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Institutional Effectiveness: Global

Governance in Human resource

Lecture # 1

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Let us solve jigsaw puzzle

Institutional Effectiveness

Governance in

Human resource

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Background

Lehman Brothers A case of Canadian Government

 A Case of Government of Pakistan

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Lehman Brothers

Lehman Brothers filed for bankruptcy onSeptember 15, 2008.

Largest bankruptcy filing in U.S. history with over$600 billion in assets

Lehman shares tumbled over 90% on September15, 2008.

One hundred and fifty eight (158) years, Lehman

Brothers survived in multiple business cycles andGreat Depression.

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Operating Principles

Demonstrating a Commitment to Excellence 

Ensuring That Their Organization Is a True Meritocracy  

Demonstrating Smart Risk Management 

Preserving and Strengthening the Culture

 Always Acting With an Ownership Mentality  

Building and Protecting Their Brand 

 Maximizing Shareholder Value 

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Case of Canadian Government

Prime Minister Stephen Harper in 2009announced changes in the governance structurefor the management of human resources in thePublic Service of Canada.

The changes will focus and streamline theorganizational structure for human resourcesmanagement and provide Deputy Ministers withthe primary responsibility for managing the

people in their own departments and agencies.

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The Prime Minister's Advisory Committee on thePublic Service provided clear advice on the needfor a restructuring of how the Public Servicemanages human resources in its February 2008

report.The Committee found that the existing human

resources governance regime is "overly complex, with multiple players and a resulting burden of 

duplicative and often unnecessary rules".

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The Committee recommended changes in thehuman resources governance structure to makeit:

simpler,

more streamlined and more coherent.

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A Case of Government of Pakistan

2800 British Civil Servants established andmaintained rule in the Sub-Continent

Now there are:

 Around 4 million employees on Payroll of the

government  Alone 2 million on pay roll of FG

140,000 employees alone in Pakistan railway 

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Institutional Effectiveness

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Effectiveness

Effectiveness means the capability of producingan effect

In management, effectiveness relates to gettingthe right things done.

Peter Drucker says that effectiveness is animportant discipline which “can be learned andmust be earned.” 

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Institutional Effectiveness

Institutional Effectiveness (IE) has been definedby IE pioneer Peter Ewell (1985) as

"A comparison of results achieved to goals intended."

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Definition of IE

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“The ability of an institution to match its performanceto established purposes as stated in its mission” (Alfred

et al)

“An internal process of planning and evaluation that is

intended to ensure that the organization’sperformance matches its purposes. A global process

that uses assessment strategies to demonstrate

accountability” (Midlands Technical College, p.ix).

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Systematic, explicit, and documented process of measuring performance against the mission in allaspects of an institution (SACS, 2005, p. 9)

Intentional process of ascertaining the level of achievement of an institution’s mission and itseducational goals and objectives (SACS, 2005, p. 8)

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SACS = Southern Association of Colleges and Schools  

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What IE is all about?

Provides information todocument progress/status,for decision making, and to

determine improvements

Provides data to supportplanning and evaluation of 

performance, learning,service/support functions

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Basic questions addressed by IE?

 What objectives are intended?

 Are they being achieved?

 What does organization want toaccomplish?

How are we progressing?

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Purposes

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Clarification of Mission

Improvement

Identification of Priorities

Planning and Decision Making

Enhance Reputation

Historical Record

a oes ns u ona ec veness

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a oes ns u ona ec venessInclude?

Planning Assessment

Program Review

Research &Institutional Data

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The Cycle is Continuous

Resources

Evaluate

Design

Conduct

Conductconversations aboutorganization status

Identify organization'sstrengths

Determine areas fortargetedimprovement

Monitor progress

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Components of IE Process

1. Planning2. Budgeting

3.  Accountability and Assessment

4. Feedback Mechanisms5. Coordination

6. IE Program Support

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Core Concepts

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Stakeholder

Needs

Mission Results

Resources

Costs

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Governance

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Governance

Governance is the activity of governing.

It relates to decisions that:

define expectations,

grant power, or

 verify performance.It consists either of a separate process or of a

specific part of management or leadershipprocesses.

Sometimes people set up an institution toadminister these processes and systems.

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In the case of a business or of a non-profitorganisation, governance relates to:

consistent management,

cohesive policies, processes and decision-rights for a

given area of responsibility.For example, managing at a corporate level might

involve evolving policies on privacy, on internalinvestment, and on the use of data.

 An exercise of power –  political, financial, judicial,

and administrative – to manage the public affairs of 

a country at all levels

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The World Bank defines governance as

the exercise of political authority and the use of institutional resources to manage society's problemsand affairs 

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The Worldwide Governance Indicators project of the World Bank defines governance as

The traditions and institutions by which authority in acountry is exercised. 

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Parameters of Good Governance

Basic Parameters 

 Vision and Mission

Participation

 Transparency

 Accountability

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Global governance

In contrast to the traditional meaning of "governance", some authors like James Rosenauhave used the term "global governance" todenote:

the regulation of interdependent relations in theabsence of an overarching political authority.

The term can however apply wherever a group of free equals need to form a regular relationship.

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Global governance or world governance is thepolitical interaction of transnational actors aimedat solving problems that affect more than onestate or region when there is no power of 

enforcing complianceThe term is used to designate all regulations

intended to organize human societies on a globalscale

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Governance in HR 

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What is governance?

Mercer defines HR Governance as the act of leading the HR function and managing relatedinvestments to:

optimize performance of the organization's humancapital assets;

define stakeholders and their expectations;

fulfill fiduciary and financial responsibilities;

mitigate enterprise HR risk;

align the function's priorities with those of thebusiness; and

assist HR executive decision making.

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Why Governance matters in HR?

HR executives face significant challenges,including managing a global function

Realizing returns on technology 

 Accelerating the pace of organizational change

Leveraging human capital strategically Reforming management practices in response

Most HR Managers don’t challenge the stereotype

HR practices. They rather create governanceissues

Benefits of establishing a workable HR governance

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Benefits of establishing a workable HR governance

structure

Clear reporting structures

role clarity and value-adding HR activities anddecisions at each level of the organisation

logical decision making boundaries and controls

integration and alignment with businesspriorities

clarity around an organisation's tolerance of duplicative activities

transparency of process and resultant employeetrust/commitment

demonstrable evidence of HR's value to thebusiness.

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History of HR Governance

The term "HR governance“ was conceived in themid-’90s to answer: 

Question of whether an organization can manage itself  without regulation?

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HR Governance: Definition

HR governance" is an emerging organizationalpractice, there is currently no commonly acknowledged definition.

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HR governance is the act of leading the HR function and managing related investments to:

optimize performance of the organization’s humancapital assets;

fulfill fiduciary and financial responsibilities;

mitigate enterprise HR risk;

align the function’s priorities with those of thebusiness; and

enable HR executive decision making.

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Is governance a strategic objective?

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No

Governance is not a strategic objective.

It is a systematic approach to management thatenables the function to achieve strategic andoperational objectives.

Thi i j t ti f th i b

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This is just tip of the iceburg

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Let us assess your interest in the HR 

governance

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5/1/2012

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Assignment # 1

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Email me your CVs carrying your photo

 Write a report on:

Civil Service Reforms in UK

Civil Service Reforms in Singapore

Civil Service Reforms in Canada Civil Service Reforms in Pakistan

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Questions ? & Answers

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