Requisite HRM©

The growth of the human capital value in parallel with the growth of the company’s value is the first sign that Human Resource management function does its work.

Human Resource Management

Talent as a capability to do the work of the certain complexity is one of the most valuable resources for any company. The higher the complexity of the work, the fewer the potential candidates who are capable of delivering effectively.

For example, in Life and Behavior of Living Organisms — A General Theory (2003), Elliott Jaques gives figures that are admittedly a rough approximation of the frequency of given levels of current potential capability in an adult population of twenty-on years of age and over: roughly 40% of the population are capable of delivering effectively the work of Stratum II Complexity, but only 4% are capable of Stratum III work complexity and even less, 0.5%, of Stratum IV work complexity.

In addition to relative scarcity, the competition for talent is high. Yet, companies frequently do not use the talent they employ fully and the potential of the employees is left unutilized. This untapped potential has a negative impact on motivation levels of employees and can lead to good people underperforming and/or searching for new opportunities outside the company.

In financial terms, companies with ineffective HR practices are paying for potential / capability they are not utilising effectively and experience a low return on investment into their human capital.

Objective of Requisite HRM©:

Find / recruit / select or develop a talent capable of certain work complexity and ensure that the company utilises the potential of the employees fully.

Key Definitions of Requisite HRM©:

  • Requisite Human Resource Management: A set of practices to ensure that employees are employed at their level of full potential and there is no untapped potential / talent in the company.
  • Role Complexity: The complexity in a role as measured by time-span of discretion.
  • Remuneration: The total compensation granted to an employee in exchange for work and comprising all forms of payment including money and the financial equivalent of non-monetary payments.
  • Individual Development: Means of assisting an individual to work at full potential capability.
  • Maturation: A process in which a person’s innate information processing complexity matures in a predictable way over time.

Framework of Requisite HRM©:

  • Job evaluation to establish the complexity of a role.
    • 8 levels of work complexity.
  • Role definition / description.
    • Purpose, accountabilities, authorities, prescribed limits, outputs, tasks.
    • Managerial accountabilities and authorities (Task Assigning Role Relationships).
    • Cross-working: 7 types of Task Initiating Role relationships, and cross-working accountabilities and authorities.
  • Capability (competency) profiling of a role
    • Task analysis as the first and most critical step in the competency mapping.
    • Level of decision making capability, skilled knowledge, values, required behaviours required to deliver the role effectively.
  • Felt-Fair Compensation.
    • Level, grade, band, step in which the complexity level of work in the role is compensated.
    • The level of felt-fair compensation must match the complexity level of work in the role.
  • Workforce Planning.
    • Workload / Full Time Equivalent to deliver the work in the role.
    • Annual labour budgeting / Zero-based labour budgeting.
  • Organizational Structure.
    • Managerial roles in the structure are 1 level higher than their subordinate roles.
    • Peer roles have the same level of work complexity.
    • Manager-once-removed roles are 2 level higher than their subordinate-once-removed roles.
    • The size (number of subordinate roles) matches the requisite size for the roles at various levels of work complexity.
  • Recruitment & Selection.
    • Recruitment accountabilities and authorities.
    • Work history analysis.
  • Induction & Integration.
    • Induction into the company by HR department.
    • Integration into the role by the accountable manager.
  • Capability Assessment.
    • Current applied capability, current potential capability, future potential capability (CIP, decision-making profiling, managerial judgement).
    • 8 levels of capability to match 8 levels of work complexity.
    • Skilled knowledge gap analysis.
    • Value orientation evaluation.
    • Required behaviour compliance – positive intention to comply with required behaviours.
  • Coaching.
    • By accountable manager (Managerial Leadership practices).
    • including Effectiveness Improvement Actions and monitoring.
  • Training (for current role).
    • Individual Development Plan.
    • Learning Management System.
    • Accelerated learning and development (VR / AR).
    • Training Effectiveness / Return on investment / Human capital growth.
  • Career Path Development.
    • Career path identification.
    • Career path design.
    • Career path guide.
  • Potential Forecast (Maturation).
    • Future Potential capability of the employees.
    • Maturation curves for employees.
    • Time (years) to move through the levels of work complexity and capability for employees.
  • Talent Pool Development and Management.
    • Talent Passport.
    • Talent Pool Classification (strategic, tactical, operating).
    • Gaps in Talent Pool.
    • Human Resource strategies to cover the gaps.
  • Mentoring.
    • Career Plan Development by Manager-once-removed.
  • Training (for future role).
    • Acting in role for the purpose of individual development.
    • Long term investment in the employees’ development to ensure positive return on investment.
  • Human Resource Planning.
    • Mid-term human resource planning.
    • Long-term human resource planning.
  • Employee Value Proposition.
    • Employee retention and attraction.
  • Knowledge Transfer Management.
    • Knowledge retention (especially, tacit knowledge) in case of turnover / exit or no career development options for employees.
  • Employee Relations with Management.
    • 10 Managerial Leadership Practices (managerial team working, context setting, managerial planning, task assignment, personal effectiveness, induction and coaching, continuous improvement, deselection and dismissal, etc.)
    • 8 Manager-once-removed practices (cross-functional work flow, human resource development, evaluation of potential capability of Subordinates-once-removed, mentoring and career development, candidate pool development, analysis of the talent pool, appeals procedures, managerial leadership appraisal).
    • Immediate managers have the level of capability 1 level higher than their immediate subordinates.
    • Managers-once-removed have the level of capability 2 levels higher than their subordinates-once-removed.
    • Managers have full managerial accountability and authority.
    • Employee and Grievances Management.
  • Employee Relations in the Organizational Context.
    • Organizational Culture Management.
    • Employer Brand.
    • Employee Engagement.
    • Employee Communication.
  • Employee Relations with Unions.
    • Management — Union relations.
    • Union — Employee relations.
  • Employee Relations with Communities.
    • Organisation / Management / Communities — social license to operate.
    • Employees — Communities relations.
Interested to know more about Requisite HRM©?

Practical Workshop on Requisite HRM©

  • For companies who experience a shortage of talent or have identified that lack of capability is a problem they are experiencing.
  • For companies who spent millions on training and development but has inadequate return on these investments.
  • For companies who think they have a lot talent but struggle to utilise it fully.
  • For HR practitioners who would like to learn how to manage and increase human capital value.
  • For companies and HR practitioners who would like to improve their HR practices.
  • HR Business partners, HR directors, HR advisors.
  • Line managers who would like to improve their knowledge of HR practices to more effectively attract, utilise and retain talent.
  • Explain the requisite principles behind Requisite HRM©.
  • Educate participates on sets of requisite Human Resource Management practices.
  • Assess the company’s existing HRM practices, identify the gaps, and a probability of untapped talent.
  • Develop the action plan to improve the human capital management in the company / improve HRM practices in accordance to Requisite HRM.
  • 5-day workshop.
  • HRM policies and procedures, if exists.
  • HRM audits, if exists.
  • HR strategy, if exists.
  • ROII’s advisors with experience in RO implementation worldwide.
  • Moderators with experience in developing organizational culture.
Day 1
  • Introduction to Elliott Jaques and Requisite Organization.
  • Requisite Practices of “Designing Effective Roles”.
  • Self-assessment of “Designing Effective Roles” as they exist in the company.
Day 2
  • Requisite Practices of “Matching Capability with Roles”.
  • Self-assessment of “Matching Capability with Roles” as they exist in the company.
Day 3
  • Requisite Practices of Keeping up with Maturation”.
  • Self-assessment of “Keeping up with Maturation” as they exist in the company.
Day 4
  • Requisite Practices of “Balancing Employee Relations”.
  • Self-assessment of “Balancing Employee Relations” as they exist in the company.
Day 5
  • Review the existing HR strategy.
  • Review the self-assessments of the HRM practices based on the requisite principles.
  • Identify the application and potential adaptation of Requisite HRM practices.
  • Develop the plan to improve HRM practices.
  • ROII President, Rebecca Cason.
  • ROII’s advisors with experience in RO implementation worldwide.
  • Moderators with years of international HR experience.
  • At your premises.
  • At our premises or premises of our partners across the globe (UK, Sweden, USA, Australia, Canada, South America, Moscow, etc.).
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