Lack of support for HR is a serious and universal problem. An absence of strong executive and management support will inhibit an otherwise successful human capital investment. Indeed, most human capital improvement projects have little chance of being effective without such support. The problem can be serious enough in some organizations to cause the ultimate demise of the HR function. This chapter explores commitment and support issues, detailing how both can be increased. Three key strategies are explored in more detail: building partnerships, creating a special workshop for managers, and tying bonus plans to human capital measures. The focus of this chapter is on both executives, who must provide commitment and support, and the human resources staff, who must convince managers and senior executives that they show support.
As a preliminary step to improve support, it is helpful to assess the current level of support from the management group. An excellent tool for this assessment is presented in appendix A. It addresses twenty important issues that collectively measure the degree of management support for the HR function. The target group for assessment may be any management group (division, plant, corporate, or regional—the middle- or senior-level management). High scores on this instrument indicate a strong, supportive environment needing few additional efforts. Low scores indicate serious problems, signaling a need for actions to improve support. An analysis of scores is included at the end of the appendix.
Executives and managers are reluctant to support HR for a variety of reasons. Some are valid, while others are based on misunderstandings about HR and its impact in the organization. An analysis of the current level of support will usually reveal the most common problems, which are outlined below.
No Results. Managers are not convinced that HR programs and projects add value in terms they understand and appreciate. They do not see HR programs producing results in ways to help them reach their objectives. Managers are rarely asked, “Is this HR program working for you?” or “Is HR adding value to your department?” Human resources professionals deserve much of the blame for this situation. HR team members routinely judge the effectiveness of their function by the reactions of those engaged in the HR initiative. Managers need more evidence, such as impact and ROI data, that shows HR practices add value.
No Input. Unfortunately, HR is often perceived as dictatorial rather than as collaborative. Managers do not support HR because they are not offered an opportunity for input into the process. They are not asked for their views on the content or focus of a program during the initial analysis or program formulation. They are rarely provided objectives that link HR to job-performance improvements or business results. Without input, managers will not develop the ownership for HR and will continue to resist its efforts.
Too Costly. Managers perceive HR as a double cost. The direct cost for some HR programs is ultimately taken from the operating profits and charged to their department. They also see some HR programs as taking employees away from their jobs, resulting in a loss of productivity. They experience a personal cost of finding ways to get the job done while an employee is involved in the program. They must rearrange work schedules to meet deadlines, find new ways to meet service requirements, redistribute the workload, or secure a replacement. Sometimes, the method of recording time when employees are involved in HR programs reinforces this concept, since many situations result in the time being labeled “nonproductive.” Unfortunately, this sends an important and sometimes negative message throughout the organization. Because the perception that HR programs represent double costs is unfounded, managers have to be shown the true cost of HR programs, they have to be persuaded of the value of HR. Changing their perceptions, however, is challenging.
No Relevance. Managers have little reason to believe that HR programs have relevance or will help their department or work unit. They see little resemblance to work-related issues. They hear about HR activities that are unrelated to current challenges faced by the team. Managers have many requests and demands for resources. They quickly eliminate the unnecessary frills and activities. No relevance equals no need, which equals no priority and eventually leads to no support.
No Involvement. Managers do not support HR because they are not actively involved in the process in any meaningful way. Even in some of the best organizations, the manager’s role is severely restricted or limited, sometimes by design and other times by default. To build respect for the HR function, managers should have some type of active involvement in the process, ranging from reinforcing HR programs to coordinating or managing part of a program.
No Time. Managers do not have time to support formal HR programs. They are very busy with increasing demands on their time. When establishing daily priorities, the specific actions necessary to show support for HR do not make their top priority list. Consequently, nothing happens. Managers often perceive that requests for increased support will require additional time. (In reality, many supportive actions do not require much time; it’s often a matter of perception.)
Lack of Preparation. Sometimes managers do not have the skills necessary to support HR programs. Although they may be willing to offer support, managers may not know how to provide feedback, respond to issues, guide their employees through specific problems, or help achieve results with HR programs. Specific skills are needed to provide effective reinforcement and support, just as specific skills are required for planning, budgeting, delegating, and negotiating.
Lack of Knowledge About Human Resources. Managers are not always aware of the nature and scope of HR. They may understand that it is a legitimate function necessary to attract, develop, and maintain employees with the specific skills and knowledge required for the job. Beyond that, they are not fully aware of what HR provides for the organization. They do not fully understand the different steps involved from needs assessment to development, to implementation, and to evaluation. They see bits and pieces of the process but may not know how the process is integrated to create an effective human capital program. It is difficult for managers to support a process they do not fully understand.
No Requirements. Finally, managers do not support HR because they are not sure what they are supposed to do. If the only request from the HR staff is to provide information or allow employees to be involved in a program, that is all they will do. The HR staff usually creates this problem because they do not “make the call”; they do not communicate directly with the operating managers to let them know what is needed and what managers must do to make the HR process work.
Collectively, these reasons for nonsupport equate to challenges for HR departments and represent opportunities for managers. If the issues are not addressed in an effective way, management support will not exist, human capital program implementation will be diminished, and consequently, results will be severely limited or nonexistent.
Management’s actions and perceptions significantly affect the impact and success of HR programs. This influence is critical in the workplace—beyond program development and implementation. Although HR staff members may have little direct control over some of these factors, they can exert a tremendous amount of influence on them. Table 11-1 lists the key actions needed with the management team.
Table 11-1. Comparison of key management actions.
Management Action | Target Group | Scope | Payoff |
|---|---|---|---|
Management Commitment | Top Executives | All Programs | Very High |
Management Support | Middle Managers, First-Level Supervisors | Most Programs | High |
Management Reinforcement | First-Level Managers | Specific Programs | Moderate |
Management Involvement | All Levels of Managers | Specific Programs | Moderate |
Several of the terms in this table need additional explanation. Management commitment, management support, management involvement, and management reinforcement are overlapping terms and are sometimes confusing. Management commitment usually refers to the top-management group and includes its pledge or promise to allocate resources and support to the HR effort. Management support refers to the actions of the entire management group, which reflect their attitude toward HR programs and HR staff.
The major emphasis is on middle- and first-line management. Their supportive actions can have a tremendous impact on the success of programs. Management involvement refers to the extent to which executives and managers are actively engaged in the HR process in addition to participating in programs. Because management commitment, support, and involvement have similar meanings, they are often used interchangeably.
Management reinforcement refers to actions designed to reward or encourage a desired behavior. The goal is to increase the probability of the behavior change linked to an HR program.
Commitment is necessary to secure the resources for a viable HR effort. A self-assessment of current CEO commitment is presented in appendix B. This exercise lists a variety of activities that reflect the degree of commitment from top executives, particularly the CEO. Although the exercise is labeled CEO commitment, it is also appropriate for the senior executive group. It contains twenty-five issues important to the success of human capital management. The issues define the extent of involvement in the process, the support provided to HR and human capital projects, and the current level of involvement in particular programs, solutions, and human capital initiatives. It is recommended that each top executive participate in this exercise to reflect on the current status of commitment and support for the human capital processes in the organization. Table 11-2 shows the ten general areas of emphasis for strong top-management commitment to human resources. These ten areas need little additional explanation and are necessary for a successful HR effort.
Table 11-2. Example of executive commitment for human capital management.
The Ten Commitments for Executives |
|---|
For strong commitment to human capital management, executives should:
|
Now for the big question: How can top-management’s commitment increase? The amount of commitment varies with the size or nature of the organization. Quite often the extent of commitment is fixed in the organization before the HR manager becomes involved with the function. It usually depends on how the function evolved, the top-management group’s attitude and philosophy toward HR, and how the function is administered. The key to the question of increasing commitment lies in the results. The commitment of top management usually increases when programs obtain desired results. As figure 11-1 illustrates, this is a vicious cycle because commitment is necessary to build effective HR programs from which results can be obtained. And when results are obtained, commitment increases. Nothing is more convincing to a group of top executives than programs with measurable results they can understand. When a program is proposed, additional funding may be based solely on the results the program is expected to produce.
In addition to providing results, several actions or strategies can help increase commitment. Commitment is increased when managers are actively involved in HR programs and projects. This involvement, which can occur in almost every phase of the HR process, reflects a strong cooperative management effort to use human resources effectively.
A highly professional and competent HR staff can help improve commitment. While the achievement of excellence is the goal of many professional groups, it should be a mandate for the HR department. The HR staff must be perceived as professional in all actions including welcoming criticism, adjusting to the changing needs of the organization, maintaining productive relationships with other staff, and setting an example for others to follow.
Top executives are more inclined to provide additional funds to an HR staff that understands the business and are willing to help the business reach its goals. A comprehensive knowledge of the organization, including operations and finance, is a key ingredient in building respect and credibility with the management group.
The HR department must communicate needs to top management and help them to understand that HR is an integral part of the organization. When top management understands the results-based process, they will usually respond with additional commitment.
The senior HR executive should be in a visible role, preferably alongside key executives, helping to solve operational problems and address strategic issues. Top executives want staff members who are involved, with a hands-on philosophy and a desire to be “where the action is.” Top management will usually support those who meet this challenge.
The HR department should avoid being narrowly focused. Human resources programs should not be confined to those mandated by regulations, laws, or organizational necessities. The HR staff must be perceived as problem solvers or performance enhancers. A progressive HR staff should be versatile, flexible, and resourceful, and utilized in a variety of situations to help make a contribution to organizational success.
Finally, the HR department must have a practical approach to the design, development, and implementation of new human capital projects. An approach that focuses on theories and philosophical ideas may be perceived as not contributing to the organization.
Middle- and first-level managers are important to HR program success. Before discussing the techniques to improve support for programs, it is appropriate to present the concept of ideal management support. Ideal support occurs when a manager reacts in the following ways to an HR program:
Volunteers personal services or resources to assist with HR programs
Encourages employees to participate in programs
Outlines expectations to direct reports about the HR program, detailing the objectives of the program
Reinforces the HR program in a variety of ways
Helps determine the results achieved from the HR program
Recognizes employees who participate in, or achieve success with, the HR program
Provides unsolicited positive comments about the success of HR programs
This level of support for a program represents utopia for the HR staff. Support is necessary before and after the program is implemented. Effective actions prior to a program can significantly influence the success of the program.
The degree to which managers support programs is based on the value they place on human capital and the success of specific HR programs. To improve management support, the HR staff must routinely show the results achieved from programs, help managers assume more responsibility for HR, explore ways to increase the level of involvement, and teach them about the value of human capital. One key strategy for accomplishing this is a special workshop for managers, described later in this chapter.
The importance of management reinforcement as an integral part of the HR process cannot be overstated. Too often participants—the key stakeholders involved in programs—have roadblocks to utilizing an HR program successfully. Faced with these obstacles, even some of the best participants fail to be involved with or make the program succeed. In fact, regardless of how well the program is designed, unless it is reinforced, most of the effectiveness is lost. This reinforcement should come from the immediate manager of the participant.
The reason for this problem lies in the nature of HR programs. When faced with a new process, participants experience a frustrating period of resistance. The results are not generated and this period is difficult for sponsors. Without proper reinforcement participants may abandon the program. However, the individuals who persist are successful and often rewarded for their success.
A participant’s immediate manager is the primary focus for reinforcement efforts. The manager can exert influence on the participant’s behavior by providing reinforcement in the following ways:
Helping the participant diagnose problems to determine if the program is needed
Discussing possible alternatives for handling specific situations, acting as a coach
Encouraging the participant to use the HR program
Serving as a role model for the proper utilization of the program
Giving positive rewards to the participant when the program is successfully implemented
Each of these activities reinforces the objectives of the HR program. In some organizations, managers are required to provide this level of reinforcement. Job expectations and job descriptions are adjusted to reflect reinforcement processes. In other organizations, reinforcement is encouraged and supported from the top executives. Managers learn how to provide reinforcement in special workshops, such as the one described later in the chapter.
Management involvement in human resources is not new. Organizations have practiced it successfully for many years. Management should be involved in most of the key decisions of the HR department. Although almost as many opportunities exist for management’s involvement in HR as there are steps in an HR cycle, management input and active participation generally only occur in the key steps and most significant programs. The primary vehicles for obtaining management involvement are presented here.
Advisory Committees. Many organizations develop committees to enhance key management involvement in the HR process. These committees, which act in an advisory capacity to the department, may have other names, such as councils or people systems boards. As shown in table 11-3, committees can be developed for individual programs, specific functions, or multiple functions.
Table 11-3. Types of committees.
Responsible for:
Examples:
Individual Program
All-Inclusive Workplace Committee
Account Executives’ Development Committee
New Employee Orientation Committee
Employee Feedback Committee
Specific Function
Customer Service Committee
Technical Staffing Committee
Intellectual Property Committee
Safety and Compliance Committee
Multi-functions
Management Development Committee
Employee Benefits Committee
Employer of Choice Committee
Employee Retention Committee
HR Task Forces. Another potential area for management involvement is a task force. The task force consists of a group of employees, usually management, who are charged with the responsibility for developing an HR program. Task forces are particularly useful for programs beyond the scope of HR staff capability. Also, a task force can considerably reduce the time required to develop a new HR program. At Vulcan Materials Company, the nation’s leading producer of construction aggregates, a group of sales managers participated in the design of a new variable pay program for the sales team. This task force was charged with the design and implementation of the new program.
Managers as Experts. Managers may provide expertise for program design, development, or implementation. Subject matter experts (SMEs) provide a valuable and necessary service while developing attachment to the program. At Whirlpool, a manufacturer of major appliances, the traditional assembly line was replaced with a work cell arrangement. The expertise of the managers was critical to the program’s design and ultimate success. At Nextel Communications, a wireless telecommunications company, managers participated in a diversity awareness program designed for all employees. This participation was helpful to achieve success with the program.
Managers as Participants. Managerial participation can range from participating in an HR program to auditing a portion of a program designed for their immediate employees. However, participation may not be feasible for all types of programs, such as specialized programs designed for only nonmanagement employees.
Program Leaders. A powerful way to enhance management involvement is to use them in HR program leadership roles. Facilitation, coordination, and leadership build ownership. The business press is laced with examples of executive involvement in HR programs. Some executives, for example, ensure that diversity initiatives are fully implemented or that employee retention is appropriately addressed. The former CEO of General Electric, Jack Welch, made an effort to devote a specific number of days each month at GE’s Management Institute. His involvement went beyond the welcome, overview, and congratulation presentation to include actually teaching part of the process. Bill Gates, Microsoft’s chairman, gets involved in the executive portion of the new employee orientation. The important part is that involvement as a leader of a particular process, program, or initiative provides visibility and role modeling that is necessary to enhance overall commitment in any organization.
Involving Managers in Human Capital Measurement. The evaluation of programs is another area in which managers can be involved. Although management is sometimes involved in assessing the ultimate outcome of HR programs, this process focuses directly on measurement at different times. Several ways in which managers may be involved in HR evaluation are to:
Invite managers to participate in focus groups about HR program success.
Ask managers to collect application and impact data.
Review program success data with managers.
Ask managers to assist with the interpretation of data.
Convene managers to share overall results.
Ask managers to communicate data, including ROI information.
Involving managers, and showing them how HR evaluation can work, increases commitment and support for HR and evaluation.
New Roles for Managers. The approaches described above are primary ways to involve managers in HR programs when the focus is on achieving results. Other ways are available including changes in the role or job description for HR managers. Some organizations define new HR roles for managers in an organization. In these roles, managers:
Participate in the assessment of original need for the HR program.
Facilitate HR programs and processes.
Serve as subject-matter experts in the design and development of HR programs.
Reinforce HR programs and their applications.
Evaluate HR programs at the application and impact level.
Drive actions for improvement.
Ideally, managers should assume these roles, and the HR staff should seek input and communicate results frequently.[1]
Collectively, these actions will increase support and commitment, as well as enhance input from each HR role. Table 11-4 shows the opportunities for management involvement in the various steps of the HR program design, development, implementation, and evaluation cycle. The remainder of this book describes the three most critical strategies for improving support and commitment. Other strategies are available in other resources.[2]
Table 11-4. Manager involvement opportunities.
Steps in the HR Results-Based Process | Opportunity for Manager Involvement | Most Appropriate Strategy |
|---|---|---|
Conduct Analysis | High | Task Force |
Development Measurement/Evaluation System | Moderate | Advisory Committee |
Establish Program Objectives | High | Advisory Committee |
Develop HR Program | Moderate | Task Force |
Implement HR Program | High | Program Leader |
Monitor HR Costs | Low | Expert Input |
Collect/Analyze Data | Moderate | Expert Input |
Interpret Data/Draw Conclusions | High | Expert Input |
Communicate Results | Moderate | Manager as Participant |
Building a partnership with key managers is one of the most powerful ways to increase management involvement and support. A partnership relationship can take on several different formats and descriptions. In some organizations, the relationship is informal, loosely defined, and ill-structured. By design, these organizations do not want to develop the relationship to a formal level but continue to refine it informally. In other organizations, the process is formalized to the extent that specific activities are planned with targeted individuals, all for the purpose of improving relationships. The quality of the relationship is discussed and assessments are typically taken to gauge progress. Still, in other situations, the process is very formal, where individuals are discretely identified for relationship improvement and a written plan is developed for each individual. Sometimes a contract is developed with a particular manager. Assessments are routinely taken, and progress is reported formally. Although these three levels of formality are distinct, an HR department can move through all these different levels as the partnering process matures and achieves success.
For relationship building to be effective, the HR staff must take the initiative to organize, plan, and measure the progress. The staff must want to develop the relationship. Rarely will key managers approach the HR staff to nurture these relationships. In some organizations, key managers do not want to develop relationships because of the concern about the time it may take to work through these issues. They may see no need for the relationship and may consider it a waste of time. This requires the HR staff to properly assess the situation, plan the strategies, and take appropriate actions, routinely and consistently, to ensure that the process is working.
For this process to be effective, the executive/manager responsible for HR must take the lead and involve others as appropriate and necessary. The direction must come from the top. Although this responsibility cannot be delegated, it can involve many other members of the HR staff, if not all. Two critical issues are involved: the first, and perhaps most important, deals with the specific steps necessary to develop a partner relationship; second, a set of principles must be followed when building and nurturing the relationship.[3]
Several steps are suggested to develop an effective partnership:
Assess the current status of partnership relationships. The first course of action is to determine the current condition. Table 11-5 shows some of the key issues involved in determining current status. It is recommended that this instrument be completed by key HR staff members to determine present partnering status and use it to plan specific issues and activities. In essence, this instrument provides information for planning and provides an opportunity to determine progress in the future. A total score of twenty or less on the table 11-5 assessment indicates that a partnership is nonexistent and the potential for partnership development is weak. If the score is in the twenty-one to fifty range, several problems exist with the partnership or anticipated partnership. Some progress can be made, but it will be difficult. If the score falls in the fifty-one to sixty range, the partnership is working effectively or has great potential for working. A score of sixty-one or better reflects an outstanding partnership relationship or a great potential for one. By providing the appropriate up-front attention, it may be possible to assess the potential before spending a significant amount of time on the relationship.
Table 11-5. Assessment of partnership.
Assessment of Partnership Potential for Success
Scale
1 = strongly disagree
2 = disagree
3 = neither agree nor disagree
4 = agree
5 = strongly agree
Circle One
Choice of partners
(Is this a strategically valuable partner for HR?)
1
2
3
4
5
Willingness to become a partner
(Does this party desire to become your partner?)
1
2
3
4
5
Trust
(Is there an adequate level of trust or the possibility of achieving it?)
1
2
3
4
5
Character and ethics
(Does this partner operate in an ethical manner?)
1
2
3
4
5
Strategic intent
(Are the long-term aspirations of both partners compatible?)
1
2
3
4
5
Culture fit
(Do the partners come from compatible cultures?)
1
2
3
4
5
Common goals and interests
(Are the goals and interests of the partners shared fairly equally?)
1
2
3
4
5
Information sharing
(Can both partners freely share information?)
1
2
3
4
5
Risks shared fairly
(Are the risks to both partners fairly equal?)
1
2
3
4
5
Rewards shared fairly
(Are the rewards and potential gains for both partners fairly equal?)
1
2
3
4
5
Resources adequately matched
(Do both partners have adequate resources to support the relationship?)
1
2
3
4
5
Duration mutually agreed upon as long term
(Do the partners agree on a long-term partnership?)
1
2
3
4
5
Commitment to partnership by both
(Is there a fairly broad level of commitment by both partners?)
1
2
3
4
5
Value given and received
(Do both partners have similar perceptions of the value of what the other brings to the partnership?)
1
2
3
4
5
Rules, policies, and measures
(Do these key issues reinforce the desired partnership behavior?)
1
2
3
4
5
Total Score: _________
Source: Adapted from John L. Mariotti, The Power of Partnership (Cambridge: Blackwell Publishers, 1996).
Identify key individuals for a partnership relationship. Building a partnership works best when it clearly focuses on a few individuals. Too many individual targets could dilute the effort.
Learn the business. An effective partnership relationship cannot be developed unless the HR staff member understands the operational and strategic issues of the organization. It is absolutely essential for this understanding to be developed!
Consider a written plan. The process is often more focused when it is written with specific details for each manager. A written plan enhances commitment.
Offer assistance to solve problems. The HR staff supports managers and provides assistance to solve, or prevent, problems. Managers are usually seeking help with problems.
Show results of programs. When results are achieved, quick communication with partners is important to demonstrate to them how a program achieved success. In addition, the results achieved from other programs, where partners may not be directly involved, should be communicated to these key managers.
Publicize partners’ accomplishments and successes. At every opportunity, give proper credit to the accomplishments of the partner. The HR staff should not take credit for successes.
Ask the partner to review the needs analysis. Whenever a needs analysis is requested or undertaken as part of the development of a new HR program, the partner should review the information and confirm, or add to, the analysis. This, of course, assumes the partner is knowledgeable about the issues in the analysis.
Have the partner serve on an advisory committee. A helpful approach to provide guidance and direction to the HR staff or a particular program is to establish an advisory committee. If appropriate and feasible, the partner should be invited to serve on the committee.
Shift responsibility to partner. Although the success of HR programs rests with stakeholders who have major responsibilities, the primary responsibility for HR must lie with the management group. When it is appropriate and feasible, some responsibility should be transferred to the partner, if the partner is prepared for the responsibility.
Invite input from the partner about key plans and programs. Routinely, partners should be asked to provide information on issues such as analysis, program design, use of new technology, program roll out, and follow-up evaluation.
Ask partner to review program objectives, content, and implementation. As a routine activity, these managers should review objectives, content, and planned implementation for each new program or major redesign.
Invite partner to coordinate a program or portion of a program. If appropriate, the partner should be asked to help organize, coordinate, or implement a part of a program. It is important to do this without “dumping” work on the partner, to be sensitive to the partner’s other tasks and priorities.
Review progress and replan strategy. Periodically the partnership process should be reviewed to check progress, adjust, and replan the strategy. Continuous process improvement should be the focus.
As the specific steps listed above are undertaken, it is important to preserve the nature and quality of the relationship with a partner. Several essential principles serve as an operating framework to develop, nurture, and refine this critical relationship. Table 11-6 lists key principles that should be integrated into each step.
Table 11-6. Key principles when developing a partnership relationship.
Partnering Principles |
|---|
|
Another effective approach to secure increased management involvement and support for human resources is to conduct a workshop for managers. Varying in duration from one-half day to two days, this practical workshop, “The Manager’s Role in Human Capital Management,” shapes critical skills and alters perceptions about human capital. Managers leave the workshop with an improved perception of the impact of human capital and a clearer understanding of their roles in the HR programs. More important, they often have a renewed commitment to make HR work in their organization. This is the most critical workshop offered by the human resource staff.
Because of the importance of this topic in management development, this workshop should be required for all managers unless they have previously demonstrated strong support for the HR function. It is essential for senior executives to encourage and support this workshop and, in some cases, take an active role in conducting it. To tailor the workshop to specific organizational needs, a brief needs assessment may be necessary to determine the specific focus and areas of emphasis in the workshop.
While the target audience for this workshop is usually middle-level managers, the group may vary with different organizations. In some organizations, the target may be first-level managers; in others, the target may be second-level managers. Three important questions help determine the proper audience:
Which group has the most direct influence on the HR function?
Which management group is causing serious problems with its lack of support?
Which group must understand more about human capital so they can influence HR program success?
The answers to these questions often point to the middle-level managers.
Ideally, this workshop should be conducted early in the management development process before nonsupportive habits are developed. When implementation is planned throughout the organization, it is best to start with higher-level managers and work down in the organization. If possible, a version of the program should be part of a traditional management training program provided to new team leaders when they are promoted into managerial positions.
Checklists, exercises, case studies, and skill practices are all helpful in this workshop to illustrate and reinforce concepts. As with any management training program, active involvement is essential. Case studies help illustrate the problems of lack of support for HR. The material used in this workshop must be practical and easy to understand by the management group. It must be free of typical HR jargon. It should be targeted to the specific needs of managers and presented from the perspective of the manager. “Nice to know” topics should be avoided.
Because of its importance, the most effective facilitators, who have credibility with the management team, must conduct this program. Sometimes external consultants, who enjoy an excellent reputation in the HR field, are used in the workshop.
The program can be developed in separate modules focusing on a particular issue related to support and commitment (or lack of it). Five modules are recommended.
The Importance of Human Capital. After completing this module, managers should perceive human capital management as a critical issue in the organization and be able to describe how specific HR programs and projects contribute to strategic and operational objectives. With this module, managers become convinced that HR is a mainstream responsibility that is gaining in importance and influence in the organization. Data from the organization is presented to show the full scope of human capital. The strategy or strategies used to set the investment level is explained following the options in part one of this book. Tangible evidence of top management commitment is presented in a form of memos, directives, and policies signed by the CEO or other appropriate top executives. The presence of top executives is better.
The Impact of Human Capital Programs. After completing this module, managers will be able to understand the impact of human capital from a top-level view (macro) and identify the steps to measure the impact of specific HR programs on important output variables (micro). Reports and studies are presented, showing the impact of HR programs, using measures such as productivity, quality, cost, cycle times, and customer satisfaction. If internal reports are not available, success stories or case studies from other organizations can be utilized. This module is essentially a summary of chapters 6 and 7, tailored to the organization with customized data.
Humans Resources Programs and Processes. After completing this module, managers should be able to describe the HR function in their organization and understand each critical step of the HR cycle. Managers usually will not support activities or processes that they do not fully understand. During this module, managers are made aware of the effort that goes into developing an HR program and their role in each step of the process. A short case, illustrating all the steps, is usually included in this module.
Responsibility for Human Resources. After completing this module, managers should be able to list their specific responsibilities for human resources. Defining who is responsible for formal HR programs is important to the success of the process. The human capital scorecard, developed in chapter 10, is presented and discussed, highlighting manager responsibilities for specific measures. Managers see how they can influence HR program results and the degree of responsibility they must assume in the future. A case study is utilized to illustrate the consequences when responsibilities are neglected or when there is failure to follow-up by managers.
An exercise in this module reveals the perceptions of support offered by managers when compared to the level of support perceived by their direct reports. Data from a follow-up study is presented to show the profile of manager behavior after a participant is involved in a formal HR program. The same profile of behavior is collected from the managers and compared to the input from participants. Table 11-7 shows the two sets of actual data from a follow-up on a leadership development program at Nortel Networks designed for first-level team leaders (participants). There is a marked difference in manager behavior as perceived by the participant who was involved in the program and the manager’s own perception of actual support provided. These differences are typical. This exercise emphasizes several key points:
Manager support is not as effective and helpful as managers typically perceive it to be.
Participants usually perceive manager support as being ineffective.
Management support is an extremely important issue in the success of HR programs.
Table 11-7. The contrast of perceptions of management support for leadership development.
Participant responses concerning manager support:
My manager told me to forget what I’ve learned; it doesn’t work here
12%
My manager said to be very careful about using the material; it may not work here
22%
My manager said nothing
53%
My manager said that I should (could) try to use what I’ve learned
8%
My manager said that he/she expects me to use this material
5%
My manager coached and supported me through the application of the material
0%
Manager responses concerning his/her support:
I told him/her to forget what was learned; it won’t work here
0%
I told him/her to be very careful about using the material; it may not work here
0%
I said nothing
4%
I told him/her to try (consider trying) to use what was learned
11%
I said that I expected him/her to use the material
36%
I coached and supported him/her through the application of the material
49%
Active Involvement. One of the most important ways to enhance manager support for HR is to get them actively involved in the process. After completing this module, managers will commit to one or more ways of active involvement in the future. Table 11-8 shows twelve ways that one company involved management. The information in the table was presented to managers in the workshop with a request for them to commit to at least one area of involvement. After these areas are fully explained and discussed, each manager is asked to select one or more ways in which he or she will be involved in HR in the future. A commitment to sign up for at least one involvement role is required. If used properly, these commitments are a rich source of input and assistance from the management group.
Table 11-8. Management involvement in human resources.
Although the workshop format and presentation may vary, here are some common variations:
The program is held off-site to take participants away from job pressures and distractions. This can help them to focus directly on the workshop material without interruption.
Prework is required. Having participants complete the survey in appendix A and read cases in advance can be helpful.
Cross-functional groups are used so that participants see the perspectives of HR from different areas in the organization.
The workshop is an excellent opportunity to present impact studies or other data that show the business results from HR.
Reference materials are provided. Several books may be appropriate for the workshop and a reading list is usually provided. Although the books may not be read completely or even referenced regularly, managers feel some comfort that the material is there, if needed.
Top management should be involved in this workshop. However, it is the challenge of the senior human resources manager to convince top executives to support it. Three approaches should be considered:
Discuss and illustrate the consequences of inadequate management support for human capital. The statistics in wasted time and money are staggering.
Show how current support is lacking. A recent evaluation of an HR program will often reveal the barriers to successful implementation. Lack of management support is often the primary reason, which brings the issue close to home.
Demonstrate how money can be saved and results can be achieved by having managers more involved in the HR process.
The endorsement of the top management group is important. In some organizations, top managers attend the program to explore first hand what is involved and what they must do to make the workshop successful and improve their support for, and involvement with, human capital management. At a minimum, top management should support the program by signing memos describing the program or by approving policy statements for required participation.
The success from this workshop should appear in a variety of forms because many of the barriers to implementing successful HR programs are caused by a lack of management support. There should be increases in supportive actions, measured in follow-up surveys, where the extent and level of management support is collected. The individual manager commitments for active involvement are tangible evidence of success, since the involvement can be measured by the follow through on the preplanned actions. Also, participation in all HR programs should improve, where participation is voluntary. When managers fully understand the HR process and their role in it, they have a “renewed” determination to make it work. Manager perception toward HR should be more positive as measured on a postprogram assessment, using the same instrument as the preprogram assessment—appendix A.
The best way to get a manager’s attention on an issue is to link compensation to it. Therefore, an effective third strategy is to link manager bonuses to human capital measures. While managers might not agree with the construction of the metrics or the measures as targets, managers will become more aware of the company’s people goals. Survey data from the Conference Board suggests that putting human capital measures in bonus plans correlates with successful links between business strategies and certain people measures.[4] This is still a minority practice, with only 39 percent of firms rewarding managers systematically based on human capital measures, as shown in figure 11-2.
Source: Research Report R-1342-03-RR (New York: The Conference Board, 2003), p. 26.
Figure 11-2. Embedding metrics in bonus plans.
A primary difficulty in getting managers to buy-in to human capital measures is their relatively minor participation in the selection of measures, which is the situation at most companies. Few managers understand the measures well enough to improve on their own performance. However, if managers could negotiate how measures are set within their bonus plans, they might be more willing to accept them. The workshop described earlier and concrete action plans might help both generate greater acceptance among managers and give HR more confidence in the ability of managers to use the measures.
There is some reason to be optimistic. Only 15 percent of managers think that human capital measures in bonus plans make no difference in the way managers allocate human capital investments and manage their employees, as shown in figure 11-3.
Source: Research Report R-1342-03-RR (New York: The Conference Board, 2003), p. 26.
Figure 11-3. Impact of human capital measures in bonus plans.
Business leaders at American Express have long had a significant incentive to take people measures seriously. Up to 25 percent of their annual bonus depends on an employee-satisfaction level scored through the annual employee survey. Bonus scores were calculated using an algorithm that rewarded not only high overall scores, but also year-over-year improvement and lack of disparity between scores for males and females and majority and minority groups.[5]
These measures were refined when the algorithm was further developed to reward year-over-year improvements in units scoring in the bottom 10 percent of the distribution. In addition, the bonus weighting for the survey score was reduced to 15 percent. This was done to allow retention measures to be included at a 10 percent weighting. The company’s retention measures and standards focus on high-performing managers and customer-facing employees (for example, customer service, sales). The HR functions are currently working on a variety of other talent measures that may eventually be included in the bonus calculation.
Of course, the entire effort will be seen as window dressing if the weighting assigned to these measures is not significant enough to focus managers’ attention. Ideally, human capital measures should be audited both internally and externally so managers do not manipulate the results. If creative accounting is possible with well-established financial control measures, then there is an even greater risk that managers could alter results with innovative people measures.
This chapter explored the critical influence of the management group on the success of human capital management and the HR function. It is impossible for an HR program to be successful without the positive and supportive influence of the management group. The target groups for action include the top managers who must demonstrate their commitment to HR through resource allocation. Middle managers, who support HR in a variety of ways, are ideal targets for partnership relationships with the HR staff. First- and second-level managers must support and reinforce the objectives of the HR programs. Without this reinforcement, programs will not be as successful as they should be. This chapter outlined a variety of strategies to work effectively with all of these groups, with specific emphasis on three key strategies: developing partnerships, conducting a special workshop for managers, and tying bonus plans to human capital measures. These critical strategies should have a very high payoff of increased commitment and support.