities
 Execution: Once the total rewards system has been designed and approved by
senior leadership, the HR department implements the strategy and
communicates it to all employees.

Please review the Society for Human Resource Management website for tips to
upgrade total rewards communications:
http://www.shrm.org/hrdisciplines/compensation/Articles/
Pages/TotalRewardsCommunications.aspx.

 Evaluation: The effectiveness of the new plan is measured by comparing

actual results of the executed total rewards strategies against expected results.
These results are communicated to leaders along with recommended
adjustments to the strategy for future implementation (Society for Human
Resource Management, Total Rewards: What are Total Rewards Strategies?
Can You Give Me Some Idea on How to Develop a Total Rewards Strategy?
2008), (Heneman and Coyne 2007).

Types of Compensation
Most organizations offer employees two basic types of compensation.

Direct Type of pay received by employees that includes base pay,

compensation differential pay and incentive pay.

Module 3: HR Service Delivery 3.4: Remuneration and Benefits

Indirect Compensation that is not paid directly to an employee and is

compensation calculated in addition to base salary and incentive pay (including
health/dental/vision insurance, vacation, retirement benefits,
educational benefits and relocation).

Figure 4-7 provides some examples of these forms of compensation.

Direct Compensation Indirect Compensation

 Base pay  Legally required benefits
 Differential pay  Income replacement programs
 Cash bonus  Disability insurance and
 Short-term incentive pay income protection
 Long-term incentive pay  Hospital and medical benefits
 Pay programs for selected  Deferred pay
employees  Pay for time not worked
 Recognition and achievement  Unpaid leave
awards (cash)  Flexible benefit plans
 Recognition and achievement
awards (non-cash)
 Perquisites

Figure 4-8. Types of Compensation

Objectives of Total Rewards System

―The objective of a well-designed total rewards program is to drive [encourage]
desired behaviors in the workforce, reinforce overall business strategy and ensure
organizational success (WorldatWork 2007).‖ A well-designed total rewards system
should not only be legal and affordable for the organization, but should also be:
 Aligned with the organization’s mission and strategy
 Compatible with the organization’s culture
 Appropriate for the workforce context

Module 3: HR Service Delivery 3.4: Remuneration and Benefits

 Externally competitive
 Internally equitable

Organization’s Mission and Strategy

Regardless of an organization’s type of business, profit margins, size or private/public

status, its total rewards system must be effective in supporting the organization’s
mission, vision and business strategy (WorldatWork 2007). Therefore, the first
consideration in developing a total rewards system is to review the organization’s
mission and business strategy to attract the right people to the right jobs at the right
time and to provide appropriate performance incentives to produce engaged
employees.

Organizational Culture

An organization’s total rewards system is the result of a unique combination of

processes, procedures, leadership philosophy, personalities, styles and capabilities
that comprise an organization’s culture (Armstrong and Murlis 2007).

See Section 3.1: Program Creation, Implementation and Management to

learn about common leadership theories.

Workforce Contexts

The rewards program must also align with the workforce. An organization with entry-
level or unskilled workers will have a very different rewards package than one with
experienced, highly educated professionals.

One way to keep in touch with the employees’ needs and preferences is by
conducting employee surveys to assess satisfaction, attitudes, and current and long-
term needs. Analyzing the workforce and its characteristics helps an organization
understand the needs it must satisfy.

Module 3: HR Service Delivery 3.4: Remuneration and Benefits

See Section 4.2: HR Measurement and Evaluation to learn about analyzing

employee surveys.

External Competitiveness

Another consideration when developing a total rewards system is how it compares to

other organizations in its industry, occupation or location that compete for the same
employees (Heneman and Coyne 2007). Organizations want to recruit the best
employees while maintaining profit margins.

Internal Equity

An organization cannot effectively recruit new employees or retain existing ones

without internal equity. Internal equity means that unique jobs are fairly compensated
by an organization as performance or job differences result in corresponding
differences in pay rates. Internal equity helps an employer:
 Meet employees’ needs for a fair wage and adequate benefits.
 Recognize employees’ contributions to the organization.
 Reward equal work with equal pay.
 Not discriminate against protected classes.
 Facilitate employee mobility through internal promotions and career paths.

A 2006 empirical study conducted by M. L. Williams, M. A. McDaniel and N. T.

Nguyen found that employees felt more satisfied with their pay level when they had:
 Positive perceptions of pay for performance
 Positive perceptions of their job design
 Larger base pay
 Larger pay increases
 Perceptions of pay fairness (Williams, McDaniel and Nguyen 2006)

Module 3: HR Service Delivery 3.4: Remuneration and Benefits

Implementing Retirement Plans

One thing remains consistent across all organizations, from headquarters to the
smallest subsidiary regardless of location: at some point, employees will reach an age
where they no longer desire or are able to work. Retirement plans allow current
employees to make financial provisions for the future.

Retirement plans differ widely by country. Many retirement programs are mandated
by the government and paid for through employee and employer contributions.
Supplemental government support is sometimes provided. Tax codes, local statutory
or government regulations, cultural perspectives, external competitiveness and
customary practices within the country also affect how and which retirement benefits
are provided by an organization (Frauenheim and Hua 2008). As a result, many
different models for retirement benefits exist by country. This topic will provide
fundamental information about retirement benefits and links to resources that can
help determine which model(s) apply to an organization.

Defined Benefit versus Defined Contribution

Defined benefit A retirement plan that tells participants exactly how much money
plan (DB Plan) they will receive on a specific future date (usually the day they
retire).

Defined A retirement plan where the amount of money that is to be

contribution plan regularly contributed to the fund is specified, but no promises are
(DC plan) made regarding the future value of the benefit. The amount of the
benefit at retirement will depend on the investment return.

Defined benefit (DB) plans and Defined contribution (DC) plans are two common
types of qualified retirement plans (Bhatia 2010). Figure 4-8 provides a side-by-side
comparison of DB and DC plans.

Module 3: HR Service Delivery 3.4: Remuneration and Benefits

Defined Benefit Plans Defined Contribution Plans

 Explicit benefit is easily  Unknown benefit payout is difficult
communicated to communicate
 Concept of the real value of plan is  Employees assume more plan
not easily communicated investment risks
 Company absorbs the risks associated  Employer contribution costs are
with changes in inflation and interest known up front
rates which affect cost  Account balance is easier to
 Total employer costs are unknown communicate
 Administration is complex and costly

Figure 4-8. Comparison of Retirement Plan Alternatives

DB plans in some jurisdictions (including Australia, the United Kingdom and New
Zealand) have been overwhelmed by ongoing funding problems. In the early 1990s,
employers in these jurisdictions converted to an accumulation fund model. DC plans
are also having funding problems, generally linked to their formulation, which has
become obsolete and unaffordable by employers. These challenges are due, in large
part, to people living longer.

There are numerous online sources for information about retirement benefits.
 Read Society for Human Resource Management articles about retirement plans:
o DB Plans: http://www.shrm.org/hrdisciplines/benefits/Pages/dbp.aspx
o DC Plans: http://www.shrm.org/hrdisciplines/benefits/Pages/dcp.aspx
 Review common questions and answers on the Society for Human Resource
Management website:
o DB Plans: http://www.shrm.org/TemplatesTools/hrqa/benefits/Pages/dbp.aspx
o DC Plans: http://www.shrm.org/TemplatesTools/hrqa/benefits/Pages/dcp.aspx
 Access a global database of labor, social security and human rights related laws and
legislation maintained and kept current by the ILO on the NATLEX website:
http://www.ilo.org/dyn/natlex/natlex_browse.home

Module 3: HR Service Delivery 3.4: Remuneration and Benefits

Perquisites
Perquisites Special non-monetary privileges (for example, a car or club
membership) that come with senior-level job positions; also
called executive perks or fringe benefits.

Figure 4-9 presents some perquisites that organizations may offer their employees by
region.

Country/
Common Perquisites
Region
 Lunches
Asia/Pacific
 Transportation
region
 Uniforms
 Manager allowance
 Family allowance
 Housing allowance
 Company cars (provided to senior executives and direct sales
Australia
employees) with a business use requirement including the
provision of fuel, maintenance, insurance and licensing expenses
 Discounts on company products
 Company cars (provided to senior executives, and in some cases
Brazil
middle management) with a business use requirement including the
provision of fuel, maintenance, insurance and licensing expenses
 Meal tickets (which provide tax advantages for an organization)
are intended to provide proper employee nutrition for organizations
that do not have their own restaurant or canteen
 Lunch vouchers
 Perquisites that support family interests (such as drivers or
housekeepers) are common

Figure 4-9. Common Perquisites by Country or Region (continued to next page)

Module 3: HR Service Delivery 3.4: Remuneration and Benefits

Country/
Common Perquisites
Region
 Company car or car allowance (provided to management staff)
China
 Manufacturing companies outside downtown areas provide
transportation/shuttle buses to and from work for employees
 Meal subsidies
 Free meals may be provided on-site in manufacturing facilities
located in remote areas
 Company cars (provided to senior executives, direct sales and
Denmark
employees) with a business use requirement
 Organizations have car-only policies or offer a choice between a
car and a cash allowance
 Company cars (provided to most managerial employees, sales and
France
other employees) with a business use requirement
 Company cars (provided to senior executives and in some cases
India
middle management) and drivers
 Free or subsidized meals are typical, depending on the employee’s
Poland
job level
 Company car or car/cash alternative (provided to senior executives,
United
middle managers and other employees) with a business use
Kingdom
requirement
 Company cars or car allowances (provided to senior executives and
United States
employees with a business use requirement)
 Personal use of company cars is taxable based on a schedule of
values related to purchase price
 Club memberships

Figure 4-9. Common Perquisites by Country or Region (Reynolds 2001), (Society for Human
Resource Management, Fewer U.S. Companies Offered Executive Perks in 2010, 2010) (concluded)

Module 3: HR Service Delivery 3.4: Remuneration and Benefits

Manage Employees Leaving and

Returning to the Organization
Employees leave and return to an organization for a variety of reasons. It is HR’s
responsibility to help these employees understand how these departures and returns
affect their remuneration and benefits.

Manage Employees Leaving the Organization

Employees leave the organization for reasons that include retirement and termination.

Phased Retirement

Some organizations allow employees who are approaching normal retirement age to
reduce the number of hours worked or to work in a different capacity. HR must
understand all aspects of an employee’s retirement package and advise the employee
on related details. For example, an employee who has reached retirement age but has
decided to keep working may begin receiving benefit payments under some plans.

Termination

The circumstances under which an organization can terminate employment and

the amount of payment the terminated employee receives is prescribed by law
and differs by country. Laws in various countries may include additional aspects,
including:
 Issuing warnings for misbehavior
 The reasons for which termination can occur
 The amount of severance payments provided to an employee
 How long wages must continue to be paid to an employee after
termination

Terminating employees without a thorough understanding of these requirements

can be very costly and time consuming for employers.

Module 3: HR Service Delivery 3.4: Remuneration and Benefits

Compensation for Termination

In some countries, the organization may be expected to provide support for

terminated employees. HR professionals must be knowledgeable of the laws that
apply in the organization’s home country and all countries or regions in which the
organization operates. HR professionals must also understand the regulations of
multiple governmental agencies. For example, in Japan there are provisions covering
termination in its Welfare Annuity Insurance Law, its Health Insurance Law, its
Employment Insurance Law and its Workers’ Compensation Law.

The amount of compensation paid to a terminated employee varies by country,

although there are sometimes similarities within regions. For example, both Argentina
and Bolivia require that a terminated employee receive one month’s salary for each
year worked up to a defined maximum. Colombia also links the amount paid to the
length of service. For example, an employee who has worked for a company at least
ten years is entitled to 45 days of pay, plus an additional 40 days of pay for each full
year employed, up to a defined maximum.

Manage Employees Returning to the Organization

Employees temporarily leave and return to an organization for a variety of reasons
including maternity leave, expatriation/repatriation, sabbaticals and layoffs
(redundancies).

Employees Returning from Maternity Leave

In most countries, organizations are required by law to provide maternity leave of

which at least some portion of the leave is paid by the employer. Employees may also
be offered unpaid time off or the right to work part time to supplement maternity
leave. Additionally, some countries also provide paternity leave, although whether or
not this leave is paid varies by country.

Module 3: HR Service Delivery 3.4: Remuneration and Benefits

When an employee returns from maternity leave, their employer may offer several
options:
 Full-time work
 Work in graduated steps
 Part-time work

HR works with the employee based on the organization’s policies and legal
requirements to determine a working arrangement that will meet the needs of both the
employee and the organization. HR’s goal is to help the employee transition back to
work efficiently and facilitate development of work/life balance (University of
Cambridge 2010).

Expatriates Returning Home

Repatriation The return of an employee to the home country after living in

another country (for example, an expatriate returning to their
home location from an international assignment).

An employee returning from international assignment must be reintegrated into the

home country. The employee needs time to adjust to the new job and readjust to the
home culture. It is important for the organization to recognize that repatriation
planning is an integral part of managing the assignment. The organization should
begin repatriation efforts six months before the end of the assignment. In fact,
repatriation should ideally start even before the expatriate leaves his or her home
country and continue throughout the international assignment. HR can support the
repatriation process by providing:
 Career planning to help the expatriate understand the effect the assignment will
have on his or her overall advancement
 A home-office mentor to keep the expatriate informed
 A communication plan to help the expatriate feel connected to the home office
 Ongoing recognition of contributions

Module 3: HR Service Delivery 3.4: Remuneration and Benefits

 Trips home (for business and personal visits)

 Advance notice of the end of the assignment so the expatriate can begin
planning personally and professionally for the next assignment
(Society for Human Resource Management, Repatriation: What is Done to
Repatriate an Employee Who is Returning from an Assignment Abroad? 2008)

Another one of HR’s roles in the repatriation process is remuneration and benefits
adjustment. This can be a challenge. For example, if the assignee’s compensation
package was set too high, the employee will be reluctant to lose this additional source
of income.

Employees Ending Sabbaticals

In some countries, it is common for organizations to offer sabbatical leave. HR may

be required to re-orient an employee to the benefits program as a new employee. This
is because some organizations require employees to discontinue their benefits while
on sabbatical. If treated like a new employee, waiting periods and exclusion of pre-
existing conditions may apply (Society for Human Resource Management, Sabbatical
Leave, n.d.).

Module 3: HR Service Delivery 3.4: Remuneration and Benefits

Employees Returning from Layoffs

When an employee returns to an organization after a layoff (or redundancy), HR

implements an organization’s recall/rehire policy designed to inform the returning
employee of important remuneration and benefits issues. HR should effectively
communicate to the employee the process for returning to active status in terms of
remuneration and benefit plan participation (Society for Human Resource
Management, Reduction in Force: Communications: What Should We be Considering
in Planning for and Communicating a Layoff? 2008).

In some cases, an organization may reward the returning employee with a re-hire
bonus. These monetary bonuses are provided to employees who return to an
organization within a designated time period after a layoff. HR must be aware of any
such bonuses and communicate any related policies and conditions to the employee
(Society for Human Resource Management, Take Steps to Reduce Legal Risks When
Hiring After Layoffs 2010).

Module 3: HR Service Delivery 3.4: Remuneration and Benefits

Practice Questions

Directions: Choose the best answer to each question.

1. Which of the following would be considered direct compensation?

a. Unpaid leave
b. Deferred pay
c. Cash bonus
d. Perquisites

2. Which of the following would be considered indirect compensation?

a. Granting compensatory time off to a salaried employee for extra hours worked at a
convention
b. Paying non-exempt employees at a higher rate for overtime hours worked
c. Paying individual bonuses to team members for meeting critical project deadlines
d. Awarding store gift cards to top performers in a sales contest

3. What is a major advantage of an organization having internal equity?

a. It is a sure way to eliminate gender bias.
b. It lowers the amount the organization spends on salaries.
c. It guarantees that all employees have the same benefits.
d. It allows organizations to fairly recognize unique jobs.

4. An HR manager reviews widely published salary data to ensure that company

compensation is superior to regional competition. A potential outcome of this lead
compensation philosophy is
a. less likelihood of securing federal contracts.
b. improved ability to attract, motivate and retain employees.
c. increased need for pay openness in the organization.
d. fewer categories of nonexempt employees who will qualify for paid overtime.

Module 3: HR Service Delivery 3.4: Remuneration and Benefits

5. Which of the following is not a program for facilitating work/life balance?

a. Telecommuting
b. Company car
c. Child care referrals
d. Flexible spending accounts

6. Which approach to developing a competitive compensation structure is an organization

taking when their pay rates are higher than the relative marketplace?
a. Match
b. Lead
c. Lag
d. Combination

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Module 3: HR Service Delivery 3.4: Remuneration and Benefits

Practice Question Answers

1. c (p. 137-138)
2. d (p. 137)
3. d (p. 139)
4. b (p. 124)
5. b (p. 129)
6. b (p. 131)

Module 3: HR Service Delivery 3.4: Remuneration and Benefits

3.5: Using Technology and

Tools to Deliver HR Services

This section covers the following information from the

Knowledge Base:

Behavior: 04. Use HR technology and tools to deliver HR services (for

example, payroll, employee self-service, social networking, and
human resource information systems [HRIS])

Skills & Knowledge: 10. Evaluation of HR information systems (HRIS) and technology
(for example, their use for payroll, talent development, and
personnel data)

Source: HR Certification Institute

Section 3.5: Using Technology and Tools to Deliver HR
Services
Introduction ................................................................................................................................155
Technological Factors ..............................................................................................................155

Managing Technology ...............................................................................................................157

Trends in Technology...............................................................................................................157

New Technology Processes ........................................................................................................161

Human Resource Information Systems (HRIS) .......................................................................161
Knowledge Management Systems ...........................................................................................166
Communication Platforms........................................................................................................170

Practice Questions ......................................................................................................................174

Module 3: HR Service Delivery 3.5: Using Technology and Tools to Deliver
HR Services

Introduction
The role of human resources (HR) is changing rapidly due to advances in technology
that are dramatically transforming the practice of human resource management
(HRM). Many organizations now deliver HR services using technology and web-
based applications. This practice is commonly referred to as e-HR. Research shows
that organizations that implement HR technology tools are more effective than those
that do not. HR professionals must have the ability to deliver HR services using
technology in addition to mastering traditional HR skills and knowledge. (Johnson
and Gueutal 2011)

This section will cover:

 An overview of HR technology and trends
 Management of HR technology
 Using HRIS to gather, store and use data to perform transactions and conduct
analyses
 Using knowledge management systems to facilitate access and exchange of
information and learning throughout an organization
 Communication platforms to help deliver HR services throughout an
organization

Technological Factors
The following factors influence the use of technology to deliver HR services:
 Advances in technology
 Technological skills
 Technology access issues
 Process changes

Module 3: HR Service Delivery 3.5: Using Technology and Tools to Deliver
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Advances in Technology

Technological changes not only affect the HR department but also the organization’s
employees and structure.
 Allow organizations to provide service 24 hours a day, 7 days a week to
accommodate customers worldwide
 Provide employees with the tools to perform their jobs more efficiently and
accurately
 Permit employees to work anytime, anywhere
 Influence the way in which organizations solve problems
 Facilitate instantaneous and global communication
 Increase concerns about data privacy, identity theft and the vulnerability of
essential technological infrastructures

Technological Skills

Because the need to learn new technological skills emerges quickly, organizations
must monitor technological changes to identify needs and provide employees with the
necessary training. Organizations need to recognize that retraining workers is an
ongoing effort necessary to build a skilled workforce. Organizations can use e-
learning to quickly and efficiently address training needs as they emerge.

Technology Access Issues

Digital divide The gap between individuals with and without access to
technology.

As the world has become increasingly dependent on technology and the Internet, a
digital divide has emerged between those organizations and economies with access to
technology and those without access. For example, this gap can impede the sharing of
information in organizations with subsidiaries that operate in regions or communities
without high-speed Internet access.

Module 3: HR Service Delivery 3.5: Using Technology and Tools to Deliver
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Process Changes

As new technology is introduced, it influences the way organizations operate.

Organizations must introduce new processes and policies to help employees adjust to
the changes.

Managing Technology
HR’s role in managing technology includes:
 Helping identify new technologies that aid in the achievement of the
organization’s strategic HR goals
 Facilitating the change caused by the rapid growth of new technologies
 Managing cultural and strategic changes resulting from the introduction of new
technologies

Many HR administrative tasks have been simplified by the introduction of new

technologies. As a result, organizations are updating and implementing technology in
an effort to streamline HR service delivery approaches (Towers Watson 2010). These
changes allow HR professionals to focus on more strategic tasks.

Trends in Technology
As technology changes the way organizations do business, HR professionals must be
aware of technology trends, capabilities and issues in order to lead their
organizations, be effective strategic partners, and ensure their organizations remain
viable and competitive. Many organizations are now revising essential HR processes
to include HR technology and effectively deliver HR services that support the
organization’s strategic plan. HR technologies are becoming more advanced and are
no longer limited to basic HR transactions (Towers Watson 2010).

Module 3: HR Service Delivery 3.5: Using Technology and Tools to Deliver
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The following are a few examples of technology trends:

 Business process integration: Business-to-business (B2B) e-commerce is any
activity or program conducted between businesses through the use of a
computer network connection instead of an intermediary. B2B will become the
dominant model when organizations fully develop enterprise application
integration.
 E-procurement: As organizations recognize the inefficiency of catalogue-
based procurement processes, online ordering programs are being implemented
to streamline the process and increase efficiency.
 Electronic record keeping: Organizations must implement policies and
procedures in compliance with retention laws and regulations surrounding the
conversion, migration and storage of records, as well as the legal destruction of
records.
 Electronic signatures: The Electronic Signature in Global and National
Commerce Act of 2000 facilitates the legal use of electronic signatures or e-
signatures. In general, this act enables organizations to legally use e-signatures
on electronic documents including applications, contracts and verification
procedures.
 Application service providers (ASPs): ASPs are subscription-based third-
party organizations that host and manage an organization’s software
applications on the Internet. Instead of the organization purchasing individual
software licenses to be installed on a dedicated computer, a subscription can be
purchased that allows employees to access software applications via the
Internet from any computer. ASPs can save organizations—especially small-
and medium-size organizations—time, money and resources. Organizations
commonly use ASPs for time tracking.
 Self-service human resource systems: These are web-based applications that
allow employees and leaders to perform basic HR transactions online (Johnson
and Gueutal 2011). Manager and employee self-service systems will be
discussed later in this section.

Module 3: HR Service Delivery 3.5: Using Technology and Tools to Deliver
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Effects of Technology Change on HR Processes

Technology changes quickly. New tools intended to increase productivity and

communication are constantly being introduced. The following list identifies some
ways that employees can benefit from changes in technology:
 Increased opportunities for telecommuting
 The ability to conduct virtual team meetings
 Better accessibility for disabled employees
 Increased savings on training and development through the use of tools such as
podcasting or streaming
 Real-time access to employee benefit information

The following are some dangers of technology:

 Loss of productivity due to system failure or other technological distractions
 Damage to reputation or security resulting from blogging and social media
 Vulnerability to hacking or viruses
 Employee overwork resulting from increased opportunities for telecommuting
 Loss of employee privacy due to increased accessibility
 Legal risks resulting from inappropriate use of the organization's e-mail
systems or unapproved use of employee data

HR should carefully examine the possible risks and benefits before implementing
new technologies in an organization. Once implemented, HR should assess, evaluate
and monitor the effects of these technological innovations.

Module 3: HR Service Delivery 3.5: Using Technology and Tools to Deliver
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Technology Integration

HR leaders should carefully analyze and determine their HR needs and align them
with organizational strategy before making implementation decisions (Towers
Watson 2010). While new technologies can potentially save organizations time and
money, implementation of these new technologies may be met with resistance. For
example, employees might be intimidated by the new system or be resistant to
change. Additionally, employees may fear that the new system will make them
redundant. Leaders must be prepared to address employee concerns and support them
during the changes that technology brings.

It is important to note that when an organization has already deployed an HRIS, other
new technologies tend to be more readily accepted (Society for Human Resource
Management, Growth Opportunities Seen in Benefits Administration Market 2007),
(Society for Human Resource Management, Case Study: Knowledge Applications —
ATK Uses Authoria for Shared Services and Sel 2007).

Self-service Implementation

Employee self- An HRM trend that allows employees to handle many job-related
service (ESS) tasks (such as updates to their personnel data) using technology.

Manager self- A technology system that allows leaders to access data and
service (MSS) complete administrative HR tasks online without the help of HR.

Implementation of self-service technologies has unique challenges. In addition to the

implementation tools suggested previously, organizations may also wish to initiate a
pilot program (a small group of users who test the training and implementation of a
system before the system is released to the entire organization). Benefits of
implementing a pilot program include:
 Minimizes the risk involved with an untested, full-scale implementation
 Provides real-time, authentic feedback (advice, comments, responses and
opinions)

Module 3: HR Service Delivery 3.5: Using Technology and Tools to Deliver
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 Ensures alignment to organizational goals and strategies

 Allows HR to recognize and address issues with the training or the system
before implementation throughout the entire organization (Robb 2010)

Another tool HR can use is phased implementation. With phased implementation, the
system is introduced in phases (for example, first to leaders and then employees or by
department). A phased implementation allows HR time to market the system to
specific employee groups. It also allows HR to customize the communication and
training to suit the needs of the audience for each phase (Anheier and Doherty 2005).

New Technology Processes

The type of technology an organization selects depends on the size of the
organization.
 Smaller organizations may only require support for basic personnel
information typically related to payroll. These organizations may not require a
special HR system.
 Large, complex and geographically dispersed organizations have a greater
need for broad-based employee information used to help leaders make
effective decisions. A special HR system may be required to store and manage
the necessary employee information, especially for compliance purposes.

There are many variations of technology for organizations that fit between these two
extremes (Johnson and Gueutal 2011).

Human Resource Information Systems (HRIS)

An HRIS is a type of technology that supports HR functions. There is an increasing
need in HR for a systematic tool that helps gather, store, maintain, retrieve and revise
HR data. HRIS applications are modularized technological tools that assist in the
performance of basic HR functions such as payroll, compliance or management tasks.

Module 3: HR Service Delivery 3.5: Using Technology and Tools to Deliver
HR Services

Application suites are available from multiple sources; some may be part of a broader
enterprise resource planning (ERP) system used by the entire organization.

An HRIS can either accessed through software installed on a dedicated computer, by

logging in to a website via computer or even by smart phone. These websites--often
referred to as HR portals--allow organizations to manage HR resources anytime and
anywhere (Johnson and Gueutal 2011).

HRIS can help organizations improve service and quality, and save time and money.
However, setting up an HRIS is a complicated task. Organizations should seek input
from stakeholders, technical experts and vendors to select or develop an effective
product.

Applications of HRIS

Following are some common applications for HRIS.

Strategic Management

HRIS programs provide quality and productivity improvements by allowing leaders

real-time access to reports containing the information needed to make strategic
decisions. Organizations can select which HR tasks will be delegated to managers
through a manager self-service (MSS) function of the HRIS and determine the
complexity of those tasks. Some examples of the types of MSS tasks that HRIS can
facilitate include:
 Preparing documentation for performance appraisals
 Viewing information and creating reports without having to rely on HR
 Completing transactions previously handled by HR including authorization of
pay raises, promotions, leaves or changes in employee classification
 Managing HR functions such as performance management, succession
planning and onboarding

Module 3: HR Service Delivery 3.5: Using Technology and Tools to Deliver
HR Services

An HRIS typically provides three types of reporting/analytics:

 Standard reports: These include both regulatory-related reports as well as
common recruiting reports.
 Ad hoc reports: An ad hoc report writer program allows users to create their
own customized reports that are not included with the standard ones.
 Dashboards: A dashboard provides leaders with high-level, real-time metrics
that are configurable to user preferences. A dashboard allows the leader to link
data with essential organizational metrics in order to make correlations
between HR outcomes and the organization’s strategic goals (Johnson and
Gueutal 2011).

An HRIS also provides project management tools that can support virtual teams
working in geographically dispersed locations. These tools facilitate communication
and coordination, and provide a conduit for sharing information and experiences.

Workforce Planning and Employment

An HRIS allows leaders to identify workforce trends, and employees to identify

training and career opportunities. An HRIS also helps organizations track hiring,
promotions, transfers and termination rates to facilitate the achievement of the
organization’s retention and talent development goals.

Skill banks and skill Computerized talent or skill inventories that can
tracking systems provide a list of qualified people.

HRIS skill banks and skill tracking systems can be robust tools for internal
recruitment. These systems contain a complete database of employee records that
include the specific qualifications for each employee. Organizations can quickly and
efficiently scan these records to locate qualified candidates to fill vacancies.

Module 3: HR Service Delivery 3.5: Using Technology and Tools to Deliver
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Human Resource Development (HRD)

An HRIS assists organizations with the human resource development (HRD) process.
An HRIS allow HR professionals to:
 Define employee career path development.
 Record and store employee information including education, skills, and
completion of training programs.
 Manage training including registering employees for courses, monitoring the
training budget, and scheduling trainers and facilities.
 Automate the employee performance management process (Johnson and
Gueutal 2011)

Remuneration and Benefits

An HRIS allows employees to access their personnel information online through HR

portals. These portals provide employees with access to personal and job-related
resources and data.

Most organizations use their HRIS to facilitate the following:

 Employee self-service: The HRIS allows employees to access and maintain
their HR data online. Employees become self-reliant for many HR
transactions.
 Payroll: Most organizations today use some sort of technology to automate
their remuneration processes. An HRIS program helps leaders make and
update compensation plans, track compensation history and allocate incentives.
Employees can access the HRIS to view paycheck information.
 Benefits administration: HR can use HRIS to communicate benefit
information to employees, and employees can access the HRIS for selection
and management of benefits.

Module 3: HR Service Delivery 3.5: Using Technology and Tools to Deliver
HR Services

 Retirement planning: The HRIS allows employees to enter retirement

planning information, update their own profiles and initiate many transactions,
such as changing beneficiaries or benefit options.
 Help desk: Employees can find answers by themselves for many employment-
related questions by accessing an online Help Desk (Johnson and Gueutal
2011).

Section 3.4: Employee Benefit Program and Compensation Plan Service

Delivery covers service delivery of remuneration and benefits in more detail.

Employee and Labor Relations

In the area of employee and labor relations, an HRIS allows HR to:

 Store employee discipline records.
 Record labor distribution data.
 Record union service data.
 Maintain attitude survey results.
 Facilitate compliance efforts.
 Implement employee life-cycle programs that help organizations standardize
career development and identify succession problems in a timely manner.

Risk Management

In the area of risk management, an HRIS allows HR to:

 Identify trends in on-the-job accidents and illnesses in order to develop
preventive measures.
 Track insurance and workers’ compensation claims by accident.
 Track safety records.
 Monitor medical examinations and follow-up procedures resulting from injury
or illness.
 Identify high-risk conditions.
 Monitor accidents and their costs by type and location.

Module 3: HR Service Delivery 3.5: Using Technology and Tools to Deliver
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HRIS Implementation Considerations

Setting up an HRIS can be a complicated task. HR leaders should seek advice from
stakeholders, technical experts and vendors before selecting or developing an HRIS.

While the HRIS applications discussed earlier can provide organizations with
valuable, consistent information, challenges frequently arise. These systems can be
time-consuming and expensive to implement and require frequent maintenance. Some
additional challenges include:
 Affordability
 Accessibility
 Attitudes and regulations toward employee data and privacy
 Different technology platforms used in various locations in which the
organization operates
 Cultural acceptance of the technology system (such as employees’ emotional
responses to technology)

When an HRIS is implemented, HR is responsible for educating leaders and

employees on the value the system will bring to the organization. Employees are
more likely to welcome the new system if they believe it will make their jobs easier.

Organizations must be aware of the one potential disadvantage to implementing an

HRIS. There is a risk that organizations may perceive HR as a portal instead of a
person—diminishing personal relationships between employees and HR staff
(Johnson and Gueutal 2011).

Knowledge Management Systems

Employees’ expertise and capabilities are an organization’s primary competitive
advantage in the global economy. For this advantage to produce results, the ability of
employees to quickly and efficiently share knowledge across organizational and
geographic locations is essential. It is important for organizations to recognize that
there are different types of knowledge with very different characteristics.

Module 3: HR Service Delivery 3.5: Using Technology and Tools to Deliver
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Figure 5-1 presents the different types of knowledge and their implications for
management.

Type of
Characteristics Implications
Knowledge
 Simple and inexpensive to  Easy to exploit within the
Explicit:
transfer organization
knowing about
 Non-exclusive  Difficult to protect from rivals
 A weak basis for sustainable
advantage
 Difficult to articulate or  Sound basis for sustainable
Tacit: knowing
codify competitive advantage
how
 Transfer is expensive and  Challenge is to replicate it
difficult internally
 Requires observation and
practice

Figure 5-1. Types of Knowledge and Their Implications for Management (Grant 2010)

Organizations utilize a system to gather, store, and share knowledge and insights.
These systems help prevent knowledge loss that can occur through layoffs,
retirements, reassignments and voluntary resignations.

Knowledge The process of gathering, documenting and sharing important

management information to improve employee and organizational
performance.

Knowledge management systems in organizations tend to be either formal or

informal. Informal systems arise as employees and teams gain experience and
develop the ability to recognize and identify important information, best practices and
experiences. While informal systems are very influential and important to
organizations, they tend to be based on personal networks and primarily consist of
individuals’ idiosyncratic learning. Formal systems are characterized by a structure,

Module 3: HR Service Delivery 3.5: Using Technology and Tools to Deliver
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formal procedures for capturing information and a specific repository for the
information that is gathered.

Knowledge management systems are increasingly popular as a knowledge-sharing

tool in organizations. Wei He, Yulin Fang and Kwok-Kee Wei (He 2009) propose
that the success of knowledge management systems directly correlate to:
 Trust of the user community regarding the contributors of the information or
the credibility of the information
 Employees’ perceptions toward the system
 The intention to continually use the system

Establishing and maintaining a knowledge management system involves four basic

activities, each of which must occur if knowledge management is to be successful.
Figure 5-2 describes these four activities.

Module 3: HR Service Delivery 3.5: Using Technology and Tools to Deliver
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Activity Description

Inventory knowledge assets Catalog the tangible assets of the company (such as
white papers, presentations and articles), best
practices and areas of employee expertise.

Create a knowledge base Enter the information into a system for easy access
and directory and retrieval. The directory is a listing of employee
skill banks and areas of expertise (building
connections), whereas the knowledge base is all the
tangible assets (building collections).

Use the system The knowledge management system can be used

informally to educate employees and project team
members and formally as a basis to make personnel
assignments.

Update the system Maintain and update the system as people, projects
and information change.

Figure 5-2. Knowledge Management Activities

There are two distinct behaviors with respect to knowledge management systems:
 Knowledge-contributing: The willingness of employees to contribute
knowledge to the system and share it with others.
 Knowledge-seeking: The willingness of employees to seek information from
the system.

Challenges
Many organizations have deployed knowledge management systems but are
disappointed with the investment because the systems are not being actively used by
employees for knowledge sharing. The premise for a knowledge management system

Module 3: HR Service Delivery 3.5: Using Technology and Tools to Deliver
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is logical and compelling, but as companies get bigger and more geographically
dispersed, knowledge management becomes more challenging.

Following are some common challenges that organizations face:

 Volume: For larger organizations, there are difficulties associated with the
physical task of inventorying, cataloging and later updating the vast amount of
resources in the organization.
 Best practices: Organizations must carefully examine best practices to ensure
relevance across business units, geographic locations and cultures.
 Cultural implications for information sharing: Some individuals and
cultures may not feel comfortable sharing information with others. If the
individual believes that information gives them authority or influence over
others, then the organization may have difficulty convincing the individual to
share this valuable asset.

Despite challenges, developing workable knowledge management solutions is a

worthwhile endeavor. It can allow the organization to be smarter, more agile and
efficient. Organizations that find ways to enhance relevant collaboration accelerate
knowledge creation and have major strategic advantages.

Section 2.6: Training and Education Programs provides additional information

about managing knowledge assets.

Communication Platforms
Employees want to be kept informed, but many organizations fail to communicate
and keep employees involved, especially over distances, across time zones, in
different languages and among multiple cultures. HR plays a fundamental role in
providing employees with better access to relevant information through regular
communication with employees.

Module 3: HR Service Delivery 3.5: Using Technology and Tools to Deliver
HR Services

Technology has contributed essential value in facilitating organizational

communication. New technological tools to increase communication are constantly
being introduced.

Figure 5-3 presents some common communication platforms and how they are used
by HR to communicate and deliver services to the organization.

Communication Description HR Service Delivery

Platform

Intranet platform A browser-based portal established Links to HR policies, HR blogs and

to distribute information in the FAQs
organization.
Archives of HR podcasts, web
conferences and video
teleconferences

Web conferencing A browser-based application that Facilitates virtual meetings to

allows many users to participate in a introduce policies and programs to
meeting without traveling. remote locations without travel
Typically, a subscription or license
Sessions can be recorded and
is required. Example web
archived on the organization’s
conferencing services include
intranet for continued use at any
Adobe Connect, Live Meeting and
time and from anywhere
Web-ex.

Figure 5-3. List of Communication Platforms (continued to next page)

Module 3: HR Service Delivery 3.5: Using Technology and Tools to Deliver
HR Services

Communication Description HR Service Delivery

Platform

Video A hardware/software platform Facilitates virtual meetings to

teleconferencing requiring dedicated deploy policies and programs to
telecommunication equipment that remote locations without travel
includes live video and voice
Sessions can be recorded and
communications.
archived on the organization’s
intranet for continued use at any
time and from anywhere

Blogs Blogs are websites used to Facilitates sharing of HR

communicate news and share information across the organization
comments. Employees can post
HR can post updates to policies
brief contributions to a discussion
topic.

Podcasting Members of the organization can HR can create podcasts that inform
download digital media files (for employees about new or changes to
example, speeches, PowerPoint existing policies and programs
presentations, video
demonstrations) at any time of day,
anywhere in the organization, from
a desktop. Or, content could be
streamed (delivered live over the
Internet).

Figure 5-3. List of Communication Platforms (continued to next page)

Module 3: HR Service Delivery 3.5: Using Technology and Tools to Deliver
HR Services

Communication Description HR Service Delivery

Platform

Internal social Proprietary social networking HR can post announcements about

networks communities on an organization’s policies and programs
intranet that facilitate collaboration
Employees can post specific
among employees (NTEN,
questions about HR issues
Common Knowledge, Blackbaud
2011).
Employees can share thoughts and
feelings regarding HR issues

Figure 5-3. List of Communication Platforms (concluded)

Module 3: HR Service Delivery 3.5: Using Technology and Tools to Deliver
HR Services

Practice Questions

Directions: Choose the best answer to each question.

1. Which of the following is likely to be a result of continued advances in technology?

a. Training will be available only to those with high-speed Internet access and voice-
activated computers.
b. Privacy issues will be eliminated by security advances such as iris and fingerprint
scans.
c. In-house software will become increasingly desirable as application service
providers become less flexible.
d. Electronic signatures will expand the types of transactions that can be done on the
Internet.

2. Of the technologies listed below, which one has the primary mission of sharing
information in meaningful ways to promote employee learning?
a. Communication platforms (such as web conferencing and video teleconferencing)
b. Human resource information systems (HRIS)
c. Knowledge management systems
d. Project management systems

3. Which of the following is not an HRIS application?

a. Remuneration and benefits
b. Workforce planning
c. Knowledge management
d. Human resource development (HRD)

Module 3: HR Service Delivery 3.5: Using Technology and Tools to Deliver
HR Services

4. Which of the following communication platforms provides a community where

employees can share feelings and post specific questions about HR issues?
a. Internal social network
b. Blog
c. Intranet
d. Web conferencing

5. Knowledge management is most productive when it focuses on

a. sharing organizational learning and reducing knowledge loss.
b. acquiring knowledge from outside sources and focusing on problem-solving.
c. developing new procedures and creating organizational policies.
d. implementing change and committing to employee development.

Module 3: HR Service Delivery 3.5: Using Technology and Tools to Deliver
HR Services

Practice Question Answers

1. d (p. 158)
2. c (p. 166-170)
3. c (p. 161-166)
4. a (p. 170-173)
5. a (p. 166-167)

You have completed Module 3: HR Service Delivery. Next, go to the Online

Learning Center at
https://www.epathcampus.com/SHRM/onlinelearningcenter/login/ and check
your knowledge by completing the Case Studies, Module 3 Practice Test and
the HRMP Certification Practice Test if you feel ready. Also try the e-
flashcards to check your knowledge of the terminology.

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Module 3: HR Service Delivery Bibliography

—. "Recruiting Internally and Externally." —. "Staffing the Human Resource

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Hard Work." June 29, 2009. 2008.
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Module 3: HR Service Delivery Bibliography

—. "Variety of Strategies Used To Attract —. "Mastering the People Risks in M&A:

Diverse Applicants." August 22, The Heart of the Deal ." Towers
2008. Watson. 2010.
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1, 2007. Equation. M&A Pulse Survey
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CareerResources/articles/Pages/shrm http://www.towerswatson.com/resear
_061807.aspx (accessed May 31, ch/978: Towers Perrin, 2009.
2011).
Ulrich, David. Delivering Results: A New
—. Work/Life Balance Series Part I: Mandate for Human Resource
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2011). Massachusetts: Harvard Business
School Press, 1997.
Stevens, John. Managing Risk: The Human
Resources Contribution. Dayton, Ulrich, David, Wayne Brockbank, Dani
Ohio: Elsevier Science & Johnson, Kurt Sandholtz, and Jon:
Technology, 2005. Younger. HR Competencies:
Mastery at the Intersection of People
Taleo. Make Your Recruiting Process and Business. Alexandria, Virginia:
Faster, Better, and Cheaper. Taleo Society for Humarn Resource
Research White Paper, San Management, 2008.
Francisco, California: Taleo
Research, 2008. University of Cambridge. Maternity Leave
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Challenges and Opportunities in
International Human Resources
Management. Armonk, New York:
M. E. Sharpe Inc., 2006.

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Vance, Robert J. Employee Engagement and World Trade Organization. Intellectual

Commitment: A guide to Property: Protection and
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Alexandria, Virginia: Society for
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2006. Compensation, Benefits and Total
Rewards: A Comprehensive Guide
Weatherly, Leslie A. HR Outsourcing: for HR Professionals. Hoboken, New
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Organization. Research Quarterly,
Alexandria, Virginia: Society for Worley, Christopher G., and Thomas G
Human Resource Management, Cummings. Organizational
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Pennsylvania. "'Talking the Talk': Foundation, 2008.
Jeff Schwartz on Building Talent
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chnology/Pages/TechnologyIntro.asp
x (accessed May 31, 2011).

Module 3: HR Service Delivery Index

Index
@Task ....................................................... 38 Berne Convention, 1886 ......................... 116

activity chart.......................... See Gantt chart blogs .................................. 36, 159, 171, 172
and recruitment ...................................... 55
Adoption assistance ................................ 129
body language ..................................... 18, 19
Africa ........................................................ 19
Bolivia ..................................................... 145
application service providers (ASPs) ...... 158
Boudreau, John ......................................... 72
Argentina................................................. 145
brand ............................................. 46, 47–51
Asia ......................................................... 142 management .......................................... 49
strength .................................................. 49
ASPs..........See application service providers
branding, employment ........................ 47–51
Assessment centers ................................... 65
Brazil ................................................. 68, 142
assimilation ................................... 89–90, 92
broadbanding................................... 133–134
Australia .................................. 108, 141, 142
Brockbank, Wayne .................................... 14
background investigation .................... 65–66
Business-to-business (B2B) e-commerce 158
base pay................................... 105, 132, 136
Canada....................................................... 54
Base pay .................................................. 137
Cappelli, Peter ........................................... 73
Basecamp .................................................. 38
Cause and Effect diagram ........ See Fishbone
Behavioral Theories of leadership ............ 20 diagram
benefits .. 25, 33, 67, 70, 83, 91, 92, 121–148 centralization ............................................. 31
and HRIS ....................................... 164–65
as part of a Total Rewards strategy ... 134– change agent.............................................. 30
136
indirect compensation ................. 136–137 child care ................................................. 129
legal aspects of HR's service delivery
responsibilities ................................. 107 China ........................................... 56, 68, 143
legislation affecting ......... 106–7, 125–130
variations across countries .......... 126–127 Colombia ................................................. 145

Bernard Hodes Group ............................... 49

Module 3: HR Service Delivery Index

communication ... 9, 14–24, 66, 87, 111, 136, decentralization ......................................... 31

146, 156, 159, 161, 163
across cultures and languages ............... 17 defined benefit (DB) plans .............. 140–141
and leadership ........................................ 19
channels ........................................... 15–16 defined contribution (DC) plans ..... 140–141
cross-cultural ................................... 17, 74
culturally neutral ................................... 18 Deming, W. Edwards ................................ 28
developing plans .............................. 21–24
Denmark .................................................. 143
elements of effective plans .................... 22
formal .................................................... 15 digital divide ........................................... 156
forms of ................................................. 16
informal ................................................. 15 direct compensation ........................ 136–137
intercultural ............................... 18–19, 74
nonverbal ............................................... 18 discriminatory actions ............................. 129
platforms............................ 78–79, 170–73
remote .................................................... 16 diversity recruitment marketing ................ 50
skills ................................................ 16–17
strategy ............................................ 35–36 Dowling, Peter J. ............................. 111, 112
virtual .................................................... 16
due diligence ....................................... 12, 76
community awareness, and recruitment .... 54
educational recruiting................................ 54
compa-ratios ................................ 104–5, 133
e-HR ........................................................ 155
compensation .................... See remuneration
elder care ................................................. 129
concierge service ..................................... 129
electronic record keeping ........................ 158
Connell, Adele .......................................... 70
electronic service delivery ................ 114–15
Contingency Theories of leadership ......... 23 legal aspects of HR’s service delivery
responsibilities ................................. 114
contingent job offers ................................. 66
electronic signatures........................ 114, 158
copyright ......................................... 115, 116
employee assistance programs (EAPs) ... 129
Critical Path Method (CPM) See PERT chart
employee engagement ............................... 30
cross-cultural sensitivity ........................... 17
employee handbooks ............................... 109
cultural distance ........................................ 23
employee health and safety, legal aspects of
curricula vitae (CV) .................................. 63 HR’s service delivery responsibilities110–
11
CV .................................... See curricula vitae
employee orientation ........................... 89–93
data protection ......................................... 130 assimilation................................ 89–90, 92
integration.............................................. 91

Module 3: HR Service Delivery Index

onboarding ....................................... 89–91 Fang, Yulin ............................................. 168

employee referrals, and recruitment ......... 53 feedback ................ 8, 22, 27, 39, 57, 86, 160

employee rights legislation ............... 113–14 Festing, Marion ............................... 111, 112

employee self-service (ESS) ........... 158, 160 finance ................................................... 8, 12

employees, non-exempt .................. 103, 105 Fishbone diagram ...................................... 37

employment contracts ......................... 108–9 flexible spending accounts ...................... 129

amending ............................................. 109
implied ................................................. 109 flexible staffing ................................... 83–88
alternatives ............................................ 84
employment marketing approaches .... 49–50 HR's role ................................................ 88
diversity recruitment marketing ............ 49 outsourcing ...................................... 84–88
work schedule .............................. 129, 136
employment terms and conditions,
legislation affecting ......................... 108–9 forecasting ................................................. 50

engineering ............................................ 8, 12 France .............................................. 128, 143

Engle, Allen .................................... 111, 112 Gantt chart ................................................. 36

enterprise resource planning (ERP) ........ 162 geocentric approach to talent acquisition .. 76

e-procurement ......................................... 158 Global Legal Information Network (GLIN)

............................................................. 127
ERP ........... See enterprise resource planning
government agencies, and recruitment ..... 54
ethnocentric approach to talent acquisition75
Greenfield operation, as an organizational
event chain ................................................ 37 growth strategy ...................................... 76

expansion, as an organizational growth handbooks, employee .............................. 109

strategy .................................................. 76
He, Wei ................................................... 168
expatriate ......................................... 130–131
returning home .................................... 147 Health, Safety and Environment (HSE)
guidelines ............................................ 110
explicit culture .......................................... 18
Hodes 360 Process for brand management 49
explicit knowledge .................................. 167
Holtz, Shel................................................... 9
external factors, and talent acquisition
approaches ............................................. 77 hourly wage ............................................. 105

external recruiting ............................... 53–56 HR service delivery................................. 5–7

and project management .................. 33–39

Module 3: HR Service Delivery Index

create new programs and processes..... 8–9 expert ..................................................... 25

development of functional delivery phased .................................................. 161
methods ................................................ 9 supporting managers during .................. 25
identify and create applicable programs .. 9 tools ....................................................... 26
implement existing programs and
processes .......................................... 8–9 India ............................................ 54, 56, 143
improvement.................................... 27–29
model ....................................................... 7 indirect compensation ..................... 136–137
multiple-department applications .......... 12
orientation........................................ 91–93 information technology (IT) ............... 78–79
phases .................................................... 10
inpatriate ......................................... 130, 131
transformation ......................................... 6
integration strategy.................................... 75
HRD ........ See human resource development
intellectual property .......................... 115–17
HRIS ......... See human resource information
applicable laws .................................... 117
systems
HR professionals' responsibility for .... 117
HR's role in flexible staffing ..................... 88 legislation ............................................ 116
protection considerations..................... 115
human resource information systems (HRIS)
......................... 79, 114, 155, 160, 161–66 internal customer needs............................... 9
ad hoc reports ...................................... 163
internal recruiting ................................ 52–53
applications of ............................... 162–65
dashboards ........................................... 163 internal social networks .......................... 173
for employee and labor relations ......... 165
for human resource development ........ 164 international assignee ................ 76, 130–131
for remuneration and benefits ....... 164–65
for risk management ............................ 165 International Bar Association’s Global
for strategic management .............. 162–63 Employment Institute (GEI) .................. 69
for workforce planning and employment
......................................................... 163 International English ................................. 17
implementation considerations ............ 166
standard reports ................................... 163 International Labour Organization (ILO) 110

human resource management (HRM) . 5, 155 international trade secretariats (ITSs) ..... 112

human resources (HR) Internet recruiting...................................... 56

as a change steward ............................... 24
as an administrative expert ...................... 7 interpersonal initiatives ............................. 30
as an employee advocate ......................... 7
interviewing .............................................. 64
as an operational implementer ............... 24
examples of traditional questions .......... 64
four main roles ........................................ 7
marketing ......................................... 46, 49 Ishikawa diagram ....... See Fishbone diagram
Hyman, Richard ...................................... 111 IT ....................... See information technology
implementation ....................... 14, 21, 24–26

Module 3: HR Service Delivery Index

Japan ................................................. 68, 145 leadership

issues that can affect .............................. 21
job analysis.............................. 52, 57, 58–62 theories ............................................ 19–21
job competencies ................................... 62
job description ........................... 52, 60–61 leadership theories .............................. 19–21
job specifications ............................. 52, 61 Behavioral Theories .............................. 20
Contingency Theories ........................... 20
job bidding ................................................ 53 Situational Leadership Theory .............. 20
Trait Theories ........................................ 20
job boards .................................................. 54 Transformational Leadership ................ 21
job competencies ....................................... 62 leave entitlements............................ 106, 128
job description ............................... 52, 60–61 legal systems, influence on HR service
delivery .......................................... 99–100
job fairs, and recruitment .......................... 55
local nationals ......................................... 130
job functions, essential .............................. 59
M&As ............. See mergers and acquisitions
job offer, contingent .................................. 66
manager self-service (MSS) ............ 160, 162
job posting................................................. 53
marketing .............................................. 8, 12
job specifications ................................ 52, 61
Matchware................................................. 38
joint venture, as an organizational growth
strategy .................................................. 76 maternity leave, employees returning from
..................................................... 145–146
Kirkpatrick, Don ....................................... 27
McKinsey & Company ....................... 38, 72
knowledge management.......................... 168
activities for establishing and maintaining media advertising, for recruiting ............... 55
................................................... 168–69
challenges ...................................... 169–70 mergers and acquisitions (M&As) .... 5, 6, 31
as an organizational growth strategy ..... 76
knowledge management systems 79, 166–73
Microsoft® Office .................................... 38
knowledge, skills, abilities (KSAs) ........... 59
Microsoft® Project ................................... 38
KSAs ............ See knowledge, skills, abilities
Middle East ............................................... 19
labor organizations .................................. 112
milestone chart ...................... See Gantt chart
Latin America ..................................... 54, 56
MindJet ..................................................... 38
laws, and HR service delivery ........ 100–117
minimum wage................................ 106, 125
layoffs, employees returning from .......... 148
MNE................ See multinational enterprises

Module 3: HR Service Delivery Index

moonlighting, and recruitment .................. 53 Pacific Region ......................................... 142

motivation ............................... 9, 18, 22, 134 pay ...... 105–6, 108, 109, 124, 125, 130–131,
136, 137, 139, 145
multinational enterprises (MNEs) ........... 111 ranges .......................................... 133, 134
structure ............................................... 133
NATLEX......................................... 127, 141 surveys ................................................. 132
needs analysis.......................... 11, 80–81, 81 pay grades ............................................... 134
negotiation........................................... 67–68 pay ranges ....................................... 103, 104
cross-cultural ................................... 67–68
PDCA . See Plan, Do, Check, Act Leadership
New Zealand ........................................... 141 Model
nominations, and recruitment.................... 53 perquisites ....................... 127, 137, 142–143
Occupational Safety and Health (OSH) .. 110 personal networking, and recruitment....... 55
OD .............. See organizational development PERT chart ................................................ 37
offer letter.................................................. 66 PERT/CPM .......................... See PERT chart
online social networks, and recruitment ... 55 phased retirement .................................... 144
open house, and recruitment ..................... 55 Phillips, Jack ............................................. 70
organizational culture.................... 5, 25, 138 pilot programs ......................................... 160
organizational development (OD)............. 30 Plan, Do, Check, Act (PDCA) Leadership
implementing initiatives .................. 30–31 Model .............................................. 28–29
organizational goals ........ 12, 26, 32, 82, 161 podcasting ....................................... 159, 172
organizational strategy ............................ 160 Poland ..................................................... 143
alignment to ..................................... 11–12
polycentric approach to talent acquisition 75
organizational values ................................ 32
procedural interventions............................ 31
orientation ........................................... 89–93
as an HR service delivery process ......... 91 professional associations, and recruitment 56
timeline ............................................ 92–93
Project Insight ........................................... 38
outplacement services, and recruitment .... 55
project management ............................ 33–39
outsourcing .......................... 5, 24, 51, 84–88 organizational concerns ......................... 35
deploying a solution ........................ 87–88 project phases .................................. 34–35
measuring effectiveness ........................ 88 service delivery roles ....................... 34–35
stages of ........................................... 85–86 software ................................................. 38

Module 3: HR Service Delivery Index

project phases ...................................... 34–35 returnees .......................................... 144–148

completion ............................................. 35 layoffs .................................................. 148
conception ............................................. 34 maternity leave .................................... 146
evaluation .............................................. 35 repatriation .......................................... 147
planning, scheduling, monitoring and sabbaticals ........................................... 147
controlling .......................................... 35
selection of manager and team .............. 34 Run chart ................................................... 37

project planning tools .......................... 36–37 sabbaticals, employees returning from ... 147

psychometric tests ..................................... 65 salary ............. 67, 103–6, 132, 133, 137, 145
legal wage parameters ......................... 129
RACI chart ................................................ 37 range spread ......................................... 103

Ramstad, Peter .......................................... 72 sales ....................................................... 8, 12

recruitment .......... 47, 50, 52–57, 79–83, 163 selection .................................. 52, 57, 62–68
documentation ................................. 57–62 analyzing the résumé/curricula vitae (CV)
effectiveness .......................................... 57 ........................................................... 63
objectives ............................................... 52 background checks .......................... 65–66
strategies ................................................ 81 criteria.............................................. 52, 63
employment offers ................................. 66
reference checks .................................. 65–66 interviews .............................................. 64
job offers, contingent ............................. 66
referrals, and recruitment .................... 53, 56 process ................................................... 63
tests ........................................................ 65
regiocentric approach to talent acquisition 76
self-service technologies ........... 158, 160–61
remuneration 25, 33, 60, 74, 83, 102–7, 121– employee ............................... 158, 160–61
148, 164–65 manager ......................... 158, 160–61, 162
legal aspects of HR’s service delivery
responsibilities ................................. 102 service delivery model .................... 7, 10–27
legislation affecting ......................... 102–6 Phase 1
Service Delivery Formulation ..... 10–14
repatriation ...................................... 146–147 Phase 2
Service Delivery Communication 14–24
response mechanisms ................................ 27
Phase 3
résumés ..................................................... 63 Service Delivery Implementation 24–26
Phase 4
retention ........................................ 69–71, 91 Evaluation of Services ................. 26–27
of employees ................................... 69–71
service delivery roles .......................... 34–35
retirement plans ................... 25, 33, 140–141
defined benefit versus defined service mark ............................See trademark
contribution plans ............................ 141
shared services .................................... 13–14
retirement, phased ................................... 144 considerations .................................. 13–14
model ..................................................... 13

Module 3: HR Service Delivery Index

SHRM .......See Society for Human Resource factors influencing ................................. 75

Management generic framework ................................. 72

Singapore .................................................. 56 Talent on Demand ..................................... 73

Situational Leadership Theory of leadership Talentship ............................................ 72–73

............................................................... 20
technology .... 22, 24, 31, 48, 56, 78–79, 114,
skill banks/tracking systems ..... 53, 163, 169 153–73
access issues ........................................ 156
SMART objectives.................................... 81 advances in .......................................... 156
effects of change on HR processes ...... 159
social responsibility, and talent acquisition integration............................................ 160
approaches ....................................... 78, 88 managing ....................................... 157–61
new processes ................................ 161–66
Society for Human Resource Management self-service implementation .......... 160–61
(SHRM) ...... 19, 50, 56, 60, 61, 63, 66, 84, skills .................................................... 156
100, 132, 136, 141 trends ............................................. 157–58
software, for project management............. 38 termination, compensation for ................ 145
sourcing ..................................................... 47 third-party sources for recruiting .............. 56
stakeholders...... 12, 35, 48, 50, 88, 111, 114, total rewards .... 124–125, 129, 130, 134–143
162, 166 external competitiveness ..................... 139
implementation ............................ 134–143
storytelling ................................................ 24
internal equity ...................................... 139
strategic alignment of HR programs ......... 11 objectives ............................................. 138
strategy development process .............. 135
strategic alliance, as an organizational workforce contexts .............................. 138
growth strategy ...................................... 77
Towers Watson ................... 12, 13, 107, 109
strategic goals.................. 10, 11, 38, 72, 163
trade associations, as recruitment source .. 56
strategic plans............................................ 75
trade secrets ............................................. 117
structural interventions and initiatives ...... 31
trademarks ............................................... 115
succession planning .......................... 53, 162
Trade-Related Aspects of IP Rights (TRIPS)
tacit knowledge ....................................... 167 Agreement, 1994 ................................. 116

tactical objectives, in staffing plan...... 81–83 Trait Theories of leadership ...................... 20

Taiwan....................................................... 68 Transformational Leadership .................... 21

talent acquisition ................................. 71–79 Ulrich, David................................... 7, 13, 14

approaches ................................. 71–74, 76

Module 3: HR Service Delivery Index

United Kingdom........................ 56, 141, 143 Wei, Kwok-Kee ...................................... 168

United Nations Educational, Scientific and Western Europe ......................................... 56

Cultural Organization (UNESCO) ...... 116
work/life balance ........... 39, 69–71, 129, 146
United States ............... 54, 67, 108, 128, 143 and retention .................................... 69–71
programs ........................................ 70, 125
Universal Copyright Convention, 1952 .. 116
workforce mobility.............................. 73–74
University of Michigan ............................. 13
workforce planning ..................... 80–81, 163
video teleconferencing ............................ 172 and employment .................................. 163

Walt Disney Company .............................. 24 World Intellectual Property Organization

Copyright Treaty, 1996 ....................... 116
War for Talent (McKinsey & Company) .. 72
World Trade Organization (WTO) ......... 115
Web 2.0 ..................................................... 38
WorldatWork ............................................ 70
Web conferencing ................................... 171

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