How to Manage Human Capital Manages

The Workplace Architecture process encompasses many different factors which must be considered when planning and structuring a human resource management plan or a Business Architecture program. There are many important decisions and actions to be made, and human capital is the lifeblood of any business. Human capital consists of the following elements: Performance, Culture, Knowledge and Potential. A strong Workforce Architecture will ensure that these human resources are employed effectively in the processes and ways that are critical to the success of your company. A Workplace Architecture includes the following elements:

o Employment Strategy: The strategic plans and workforce development programs that support your organizational objectives. The overall performance and competencies of your people are the driving forces behind your business strategy. You must be able to measure these competencies and their growth or deterioration and this requires an assessment of your current human capital management situation. You need to determine who your future workforce will consist of, how you will develop and retain them, and how you will compensate for human loss. Once you have determined these needs your Workplace Architecture can begin.

o Employment Processes: In order to attract and retain talent and motivate your best workers you need to implement effective processes in the recruitment and selection of these individuals. These processes should include both compensation and performance appraisal. Compensation and performance appraisals will allow you to properly align incentives with performance and identify and reward those employees who exhibit the qualities you are looking for in your organization structure. Compensation and performance management are essential to the success of your human capital management efforts.

o Benefits and Perquisite Ownership: This component of your HR programs allows you to attract and keep good employees by providing them access to a well-balanced and competitive compensation package. At the same time you can build strong loyalty among your employees through rewarding them for performance. The key to this portion of your program is to provide an attractive and consistent compensation plan and effective benefits coverage. The most important aspect of any compensation plan is the benefits that your employees receive in addition to their wages. You cannot afford to pay employees well and then fail to give them any means to obtain these benefits.

o Career Management: One of the most important aspects of any HR plan is its ability to successfully address both compensation and remuneration. Without effective and comprehensive career management processes your employees will not be aware of the systems and processes that link their compensation and remuneration to their individual performance. Effective HR policies should also be able to manage all employees and their career paths to ensure that all of your HR plans focus on achieving an optimal organizational goal and this results in optimal performance. The success of your career management strategies depend on the thoroughness and effectiveness of your processes and practices in collecting and utilising all data pertinent to an employee’s career path, such as performance feedback, feedback on skills, development plans and appraisals.

o Compensation and remuneration planning and adjustment: A sound HR plan must take into consideration the wide range of circumstances that may impact on the compensation and remuneration of an individual employee. For this reason a wide and deep understanding of all the HR policies and procedures that are affecting the compensation and remuneration of your human capital is extremely important. As an organization adopts an integrated approach to reviewing and monitoring its compensation and remuneration plans and practices, the more accurate and timely your employee’s performance evaluations will be. This approach is essential to align your HR policies with the current compensation plans and practices being used by your organization.

o Competency Development: Competency development is an extremely important HR function that will help you ensure that you are developing the most capable employees in your organization. In order to build a productive and efficient work force, you must be able to assess your employees’ potentials. This process also involves identifying areas in which your organization’s current management lacks competency and improving their competency. The most effective way of developing your competency profile is through a continuous appraisal process that provides feedback to your line management and extends to management as well. Identifying gaps in our organizations ability to perform competently and efficiently will enable you to make immediate improvements and will lay the foundation for long-term competency strategy planning.

o Organizational Performance Management: Our current business environment is characterized by continuous innovation, rapid changes and rapid returns. These factors require an effective system to measure the success or failure of an organization’s performance. Performance management is a growing discipline within the field of HR management practices. HRM professionals use many different strategies and techniques to evaluate performance across an organization. These strategies range from statistical analysis to the measurement of intangible aspects, such as leadership, productivity, engagement and other HR characteristics.

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