The HRD Scorecard and PCMM : A Comparison
 

(A paper to be presented at Madras Management Association)

Most improvement programs in software organizations have emphasized improvements in process and technology and not people. Improving software organizations however, requires continual improvement of its people and of the conditions that empower their performance. To motivate its people the organization must perceive them assets. Old labour relations methodologies cannot be carried into knowledge industry where people deal with high technology and intellectual complexity. The people Capability Maturity Model (P-CMM) aims at providing guidance to organizations that want to improve the way they address the people related issues. It provides guidance on how to improve the ability of software organizations to attract, develop, motivate, organize and retain the talent needed to steadily improve their software development capability. The strategic objectives of PCMM are:

• Improving the capability of software organizations by increasing the capability of the workforce;
• Ensuring that the software development capability is an attribute of an organization rather than that of a few individuals;
• Aligning the motivation of individuals with that of the organization;
• Retaining human assets (i.e. people with critical knowledge and skills within the organization

A fundamental premise of the maturity framework is that a practice cannot be improved if it cannot be repeated. In an organization's least mature state systematic and repeated performance of practices is sporadic. The repeatable level of the CMM

The P-CMM describes an evolutionary improvement path from an ad hoc. Inconsistently performed practices, to a continuously mature, disciplined, and continuously improving development of the knowledge, skills, and motivation of the work force.

It is intended to help the software organizations to: a) Characterize the maturity of their work force practices; b) guide a program of continuous workforce development; c) set priorities for immediate actions; d) integrate work force development with process improvement; and e) establish a culture of software engineering excellence. It is designed to guide software organizations in selecting immediate improvement actions based on the current maturity of their workforce practices. The P-CMM includes practices such as work environment, communication, staffing, managing performance, training, compensation, competency development, career development, team building, and culture development.

The P-CMM is based on the assumptions that organizations establish and improve their people management practices progress through the following five stages of maturity:

Level 1: Initial

Level 2: Repeatable

Level 3: Defined

Level 4: Managed

Level 5: Optimizing

Each of the maturity levels comprises of several Key Process Areas (KPAs) that identify clusters of related workforce practices. When performed collectively, the practices of a key process area achieve a set of goals considered important for enhancing work force capability.

" In maturing from the Initial to the repeatable level, the organization installs the discipline of performing basic practices for managing its work force. In maturing to the defined level, these practices are tailored to enhance the particular knowledge, skills, and work methods that best support the organization's business. The core competencies of the organization are identified; the work force activities are aligned to the development of these competencies. In maturing to the Managed level, the organization uses data to evaluate how effective its work force practices are and to reduce variation in their execution. The organization quantitatively manages organizational growth in work force capabilities, and when appropriate, establishes competency-based teams. In maturing to the Optimizing level, the organization looks continuously for innovative ways to improve its overall talent. The organization is actively involved in applying and continuously improving methods for developing individual and organizational competence." (Bill Curtis, William E Hefley and Sally Miller; Overview of the People Capability Maturity Model; Software Engineering Institute, Carnegie Mellon University, September 1995) 

HRD Score Card

The HRD Score card assigns a four letter rating for each organization on the extent of maturity level of HRD in it. The letters represent the four critical dimensions of HRD that contribute to business performance or organizational performance (for non-profit organizations). These four dimensions include:

• HRD Systems Maturity
• HRD Competencies in the Company
• HRD Styles, Culture and Values
• Business linkages with HRD

HRD Systems Maturity

The HRD systems maturity assesses the extent to which various HRD subsystems and tools are well designed and are being implemented.

• First the systems should be appropriate and relevant to business goals or organizational goals.
• Second they should focus on as well as balance between current and future needs of the corporation.
• Third the HRD strategies and systems should flow from the corporate strategies.
• Fourth the systems should be well designed and should have a structural maturity.
• Fifth they should be implemented well. The employees should be taking them seriously and follow meticulously what has been envisaged in each system. The overheads of implementation should be low. That is the monitoring requirements should be less arising out of the employees taking them seriously.
• Sixth the subsystems should be well integrated and should have internal synergy.
• Seventh they should be adequate and should take care of the HRD requirements of the organization.

The following subsystems are assessed on the above criteria and depending upon the extent to which they meet the requirements a score is assigned.

• Manpower planning and recruitment
• Performance Management Systems
• Feedback and Coaching Mechanisms
• Training
• Career development and Succession planning
• Job-rotation
• OD Interventions
• HR Information Systems
• Worker Development methods and systems
• HR Information System
• Potential Appraisal and Development
• Other subsystems if any

Each of them is assessed on a ten point rating scale where a score of 10 represents an extremely high level of maturity, 5 represents a moderate level of maturity and 1 represents an extremely low level of maturity.

HRD Competencies in the Corporation

This dimension indicates the extent to which HRD competencies are well developed in the organization. The competencies include knowledge, attitudes, values and skills. The nature of competencies required for each category of employees are listed and assessed on the basis of the HRD audit. The employee categories that need to be assessed for arriving at a rating on this include:

• The HRD Staff
• The Top Management
• Line Managers and Supervisory Staff
• Union and Association leaders
• Workmen, Operators and Grass root level employees

Each of the groups is assessed on:

• The level of HRD skills they possess
• Their attitudes and support to learning and their own development
• Extent to which they facilitate learning among others in the corporation and those who work with them
• Their attitudes and support to HRD function and systems

Internal efficiency of the HRD function (HRD Department) also assessed for this dimension. The dimensions on which the HRD functions internal efficiency is assessed include are assessed.

The following are the questions attempted to be answered again on a 10 point rating scale.

HRD Staff

• How professionally qualified are they?
• Do they seem to demonstrate adequate knowledge base?
• Are adequately trained in the appropriate HRD systems?
• Are they sensitive to internal customer requirements?
• How good is their skill base in implementing various systems?
• Do they demonstrate OCTAPACE values?
• Are they quality conscious?
• Are they familiar with the business goals of the corporation?
• Are they cost conscious?
• Are they empathetic?
• Do they spend adequate time trying to understand the requirements of all categories of employees?

 Top Management

• Do they understand HRD and its significance in achieving business goals?
• How supportive are they of HRD interventions and values?
• Are their leadership styles facilitative of a learning culture?
• Are they willing to give the time needed for HRD?
• How well do they subscribe to the HRD values like the OCTAPACE values?
• How well do they practice HRD values/
• How committed are they to create a learning culture in the organization?
• Do they invest their time, effort and energies in employee development?

Line Managers and Supervisory Staff

• How much do they understand the significance of HRD?
• Are they interested and motivated to develop themselves?
• Are they willing to spend their time and effort in developing their subordinates?
• How supportive are they of HRD efforts?
• Do they have listening and other skills required facilitating development of their juniors?

Union and Association Leaders and representatives

• How much developmental role are they playing?
• Do they see their own role in HRD?
• Are they committed to create a learning organization?
• Are they willing to promote employee development?
• Are they positive in their approach and perceive their own roles a s supportive of organization building?
• Do they perceive the significance of Employee development for Organization building?

HRD Function

• Adequacy of manpower
• Appropriateness of the structure
• Cost consciousness of staff
• Quality consciousness of the HRD staff
• Responsiveness of the HRD department to the needs of employees? Managers, Staff, Workmen, Union Leaders?
• Level of Internal customer satisfaction
• Internal operational efficiency of the department?
• Level of internal synergy among staff?
• Are they the first to implement HRD systems? Do they implement them in an exemplary way?

A HRD Competency maturity score is assigned on the basis of the competency levels of all categories.

A* = All categories of employees have extremely high competence base in HRD (knowledge, attitudes, values and skills) and the HRD department has a high internal efficiency and satisfaction levels.

B = The Competence levels of every group is at an acceptable level and the internal efficiency of the HRD department and the internal customer satisfaction are acceptable levels.

D = The competencies of more than one group are below acceptable levels and/or the HRD department is not internally efficient and does not meet the requirements of the minimum internal customer satisfaction.

F = Total failure on almost all the dimensions.

Other scales are on similar grounds as above.

HRD Styles, Culture and Values

The extent to which the leadership and managerial styles are empowering and competence building is assessed by studying the leadership and supervisory styles of top, senior and middle level managers. Specialized questionnaires have been developed for those purpose.

The extent to which the HRD culture and values are practiced and stabilized in the corporation are measured and represented by the third letter. The HRD culture is a culture that promotes Human potential development. It is also a culture that promotes a learning organization. The culture is assessed on a questionnaire and the HRD Climate part of the HRD Audit questionnaire gives an idea of the culture. These need to be supplemented by the observations of the Auditor.

Business Relevance of HRD

This score indicates the extent to which HRD efforts (tools, processes, culture etc.) are driven to achieve business goals or goals of the organization. The business goals include:

• Business Excellence including profitability, and other outcomes the organization is expected to achieve;
• Internal operational efficiencies;
• Internal Customer satisfaction;
• External Customer satisfaction;
• Employee motivation and Commitment;
• Cost effectiveness and cost consciousness among employees;
• Quality orientation;
• Technology adoption

The HRD system should focus on the above dimensions.

• Are the HRD systems aligned towards the above mentioned or other important business goals of the corporation?
• Does the HRD staff reflect adequate understanding and commitment to the business goals of the organization?
• Are the HRD processes and culture drive employees and the corporation to achieve the business goals and address the business concerns?

The assessment on these issues is made on the basis of the observations and interviews of the auditor with the employees. Similar ratings are assigned for this dimensions.

HRD Audit and HRD Score Card

The HRD scorecard is an assessment of the HRD maturity level of any organization. The score card is resultant of the HRD audit. The external auditors assign such scoring and the HRD audit is the ideal time to assign such scores.

Contributed by G.Uppiliappan

Mr Uppiliappan is basically a Chemical Engineer. He has done his Master of Technology in HRD from Ministry of HRD, Govt of India.

He has got many laurels to his credit. The most prominent being : He is a university ranker in both his UG & PG & Gold Medalist. He has received the Best Quality Culture award for the years 2002 awarded by the Quality Institute of India.

Currently he is working as a Senior Officer–HRD at Thirumalai Chemicals.  He has got 3 years of experience in Chemical Industry in manufacturing side.

Contact: hrd@thirumalaichemicals.com