There are usually four operational elements to an HR system:
- A clearly-defined Business Strategy and Objectives that encompass the mission, vision and values of the company as well as the annual corporate strategy and specific corporate, departmental and unit objectives. It is important that every staff member understands these objectives, and that they are clearly communicated within the company.
- Individual Objectives are set at the beginning of each year and updated every quarter. Individual objectives depend on two main foundations:
- The general tasks and performance required by the job position in question;
- The business objectives required by the job position in question.
Every individual agrees to performance objectives, such as:
- Sales objectives (clients, volume, value)
- Quality objectives (lead times, defect levels, etc)
- Competency objectives (which competencies must be developed until the next assessment period)
- Other general development objectives.
The Individual Objectives are dynamic: they vary from year to year. Implicit in these objectives is the individual’s potential for promotion and advancement.
- Competency Management refers to the identification, development and use of individual competencies, or the mix of skills, knowledge and abilities which characterise outstanding job performance. Every staff member is assessed against the enterprise Competency Framework.
- 360° Performance Assessment used to assess whether the individual has met or exceeded his/her Individual Objectives, and their current position on the Competency Management Framework.
This integrated approach to human resources management allows a company to identify and reward outstanding performance in line with corporate objectives.
Two additional HR functions are required for continuity of operations:
- Staff Retention, or the enterprise’s ability to retain successful staff while replacing staff which does not meet minimum criteria, and
- Career Planning, or the orderly advancement of careers and the replacement of key staff based on internal or external need.