Saturday, March 28, 2009

an argument for human resource value modelling

conventional organisation structures,based on vertical levels, reflect salary grades, stages, salary bands. The functional Roles/Positions and Titles assigned to such levels are often correlated to Job evaluation scores using some standard evaluation framework in the background. However the scores' correlation and subsequent administration gets skewed because of internal climate factors. To maintain consistency a structured model is necessary. A value model, based on business value addition potential is very essential. The potential need to be measured and assigned across positions/roles;utilisation periodically validated/measured at holder level through appraisals. Past years of experience and/or age can be combined for an acceptable scale for measuring that potential across employees. One can also sharpen it to accommodate current holder valuations through an assessment rating, if there is scope for that in a company. The value differentials, in the scores, across different roles, within a vertical functional hierarchy, can then be used to define compensation package differentials. Once fixed, the relativities need to be maintained across business growth cycles. That's C&B 's responsibility, of course.