A Quarterly Newsletter from the UAE and Oman member firms of the PKF International Ltd.

VOL 18, Issue 1 January 2016

HUMAN RESOURCE MANAGEMENT

Accelerate your Organization’s Maturity Level

Public and private organizations face ongoing pressure to improve efficiency and achieve organizational objectives. While people are key drivers for organizational success, creating an environment where employees are energized and enthusiastic about their work is not easy. Employers are struggling to ensure that they have the capability to find, blend-in, compensate and retain the talented individuals they need.

Numerous global and regional studies were conducted during the past 10 years which surveyed thousands of organizations in order to identify the major challenges companies face in managing their Human Capital. It is obvious that the HR challenges being faced by organizations across the globe, whether they are in a developing or developed country, are similar. However, their priorities for overcoming these challenges are set differently.

PKF Human Resource Consulting, throughout its organizational diagnostic studies in Jordan and MENA countries, is now presenting its list of top seven HR challenges faced by employers and HR professionals in a descending order:

Talent acquisition – Finding qualified people.
Productivity & performance – Competencies gaps
Staff engagement
Leadership
Retention – High turnover rates
Compliance risks
Succession and stability

People without Process is action without effectiveness nor efficiency

Process without People is paper and ink

Finding qualified employees and dealing with capability gaps are reported to be the top two challenges faced by organizations.

HR professionals’ strategic role in alleviating these challenges is no longer a debate. Any organization, without a proper setup for its human resources management is bound to suffer from serious problems while managing its regular activities.

Today, companies must put a lot of effort and energy into setting up strong and effective strategic workforce management practices. Such practices include applying many different human capital management techniques and processes aligned to the business strategies from process re-engineering and improvement, to restructuring, improving information sharing and knowledge transfer, institute incentive plans, formalize performance management, set grievance policies and procedures, perform job analysis and design, establish team-based work design, and conduct formal mentoring programs.

Companies characterized by the use of HRM and Organizational Performance outperform those that have inflexible HR management. Top-performing companies are three times more likely to have sophisticated HRM than lower performers.

Organizations at low maturity levels often have ad hoc and inconsistent workforce practices. While it is found that workforce practices in organizations at high maturity levels support a culture of performance excellence.

High Organizational Maturity Level
High Organizational Maturity Level

Workforce practices are enhanced to support a culture of performance excellence.
Alignment of workforce practices with business objectives
Excellent communication and information sharing systems
High involvement and empowerment
The organizations’ staffing, performance management, compensation, and other workforce practices are adapted to support the development of competencies.
The entire organization is focused on continual improvement
Excellent communication and information sharing systems
High involvement and empowerment
Low Organizational Maturity Level

Short-term focus
Crisis
Lack of clear direction
Shifting priorities
Inconsistent management
Unclear tasks & operations
Blame and lack of ownership
unclear roles and responsibilities
Alienated and detached workforce
Unclear organizational structure
Workforce practices are often ad hoc and inconsistent
(This article is by Ms. Zeena Natour, a partner in PKF Jordan, the independent member-firm in Jordan of PKF International. Please contact Mr. Stany Pereira in Dubai or B.R.Sudhir in Abu Dhabi for any assistance in this connection.)