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1. The greatest management challenge for
HRD is to be able to identify evaluation tools and reward
systems that can value and compensate Human Resource based
on INPUT AND DELINKED FROM OUTPUT. We should not have
to await the output in order to calculate the value!
2.Though it is claimed that hierarchy has
been 'flattened within the management structure', this cannot
be true in light of the rising disparity in income between
top management and the "rest". The error has been in describing
empowerment as 'giving responsibility and creating accountability'.
Delegation of powers will be ineffective and meaningless
if they are to be specified!! There is only one kind of
empowerment and that is Discretion; AND the only discretion
that is meaningful is Fiscal!! Empowerment can only come when
every employee perceives 'fiscal discretion'. This provides
ownership ; which solves all HRD problems!
3.The greatest valuation and compensation
for Human Resource will have to shift from being based on
' individual performance' to 'the ability to transfer knowledge
to others'. Trainers and teachers will be seen to have
the highest value and hopefully will become the highest paid
human resource in the the Non Linear era.
4. HRD systems will have to use digital technology
and software to show a 'moving and flexible value'
for each function as they are affected by market conditions.
Employees will thus have to accept that the value of their
inputs and skills will have a 'changing and dynamic' commercial
value. While we have readily designed many linear logic based
positive 'incentive programmes' for compensation based on
'more sales, more production or more profit' ; a 'deduction
is designed and positioned to be a negative charge like a
'penalty or fine for creating damages'.
5. Compensation must evolve to become a 'relatively
unforecastable output based on a transparent system that indicates
the changing value related to markets'. This requires
to be sold and positioned so as to be seen by all employees
as a package which rewards the "function itself BUT has a
changing value created by unforecastable market conditions
and not based on deficiency or 'fault'.
6. This will lead to a different era in management
of human resource as this 'integrates employment with entrepreneurship'.
Contrary to belief this is what every human being desires,
and will be acceptable to all, on the basis of its transparency.
The need is to create transparent systems that shows HOW the
value of every human resource as a 'component adjusts its
commercial functional valuation due to changes in the market
place'. This requires the function itself to be costed within
the cycle of commerce for the product or the service being
offered by the organization. Digital technology is positively
ready to deliver this human ERP module.
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