Cornerstones of HR Value Chain (Organization Development) – Part 2

Key components of OD (in continuation of Part - 1)

2. Performance Management System (PMS) - it is the heart of any people management process in the organization. To make organizations perform, PMS has to be appropriately designed and implemented which can help drive business imperatives in a meaningful and productive manner. Companies can be very competitive and can create waves if people perform at their peak level. It primarily identifies the parameters of performance and set the standards. It is instrumental in recognizing and promoting performance driven culture. PMS primarily covers objective setting/ assessment, values, developments needs, career direction, managerial assessment etc.

3. Training - refers to the process of acquiring knowledge, skills and competencies as a result of the teaching that relate to specific and useful competencies. It is prominently observed that training results in higher job satisfaction and motivation amongst employees. Another remarkable benefit is increased operational excellence and efficiency of the processes of the employees of any organization. It helps increase the productivity and output of employees through acquisition of latest skills and competencies.

4. Reward & Recognition (R&R) – in the recent trends, R&R is not just a nice to do initiative but has become a mandatory communication tool that essentially reinforces and rewards the most important outcomes people create for the business and growth of the organization. When you recognize employees effectively, you reinforce the actions and behaviors you want to see the employees repeat. An effective employee recognition system is simple, immediate and powerfully reinforcing. R&R plays a vital role in motivating and rewarding the employees and is critical for the success of any organization. The success of this initiative lies in the consistency of implementation and ensuring the powerful impact through innovative ideas.

5. OD Intervention - from time to time there would be situations in organization wherein concerted efforts, development of programs and practices would be required to address specific problems or potential gap or development opportunity. As we all know, one of the few things that we expect out of the CEOs i.e. ensuring the top and bottom line growth, people development and creation of leadership pipeline. While most of the CEO’s time will go in ensuring Top line growth and optimization of costs to ensure positive bottom line impact, it will be up to HR Leaders to pitch for the remaining 2 key aspects of a CEO job i.e. People development and leadership pipeline creation. Here depending on the situation and need of the hour various program and practices can be developed. For example, let us assume a situation wherein we do not have leadership pipeline. Coach and Protégé program - can come handy here. This will help in succession planning and picking and choosing talent out of available pool. Most of the CEO emphasizes on growth from within and this serves the purpose.

Sometime there are culture issues and need is felt in the organization to create "bias for action" and "responsive culture" in the organization that is where OD Managers come in to frame. How do we do this….one way of doing this is Visual Management.

In the next article I will take you through the remaining 3 components of OD.