Organisational Culture Check List
Boundaries
· Who is a member of organisation
m Agency staff?
m Casual?
m Customers?
m Departed staff?
m Family members of staff?
m Permanent staff only?
m Redundant staff?
m Retired staff?
m Temps?
Change
· Perceived as continuous?
· Sense of stability?
Communications (see also “Words”)
· Attitude towards
· Frequency
· How are strangers greeted
· Style
· Use of language
· Preferred modes?
· Most common modes?
· Written or verbal?
m E-mail or memo?
m Telephone or face to face?
· Acceptable ways of offering opinion
m Impassioned arguing?
m Rational debate?
m Shouting acceptable?
Deviancy
· Is non-normative behaviour admired or deprecated?
· Are ‘fools’ and ‘tricksters’ celebrated?
m Formally or informally?
Dress code
· Formal or informal?
· How rigidly enforced
m Are there ‘dress down’ days? How are they treated?
m How do people dress for off-site meetings?
· What differentiators—how many classes?
m for example:
m Uniforms for security
m Casual for operations
m Two piece suits for middle managers
m Three piece suits for senior managers
Fixtures & fittings
· Office furniture—expensive or cheap?
· Differences due to status or function?
m Do managers have chairs with arms and high backs?
m Are some areas carpeted? Why?
· Decor—bright? Dowdy?
· Level of maintenance and decorative order
Food
· Number and structure of canteens
· Use of food in meetings
· Working lunches
· Out of office activities
· Attitudes to alcoholic drinks
m Wine for managers, beer for workers?
m Wine for managers, nothing for workers?
m No alcohol on premises?
Groups and networks
· Formal or informal
· Rumour & gossip rate
· Sanctioned or illegitimate
· Strength of grapevine
History
· Attitudes to history
· Attitudes to past folk heroes & villains
· Lots of stories? Told in public or told in corridors?
· Organisation myths
Home and work
· Attitudes towards child care
· Role of spouse
· What is the policy towards domestic crises?
· How are domestic crises actually dealt with?
m More flexible than policy?
Meetings
· How are new members (employees) assimilated
· How often
· Setting
· Shape of table
· Who attends
· Who sits where
· Who speaks
Money
· Openness?
m Salary levels known? Much talk about salary?
m Business figures widely known?
· Degree of thrift
m All letters first class?
· Expenses
m Paid easily?
m Much querying?
Rewards and recognition
· Basis of reward
m Individual-based
m Team-based
m Organisation-based
· Indicators of status—grade or salary?
· Private bonus system
· Public reward?
m Titles
m Salesman of month, etc.
Space, use of
· Allocation of office space
m Decor an indicator of social structure?
m Location an indicator of social structure?
m e.g. ‘top’ management at top of building?
m Size an indicator of social structure?
· Indicators in open plan:
m Higher partitions?
m Some offices?
· Labelling—how easy is it for stranger to find a specific person
m Analogue of ease of entry to organisation?
· Mapping of function or process to space?
· Open plan vs. individual offices
· Public vs private space:
m Use of toilets
m “Executive washroom”?
m Shared toilets?
· State of building—clean, in need of decoration, etc
Time
· Attitudes to time
m Busy, busy or relaxed?
· Attitude to past and future
m Emphasis on planning
· Punctuality—virtue or vice?
Words
· Jargon
m Indicator of boundary strength
m Subgroups using jargon?
· Modes of address
m Different to clients?
m First name to all?
m Mr upward, first name downward?
m Sir?
m Terms of address; terms of reference
m Treatment of women different from men?
· Sexual innuendo?
m Harassment?
m Pinups?
m Sexual joking?
· Swear words?
Copyright :
New Paradigm Consulting
Organisation Consultancy & Development
Richard Seel, Seabrink, Beach Road, Bacton Green, Norfolk NR12 0EP
Phone/fax: 01692 650 706 http://www.new-paradigm.co.uk richard@new-paradigm.co.uk
Thursday, February 15, 2007
HR Scorecard - Measures
HR Key Performance Indicators
Frequently used HR Key Performance Indicators include:
FTE = full time employees
Revenue per Employee (FTE)
Assets per FTE
Training Hours per FTE
Training Costs per FTE
HR Department Cost per FTE
FTEs per HR Department FTE
Acceptance Rate
Average Cost per Hire
Absence Rate
Turnover Rate
Resignation Rate
Human Investment Ratio
Compensation & Benefits/Revenue
Average Remuneration
Time taken per recruitment
Cost per recruitment
THE CHOICE OF HR KPI WILL VARY FROM YEAR TO YEAR,
SUBJECT TO COMPANY'S
-STRATEGIC PLANNING
-CORPORATE STRATEGIES
-CORPORATE OBJECTIVES
WHICH IN TURN AFFECTS THE HR'S
-HR STRATEGIC PLANNING
-HRM STRATEGIES
-HRM OBJECTIVES
-------------------------------------------------------
The HR Balanced Scorecard is the measurement tool. It provides the management with a tool and a process to measure the performance of people practices and the HR function from multiple perspectives:
1. Strategic Perspective — the results of strategic initiatives managed by the HR group. The strategic perspective focuses on the measurement of the effectiveness of major strategy-linked people goals. For instance, the business strategy called for major organizational change programs as the business faced major restructuring and multiple mergers and acquisitions. In this context, the organization’s change management capability will be a key factor in the success or failure of its execution. Therefore, measuring the ability of the business to manage change effectively is the core measure of the effectiveness of HR and will be a key strategic contribution to the future success of the business.
EXAMPLES
-change management capability of the organization
-organization compensation and benefit package with respect market rate.
-organization culture survey
-HR BUDGET / ACTUAL
-HR COSTS BENCHMARK EXTERNALLY
-HR annual resource plan.
-skills/ competency level
etc
2.Operational Perspective — the operational tasks at which HR must excel. This piece of the Balanced Scorecard provides answers to queries about the effectiveness and efficiency in running HR processes that are vital to the organization. Examples include measuring HR processes in terms of cost, quality and cycle time such as time to fill vacancies.
EXAMPLES
-time taken to fill vacancies
-cost per recruitment promotions
-absenteeism by job category
-accident costs
-accident safety ratings
-training cost per employee
-training hours per employee
-average employee tenure in the company
-lost time due to injuries
-no. of recruiting advertising programs
-no. of employees put through training.
-turnover rate
-attrition rate
etc
3.Financial Perspective — this perspective tries to answer questions relating to the financial measures that demonstrate how people and the HR function add value to the organization. This might include arriving at the value of the human assets and total people expenses for the company. HR
EXAMPLES
-compensation and benefits per employee
-sales per employee
-profit per employee
-cost of injuries
-HR expenses per employee
-turnove cost
-employee '' workers compensation costs''
etc
4.Customer Perspective — this focuses on the effectiveness of HR from the internal customer viewpoint. Are the customers of HR satisfied with their service; are service level agreements met; do the customers think they can get better service elsewhere? Conducting an HR customer survey might typically arrive at this.
EXAMPLES
-employee perception of the HRM
-employee perception of the company , as an employer
-customer/market perception of the company, as an employer.
All four components of the scorecard are used to define and measure the effectiveness of people-management activities and how the HR function executes them. This provides a strategic measurement and management process to show the connection between a company’s business strategies and goals and its HR strategies, activities, and results. The Balanced Scorecard can provide an ideal approach to measure the contribution that human resource management makes to business success.
With the HR Balanced Scorecard in place, it can assist organizations to easily monitor the workforce indicators that are key to their business success. Such solutions enhance HR’s ability to provide counsel to line management and deliver results that make a difference to the achievement of their goals and strategy and thereby to shareholders.
The apparent and inherent values that the HR Balanced Scorecard brings include:
Measurement provides the data and facts to support business decisions, giving credibility to HR recommendations and initiatives;
Collecting and using data to make decisionsregarding retaining and motivating the
workforce, giving the organization a competitive advantage in the marketplace;
The right mix of lead and lag measures helps the business assess its strategic
alignment and progress towards its objectives;
HR will be proactive in identifying potential improvements and bringing suggestions
to the business that improve bottom-line results; and
A business and linked measurement framework focuses activity on those tasks
that contribute to organizational success. This process lifts the role of HR from being viewed purely as a cost centre to that as strategic business partner.
Frequently used HR Key Performance Indicators include:
FTE = full time employees
Revenue per Employee (FTE)
Assets per FTE
Training Hours per FTE
Training Costs per FTE
HR Department Cost per FTE
FTEs per HR Department FTE
Acceptance Rate
Average Cost per Hire
Absence Rate
Turnover Rate
Resignation Rate
Human Investment Ratio
Compensation & Benefits/Revenue
Average Remuneration
Time taken per recruitment
Cost per recruitment
THE CHOICE OF HR KPI WILL VARY FROM YEAR TO YEAR,
SUBJECT TO COMPANY'S
-STRATEGIC PLANNING
-CORPORATE STRATEGIES
-CORPORATE OBJECTIVES
WHICH IN TURN AFFECTS THE HR'S
-HR STRATEGIC PLANNING
-HRM STRATEGIES
-HRM OBJECTIVES
-------------------------------------------------------
The HR Balanced Scorecard is the measurement tool. It provides the management with a tool and a process to measure the performance of people practices and the HR function from multiple perspectives:
1. Strategic Perspective — the results of strategic initiatives managed by the HR group. The strategic perspective focuses on the measurement of the effectiveness of major strategy-linked people goals. For instance, the business strategy called for major organizational change programs as the business faced major restructuring and multiple mergers and acquisitions. In this context, the organization’s change management capability will be a key factor in the success or failure of its execution. Therefore, measuring the ability of the business to manage change effectively is the core measure of the effectiveness of HR and will be a key strategic contribution to the future success of the business.
EXAMPLES
-change management capability of the organization
-organization compensation and benefit package with respect market rate.
-organization culture survey
-HR BUDGET / ACTUAL
-HR COSTS BENCHMARK EXTERNALLY
-HR annual resource plan.
-skills/ competency level
etc
2.Operational Perspective — the operational tasks at which HR must excel. This piece of the Balanced Scorecard provides answers to queries about the effectiveness and efficiency in running HR processes that are vital to the organization. Examples include measuring HR processes in terms of cost, quality and cycle time such as time to fill vacancies.
EXAMPLES
-time taken to fill vacancies
-cost per recruitment promotions
-absenteeism by job category
-accident costs
-accident safety ratings
-training cost per employee
-training hours per employee
-average employee tenure in the company
-lost time due to injuries
-no. of recruiting advertising programs
-no. of employees put through training.
-turnover rate
-attrition rate
etc
3.Financial Perspective — this perspective tries to answer questions relating to the financial measures that demonstrate how people and the HR function add value to the organization. This might include arriving at the value of the human assets and total people expenses for the company. HR
EXAMPLES
-compensation and benefits per employee
-sales per employee
-profit per employee
-cost of injuries
-HR expenses per employee
-turnove cost
-employee '' workers compensation costs''
etc
4.Customer Perspective — this focuses on the effectiveness of HR from the internal customer viewpoint. Are the customers of HR satisfied with their service; are service level agreements met; do the customers think they can get better service elsewhere? Conducting an HR customer survey might typically arrive at this.
EXAMPLES
-employee perception of the HRM
-employee perception of the company , as an employer
-customer/market perception of the company, as an employer.
All four components of the scorecard are used to define and measure the effectiveness of people-management activities and how the HR function executes them. This provides a strategic measurement and management process to show the connection between a company’s business strategies and goals and its HR strategies, activities, and results. The Balanced Scorecard can provide an ideal approach to measure the contribution that human resource management makes to business success.
With the HR Balanced Scorecard in place, it can assist organizations to easily monitor the workforce indicators that are key to their business success. Such solutions enhance HR’s ability to provide counsel to line management and deliver results that make a difference to the achievement of their goals and strategy and thereby to shareholders.
The apparent and inherent values that the HR Balanced Scorecard brings include:
Measurement provides the data and facts to support business decisions, giving credibility to HR recommendations and initiatives;
Collecting and using data to make decisionsregarding retaining and motivating the
workforce, giving the organization a competitive advantage in the marketplace;
The right mix of lead and lag measures helps the business assess its strategic
alignment and progress towards its objectives;
HR will be proactive in identifying potential improvements and bringing suggestions
to the business that improve bottom-line results; and
A business and linked measurement framework focuses activity on those tasks
that contribute to organizational success. This process lifts the role of HR from being viewed purely as a cost centre to that as strategic business partner.
Organization Capital
Organization capital is typically built upon four components:
Culture: All employees are aware of and internalize the mission, vision, and core values needed to execute the strategy.
Leadership: Qualified leaders are available at all levels to mobilize the organization toward its strategy.
Alignment: Individual, team, and departmental goals and incentives are linked to the attainment of strategic objectives.
Teamwork: Knowledge (with strategic potential) is shared throughout organization
Three different kinds of behavior changes are consistently highlighted for creating value:
§ Focus on the customer
§ Be creative and innovative
§ Deliver results
Four additional behavior changes are associated with executing strategy:
§ Understand the mission, vision, and values
§ Create accountability
§ Communicate openly
§ Work as a team
performance improvement checklist based on the key aspects of this classic approach to organization development.
Organization Performance
How do your customers view your organization? How do your suppliers view your organization? How do your employees view your organization? Has your organization’s strategy been articulated and communicated? Does this strategy make sense given the current and anticipated external threats and opportunities? Where are the gaps in terms of internal strengths and capabilities? Have the desired outputs of the firm and the level of performance expected been determined and communicated? Are all necessary functions in place? Are there currently functions that are unnecessary or that could or should be outsourced? Does the formal organization structure support the strategy? Where does the formal structure inhibit efficiency of executing the strategy? Have all relevant functional goals been established? Is all relevant performance measured? Are resources properly allocated? Are the interfaces between departments being managed?
Process Performance
Have your key cross functional business process been identified? Are goals for key processes linked to customer requirements? Are goals for key processes linked to supplier capabilities and requirements? Are process goals linked to the organization requirements and objectives? Is this the most effective process for achieving the process goals? Have appropriate sub process goals been set? Are sufficient resources allocated to each key business process? Are the interfaces between process steps being managed?
Job Performer Performance
Are job outputs and standards linked to customer and process requirements? Are process requirements reflected specifically in the appropriate jobs? Are job steps in a logical sequence? Have supportive policies and procedures been developed? Is the job environment ergonomically sound? Do performers understand the outputs they are expected to produce and the standards they are expected to meet? Do performers have sufficient resources, clear feedback, signals, and priorities, and a logical job design? Are the performers rewarded for achieving the job goals? Do the performers have the necessary skills and know how to achieve the job goals? Do the performers have the physical, mental, and emotional capacity to achieve the job goals?
Goals and Objectives
Performance ‘systems’ require goal setting and measurement at the organization, process, sub-process, and job performer level. Test each goal and objective for simplicity, focus, and clarity in terms of: accurately reflecting organization values and operating principles; quantitative and measurable; customer oriented and customer driven; competitive advantage driven; easily understood - clear to all who have to understand and be guided by them. A classic frame of reference to examine the design of structure, process, and individual job definitions for integration and alignment - understand the business and the key business processes, focus on the customer, create a workable structure, set goals and measure what's important, and manage the linkages.
Culture: All employees are aware of and internalize the mission, vision, and core values needed to execute the strategy.
Leadership: Qualified leaders are available at all levels to mobilize the organization toward its strategy.
Alignment: Individual, team, and departmental goals and incentives are linked to the attainment of strategic objectives.
Teamwork: Knowledge (with strategic potential) is shared throughout organization
Three different kinds of behavior changes are consistently highlighted for creating value:
§ Focus on the customer
§ Be creative and innovative
§ Deliver results
Four additional behavior changes are associated with executing strategy:
§ Understand the mission, vision, and values
§ Create accountability
§ Communicate openly
§ Work as a team
performance improvement checklist based on the key aspects of this classic approach to organization development.
Organization Performance
How do your customers view your organization? How do your suppliers view your organization? How do your employees view your organization? Has your organization’s strategy been articulated and communicated? Does this strategy make sense given the current and anticipated external threats and opportunities? Where are the gaps in terms of internal strengths and capabilities? Have the desired outputs of the firm and the level of performance expected been determined and communicated? Are all necessary functions in place? Are there currently functions that are unnecessary or that could or should be outsourced? Does the formal organization structure support the strategy? Where does the formal structure inhibit efficiency of executing the strategy? Have all relevant functional goals been established? Is all relevant performance measured? Are resources properly allocated? Are the interfaces between departments being managed?
Process Performance
Have your key cross functional business process been identified? Are goals for key processes linked to customer requirements? Are goals for key processes linked to supplier capabilities and requirements? Are process goals linked to the organization requirements and objectives? Is this the most effective process for achieving the process goals? Have appropriate sub process goals been set? Are sufficient resources allocated to each key business process? Are the interfaces between process steps being managed?
Job Performer Performance
Are job outputs and standards linked to customer and process requirements? Are process requirements reflected specifically in the appropriate jobs? Are job steps in a logical sequence? Have supportive policies and procedures been developed? Is the job environment ergonomically sound? Do performers understand the outputs they are expected to produce and the standards they are expected to meet? Do performers have sufficient resources, clear feedback, signals, and priorities, and a logical job design? Are the performers rewarded for achieving the job goals? Do the performers have the necessary skills and know how to achieve the job goals? Do the performers have the physical, mental, and emotional capacity to achieve the job goals?
Goals and Objectives
Performance ‘systems’ require goal setting and measurement at the organization, process, sub-process, and job performer level. Test each goal and objective for simplicity, focus, and clarity in terms of: accurately reflecting organization values and operating principles; quantitative and measurable; customer oriented and customer driven; competitive advantage driven; easily understood - clear to all who have to understand and be guided by them. A classic frame of reference to examine the design of structure, process, and individual job definitions for integration and alignment - understand the business and the key business processes, focus on the customer, create a workable structure, set goals and measure what's important, and manage the linkages.
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