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Balancing HCM Program Incentives, ERP
Technologies and Career Management
Programs
Breakout Session # 711
Name Teddy Mora
Date July 21, 2010
Time 9:00 am
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Overview
- Concepts and Strategies
- Organizational Posture
- Challenges and Opportunities
- Strategic Initiative or ROI Venture?
- Summary
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Balancing Organizational Needs with
Institutional Demands and Requirements
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Human Capital Management
“Fourthly, of the acquired and useful abilities of all the inhabitants or members of the society. The
acquisition of such talents, by the maintenance of the acquirer during his education, study,
or apprenticeship, always costs a real expense, which is a capital fixed and realized, as it
were, in his person. Smith, Adam: An Inquiry into the Nature And Causes of the Wealth of
Nations Book 2 - Of the Nature, Accumulation, and Employment of Stock; Published 1776.
“Is a Means of Production, into which additional investment yields additional output. Human
capital is substitutable, but not transferable like land, labor, or fixed capital.” Gary S. Becker
(1964, 1993, 3rd ed.). Human Capital: A Theoretical and Empirical Analysis, with Special
Reference to Education. Chicago, University of Chicago Press
“The knowledge , skills, competencies and attributes embodied in individuals that facilitate the
creation of personal, social and economic well-being.” T. Healy, S. Cote, et al. The WellBeing of Nations: The role of human and social capital, Centre for Educational Research
and Innovation, OECD (2001), p. 18.
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Recruiting Factors
• By the end of 2009, the jobless rate stood at 10.0
percent and the number of unemployed persons
at 15.3 million. Among the unemployed, 4 in 10
(6.1 million) had been jobless for 27 weeks or
more, by far the highest proportion of long-term
unemployment on record, with data back to
1948. Randy Ilg U.S. Bureau of Labor Statistics
• “The companies that will succeed are not sitting
around wondering what’s going to happen.
They’re constantly reorganizing to stay
competitive.” Leslie Sorg Ramsay principal and head of HR practice
group, The McCormick Group
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Retention Costs
•
Cost of recruiting and training new leaders
(supervisors and managers) is approximately 90150% of the employee’s salary
•
US Department of Labor estimates that it costs an
organization approximately one-third of a new
hire’s annual salary to replace a non-exempt
employee
•
A recent Towers Perrin multi-company survey
revealed that only half (50 percent) of employees
polled said their company inspires them to do
their best work
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Enterprise Resource Planning
“Is a complex computer software system used to manage information
required to run large organizations.”
“Information systems designed to bind more closely a variety of
company functions including human resources, inventories and financials
while simultaneously linking the company to customers and vendors.”
“Software that integrates departments and functions across a company
into one computer system. ERP runs off a single database, enabling
various departments to share information and communicate with each
other.”
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Typical Architectural ERP Environment
Interaction
Channels
Web
Internet
Mobile
Wireless
e-Mail
LOB
Infra-Structure
Analytical
Application
s
Marketing
Intelligence
Corporate
Intelligence
Talent
Intelligence
Customer
Intelligence
Business
Application
s
CRM
Foundation
E-Business
Foundation
Tech Stack
Marketing
Profit
or
Revenue
eCommerce
OSS
HR
Vision
Mission
Operational Base
Resources
Needs and Demands
Requirements
Calendar
Performance
Partnerships
Processes
Systems History
Collaborative Efforts
Common Data and Object Models, Security, Interfaces, Globalization
E-business Platform
http://www.richardbyrom.com
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HRIS ERP System
Output
subsystems
Input
subsystems
Internal
Sources
Business
Intelligence
subsystem
Environmental
Sources
Work Force
Planning
Subsystem
Accounting
information
system
Human
Resources
Research
System
Data Information
Recruiting
Subsystem
HRIS
ERP
Work force
Management
Subsystem
Compensation
Subsystem
Benefits
Subsystem
Environmental
Reporting
Subsystem
Users
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Old and New Enterprise Partners
00101 00 001110 0 011
01100
0010 110 001
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ERP – Choices
OPTION 1 – MAKE [Using Internal Resources]
Developing a custom-built ERP package, specific to the requirements of the
organization, with the help of the in-house IT department
OPTION 2 - BUY
Going for Tailor-made ERP packages available in the market like
SAP, Oracle applications, Baan, PeopleSoft etc.
OPTION 3 – OUTSOURCE [Using External Resources]
Developing a custom-built on-demand ERP service, specific to the
requirements of the organization, with the help of a ERP/SaaS solution
provider
http://www.open-source-erp-site.com
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Special Challenges in ERP Management
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Human Capital Management
IT Systems Integration Challenges
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Pitfalls & Points of Concern
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Costly Comparing to Custom-Built Options
Lot of Hidden Costs
Chances of Cost & Time Overrun are High
The Level of Customization
Compulsion to Pay for Redundant Modules/Features
Vigorous Involvement of all During Implementation
Non-Availability of Special Practices
Linking Historical Data – Offline & Painful
The Requirement of Change Management is a must
Dependency on Outsiders is High
IT Department – Poor grip on the Implemented Systems
http://www.open-source-erp-site.com
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Career Management Systems
“Is the combination of structured planning and the active
management choice of one's own professional career.”
“Lifelong, self-monitored process of career planning that
involves choosing and setting personal goals, and formulating
strategies for achieving them.”
“Step-by-step approach to managing your career by
discovering who you are (Assessment), deciding what you
want to do (Strategy), and choosing how you are going to do it
(Tactics).”
Stages of Career Development
Stage 1: Preparation for Work (ages 0–17):
Develop occupational self-image, assess alternative occupations, develop initial
occupational choice, pursue necessary education.
Stage 2: Organizational Entry (ages 18–25):
Obtain job offer(s) from desired organization(s), select appropriate job based on
complete and accurate information.
Stage 3: Early Career (ages 25–40):
Learn job, learn organizational rules and norms, fit into chosen occupation and
organization, increase competence, pursue goals.
Stage 4: Midcareer (ages 40–55):
Reappraise early career and early adulthood goals, reaffirm or modify goals, make
choices appropriate to middle adult years, remain productive.
Stage 5: Late Career (ages 55–retirement):
Remain productive in work, seek self-actualization, self-esteem, preparation for
retirement.
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WORKFORCE 2010
The Changing Career Paradigms
OLD PARADIGMS
• Job Security
• Longitudinal Career Paths
• Job/Person Fit
• Organizational Loyalty
• Career Success
• Academic Degree
• Position/Title
• Full-Time Employment
• Retirement
• Single Jobs/Careers
• Change in jobs based on fear
• Promotion highly tenure based
NEW PARADIGMS
• Employability Security
• Alternate Career Paths
• Person/Organization Fit
• Job/Task Loyalty
• Work/Family Balance
• Continuous Relearning
• Competencies/Development
• Contract Employment
• Career Sabbaticals
• Multiple Jobs/Careers
• Change in jobs based on growth
• Promotion highly performance
based
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Career Management Process
STEP 1
INDIVIDUAL ASSESSMENT
Who am I? (Career Stage, Path
Preference, Political Style)
STEP 2
INTERPERSONAL ASSESSMENT
How do other see me? (Self-insight,
image, political style, personality)
STEP 3
What are my options within the
organization? (Knowledge of the
organization, future trends, options,
opportunities)
ORGANIZATIONAL ASSESSMENT
STEP 4
ACTION PLANNING
How do I achieve my goals?
(Motivation, confidence, goal
setting, action planning)
Career Management Programs
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Career Counseling
Executive/Management Coaching
Supervisory Training
Management Development
Career Resource Centers
Assessment Centers
Outplacement
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Special Challenges in Career Management
Socialization and
Orientation
Dealing With Older
Workers
Coping With Job
Loss
Dual-Career Paths
Balancing Work and
Life
Plateauing
Skills Obsolescence
Work and Non-work
Policies
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
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Balancing Organizational Needs with
Institutional Demands and Requirements
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Building a Human Capital Culture
• Hold managers accountable for talent management
including tying retention and developmental coaching to
performance reviews
• Train leaders on retention and development strategies so
they can build a retention culture in their own units
• Implement strategic talent development programs including
coaching, 360 degree feedback and assessment centers to
identify high potential leadership talent
• Institute formalized mentoring and career assessment and
development programs
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Look Beyond ERP
Supplier
Collaboration
Supply Chain
Management
Product
Lifecycle
Management
Design
Partners
Key Process
Integration via
ERP
Customer
Management
Consumers
and Channels
http://www.open-source-erp-site.com
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Critical Success Factors
 Management Organizational & Optimistic Approach
- on adapting the IT product driven methodologies
- on customization
- on monetary commitments
The Dedicated Team
 Good Training
 Strict Adherence to the Project Management Standards
 Right Technical Infra-Structure
 Change Management
http://www.open-source-erp-site.com
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IT Product Selection Criteria
Goal:
To select the
Most Suitable Software
Package Solution
Functionality
5 Strategic
Requirement
Levels
Technology
Vendor
Support
Costs
http://www.open-source-erp-site.com
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Balancing Organizational and Individual Needs
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Balancing HCM Program Incentives,
ERP Technologies and Career Management
Programs
Summary
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Balancing HCM Program Incentives,
ERP Technologies and Career Management
Programs
Q&A