Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 4-1 CHAPTER 4 Consultancy

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 4-2 Learning Outcomes  Identify the process of consulting  Develop a concept of human resource consulting in an organisation  Develop service agreements to provide HR services to satisfy client needs  Document agreed specifications including performance standards (cont.)

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 4-3 Learning Outcomes (cont.)  Deliver HR service in accordance with service agreements  Identify any performance variations and address these accordingly  Monitor service delivery to assess levels of performance  Gain appropriate approval for any variations to service delivery

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 4-4 The HR Consultant A consultant is someone who assists the client to identify and analyse management problems, and who recommends/helps to implement solutions to these problems.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 4-5 Skills That HR Managers Need As a strategic partner, HR managers need to interpret business objectives into HR policy and procedure. HR managers need to have knowledge of the business operations, financial imperatives and direction of the organisation, and an internal customer orientation.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 4-6 HR Intervention and Influence HR specialists need to have the ability to influence and change the attitudes of management and staff. In an advisory role, the HR consultant/specialist then may be able to present the case for change in HR as a value- added exercise.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 4-7 Development of HR Strategies In order to influence stakeholders and obtain desired results, the HR consultant needs to ensure that:  sources of power are identified  organisational culture, beliefs, perceptions and values are explored (cont.)

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 4-8 Development of HR Strategies (cont.) In order to influence stakeholders and obtain desired results, the HR consultant needs to ensure that:  goals, objectives and outcomes are identified  resources, knowledge, skills and networks for influencing others are obtained  detailed cost–benefit analysis is conducted, and strategies and techniques are proposed to achieve required results

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 4-9 HR Consultancy Defined Management consulting is an advisory service contracted for and provided to organisations by trained consultants that:  identify management problems  analyse such problems and recommend solutions  provide help, where requested in solution implementation

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 4-10 Provision of HR Services Human resource services include the full range of HR activities offered in an organisation. They may include strategic advice, procedural advice, employee training, auditing section processes, and arranging or providing a variety of services.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 4-11 HR Services HR services may be provided in a variety of areas including:  staff recruitment, selection and induction  training and development  performance appraisal and counselling  remuneration, benefits and rewards (cont.)

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 4-12 HR Services (cont.) HR services may be provided in a variety of areas including:  industrial relations advice  rehabilitation and return to work  workers’ compensation  competency selection and development

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 4-13 Risk Assessment Risk assessment is analysis of the likelihood and potential seriousness of an injury or illness.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 4-14 Risk Assessment Steps  Identify the hazard(s)  Organise controls for the hazard  Assess any remaining risk posed by the hazard with the controls in place  Document the risk assessment

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 4-15 Risk Management Risk management is the process of identifying potential hazards in the workplace and selecting controls to minimise negative outcomes.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 4-16 Personal Consultancy Skills Human resource consultants need a range of personal and communication skills to be effective in their role. They need to be able to facilitate meetings, workshops, discussions and arguments. Influencing skills are also important.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 4-17 The Consultancy Process Consulting within an organisation can occur on many levels. An HR professional may be asked to assist a line manager to develop a solution for a day to day problem, or may be asked to consult on a more complex set of problems.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 4-18 Consultancy Models

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 4-19 Gaining Entry/Credibility For an external consultant, the entry/credibility stage involves gaining entry to the organisation, whereas for an internal consultant it involves gaining credibility with the managers. (cont.)

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 4-20 Gaining Entry/Credibility (cont.) Beyond the task of gaining entry, this stage also involves:  initial meeting with client (manager)  defining problem, project or required service  problem exploration  establishing clear expectations for both parties

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 4-21 Problem Analysis Problem analysis also includes defining service standards. Definition of service standards can include discussion on:  knowledge of the business  the problem solving process, which may include problem definition or problem- solving techniques (such as root cause analysis or the 80:20 principle)

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 4-22 Problem-solving Techniques  Root cause analysis is an approach to identifying, reporting and correcting workplace errors.  The 80:20 principle states that 80 per cent of all results come from 20 per cent of effort.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 4-23 Making Recommendations This stage is also called ‘feedback and the decision to act’. It includes:  data collection  developing options for action using methods such as brainstorming  agreeing on a course of action or the development of a service agreement (cont.)

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 4-24 Making Recommendations (cont.) This stage is also called ‘feedback and the decision to act’. It includes:  agreeing on service specifications, performance standards and timeframes  development of an implementation plan, including the conditions necessary for successful implementation (cont.)

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 4-25 Implementation This stage requires that a service in accordance with service agreements is supplied and maintained. It is necessary that any performance variations are identified and addressed accordingly.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 4-26 Performance Management Performance management is a process for creating a shared understanding of what an individual is to achieve; managing and developing individual achievement in line with organisational objectives.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 4-27 Service Level Agreements Service level agreements are formal agreements outlining the service to be provided, the key processes to be used, key performance standards and client satisfaction criteria.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 4-28 A Service Level Agreement (SLA) A service level agreement outlines:  the service to be provided  the rights and responsibilities of each party to the agreement  the key processes to be used  key performance standards, timeframes and client satisfaction criteria (cont.)

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 4-29 A Service Level Agreement (SLA) (cont.) A service level agreement outlines:  the processes to be used to monitor performance against standards (quality assurance)  how corrective action will be taken  how performance will be reported

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 4-30 Delivering Service in Line With the SLA Human resource practitioners need to provide a service in accordance with service level agreements, to identify any performance variations and to address these accordingly. Often implementing these agreements will require a strategy to deal with resistance to change.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 4-31 Evaluating HR Service Delivery Service delivery requires monitoring during the process to assess the levels of performance. This is part of a continuous improvement process. (cont.)

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 4-32 Evaluating HR Service Delivery (cont.) Service delivery may be evaluated by:  Client surveys: quantitative questionnaires that ask internal or external clients questions about their perceptions of a particular HR service.  Evaluation: overall determination of success of a program or strategy.  Focus groups: structured research methods in which key people provide information and feedback on topics or situations.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 4-33 Chapter 4 Summary  The human resource function is increasingly viewed as an internal consulting and influencing agent in the organisation.  HR also deals with external consultants when required.  The HR consultant influences management and staff to ensure organisational objectives are achieved. (cont.)

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 4-34 Chapter 4 Summary (cont.)  HR managers need to assess the risks involved with any options under consideration, and exercise risk management.  The line manager’s role in delivering HR activities needs to be closely defined, so that everyone understands boundaries of service.  Personal consultancy skills, including communicating and influencing, are essential for the HR practitioner if consultancy is to succeed. (cont.)

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 4-35 Chapter 4 Summary (cont.)  The consultancy process involves gaining entry/credibility, problem analysis, making recommendations, implementation, data collection and assessment of the effectiveness of a delivery agreement.  A service level agreement (SLA) between human resources and management can include the breadth of the HR function, or just elements of it.