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Recruitment and Selection, Performance Appraisal & Training and Development at RBS-Pakistan
Recruitment and Selection, Performance Appraisal & Training and Development at RBS-Pakistan
Recruitment and Selection, Performance Appraisal & Training and Development at RBS-Pakistan
Performance Appraisal
&
Training and Development
At
RBS- Pakistan
1
HUMAN RESOURCE MANAGEMENT
PROJECT REPORT
SUBMITTED T0:
SUBMITTED BY:
MOHIT TANWANI (07-0233)
SUBMITTION DATE:
NOVEMBER 21, 2009
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ACKNOWLEDGEMENT
This report is a part of our course “Human Resource Management”. It is a report of our topics
“Recruitment and Selection, Training & development, and Performance appraisal” at The
Royal Bank of Scotland Pakistan. It has been written by us on the basis of our knowledge of
these topics and the way these activities are implemented at RBS . This report may not be even
close to perfection, but we have given it a Big Effort on our part.
We thank Allah Subhan Tallah, the Most Gracious and the Most Merciful.
We thank their Parents who have been supporting and loving us throughout.
Our big thanks to Mr. Imtiaz Ahmed, for giving us the opportunity to make this report.
Without his guidance and support, this report could have never reached completion. He helped
us gain command over the concepts of Human Resource Management, helping us to apply that
knowledge in the making of this report.
TABLE OF CONTENTS
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INTRODUCTION 5
HISTORY 6
PERFORMANCE APPRAISAL 22
APPENDIX 30
Executive Summary
Recruitment and Selection, performance appraisal and training and
development are the three core activities of any organization’s Human Resource
Department. It a challenge for every organization’s HR department to choose
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right people for the right job, appraise, compensate and give proper feedback to
its employees and train and teach them advanced techniques in order for them
to create a competitive edge in the industry by serving the organization’s
customers well.
The organization that we have selected is The Royal Bank of Scotland – Paksitan.
It is a multinational bank having its branches and offices in many parts of the
world. RBS human resource department gives tough competition to its rivals
(HR department of other organizations) as it recruits, appraises and trains its
employees properly.
This report points out the factors why RBS’s HR Department is effective and how
they have given a tough competition to its opponents.
Introduction
The Royal Bank of Scotland
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“Our focus is on building stand alone strength”
RBS will achieve this with integrity, transparency, and by serving their
customers well.
History
Early Scottish success
The Royal Bank of Scotland was founded in 1727. Originally opened with a staff of just eight, its
first premises were in the Old Town of Edinburgh. For more than half a century, RBS traded
solely from the Scottish capital, but in 1783 it opened first branch in the fast-growing trading city
of Glasgow. This new office was soon conducting over half of the Bank's entire business.
Spurred on by this success, many more branches opened across Scotland and then, in 1874, their
first office opened in London.
In the twentieth century RBS expanded rapidly, acquiring several English banks including
Williams Deacon's Bank, Glyn, Mills & Co and Drummonds Bank. In the 1950s their mobile
banks began serving rural communities, and by 1960 their first office opened in New York. In
1969 their merged with National Commercial Bank of Scotland to achieve a greater market share
in Scotland. RBS also introduced the daisy wheel brand mark which remains so central to their
corporate identity.
In the 1970s they embraced computerisation and introduced a new generation of multi-function
cash dispensers. In the 1980s they launched Direct Line motor insurance and bought Citizens
Financial Group in the USA. By the 1990s they were at the forefront of telephone and internet
banking.
In 2000, they acquired National Westminster Bank in the biggest banking takeover ever in
Britain and so inherited a rich heritage covering more than 200 banks that had made up NatWest.
In 2005 they formed a strategic partnership with Bank of China and, two years later, in the
biggest takeover in banking history, they led a unique consortium to acquire the Dutch bank
ABN AMROCommitted to working together
With three centuries of banking behind them, they remain committed to making it happen for
their customers, shareholders and staff around the world.
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Striking the right note
In the 18th and 19th centuries hundreds of British banks - most of them small, local enterprises -
issued their own banknotes. When The Royal Bank of Scotland was established in 1727, starting
up a banknote issue was one of its directors' first priorities. They based their first designs on the
notes of existing rivals, but added an impressive new detail; a portrait of the King. This was the
first banknote in Britain to include such an intricate illustration.
This was the beginning of a long history of innovation in banknote design, driven by the
requirement to make notes attractive and acceptable to the general public, while always
protecting them against counterfeiters. In 1777, we became the first bank in Europe to issue
multi-coloured banknotes, and in 1826 we issued Britain's first double-sided note.
Throughout all these changes, one feature that remained the same was the vital importance of
banknotes to the economy in Scotland, where there were often chronic shortages of coins. Unlike
many other nationalities, the Scottish people developed absolute trust in their banknotes, which
contributed to the near-unique stability of Scotland's early banking system.
When the British government periodically threatened to withdraw or limit the Scottish banks'
right to issue notes, the nation rose up in protest, celebrating their banknotes as a matter of
national pride and identity. It is thanks to the popularity of the notes, and to the demonstrated
stability of the system, that Scotland's banks have been allowed to continue issuing pound
sterling notes to this day.
The Royal Bank of Scotland Group has grown from small beginnings nearly 300 years ago to
become the second largest financial services group by profit, in the world. With an AA credit
rating, RBS group has more than 40 million customers worldwide, operating profit in 2007
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₤10.3 billion, and total assets, as at 31 December 2007, of GBP 1,900.5 billion. Our brands
operate around the globe and down your street to provide banking services for individuals,
businesses and institutions. Proud of our history, we remain committed to innovation and
service - in business and through our many sponsorship activities.
Asia Pacific
The Royal Bank of Scotland Group is now one of the top five banks in the Asia Pacific region
for corporate and institutional customers, and retains a strategic partnership with Bank of
China. We also provide wealth management services across the region through RBS Coutts.
Europe
As well as having the largest branch network in the UK and providing market-leading wealth
management, consumer finance, insurance and corporate banking solutions to millions of
customers, the RBS Group has a growing presence across the rest of Europe.
North America
The Royal Bank of Scotland Group is now one of the top 10 banking groups in the US, and an
established name across North America. Citizens Bank has retail branches in 13 states, while
RBS GloRBS Banking & Markets works with 80 per cent of the Fortune 100 companies.
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“People are at the heart of our success”
Within RBS there are HR professionals working within the Group's Central Functions as well as
aligned in the business. There are also specialist technical areas such as Remuneration and
Benefits, Policy and Employment, HR Shared Services, Health, Safety and Wellbeing, Group
Resourcing and Group Organizational Effectiveness.
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The step to step Recruitment process followed by organization is:
Planning
Sourcing
Screening
Interviewing
Hiring
Reporting
Planning
1. Planning: Planning includes both workforce planning and individual recruitment planning. Workforce
planning typically focuses on forecasting staff and skill gaps in the most business-critical positions, while
individual recruitment planning focuses on sourcing and screening strategies for specific vacancies.
2. Sourcing: Sourcing focuses on activities to attract both passive and active candidates. Common
strategies include advertising, marketing at select schools and organizations, managing employee referral
programs, and cross-marketing new positions to prior applicants.
3. Screening: Screening focuses on creating a qualified pool of candidates to share with the hiring
manager. Common activities include resume/application reviews for select qualifications, supplemental
questionnaires, and formal testing.
4. Interviewing: Interviewing includes in-person reviews designed to select a final candidate. Common
strategies include peer interviews, panel interviews, and the use of behaviourally-based interview
techniques.
5. Hiring: Hiring focuses on persuading the selected candidate to join the organization. Common
activities include making the job offer, negotiating terms and conditions of employment, and all pre- and
post-start on-boarding.
6. Reporting: Reporting includes all post-hire data collection, monitoring, and reporting. Common
activities include surveying applicants and hiring managers, collecting and analyzing applicant flow data,
and reporting performance measures and processing metrics.
RBS is interested in attracting and hiring the very best people in the market.
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“We understand the integral role you play in our continued success. We're committed to
providing you with a candidate experience that is robust, transparent and gives you the
power to make choices.”
Effective Recruiting
Recruitment is done through developing applicant pool. Employee recruiting means finding and
/and or attracting applicants for the employees open positions
Recruiting the right people is a key managerial role, yet one that agencies often do not devote
enough time to. In financial terms, the average frontline worker paid £18,000 represents an
investment of around £65,000 over a three year period. If your organisation was considering
investing a similar sum in a new IT system, a great deal of thought and analysis would go into
selecting the right system. Many organisations do not invest enough time in thinking about the
skills, attributes and behaviours they need in their staff. This guide aims to help service managers
recruit the right staff and give them the best induction into their new role.
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Many organisations that are members of Homeless Link tell us they currently employ staff who
they know are not the best people for the job. Some staff recruited into the sector simply do not
have the skills they need to do their jobs, which highlights shortfalls in recruitment practice
within the sector. One hostel manager talked of the difficulty of finding suitable staff; having
tried three rounds of recruitment he was reliant on agency staff to deliver services, as no suitable
permanent staff were available. However, many frontline staff came to work in homelessness
agencies for a reason – that they care about the service user. Staff who under-perform generally
do so for a reason – this might be due to lack of skill to undertake the work which was not
identified during the recruitment process, poor management, lack of support and supervision,
lack of clarity about their role and how they are expected to work, or simply being burnt out after
working in the same role for a long time without the refreshers and re-motivators of training and
development activity.
Once the right staff have been recruited, they need to be supported effectively, and given the
right tools for personal and career development.
However, there are agencies in the sector that do not have a problem recruiting high quality staff,
that involve service users in recruitment and selection, and whose organisational turnover is very
low. This guide explores some of the human resources practice in these agencies, and sets out
step-by-step instructions on how to set up these systems.
Examples of organisations which operate best practice principles in this area include Broadway,
Macclesfield Accommodation Care and Concern and Foundation Housing
Recruitment and selection has many processes and steps that must be followed.
Application stage:
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Whether candidate applies directly through RBS’ careers website or through their staff referral
scheme, they'll ask you for some background information - this usually involves completing an
application form or submitting a CV/resume.
For some roles, candidate will need to complete an online application form and then be directed
straight through to an online assessment process.
For other roles, once HR managers have reviewed your CV/resume and established there is a
good fit between your background and the 'essentials' they are looking for, the candidate will
hear from their recruitment team.
The team will tell you what to expect next, share information about what it's like to work here
and answer any questions, the candidates might have.
For some roles, candidates may also have an initial phone interview. This helps HR managers
assess candidate’s skills, background and experience so they can decide if they should invite you
to the next stage of the hiring process. Phone interviews usually take about 30 to 40 minutes.
Interview stage
Interviews are usually conducted face-to-face in RBS’ offices with of recruiters or a line
manager. The process and questions will vary based on the role you have applied for, but may
explore:
The next stages will vary based on the role candidate has applied for. In some cases a face to face
interview will be the final stage in the process. In other cases, candidate may attend additional
interviews, complete further individual assessment exercises or join RBS at an assessment
centre.
Assuming everything has gone well for both candidate and HR managers, they will make
candidate an offer. This is a very important part of the overall process. Your recruiter or RBS
contact will help answer any questions and support candidate with any of the practicalities
involved in confirming offer, such as our pre-employment screening process.
The potential candidates in RBS are generated through following external resources:
o Direct applicants
o Job portals
o Employee Referral
o University campuses
1 Campus
2 Employee Referrals
The time HR Managers take from JRF ( Job Requisition Form) till the final offer is:
When a middle level employee is transferred from one department to another, he/she has to go
through a probation period of 6 months. During this period, the employee is trained in that
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department by the supervisor and the employee is also properly scrutinized this whether
employee is capable of working in that department or not.
Please Select
Application submitted for *
Here you have to specify whether you are applying for any suitable job or for
internship program.
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Personal Information
Fields marked with an*are mandatory
Title: *
First Name: *
Middle Name:
Last Name: *
Address: *
City: *
- -
Contact No * country
area code phone no.
code
Cell No:
Email Address: *
Date of Birth: * -- -- --
Education
Degree / Diploma / Certificate: * Please Select
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City / State: *
Country: * Please Select
From:(Month / Year) * -- --
Grade:
(If Applicable)
Major:
Organization *
Country * Please Select
Assignment/Responsibilities *
Area of Experience
* Banking Category:
Please Select
* Fresh Category:
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Please Select
Organization *
Country * Please Select
City
From (Month / Year) * -- --
Responsibilities/Nature of work
Area of Interest
Skills
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Computer Skill
Language
Skill Level
Key Strengths
Other
Please note that mere submission of instant application or any subsequent correspondence
from RBS should not be considered as guarantee for employment or even for an interview
call in this regard.
Preview
After the proper filling out of this job application form, HR managers check whether the
candidate fulfills the minimum selection requirements or not and then contacts the person
for further proceedings.
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Performance Appraisal:
Performance appraisal is the process of evaluating the employee’s performance on the job
in terms of requirements of the job. It identifies the differences among the employees in
terms of their performance.
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Need, Importance and Advantages of Performance Appraisal:
Scientific basis for judging the merit or worth of employees
Job-related.
Performance-based.
Reports should be examined meticulously before taking any positive or negative action.
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Intra and inter-departmental consistency and uniformity should be ensured.
Paired Comparison
Check-list Method
RBS Pakistan’s performance appraisal system is based on a combination of 'MBO' and 'Enabling Traits'
approaches, under which 60% weight age is given to performance goals discussed and laid out in the
beginning of the year. Another 40% weight age is assigned to enabling personality factors, which are
clarified to all employees by their supervising officers at the start of each year.
The system and process flow of the appraisal process is modified, improved and upgraded from time to
time in line with the Bank's requirements, as well as with industry practices. HR Department notifies all
units of the Bank of the PA system and procedure currently in use. Units are also notified deadlines for
goal setting, form filling, monitoring and final appraisals.
Salary increases and adjustments are based on performance of employees during a calendar year and
are finalized during the first quarter of the new year. Grade promotions on the other hand are based on
the -availability of higher positions, employees' ability to fill those positions and sustained high
performance during the last few years, and are finalized during the second quarter of each year.
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RBS’ OBJECTIVES OF PERFORMANCE APPRAISAL:
Performance appraisal is an interactive exercise between the immediate supervisor and the staff
member reporting to him/her. A supervisor is defined as the person to whom one or more employees
report on a regular basis. Branch Managers and Unit Heads supervise this interaction from a distance,
and try not to dominate the proceedings. With their greater maturity and experience, they discreetly
guide the process in order to empower the departmental heads to assume greater responsibility in this
area.
The Branch Managers and Unit Heads however, continue to bear the ultimate responsibility for
successful completion of the exercise. They discuss the goal setting done by their departmental heads
and place second signature on appraisal forms of all non-supervisory staff. Supervisory staff is evaluated
by the Branch Manager and Unit Heads directly. In addition to personal skills, their supervisory skills are
also evaluated, using the second page of the appraisal form for 'Managerial' staff.
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Training and development
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Monitor and Evaluate the P
Needs Assessment
Effective training practices involve the use of an instructional systems design process. The
instructional systems design process begins by conducting a needs assessment.
Because needs assessment is the first step in the instructional design process:
If it is poorly conducted, training will not achieve the outcomes or financial
benefits the company expects.
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resources available for training
support by managers and peers for training
It is obligatory for each employee of the Bank to attend at least one training course (of a minimum
duration of one full day) in a calendar year. Branches, Area Offices and Head Office
Divisions/Departments are to send their nominations for training courses at least two weeks prior to the
start of a training course. Employees may also take the initiative and get themselves nominated through
their supervising officers for training courses relevant to their needs.
The Bank has the latest state-of-the-art training facilities at its Training & Development Center (TDC) and
a dedicated training team to look after most of the training needs of its employees.
Regular in-house training programs offered by the TDC in-house are as follows:
At the beginning of every quarter, TDC announces dates for training courses for the following quarter.
These courses are planned on the basis of training requirements received from area offices, branches or
Head Office Divisions/Departments, either through employee appraisal forms or by specific demand
from time to time. TDC may also design and offer additional training programs in other areas in response
to specific training needs expressed by its internal customers.
Some specialized courses, especially at an advanced level, may be outsourced by using reputable
academic institutions and management consultants.
The Bank also recruits fresh graduates as Cash Officers, Operation Officers & Customer Service Officers
through a competitive process for induction into mainstream general banking operations. The duration
of the training program in these positions is four to six weeks and frequency of the batches depends
upon staffing requirements of the Bank.
Where in-house expertise is not available in a certain area, employees may be nominated to attend
training programs offered by other institutions including Institute of Bankers Pakistan.
Alternatively, external training consultants or training providers may be invited to conduct training
programs for RBS employees whenever deemed necessary.
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Appendix
Comparison between BANK AL FALAH and Royal Bank of Scotland
MANPOWER PLANNIG
When the need for recruiting new employee arises and for which department and job, the line
manager informs to the department head of that department, then he consults with HR manager
and after interviewing and tests, that person is employed in the bank who is according to a
specific job
TURNOVER RATE
The turnover rate for jobs in Bank Alfalah is very minimal as compared to other job industries.
JOB ROTATION
Periodic rotation of staff between various assignments is used by Bank Alfalah as a means of
broadening areas of expertise of concerned staff. This is also done to ensure smooth transition
from one job to another in case a staff member leaves the job, or is transferred to another job or
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location. Furthermore, periodic job rotation has also become a standard audit requirement in
BAL.
It has therefore been decided that all staff members posted at branches should be rotated
periodically according to the following guidelines:
TERMINATION OF EMPLOYEE
Article
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Although such research attempted to extend the range of HR's influence, it did little to advance
HR as a new source of competitive advantage. It provided scant insight into the complexities of a
strategic HR architecture. And simply put, it didn't encourage HR managers to think differently
about their role.
In the 1990s, a new emphasis on strategy and the importance of HR systems emerged.
Researchers and practitioners alike began to recognize the impact of aligning those systems with
the company's larger strategy implementation effort — and assessing the quality of that fit.
Indeed, although many kinds of HR models are in use today, we can think of them as
representing the following evolution of human resources as a strategic asset:
The personnel perspective: The firm hires and pays people but doesn't focus on hiring the very
best or developing exceptional employees.
The compensation perspective: The firm uses bonuses, incentive pay, and meaningful
distinctions in pay to reward high and low performers. This is a first step toward relying on
people as a source of competitive advantage, but it doesn't fully exploit the benefits of HR as a
strategic asset.
The alignment perspective: Senior managers see employees as strategic assets, but they
don't invest in overhauling HR's capabilities. Therefore, the HR system can't leverage
management's perspective.
We're living in a time when a new economic paradigm — characterized by speed, innovation,
short cycle times, quality, and customer satisfaction — is highlighting the importance of
intangible assets, such as brand recognition, knowledge, innovation, and particularly human
capital. This new paradigm can mark the beginning of a golden age for HR. Yet even when
human resource professionals and senior line managers grasp this potential, many of them don't
know how to take the first steps toward realizing it.
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Learning to serve as strategic partners isn't just a way for HR practitioners to justify their
existence or defend their turf. It has implications for the very survival of the firm as a whole. If
the HR function can't show that it adds value, it risks being outsourced. In itself, this isn't
necessarily a bad thing; outsourcing inefficient functions can actually enhance a firm's overall
bottom line. However, it can waste much-needed potential. With the right mindset and
measurement tools, the HR architecture can mean the difference between a company that's just
keeping pace with the competition and one that is surging ahead.
The sad truth is that the HR executive in this story missed a valuable opportunity. If he had
understood and known how to measure the connection between investments in HR architecture
and shareholder value, things might have turned out differently. Armed with an awareness of
how investors value intangibles, he might have helped his president build the economic case for
increased shareholder value.
The story of Sears, Roebuck and Co.'s recent transformation stands in stark contrast to this
anecdote and shows what companies can achieve when they do align HR with the larger
organization's strategy. 1 After struggling with lack of focus and losses in the billions in the early
1990s, Sears completely overhauled its strategy implementation process. Led by Arthur
Martinez, a senior management team incorporated the full range of performance drivers into the
process, from the employee through financial performance. Then, they articulated a new,
inspiring vision: For Sears to be a compelling place for investors, they said, the company must
first become a compelling place to shop. For it to be a compelling place to shop, it must become
a compelling place to work.
But Sears didn't just leave this strategic vision in the executive suite or type it up on little cards
for employees to put in their wallets. It actually validated the vision with hard data. Sears then
designed a way to manage this strategy with a measurement system that reflected this vision in
all its richness. Specifically, the team developed objective measures for each of the three
"compelling." For example, "support for ideas and innovation" helped establish Sears as a
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"compelling place to work." Similarly, by focusing on being a "fun place to shop," Sears became
a more "compelling place to shop." 2 The team extended this approach further by developing an
associated series of required employee competencies and identifying behavioural objectives for
each of the "3-Cs" at several levels through the organization. These competencies then became
the foundation on which the firm built its job design, recruiting, selection, performance
management, compensation, and promotion activities. Sears even created Sears University in
order to train employees to achieve the newly defined competencies. The result was a significant
financial turnaround that reflected not only a "strategic" influence for HR but one that could be
measured directly.
Few firms have taken such a comprehensive approach to the measurement of strategy
implementation as Sears has. Granted, retail service industries are characterized by a clear "line
of sight" between employees and customers. Thus their value-creation story is easier to
articulate. But that doesn't mean that other industries can't accomplish this feat. The challenges
may be greater — but so are the rewards.
In most industries, it is now possible to buy on the international marketplace machinery and
equipment that is comparable to that in place at the leading global firms. Access to machinery
and equipment is not the differentiating factor. Ability to use it effectively is. A company that lost
all of its equipment but kept the skills and know-how of its workforce could be back in business
relatively quickly. A company that lost its workforce, while keeping its equipment, would never
recover. 3
This excerpt captures the difference between physical and intellectual capital — and reveals the
unique advantages of the latter. The Coca-Cola Company's experience testifies to this reality.
According to then-CFO James Chestnut, after transferring the bulk of its tangible assets to its
bottlers, Coke's $150 billion market value derived largely from its brand and management
systems. 4
The evidence is unmistakable: HR's emerging strategic potential hinges on the increasingly
central role of intangible assets and intellectual capital in today's economy. Sustained, superior
business performance requires a firm to continually hone its competitive edge. Traditionally, this
effort took the form of industry-level barriers to entry, patent protections, and governmental
regulations. But technological change, rapid innovation, and deregulation have largely
eliminated those barriers. Because enduring, superior performance now requires flexibility,
innovation, and speed to market, competitive advantage today stems primarily from the internal
resources and capabilities of individual organizations — including a firm's ability to develop and
retain a capable and committed workforce. As the key enabler of human capital, HR is in a prime
position to leverage many other intangibles as well, such as goodwill, research and development,
and advertising.
····
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Recruitment score card
35
Balanced Score Card
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Performance Measurement is a critical issue for HR
This report provides a step-by-step process by which HR leaders can create their own dedicated
functional balanced scorecard that will clearly demonstrate how the function is helping to deliver
its organization's strategic goals.
Demonstrating value is now critical. As senior managers turn the spotlight onto HR’s
contribution to the success of the organization, discover the powerful role played by performance
measurement in enabling HR to reposition itself as a key strategic business partner
The 'new' skills HR professionals must develop in order to become true strategic assets to
their organizations
10 international best-practice case studies illustrating how HR can play a critical role in
shaping world-class people strategies for their companies.
An explanation of how the ROI of HR programmes can be assessed and a detailed
overview of how to conduct an HR audit
The demands placed on HR in the current climate and the challenges involved in
becoming a strategic partner
Complete results, analysis and commentary from a survey of over 200 leading
organizations.
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