The HR processes to be developed

Even though, the HR processes vary a lot between units, it is possible to make some general recommendations considering them. Below there is a list of the general sugges- tions for development followed by development suggestions for every HR process sepa- rately.

General development suggestions considering all the HR processes

First, I would increase consistency of the HR processes between units by setting guide- lines at group level. These guidelines could be HR strategies, policies or practices as well as other forms of communication like process descriptions and workshops. The strategies, policies and practices should then flow from the group level to the other levels of the or- ganization. However, this doesn’t happen without an effort. It is not enough to have only guidelines or process descriptions, but there must be an implementation process for them.

Organizing trainings for HR professionals or involving them into the designing process might be steps in a process which help the implementation. Currently, there are some guidelines at group level, but not everybody is aware of them or HR managers don’t use them for other reasons. This results to the HR processes varying remarkably among the units. The recommendation is based on the analysed need at group level, and also for the wishes of HR professional within the organization.

Also the systematic approach, which is typical for the nature of HR processes (please see the definition of HR processes in Chapter 2.3.1), is missing. It seems that there are indi- vidual activities within processes which do not form a systematic entity. If it is wished to have a systematic approach to HR processes, which would deliver measurable, effective outcomes, it would be important to define the input and aimed output of a process. After, the steps should be defined. Besides, the process should be documented, followed-up, and measured. These are elements, which are missing at the moment but would be bene-

ficial to be created into activities which are currently in place. The HR processes in gen- eral should be monitored, accessed, measured and re-viewed.

Thirdly, it would be recommended to make the HR processes to be customized for differ- ent employee groups. According to the results, some of the units already did consider and some did not consider the differences between employee groups. As mentioned in the Chapter 2.3.4, Handy points out that different employee groups have different needs. That is why it is advisable to think whether there is a need to have variation between the HR processes based on the employee groups. For example, the recruitment process of a summer worker at the factory could be lighter and have less assessment tools used than the recruitment of a manager.

Also the roles and responsibilities between the HR and line managers should be defined.

Defining actors of a process and their responsibilities decreases hassle from the process and the need to look after people. This is also a matter of quality. In some HR processes, like in recruitment, there are steps which would require exceptional professionalism. For instance, the HR function could be responsible for the assessments.

Considering the HR processes individually, comparative analysis, with the theory present- ed in Chapter 2.3.4, provides more points for development.

Strategic HRM & HR planning

Strategic HRM is one of the key areas to develop at group level. Currently, there is no systematic approach to strategic HRM at group level. There is a HR strategy at group lev- el, but it is not really implemented. Therefore, I would recommend Halton Group to apply the process of strategic HR planning for its yearly plan in order to ensure that organiza- tional objectives are met through the development and implementation of a human re- source strategy. For example scenario thinking would a powerful tool to use. HR planning helps to predict the possible challenges and close personnel gaps. As mentioned in Chap- ter 2.3.4, HR planning process should include:

− External and internal investigation and analysis

− Forecasting to determinate an HR imbalance or ‘personnel gap’

− Planning, resourcing and retention activities

− Utilization and control through HR techniques, policies and IT.

Some units already had forecasting done through their workforce planning actions, and especially the retention activities were missing throughout the Group.

Recruitment & selection

In regard to recruitment and selection, the main area of improvement is to harmonize the steps, recruitment channels, ways to assess, HR’s role and the methods of communica- tion. This can be done by setting group level and local level strategies defining these is- sues. The Group should also agree on the assessment tools used in recruitment as one of the interviewees wished. Also communicating the process for line managers plays an im- portant role in the process besides the actions mentioned earlier in this chapter.

Induction

The induction process includes some elements, but not all are similar in all the countries.

In order to ensure, that everybody have equal basic knowledge when they start working and in order to create some basis for corporate culture, Halton Group should harmonize the elements of induction process and have a set “must-have” elements within the pro- cess. Some basic induction material for the company for example could be created at group level. When reflected with the theory, Halton Group could systematically use intro- duction for more developed purposes, such as employee engagement. It can be a tool to introduce the new employee to company’s culture, how the organization communicates and the other elements related to employee engagement as mentioned in Chapter 2.3.4.

Compensation & rewards

With the compensation and rewards, the process should be analysed more carefully and some standards set in order to ensure equal and fair treatment of employees. The Group could define what kind of measures should be in use. The guidelines existing should be communicated better for the units and revised in order to ensure they are up-to-date. This reward strategy could then be combined with a total rewards strategy in order to make an impact on performance by contributing to high-performance culture, one in which the val- ues, norms and HR practices of an organization combine to create a climate in which the achievement of high levels of performance is the way of life (Chapter 2.3.4). The new re- wards is focused on ‘sending the right message’ about performance and corporate values by financially rewarding contribution rather than seniority or status, which a goal Halton Group could consider of having as well. Group level rewarding, Halton Medals, were not so recognized by the units, so it would be beneficial to measure how efficient they are for employees performance or if the system could be renewed somehow. Benefits could stay

to be decided at the local level, but linking them with a bigger strategy, as wellbeing strat- egy, would be a thing to consider.

Learning & development

In learning and development, the focus of Halton Group is in training of the employees.

And the training needs are analysed based on the performance appraisals. However, in order to create an effective training process, it must have four parts: needs assessment, design, implementation and evaluation, which are effected by organizational vision mis- sion and values. Currently, the level on which the needs assessment, design, implementa- tion and especially evaluation are done, vary. All the countries don’t have a systematic approach towards the appraisal process as a tool for needs assessment. Actually, one of the interviewees stated, that the results of the reviews are not even analysed by anyone.

Also, if the company wishes to move towards a holistic talent management approach, it would be important to recognize other areas of learning and development. Organizational learning, knowledge management, individual learning and development, and leadership and management development are examples of the potential processes related to learn- ing and development (Chapter 2.3.4). Halton Group has tackled the question of leadership development by having Halton Career programme. It would be recommended to consider also other areas of the learning and development at group level. Especially having in- house product training and self-learning could be organized and promoted more. I would also consider an option to implement 70:20:10 learning model in the company.

Wellbeing & safety

Related to wellbeing at work, I would recommend cooperation between units in order to increase the knowledge sharing. I believe that it would be beneficial for the company if the units share their best practices related to wellbeing at work. Group could coordinate this process. Also at the health and safety, there could be a person, for example a quality health and safety –officer, coordinating the processes. Risk assessments, health and safety audits or health and safety inspections can be used to measure health and safety.

Even though there are local legal requirements, there is currently no person who would know safety issues or set safety requirements around the Group.

Performance management

The performance management process of Halton Group is highly focused on performance appraisals of individuals and optionally teams. The organizational development aspects

are not on focus. The guidelines for the appraisals are provided by the Group. In order to improve the performance appraisal process, the process should be harmonized. The goals of the process should be defined more carefully because currently there is disa- greement on benefits of the appraisals, and line managers should be trained to the pro- cess similarly. The process should flow from top to bottom of the organization. Now only one of the respondents mentioned it as the way of implementation. In order to ensure the quality of the implementation of the appraisals, Halton Group would have an option to re- quire data from its units, because currently the process is implemented with varying re- sults. As mentioned in the theory framework (Chapter 2.3.4), performance appraisals are only one part of the performance management process. Besides, personal development plans and feedback systems are parts of the performance management process, and it supports strategic communication by conveying to the personnel their effectiveness. Also Halton Group could consider on how to create a feedback system, as there is no system- atic approach to feedback globally.

Career & Succession management

Succession and career management are among the key HR processes to be developed at group level. The employees at the group level are often the managers and directors in critical positions for the whole organization. Therefore, succession management process- es should be implemented at group level and systematically implemented to the SBA and unit levels as well. The process should be systematic rather than on an ad hoc basis like it is currently. The succession management process should at least include analysis on the business critical positions and individuals. As the theory in Chapter 2.3.4 proposes, the focus should be on understanding whether there are enough potential successors availa- ble, if they are suitable enough, and if they have right skills and competencies for the fu- ture. Also a substitute planning is a process recommended in order to prevent from crisis situations at work if someone is not able to come to work. These could be supported by a matrix including the key positions and competences needed for them.

When the potential individuals are identified, the career management activities at the indi- vidual level can be implemented smoothly. Halton Group has already performance ap- praisal as a basis for career development. Also Halton Career programme is in place.

Theory suggests that there are several ways of doing career management in practice:

posting regarding internal job openings, formal education as part of career development, performance appraisal as a basis for career development, career counselling by manager, lateral moves to create cross-functional experience, career counselling by HR department, retirement preparation programmes, succession planning, formal mentoring, common

career paths, dual ladder paths (parallel hierarchy for professional staff), books on career issues, written personal career planning, assessment centres, peer appraisals, career workshops and upward (subordinate) appraisals. Halton Group could pick its favourite ones out of them for implementation. However, career planning activities should be put in place before the implementation process.

Exit management

The results indicate that the exit management of Halton Group equals to exit interviews. It was not shown clearly, if all the units use the same form or not. If not, the Group could define the form which is in use and ensure that it includes all the elements needed for understanding the reasons why one is leaving and for getting ideas for improvement.

Concerning the termination of employment, the processes are local and guided by local legislation. However, the Group should have policies related to dismissals and other types of terminations of a contract. This is important especially when there is an international team because if a line manager runs the process in a foreign legal environment, the pro- cess might be run wrong, which results easily in legal consequences Therefore, HR’s role should be emphasized as it is the party who know the local legal environment the better than an average employee. If an exit is known already beforehand, in such cases as re- tirement, there should be a process to transfer the tacit knowledge and plan the future using succession and talent management approaches.

Talent management

One of the key findings related to talent management was that there is no systematic tal- ent management approach, even though it was identified as one of the key areas of HRM at group level. Talent management should be a set of interrelated processes which aim to develop and maintain a pool of talented people in order to ensure there are enough tal- ented employees in an organization which it needs to attain its business goals as stated in Chapter 2.3.4. The units have elements of the talent management but they are not orga- nized in a systematic way and there is no talent pool in use. That is why emphasis at group level should be in aiming to have a talent management approach in its interrelated HR processes and the emphasis should be in talent planning which sets the base for the development of policies for attracting and retaining talent and the determination of future requirements and roles talented people will carry out as pointed out in Chapter 2.3.4. Oth- erwise, the talent management process should combine resourcing, retention planning, succession and career planning, learning and development of which especially leadership and management development, talent audits, talent relationship management and perfor-

mance management. Halton Group has Halton Career which touches succession and career planning, learning and development of which especially leadership and manage- ment development, and performance appraisals as part of the performance management.

Other elements are not yet in place, but it would be recommendable to develop them.

E-HRM

As mentioned in Chapter 2.3.4, e-HRM, the use of computer technology within the HR function, has five different goals: efficiency, service delivery, strategic orientation, manag- er empowerment and standardization. Applying an e-enabled human resource manage- ment system, several processes from HR planning and managing diversity to expenses and administrative activities can be performed. In Halton Group there is no HRIS in use at group level, but this would be recommendable. HRIS would be beneficial for group level in order to improve the quality of information available, to reduce administrative burden on HR function, to improve services to employees, to make HR measurable at group level, and to have modern, more flexible approach towards learning and development through an e-learning platform as emphasized by one of HR managers. HRIS could be used in HR planning, recruitment and selection, induction and all the other HR processes defined in this paper.

International HRM

One of the key recommendations for the Group would be to take a stronger ownership over the international human resource management processes. Currently, there is no in- ternational HR processes in addition to Halton Career and some HR programmes or poli- cies like a wellbeing campaigns and performance appraisal guidelines done globally. Es- pecially a need for expatriation and repatriation process was emphasized by the partici- pants. I therefore would recommend Halton Group to have an expatriation and repatriation process or processes defined and described. The approach of defining and measuring the compensation and rewards globally would bring additional value especially when the teams are international. I also would think talent management from a global approach and define the specific issues related to adaptation and family, and expatriate career and compensation (mentioned in Chapter 2.3.4).