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© 2005 - Russell Romania (ISO 9000 Consulting)
All rights reserved.
Last updated: 25 Feb 2005

Management of Human Resources – One of the Keys for Long Term Success

One of the most valuable assets of your company should be the human resource. No company can run smoothly without a valuable human resource at different levels of hierarchy. The key factor in obtaining the performance in management of human resource is the top management. Their vision and performance related to management of human resource will make the difference between winner and a looser.

ISO9001:2000 dedicate an entire section to management of resources, including human resources (see clause 6, and 6.2). The standard requires that employees how are performing tasks that affect the quality of the product or service to be competent in terms of studies, training, abilities and experience. Manager's job is to assure that!

No one was born having necessary studies, and experience. They are gained in time. Studies come from the basic background education of everyone of us. Experience is what you gain by performing required tasks. Initially, the performance would be lower, but in time, it should increase. As for abilities, yes, they may be inherited from ancestors. A person may have predisposition to artistic side, therefore should never work on an assembly line as operator. He or she may work in design department. Persons with technical abilities should work on production lines. Some of us are born to lead groups of people. They should have proper studies and then they should be put in management positions.

Managing of human resources is not a precise science. Even if there are plenty tools for managing the human resource, it still requires other extra abilities.

Going beyond ISO 9001:2000 requirements, and entering ISO 9004:2000 standard, we soon find out that a lot of discussions are around what is called "interested parties". General definition of it refers to shareholders, local community, suppliers, etc. Definition can be extended to human resource which exists in the company. When standard requires the analyze of performance of quality management system, that may refer also to the performance of human resource. Thus, a valuable company may add this kind of evaluation to regular list of analyzes.

The fundamental for such evaluations is to determine if you have the right person at the right place. On the second level, try to figure out how satisfied is that person and if possible, how can you improve his (her) performance and satisfaction. Please remember that a high level of performance from the employee, without much satisfaction, is not a long term successful story. Vice-versa is also not a positive solution.

Evaluation of performance of employees has to be stratified according to hierarchical level which exists in organization. For positions located at the bottom of organizational pyramid, more emphasis should be on the productivity level. How many rejects resulted, what's the production level, how well is carrying day to day routine tasks, etc.? Don't ignore the human aspects, such as how well is integrated into collectivity, how well is cooperating with superiors, how much support is offering to his (her) colleagues. Some companies simply ignore the human aspects; an employee is not a robot. A good evaluation system should take in consideration both aspects. We saw several companies who wrongly applied such system. They evaluated both professional and human performance, quantified them and then computed the average of them. This means that they provided equal importance to professional and human aspects, forgetting that the main reason for which the employee exists in organization is to work. A better evaluation system should put more emphasis on professional side balanced somehow with human aspects (a good example would be a balance of 2 to 1).

Evaluation systems should provide information regarding the training needs and needed migration (promotions) within the company. Many companies report that they have valuable measurement systems for human resources, but few of them are pursuing the results. Don't forget that identification of training needs is a requirement of ISO 9001:2000. Companies where promotion systems are in place give more reasons of satisfaction to employees, knowing that they really have the chance to climb in company's hierarchy. This is an encouraging and motivator factor for them, compared to static companies where in very few occasions someone gets a promotion. Rewards granted to employees should be correlated to their performance. Those companies where no or little reward is provided have no future. In some situation, company's management decides equal rewards to all employees, which is on one side a positive aspect (rewarding) and on the other side a negative aspect (equalizing the reward). Each employee should receive the reward based on evaluation's result. This way, each one will feel the right thing: I worked hard and worth it. Or, hmmm, my colleague received a higher reward than me?!? Why's that? Reaching this question, which is upsetting, that person will choose from one the two ways: either will try to improve itself, either will end up with the same or even worst evaluation than the last one, meaning that is one foot already outside the company.

Internal or external training process is very important for the success of a company. We saw many cases where managers replied to us, when discussing about trainings: we told them what to do and how to do. On one thing we can agree: this was good for that time. Repeated training can bring only positive results. Training is never 100% successful, meaning that transmitted knowledge are not fully understood from the first time. Some of us perceive easier the information, some of us heavier. That's why the training process has to be carried out continuously. There exists also the other extremity, when the same training is repeated endlessly, just because the standard requires it. This is wrong! The standard doesn't say that training must be carried out no matter when and how. It requires you to identify the training needs first of all, and based on them, to provide adequate training. This process has to be repeated endlessly.

We want to emphasis the role played by top and middle management in organization's life. Middle management is the back bone of the organization, and top management is the head of it. If they are performing well, there are many chances for organization to perform well also. This idea does not exclude the idea of providing "wealth" for lower personnel. During years, we saw so many companies, each one with different approach regarding management of human resources. One thing is for sure: those one with valuable human resource management are the successful one. Some of these companies put an equal sign in satisfying customer requirements and good management of human resource. Companies which minimized the role of middle management are struggling to survive in day to day fight on the market. If they will not change their vision regarding human resources, on long term they will transform into loosers.

Several styles of management are currently used in various companies. Those managers which are bosses are part of no future companies. Applying the participative management may provide a solid position in the present, but on the long term, the style should change so that to be differentiated according to situation met.

Managers which don't trust their subordinates and believe that they have to supervise and even do everything are not managers. They are living in the past (master and slave situation). Going on the next stair of evolution, those managers who realize that employees are working well only if they are motivated are on the right track, but their concepts on long term must suffer a change, reaching the concept that employees are a valuable capital and trust must be put in it. Sharing with employees the objectives and priorities should be the main managing method.

Managers has three basic approaches regarding the problems occurred in their activity. Some of them believe that most of these problems are generated by subordinates. Our experience tells that most of the time is not employee's fault, but the system in which they are working. Systems are created and maintained by managers. Therefore, most of the problems have as root cause the managers. Some managers consider that problems are cause in equal proportion by employees also by them. Somehow, this is a happier situation, where managers start to understand their role in organization. Where managers are aware of their fundamental role in creating, maintaining and improving the system, we found the most successful companies. Indeed, this is a rare situation; however it's good that it exist.