We Transformed A Dysfunctional HR Into Strategic Assett



We Transformed Dysfunctional HR into Strategic Asset


Introduction

In this blog post, I will share my experience of turning around a dead Omani company's HR department. We were in this Company for 5+ years. Here we will discuss the importance of HR management, the challenges we faced and the leads we took to improve the department to produce the result.


Importance of HR Management

You know that Human resource (HR) management is the process of acquiring, developing, and retaining employees.One of its essential functions for any company is that it helps to ensure that the company has the right people in the right positions. HR management also plays a role in employee satisfaction, productivity, and engagement.

A well-functioning HR department can help to improve employee morale, productivity, and engagement. This can lead to increased profits and a more successful company. In addition, a good HR department can help to protect the company from legal liability by ensuring that it complies with all applicable employment laws.


Challenges We Faced in the Company:

When I first joined the company, the HR department was in a state of disarray. There was no clear HR strategy, no employee handbook, and no performance management system. Employees were not happy and morale was low.

There were many other challenges that we face when trying to turn around a dead Company and its HR department. Some were below.


  1. Lack of systems for HR functions: HR functions of the Company were totally dead leading to No HR system was functional. Somewhere we have already talked about whether the paper-slip system for the recruitments or no-attendance but full salary to all employees system was functional in the Company.

  2. Lack of resources: Consequently, neither the management was interested nor the company had any resources to invest, say for hiring qualified staff.

  3. Lack of buy-in from management: The result was that the Management was neither committed to investing in HR nor it was seeing any value in it. This can make it difficult to get the resources and support when needed.

  4. Resistance from employees and the Bosses: Both the employees and their bosses were resistant to change. One reason was the way earlier efforts were made.


What Was the Approach we adopted:

During our time in Oman as HR professionals, our efforts can be summarised in four key areas:

a) We Streamlined Our HR Department:

Upon joining, we identified that the HR team was inadequate, consisting of only four Omani employees with insufficient qualifications. To address this, we hired two skilled individuals from India, one for training systems and another for organizational development. Recognizing that HR improvements had to start internally, we conducted an extensive analysis of the HR department's status. This analysis allowed us to pinpoint areas needing improvement and take decisive action. We introduced various HR formats, letters, policies, forms, and more, including:

  • Various HR function forms.

  • HR-related letters.

  • Rules, regulations, and policies.

  • Selection and recruitment documents.

  • Performance management templates.

  • Various personnel department-related documents.

b) We Refurbished Our All HR Functions:

Another crucial aspect of our work involved refurbishing HR functions. We took careful steps by using feedback gathered from the existing HR system's execution in the company. For instance, we noticed the absence of a time office system and promptly introduced one, complete with attendance formats, warning letters, norms, standards, and procedures. Similarly, we revamped the contract system, transforming it from a chaotic state into an organized one through extensive research and data work.

We applied the same meticulous approach to other HR areas:

  • Selection and recruitment.

  • Induction and placement.

  • Training and development.

  • Performance management.

  • Annual performance bonus.

  • Recognition and reward systems.

  • Creation of an HR Policy Manual.

  • Designing employee booklets and induction materials.

c) Hiring Hay Group for the Specialised Tasks:

Recognizing the need for external expertise, we enlisted the services of Hay Group, a globally renowned HR consultancy, for two critical tasks: restructuring our salary system and enhancing the performance evaluation system. Our decision to engage Hay Group stemmed from the company's desire to transition from a Variable Pay System to a more traditional one and to implement a performance system with a reputable design.

d) We Customised Our Executed HR Functions:

Customization was essential to tailor HR functions to the company's unique needs and to overcome resistance to change. We understood that sincerity and effective communication were key to success in this endeavor. Our close collaboration with the CEO strengthened our conceptual and communication skills, resulting in the refinement of HR systems. For example, if we implemented a selection and recruitment system and identified areas for improvement, we customized it accordingly. We adopted similar practices for various other HR functions to enhance user experience and align with the company's goals.


What were Results of Our Efforts:

We were always interested in knowledge of our effort. We were however not much interested in gathering specific data pertaining to this. Nevertheless, there were others effort or situation which w Ed have taken as feedback on the outcomes of our efforts and felt gratified. Some of these are below.


Performance Increased by 43%:

  1. Our dedicated work led to a remarkable 43% increase in the company's performance over the course of three years. This impressive growth was acknowledged and discussed during board meetings, reflecting the tangible impact we had on the organization.

Increase in Annual Performance Bonus:

  1. Our contributions were also reflected in the company's bonus structure. Due to the improved performance we fostered, the board decided to increase the annual performance bonus for employees. It escalated from a typical 7 to 10 monthly salaries, a substantial recognition of our efforts in driving performance.

Place in the Board:

  1. As a testament to the value we brought to the organization, we were granted entry into board meetings. Our presence was not only acknowledged but also sought after. We were frequently asked to present our insights and recommendations to the board of directors, demonstrating the significance of our contributions.

Improved Business Support Demand:

  1. Our efforts earned us a stellar reputation among technical professionals within the company. Heads of Departments (HODs) began turning to us whenever HR-related needs arose. The frequency with which they sought our expertise showcased the trust and confidence they had in our abilities.

Disciplined Work Culture:

  1. Perhaps one of the most notable achievements was the transformation of the company's work culture. Through our endeavors, we cultivated an excellent work environment that was conducive to productivity. This new version of the company was widely appreciated, and employees embraced the disciplined work culture we instilled.

In reflection, our journey underscores the value of experiential learning. We applied the same principles we advocate – understanding what, when, why, and how to do something – in our own work. We hope our experience serves as a valuable lesson, demonstrating the remarkable results that can be achieved through dedication and a commitment to excellence


Lessons if any We Learned:

There were several lessons I learned from this experience. First, it is important to have a clear HR strategy. This will help you to focus your efforts and make sure that you are addressing the most important issues. Second, it is important to involve employees in the development of HR policies and procedures. This will help to ensure that the policies are fair and effective. Third, it is important to provide training and development opportunities for employees. This will help them to improve their skills and knowledge, which will benefit the company as a whole.

Author: Dr Gyanandra Singh, Mumbai

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