Page 263 - DMGT406_HUMAN_RESOURCE_MANAGEMENT

Human Resource Mangement

Notes Features include the continuity and compatibility between the old and new version of the
standards. With the revised ISO 9001, the Quality Management System covers those activities of
an organisation that provide assurance to customers that their needs are being addressed.

15.2.6 Another Important Emerging HR Issue is to Build Organization in
Line with Capability Profile

Competencies are attributes, some professional skills, or a combination of skills and knowledge
and behaviours. Competency models suggest integration of business plan of the company with
selecting the right individual for the job. An integrated system of corporate values, vision,
mission statement, goals/objectives, action planning and support systems are needed to put it
all together. A competency is defined as the smallest unit of on-the-job behaviour that is
observable, measurable, and changes over time. Behaviour is a function of consequence.
Competencies matter because past performance is the best predictor of future performance,
good current performance builds from past performance and the more recent the effective
behaviour, the more appropriate fit to the job. The organisation needs to create an integrated
human resources process by looking at not only the skills and knowledge but also the behaviour
required by an employee to be successful in any job. This results in a capability profile. Capability
is a combination of skills, knowledge and behaviour. Once this profile is in place, we can use the
behaviours for selection and recruitment, for employee development, reward management,
performance management, training, succession planning and career development. Rewards do
not have to be financial they can be recognition or paid 'time off or a simple thank you.
Once this is in place we enable our people in true sense or make our organisation an enabling
organisation and this way the organisation flourishes.

15.2.7 Six-sigma Practices

To leapfrog ahead of competition in this world of uncertainty, corporate world is experimenting
with one after another processes. From 'Conformance to Standards' to achieve total quality, the
focus has now been shifted to add economic value and practical utility to both the organisation
and the customer. Realising Value entitlement both by the customers and the organisations is
now the determinant of business relationship. It is now a win-win situation for the both. For
customers, it is their rightful expectation to buy quality products at competitive cost, while for
organisations, it is to produce at highest possible profit. This synergy is what everybody tries to
achieve in this corporate world. Rejection Allowance, Unavoidable Rejection (UR) are now the
forbidden words. Six sigma as a business process is now allowing organisations to improve
their bottom line by designing and monitoring business activities in a way that minimises
wastes and resources without, however, compromising with customer satisfaction. Six Sigma
process is broader than total quality management (TQM) programmes. While TQM focuses on
detecting and correcting defects, six sigma recreates the processes to ensure defects never arise
right from the beginning. From organisations' point of view, it provides maximum value in the
form of increased profits and from customers' point of view, it provides maximum value in
terms of high quality products and services at competitive costs.
Higher Sigma values indicate better quality products and lower sigma values represent less
quality products. At six sigma level, products are virtually defect free, i.e., only 3.4 Defects Per
Million Opportunities (DPMO).

15.2.8 Innovation and Creativity

Innovation is a new technique or idea encompassing product/services, process, managerial
styles and even organisational structure. It may be technology push or demand pull or even

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