Developing

HR Strategy

May 2010
Issue 32

• Changing nature of the professions

• Baring it all on pay and reward — how would you look?
• Job description and person specification alignment
• Target setting: a scientific process or pure art?
Editorial Policy/Editorial Advisory Board

Editorial Editorial
Policy Advisory Board
The aim of this journal is to publish Chris Brewster
cutting-edge articles on human Professor of International Human
resources to inform best practice, Resources, Henley Management College
policy and theory in the field.
Duncan Brown
Its brief is interpreted widely and covers Director, Reward Services,
issues relating to people resourcing, Institute for Employment Studies
learning and development, employment
Jean-Marie Hiltrop
relations, rewards and benefits and
Visiting Professor at the Copenhagen
human resources strategy, as well as
Business School, specialising in International
some global and comparative issues.
Human Resource Management and Change
Editorial policy is to commission
Andrew Mayo
research-led pieces, case studies and
President of the HR Society; Director of
debates on policy from experts in
Mayo Learning International; Professor of
the field. The Editor also welcomes
Human Capital Management, Middlesex
unsolicited articles from human
University
resources and employment researchers,
practitioners and consultants. Please send Sonia McKay
a 200-word synopsis and we will send Professor of European Socio-Legal Studies,
you a copy of our Notes for Contributors. Working Lives Research Institute, London
Metropolitan University
Our aim is to encourage discussion
between you and the authors or between Brian Willey
you and your fellow subscribers. Visiting Fellow, Kingston University and
Chartered Fellow of the CIPD
We are always looking for ways to
improve our service to you and to ensure Chief Editor
that we cater for all your information Linda Holbeche
requirements. It is your views that will Director, The Holbeche Partnership
have the most influence on the future Editor
development of our products. So if you Gillian Fraser
could spare a few moments, let us know
what you think and whether you have any
suggestions for articles or features that
you would like to see in future issues.
Please e-mail your comments and
suggestions to me at:
[Link]@[Link]

Gillian Fraser, Editor

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May 2010 Developing HR Strategy

 Editorial

Editorial

It has been interesting, if sad, to note how much the relevant in today’s fast changing context. The authors outline
economic crisis and its causes have called into question the components of effective descriptions and specifications.
the nature of professionalism, together with the role and
Performance management systems and creating training
reputation of professionals and professional bodies. As
and development processes are other “basics” which HR
Professor Colin Coulson-Thomas points out, companies
must get right if they are to enable improved individual,
that fail invariably employ professionals. The banks that
team and organisational effectiveness. Target-setting is the
were bailed out during the banking crisis were advised by
focus of the article by Cranfield’s Professor Mike Bourne and
professionals and audited by professionals. Have these people
Dr Monica Franco-Santos. They report on their two-year
shown the foresight and competence one might reasonably
study of performance target-setting practices where they
expect from highly-paid experts? Colin argues that we need
found that poor target-setting is surprisingly common in UK
a new definition of professionalism that is “fit” for the 21st
organisations despite the fact that it results in wasted effort,
century and that if professional bodies do not take a lead in
motivation and resource. The authors provide some practical
creating this, it is likely that other networks will.
and straightforward suggestions as to how target-setting can
What does this mean for the HR profession in particular? For be improved.
example, take the role played by reward systems in triggering
So, getting the basics right is the bedrock of professionalism.
the economic crisis. Why did some HR professionals stand by
Well-designed and implemented, these processes are the
while huge sums were paid out in bonuses and commissions
building blocks of organisational flexibility and effectiveness
for bringing into organisations what would prove to be time
and should act as a springboard to high performance.
bombs? Is HR a mere pawn in the corporate game or could
HR exercise much stronger influence on business conduct If you have views about any of the topics featured, or
and leadership practice? Of course HR strategists must be examples of good practice or key learning points from your
the shapers and leaders of better practice. But if HR is to organisation, we would be pleased to hear from you.
win the licence to challenge and lead, the HR basics must be Contact Gillian Fraser at [Link]@[Link] or me at
right. [Link]@[Link]

Reward communications is the topic explored by Duncan Linda Holbeche

Brown in his latest article. As Duncan points out, reward Chief Editor
is the biggest single barrier to raising levels of employee
engagement. In practice, the main reward issue that affects
employee engagement is not so much the way employees are
actually rewarded but that rewards are shrouded in mystery
due to poor communication. That is partly because, over the
last few decades, UK employers have actively discouraged
employees from sharing individual salary information.
Duncan argues that this policy should be re-examined and
points out that employers cannot over-communicate on
rewards. He also provides some timely and practical advice
on how to do this effectively.
Unless HR professionals get the basics right, their advice on
other matters is unlikely to be credible. Russell Connor and
Rosemarie McGuire argue that job descriptions and their
related person specifications are the neglected transactional
tools in the era of “human resources”. In many cases these
have come to seem old-fashioned and deterministic and yet,
as the authors suggest, they are the unlikely heroes in HR’s
quest to add value, since their old-fashioned virtues — of
clarity about roles and accountabilities — are even more

Developing HR Strategy May 2010 3

Contents

Developing HR Strategy
Contents

Changing nature of the professions

Colin Coulson-Thomas

Baring it all on pay and reward — how would you look?

Duncan Brown

Job description and person specification alignment:

the unlikely hero in the search for high performance
Russell Connor and Rosemarie McGuire

Target setting: a scientific process or pure art?

Professor Mike Bourne and Dr Monica Franco-Santos

4 May 2010 Developing HR Strategy

 Changing nature of the professions

Changing nature of the professions

Colin Coulson-Thomas upon how effectively they engage with and support their
members. The outcome is particularly important for HR
Professionals and the professions used to command directors and their teams who may be required to take up
respect. Once regarded as an essential foundation and any slack and fill gaps to secure the competences their
backbone of society, at times they now seem defensive organisations require.
and unloved. Government attention and resources are
This article considers challenges to the fundamental building
devoted to various other groups that are considered
blocks of a profession and the core functions of a professional
“minorities”, “under represented”, “excluded” or
body, and how a framework for managing knowledge and
“marginalised”. The contribution of the “middle class
related tools can be used to successfully address them and
professionals” who are taxed to pay for this is often
enhance member or knowledge worker support services.
overlooked or taken for granted. The professions are
The approach described has implications for those who
challenged rather than cherished. Advocates of “social
manage significant numbers of professionals, or who
engineering” view them as “elitist” and “privileged”.
have management responsibilities within communities of
Many professionals used to take pride in putting the interests knowledge and/or departments or organisations composed
of others first. These selfless paragons thought about how predominantly of knowledge workers.
they could benefit their clients, the profession and the
community, rather than how to maximise their personal Professional bodies at a watershed
remuneration or gain competitive advantage. Are their As if external questioning were not enough, economic
peers today more self-motivated? For example, on finding slowdown and recession have compounded the problems
an exciting opportunity would they work to benefit an of some professional bodies. With fewer people registering
employer, or seek personal advantage by packaging a “buy- for courses, booking advertisements in journals, or renewing
out” opportunity to secure an equity stake? subscriptions, thoughts have turned to cutting costs and
alternative models of operation. Some professional bodies
Professions under the spotlight also find others encroaching upon their space — from
Recent events have not helped the reputations of some websites serving the networking and support needs of
professions. Companies that fail invariably employ particular communities, to educational institutions offering
professionals. The banks that were bailed out were advised work-related courses. Can their roles be sustained?
by professionals and audited by professionals. Have these While mergers and alliances might create economies of
people shown the foresight and competence one might scale, the memberships of many bodies are fragmenting
reasonably expect from highly-paid experts? For example, into various areas of practice, each with distinct support
why did some of them stand by while huge sums were paid requirements. Focusing on certain core roles might release
out in bonuses and commissions for bringing what would resources, but can some activities be dropped when the
prove to be time bombs into organisations? functions of professional bodies are often inter-related and
How many professional bodies have questioned members retaining members and protecting the public requires a
who were involved in developing, authorising, packaging, portfolio of services?
distributing and valuing the “toxic” products that caused so It is tempting to go “back to basics” and rethink the role and
much harm to the international financial system? Are they purpose of the professions. However, many aspects of our
just lying low? In the “me” society of “personal brands” what lives, and related laws, regulations and practices assume their
has happened to traditional professional values? Has greed continuing existence. Rather than starting from scratch and
and self-interest taken over? Are some professionals “taking reinventing a new form of professional organisation, is there
the money” and looking the other way? How many are just a more effective way of undertaking traditional activities?
drawing from the well of professional knowledge rather than Are there affordable and achievable options that can address
also contributing to it? a number of challenges, improve performance and raise
In a changing, questioning and uncertain environment, standards?
professional bodies and their members face both threats
and opportunities. Perhaps the greatest challenge is A knowledge-based approach
how to remain relevant, current and vital. Whether or The foundation and source of authority and power of
not professional bodies survive and prosper will depend many professions is their knowledge base. One approach

Developing HR Strategy May 2010 5

Changing nature of the professions

involves the use of a single framework for bringing together

knowledge in a variety of formats into an accessible and
more easily updatable repository, and using this to enable
knowledge-based tools to support the training, assessment,
qualification, continuing professional development,
communications, updating, practice support, compliance and
standards activities of professional bodies and communities.
Such tools are used in over 100 countries.
The approach, which is also applicable to a community
of professionals or knowledge workers within a single
organisation, has already been described in Developing HR
Strategy (Coulson-Thomas, 2007a)1. In one international
company, over 11,000 people use such a knowledge-based
tool. Such tools can make it easier for professionals to
handle complex tasks, and enable average practitioners to
emulate the approaches of top performers. High returns on
investment have been obtained. Benefits include greater
understanding, improved performance, reduced costs,
quicker responses, less stress, higher standards, and enforced
and evidenced compliance.

Maintaining professional standards

Many core activities of professional bodies relate to key
concerns of corporate HR teams. For example, protecting the PROFESSIONS
public by ensuring compliance with the highest standards of
practice is a priority requirement for chartered bodies. Yet
even if all members meet minimum standards, the author’s
continuing research programme “winning companies;
winning people” has found that among the communities
of professionals observed there are usually a small number and preparation of aspiring professionals, as one of
of high achievers or superstars and a long tale of adequate their strengths is helping people to understand complex
performers (Coulson-Thomas, 2007b)2. requirements. Self-assessment tests can enable users to
judge their readiness for examination and practice. Tools can
Variable standards of practice often arise, especially when
be designed to build competence by ensuring that users learn
new developments occur, because individual practitioners
with each application, while online updating keeps them
do not always attend updating meetings or systematically
current with regulatory and other developments.
peruse professional journals. Even when they do notice
and read a relevant briefing, they may have difficulty in Continuing professional development (CPD) can be vital
remembering it, or relating it to particular situations when in fields that are inherently complicated and frequently
confronted with client problems in daily practice. changing. Direct access to a profession’s continually updated
Support tools can provide practitioners with the information repository of knowledge and best practice ensures exposure
and knowledge they require on a day-to-day basis and to current thinking, while at the same time generating
help them adopt the approaches of high performers evidence of CPD. Support can be delivered via laptops, palm
when undertaking difficult tasks. They can offer guidance, tops and the latest generation of mobile phones as and when
checklists and templates, processes and procedures, and required, even when people are on the move. In comparison,
related documentation that can be tailored to individual information given on courses is often quickly forgotten.
clients. They can build confidence and equip professionals Integrating learning and practice helps understanding, raises
to assess and address unfamiliar situations. They can be standards and benefits clients.
used to share best practice and built-in checks can ensure Specialists who respond to technical questions and handle
compliance with relevant standards. queries can be expensive. The number of people required and
their level of expertise can be significantly reduced when a
Building competent practitioners professional support tool framework is in place. It is possible
Similar tools can support the training, development to monitor the use of support, for example, the extent to

6 May 2010 Developing HR Strategy

 Changing nature of the professions

Distinct professional communities are increasingly

specialising in particular areas of practice. A regularly
updated tool can enable them to assess the requirements
of individual clients, identify and select preferred courses of
action and generate any bespoke documentation that may
be required. Built in checks can ensure documents contain
appropriate clauses, and that users cannot generate reports,
forms and proposals that do not comply with regulatory and
other requirements. Developments, such as new technical
requirements, regulatory changes or legal decisions, can be
quickly disseminated. Users can be directed to the relevant
sections of long documents, such as particular provisions in
new and complicated legislation as and when it is relevant to
a particular task they are undertaking.

Improving professional productivity

Locating relevant information and analysing a client’s

situation and problem can take valuable time. A consortium
of eight professional practices, each of which was concerned
with a particular category of risk, collaborated to produce
a tool that enables users to undertake an initial risk
assessment. It supports clients to the point at which they
require individual and specialist help, in which case there
is a link to the appropriate expert in the relevant firm who
receives the assembled information.

Users of professional support tools report great

improvements in performance. One company operating
in a regulated sector found that tasks, such as analysing a
which a particular update is viewed and CPD requirements requirement, developing a compliant solution and preparing
are fulfilled, in order to identify areas in which members a proposal that used to take days or even weeks could be
require assistance and avoid developing services whose use undertaken in around 40 minutes, and with only a third of
does not justify their cost. the specialist support previously required.

Access to tools linked to a profession’s knowledge base

Engaging and communicating with could attract people into professional membership and
professionals help member retention. Because of the high returns on
Support tools are particularly suited to communication investment being achieved by pioneering users of tools, some
with professionals and can be more accessible, current professional bodies could provide them on a commercial
and cost-effective than traditional alternatives, such as basis. A core tool could be offered as part of a member’s
journals, newsletters, reports and events. The dissemination subscription, with supplements being paid for additional
of technical updates, feedback, and the sharing of insights support, such as tools related to particular activities or
and ideas can be automatic and instant. Different language specialisations.
versions can help to facilitate networking and experience
sharing across barriers of nationality and within practice, Revitalising professional support
geographic or other communities.
The approach described could replace, improve or
Many professionals suffer from an overload of information. complement a number of services provided by professional
They are offered general briefings when they need specific bodies, or by those with significant communities of
help that is directly related to individual assignments and professionals to support. Implementation is manageable,
the problems of particular clients. Receiving what they need affordable and achievable within an acceptable timescale.
in a format that is easy to use and understand is greatly Experience suggests that, once set up, a profession’s
appreciated by busy professionals. A one-off briefing is no knowledge management framework and support tools can
substitute for ongoing day-to-day support. be easily updated and managed by a relatively small team.

Developing HR Strategy May 2010 7

Changing nature of the professions

Commercial and other organisations could collaborate with Conclusion

professional bodies to deliver specialist support services
The professions are at a crossroads. They face a variety
to particular communities, or those practicing in certain
of pressures at a time when their resources are stretched.
areas. Customised and/or branded versions of tools could
However, an affordable way ahead has emerged.
be offered, licenses granted and subscriptions sold to non-
Communities of professionals or knowledge workers
members and those not regarded as competitors.
can greatly benefit from the approach described above.
Because of their memberships, many professional bodies Knowledge-based support tools can provide an enhanced
have more opportunities to spread costs than individual service to the members of professional bodies and corporate
employers. They may also have a competitive advantage networks, and a new rationale for professional bodies and
when it comes to updating a support tool or suite of tools. collaboration with them.
They generally have access to those whose role it is to
monitor developments and remain current. Keeping tools up Further information
to date can be a challenge for an individual company or firm. Examples of how support tools can be used to help
Increasingly, HR teams are likely to see professional bodies as average professionals to adopt the superior approaches
collaborators, as well as developers of talent. of high performers can be found in Winning Companies;
Winning People by Colin Coulson-Thomas, which is
published by Policy Publications and available from www.
Points to ponder [Link].

Key questions for HR directors and teams:

• How could the knowledge required by your References
professionals and knowledge workers be best 1
Coulson-Thomas, C (2007a) Winning companies;
brought together into a single and easily accessible winning people — the differing approaches of
and updated repository that could support a family winners and losers, Developing HR Strategy, January,
of tools for improving productivity and maintaining Issue 12, pp 5–9.
standards? 2
Coulson-Thomas, C (2007b), Winning Companies;
• How could such tools be used to capture and share Winning People, making it easy for average
best practice, build more competent practitioners,
performers to adopt winning behaviours,
and ensure they remain current and observe
Peterborough, Policy Publications.
relevant regulations and codes of practice?
• How could such tools be used to ensure that
professionals and knowledge workers access and
receive continuing professional development Prof Colin Coulson-Thomas, an experienced
wherever and whenever it is relevant and required, director and consultant and a member of the
while at the same time recording the steps they are business school team at the University of
taking to remain current and competent? Greenwich, is a fellow of seven chartered bodies
• How could support tools be used to engage and has served as Chairman and President of
professionals and knowledge workers, improve professional and representative bodies. His PhD
two-way communication with them, and provide was a comparative study of professional bodies
better technical advice as and when it is needed and he was the Founder Director of the Centre for
throughout their careers? the Study of the Professions.
• Could such tools help your organisation or
Colin is the author of over 40 books and reports,
its clients to address some of the problems
encountered when managing communities including The New Professionals, and has helped
of practice, and groups of professionals and over 100 organisations and firms to improve
knowledge workers? director, board and corporate performance and
• Is there scope for collaborating with one or more spoken at over 200 national
professional bodies in the development of tools to and international events in
support one or more communities of professionals some 40 countries. He can be
or knowledge workers? Could such tools be offered contacted via [Link]-
on a branded and/or commercial basis to external [Link] and recent
or third parties, and thus, as well as aiding talent publications based upon his
building, recruitment and retention, also be a work can be obtained from
source of revenue generation? [Link].

8 May 2010 Developing HR Strategy

 Baring it all on pay and reward — how would you look?

Baring it all on pay and reward — how would

you look?
Duncan Brown Externally, the Equality Bill currently progressing
Research by the Institute of Employment Studies through Parliament will outlaw pay secrecy contractual
(IES) has confirmed that reward communications and clauses and gives ministers the power in future to
perceptions of fairness are critical determinants of enforce compulsory gender pay reporting, as a means of
employee engagement and of validating the wider social addressing the stubborn gap of almost one-fifth between
role and purpose of business. The Institute’s Director of average female and male earnings. The half of private
Reward Services Duncan Brown explains and provides sector organisations that still refuse to carry out equal
some practical ideas for improved communications on pay audits voluntarily really are burying their heads in the
pay and reward. sand.

Late last year, the BBC decided to publish online the pay Governance reforms in financial services following the
and expenses details of its top 100 or so managers. After Walker Review and in line with the FSA’s new pay code will
all the previous furore over MP’s expenses, some HR and also increase the amounts of reward information that the
PR directors might look aghast at such a move, seemingly banks will have to publish.
an open invitation for press and public criticism. Yet, were
the BBC being foolhardy or forward-thinking? Internally: minimum understanding
But the communications issue is not just an external
Externally: minimum communications one. Reward and HR directors in one recent survey rated
Three fundamental principles have driven reward policy poor reward communications as a greater risk even than
and practice in UK employers over the last 20 years: over-leveraged incentive plans of the type that operate in
market-driven, performance-related and individualised investment banking and contributed to the generation of
rewards, all of which have relied on as high a degree of the financial crisis.
individual confidentiality as possible. The underlying,
The research review completed for our forthcoming book
generally unspoken approach to pay communication has
on reward effectiveness is pretty depressing for people like
been: don’t do it.
me, who make a living by designing new reward schemes
In more than half of UK employers, employees are strongly for clients. It shows that no type of pay, bonus or benefits
encouraged not to discuss details of pay and reward with plan is universally successful or unsuccessful. Rather, if
colleagues, which in some cases, primarily in banking, is people understand, trust and believe that a new scheme is
contractually enforced. And beyond the required executive going to work, then it is very likely that it will work: a self-
remuneration reporting and in recruitment advertising, fulfilling prophecy. What matter are process and practice,
outside of the public sector, reward details are almost not plan and policy.
never made available externally.
So how are employer practices reflecting the critical role
In 2009, these principles and a policy of no pay of process and communications at the moment? The
communications were brought into serious question. CIPD’s 2009 survey of reward management in more than
The banking crisis and general criticism of the unfairness 500 UK organisations paints a depressing, if accurate,
of prevailing pay and bonus practices, widespread pay picture. The drive for HR to get into the boardroom is
freezes, zero bonus payments and pension scheme apparent, with over 80% discussing reward policies with
closures and reforms have all shaken the edifice of reward directors. But fewer than half bothered to consult line
secrecy. In a recent survey by PwC, only half of the 700 managers about reward changes, and more involved
workers polled accepted that cuts had to be made because outside consultants than talked in advance to employees.
of the tough times. According to partner Jon Terry:
The CIPD survey highlights a particular pattern in
“Pay and promotion freezes, changes to pension schemes, employee reward communications. They get masses when
cuts in recruitment and slashed training budgets, they join an employer, at the very time when they are
combined with poor communications, have eroded the getting loads of information about everything else, such
bonds of trust between employers and their employees.” as learning where the toilets are and how not to lock
(Financial Times, 9.10.09). themselves out of the building.

Developing HR Strategy May 2010 9

Baring it all on pay and reward — how would you look?

But then information rapidly declines to a trickle — the feel your own pay is fair if you know very little about
monthly pay slip essentially. Oh, and quite a lot again those processes and how and what other people in your
when you leave. organisation are rewarded?

So it’s like “crash” language courses: very intensive for The arguments have expanded into wider social criticism.
a short period, yet a few weeks later, you can hardly As the Labour MP George Mudie asked a bank chief
remember what language it was. The result? According executive during the Treasury Select Committee Inquiry
to the CIPD, pay and reward is a bigger cause of into the banking crisis last year, “for all that we need
dissatisfaction at work at the moment than job security, incentives, why does the cleaner get 9% and the chief
and only 10% of employees feel fully informed. executive 150%? If there was some morality in it, we
would not operate in this way”.
The one glimmer of hope in the CIPD data? Twenty three
per cent of employers were providing or considering Value
total rewards statements for employees. IES recently
The second issue is that of value. Increasing numbers
investigated the state of reward communications further,
of employers are adopting total reward and flexible
carrying out a survey among IES research members and
benefits approaches in an effort to secure greater
discussing the subject at a network meeting, including
employee engagement from a workforce with diverse
employers such as Shell, the BBC, Cabinet Office, Civil
needs, but without increasing their rewards costs. The
Aviation Authority and Eversheds LLP. Communicating the
cost pressures of the last 12 months if anything appear
total value of the reward package to employees was rated
to have intensified the trend — why provide an expensive
as the most significant current challenge, and the numbers
fixed pension benefit to a younger employee who does not
using these sorts of statement seems likely to continue to
value it and would rather choose to invest the cost of that
increase.
in an alternative benefit?
But our research also confirms that the HR community
Yet as the recent Employee Benefits survey showed,
is now belatedly waking up to the fact that a zero
the greatest barriers to flexible benefits approaches are
communication reward policy is no longer viable in
no longer primarily tax issues or administration, they
our increasingly technology- and knowledge-driven,
are to do with employee understanding. Do employees
information-rich society.
understand enough about their packages to make the right
“Total reward is all about communications”; “it’s all in the choices? In too many organisations the answer is negative,
communications”, “you simply can’t over-communicate”. holding out the potential for employee misunderstanding
These quotes drawn from HR and reward directors in this and de-motivation, and employers paying to administer
reward research highlight this realisation: that you can not flexible schemes which few employees can take advantage
motivate and engage employees if they do not understand of.
or agree with how you reward them.
Reward communications: opening up
Fairness
At last, the proverbial penny seems to be dropping on
Two issues seem to be at work here. First is the issue of
reward communications. Internally, our research has
fairness, which in thinking on staff motivation and reward
found that the volume of web- and intranet-based
has been subservient to the concepts of the market
communications on pay and total reward statements are
and performance for too long. Towers Perrin found that
all increasing, although just placing reward policy manuals
employees are typically far more concerned with pay
on the intranet as some employers have done does not
fairness and pay relative to others than with absolute
necessarily improve staff understanding or appreciation
levels of pay and, in North America, the Compensation
of their rewards. One employer we know has recently
Roundtable found that perceptions of pay fairness were
reverted to printed total reward statements which they
25 times a more powerful determinant of employee
send to employees’ homes, after finding that few actually
commitment than satisfaction with pay levels compared
looked at the online versions.
to other employers.
Nor does using the web to by-pass line managers with
Yet with pay differentials and pay secrecy growing over
reward information seem like a smart move. Almost two-
recent decades, it is hardly surprising that only around
thirds of the organisations we surveyed rated their line
a third of employees in the UK feel that their pay is fair,
managers’ skills in reward communications as poor and
and a CIPD survey identified pay as the biggest barrier
needing to be improved.
to increasing levels of employee engagement. How
can you believe in and trust a pay setting process and Thankfully we are finding more and more examples

10 May 2010 Developing HR Strategy

 Baring it all on pay and reward — how would you look?

of excellent employee communications in our work. years, engagement levels increased significantly and the
KPMG selected and trained more than 300 Performance firm has won The Sunday Times Best Big Company to Work
Management Leaders in their business to lead on reward For award for two of the last three years.
management and communications and the results And externally, forward-thinking employers such as
have been impressive. Staff perceptions of reward and McDonalds are openly and positively communicating
recognition increased by 23% over the following two their total reward packages to address common

Developing HR Strategy May 2010 11

Baring it all on pay and reward — how would you look?

misconceptions about working in the services sector, and The research referred to will be published later this year in a
successfully supporting their recruitment drive and growing new book, Evidence-based Reward Management by Michael
employment brand and reputation. Eighty per cent of their Armstrong, Duncan Brown and Peter Reilly.
staff feel they are recognised and respected for their work,
and 84% are committed to their organisation. Not bad for a
McJob indeed. Points to ponder
These organisations are not alone. According to the Hay • What help do your line managers need to be able
Group’s research, Fortune magazine’s Most Admired to communicate well about reward?
Companies do a better job than the rest of us at • Do you know what key segments of your
communicating their reward programmes. workforce value in terms of rewards?
The key suggestions made at our research network meeting • What information do employees need to help
to improve your reward communications were as follows. them understand enough about their packages to
make the right choices when it comes to flexible
 Listen and engage with managers and staff, do not
benefits?
assume; many large employers seem to be regularly
surveying and polling employee opinions and it is
important to cover their views on rewards as part of this
process. Duncan Brown is Director of Reward Services at
the Institute for Employment Studies, a leading
 Leverage your leaders and train your line managers;
independent think tank and research body on
leaders have to be seen to be practicing what they
employment and HR issues. He has more than 20
preach on reward and they have a major influence on
years’ experience in reward consulting with firms
employee behaviour, while line managers are the key
including PricewaterhouseCoopers and Towers
conduit for reward policies and have to understand and
Perrin. He also spent five years as Assistant
be confident with reward issues.
Director General at the Chartered Institute of
 Closely analyse your audiences and segment your media
Personnel and Development.
and messages to suit; look at reward issues from their
perspective, rather than your own more specialist one. His clients have included major private sector
companies such as BP and Pfizer, government
 Be open and honest and always use face-to-face
departments such as the Cabinet Office, local
methods as a key component in the communications of
authorities and not-for-profit organisations
any reward change exercise.
such as the RNLI, ACCA and the United Nations.
 “Don’t use the manual to sell the car”; in other words
Duncan is a leading commentator on HR issues,
make sure people understand the rationale for what you
who has published numerous reports, articles
are doing, as well as the detailed mechanics; there needs
and books. He recently completed a new book on
to be an emotional engagement with reward issues, not
reward effectiveness.
just an intellectual one.
Duncan has appeared on BBC TV breakfast
“You can’t over-communicate”.
and evening news, as well as Radio 4’s Today
That was how one of our network meeting participants programme . He advises and sits on a number
summed up the current progress but there is a requirement of remuneration committees including at
to go much further on reward communications. Most of English Heritage, the ACCA and Christian Aid.
us have employee surveys already, and with more regular He has participated on government taskforces
and targeted reward communications for employees, and concerned with pensions and human capital
a lot more line manager involvement and training, we reporting. Human Resources magazine voted him
can all progress towards building perceptions of the sorts at number five in its listing of the most influential
of rewarding and engaging workplaces that we aspire to practitioners in UK HR in 2008.
create. And if we extend this openness externally, we can
Duncan has an MA from
more clearly illustrate the benefits of working for our
Cambridge University,
organisation, to potential recruits and to society more
an MBA from the London
widely.
Business School and is a
“Communications is the real work of leadership” according Chartered Fellow of the
to Harvard professor Nitin Nohria. It is also the real work of CIPD.
reward and HR professionals.

12 May 2010 Developing HR Strategy

 Job description and person specification alignment: The unlikely hero in the search for high performance

Job description and person specification alignment:

the unlikely hero in the search for high performance
Russell Connor and Rosemarie McGuire people are capable of undertaking these; when they
want to do so and are given the appropriate space to do
Ask any CEO what his or her ideal HR department
so, human endeavour can produce the most remarkable
would be able to deliver and the responses are most
achievements.
certain to include:
 p rovide a high performance workforce In any organisation the specification of jobs is essential
to both the organisation and the individuals working in it.
 e quip the line managers with tools to manage their
The job description is the formal written document that
people that are easy to use and really work
defines the job-holder’s responsibility to operate within
d
 evelop and implement policies that serve the
his or her job boundaries and defines what specifically the
organisation well.
job-holder can be held accountable for.
Yet, decades after CEOs have asked for this, few HR
departments have really delivered. Accountabilities are the critical component. Allocating
these clearly without gaps and overlaps is the foundation
Many HR professionals claim to have the answers for
of high performance.
providing a high performance workforce, but relatively
few organisations have processes in place that really When the accountabilities in jobs are clear, job
nurture or enhance performance. Research consistently descriptions then become the basis for:
shows that employees are more likely to be more de-
motivated than motivated by their performance appraisal  recruitment
systems.  t arget setting
p  erformance planning and management
The services provided today by modern HR departments
 f it-for-purpose organisational design and structures.
bear little resemblance to 40 years ago when the
emphasis was mainly on welfare provision. Since then In some organisations, job descriptions (especially those
the model of the personnel manager providing a general that list a set of tasks) have fallen into a state of neglect
service to a unit or geographical area has been swept as they were seen as constraining change. However,
aside by the creation of shared services, centres of well-written job descriptions are the building blocks of
expertise, resource centres, employee self-service and efficient and effective organisations. They define the
business partners. “space” for innovation and unless the jobs fit together
well, the organisation is unlikely to achieve its purpose.
Yet despite the many changes to the form and the
function, human resources leaders have often failed to Writing a description that fully captures the requirements
show the link to performance. of jobs can be difficult. As such, it is easy to default
to a list of tasks and activities rather than to set the
Driven by the need for cost reduction, HR functions have
boundaries, purpose and value-add of the job. Without a
often outsourced “transactional” services to concentrate
common framework and clear definitions regarding the
on more strategic issues. One service which is often
terms used, it is easy for the job description to become a
considered to be transactional is recruitment. This vital
bland statement, over-engineered and ill-matched for the
but time-consuming process involves the “chore” of
performance required.
writing clear job descriptions and person specifications.

Job descriptions and person specifications are the Well-written job descriptions provide clarity to the job-
building blocks of organisations. It is argued here that, in holder regarding the following.
striving for efficiency and cost reduction, HR functions
 Purpose. The reason that people are employed is
have neglected the basis on which high performance
to produce output, with the underlying goal being
is established, namely; by creating the dynamic link
to create economic value. The purpose is a high
between jobs and people.
level statement of why the job exists and its link to
what really matters to the organisation; be that cost
The job description reduction, improvement in quality/service or the
When jobs have clearly defined accountabilities; when development of new approaches.

Developing HR Strategy May 2010 13

Job description and person specification alignment: The unlikely hero in the search for high performance

 Responsibility. Unless employees know clearly what  D elegated decision rights. Job-holders need to know
they are responsible for producing from their work the “elbow-room” that they have to work within. They
the organisation cannot achieve its goals. The key need to know the decisions that they can make and
responsibility areas (KRAs) are the broad areas of the those that need to be referred to others.
organisation for which the job-holder has responsibility.
 Accountability. This is a more specific term than Job descriptions and performance
responsibility and relates to outputs. Put simply, management systems
accountability is what you can be held to account for. A job description sets out the boundaries of the job
It is what you own. Put brutally, it is what you can be and is an essential element in the annual performance
fired for not doing. A factory manager is responsible management system. Performance management needs to
for the production of product from within the factory start with the boundaries and accountabilities being clear.
but is likely to be accountable for the cost, quality From this it is possible to complete the job specification
and timeliness of delivery. In high performance by setting targets and specifying the resource allocation.
organisations, accountabilities are not shared but others
Objectivity and transparency is paramount in any
can help in the achievement of these.
performance management system. Systems that are
 Resources. This describes the resources that the
transparent and meaningful include the following:
job-holder is responsible for or uses to achieve his or
her aims. Resources can include assets, people and P  erformance measures. Measurements that provide
information as well as equipment and tools. indicators that you are on track and building and
P  roblems encountered. This describes the type of driving value for the organisation. Performance
problems and the critical incidents that are faced. measures provide clarity and objectivity and promote
As jobs increase in size and scope, the problems that teamwork.
have to be dealt with move from being predictable and T  argets. Targets set clear goals and give employees
concrete to new and abstract. direction. Targets are powerful communication tools,
S  cope for innovation and change. This describes informing the whole organisation of the expectations
the requirement for initiating, creating change and of levels of performance to achieve success. Targets
innovating. While some freedom to initiate change can also be used as an employee motivation tool in a
may exist within all jobs, not all job-holders have the job. However, it is important to define what type of
discretion to make significant changes, to innovate target is being set. These range from big audacious
or to ensure that creative ideas are implemented. goals, through stretch targets to highly achievable
As jobs increase in size and scope, there is greater incremental improvement targets.
opportunity to identify breakthrough innovations and  Constraints and resources. While the job description
developments. sets out the broad resources available to the job-
 I nternal interaction. This describes the requirement holder, the actual budget or headcount or database
for interacting internally with others across the total information can change over time. A performance cycle
organisation and the degree to which it is necessary to should start by defining the inputs and resources that
influence others in order to deliver on accountabilities. need to be utilised to provide a return.
In many jobs individuals tend to interact with others
to deliver outputs that are localised. As jobs increase Job descriptions and person
in size and scope there is a greater requirement to specifications
collaborate, influence and build relationships within The job description provides clarity as to the outputs of
an extensive network to deliver outputs that are the job. When these are clear, it is possible to specify the
international or even global. inputs needed and the personal requirements including
 E xternal interaction. This describes the requirement the necessary skills and knowledge.
for interacting externally with others. This includes
A person specification is the matching side of the job
consumers, customers, suppliers and significant
specification. When these tools work in harmony they
external organisations, and other stakeholder groups.
provide the basis for:
In many jobs there are clearly defined external contacts
and clear remits such as suppliers and customers. At the  o rganisational development and design solutions
higher levels, jobs have to influence national, regional  a ssessment, selection, and hiring processes/systems
or international organisations or authorities whose  s uccession plans/programmes
policies may have a significant impact on business  p erformance evaluation
results.  t raining and development systems.

14 May 2010 Developing HR Strategy

 Job description and person specification alignment: The unlikely hero in the search for high performance

However, when job descriptions are bland or written “team-player”. These generic metaphors can cause
for the sole purpose of job evaluation, the person misalignment between the job and the person with
specifications can be neglected or default to broad or negative and expensive results for the organisation.
unspecific personal traits or requirements.

Rather than job descriptions and person specification

Making the connection
dovetailing together, there is often a systematic To make the dynamic link between jobs and people it
disconnect in the ways that jobs and people are is necessary to take into account the complexity of the
described. This is especially the case if the person decision-making environment. Once this is established,
specifically focuses on the personal qualities and it not only clarifies the types of decisions that need to
personality factors that are considered to be important. be made and the outputs of these, it also identifies the
When this happens they are likely to contain many thinking skills and mental flexibility needed to operate
statements such as “enthusiastic self-starter” or successfully within a given context.

Developing HR Strategy May 2010 15

Job description and person specification alignment: The unlikely hero in the search for high performance

Once thinking and mental flexibility are clearly defined

Russell is the Managing
they become vital ingredients in determining a person’s
Director of Dynamic Link.
potential for work.
Dynamic Link uses a Levels
Levels of work is a management system that clearly of work framework to help
articulates the complexity of the decision-making build organisations that last.
environment. Within this, all jobs and people can be Russell has over 30 years’
allocated to one of a number of levels. This measurement experience of working
ensures that accountabilities are clearly defined and that and consulting for both
people are placed into jobs where they can make their national and multi-national
organisations.
maximum contribution to the organisation.
He has been influenced by Levels of work ideas
Levels of work is used in many large organisations
first expounded by Elliott Jaques. It was at the
including BHP Billiton, G4S, Prudential Assurance, London School of Economics that Russell was
Huntsman, Anglo-American, Unilever and Tesco. first introduced to the pioneering thoughts of
Unlike most other systems provided by well known Jaques and, many years later, was reintroduced
to his work through an association with the
consultancies, Levels of work makes a direct connection
Brunel Institute of Organisation and Social
between the type of work undertaken and the capability Science.
of the person to undertake this.
Russell has developed Global Profiling System.
The essence of the framework is that work and people are This is a Levels of work classification and
described in consistent ways using shared concepts and a measurement system and is designed to
common language. transform the way that people and jobs are
matched.
Conclusion He has a Bachelor of Science degree in
With the effects of the global recession still being felt, Psychology from University College, London
and post-graduate qualifications in Personnel
CEOs are beginning to question the value of their HR
Management gained from the London School of
functions. At the same time, it is also possible to detect
Economics.
that HR professionals are feeling the squeeze from
adopting cost leadership models. Russell is a Chartered Fellow of the Chartered
Institute of Personnel and Development and has
Despite significant cost constraints, HR professionals a Diploma in Counselling and Psychotherapy
as a whole can create change in their environments from Regent’s College, London.
paradoxically by focusing on aspects that were
once considered “transactional”. We all know the Rosemarie is the Partner,
expression, “look after the pennies and the pounds Head of Practice at
will look after themselves”. In HR there should be a Dynamic Link working with
organisations to provide
variation on this theme, namely; “look after the job and
holistic solutions and
person specifications and then you can look after the systems.
organisation”.
Rosemarie McGuire is
Job and person specifications can be used by HR an International Human
departments to enable and sustain high performance. By Resources executive
adopting a system that aligns these vital ingredients and with over 25 years’ experience. A graduate
provides the means to measure the match, HR can provide of the University of Toronto with a major in
the organisation with the services that all CEOs should be Employment Relations, Rosemarie is now
residing in London and is completing her PhD
seeking.
in Personnel and Development at the London
Metropolitan Business School.
Points to ponder
• To what extent do you agree that job descriptions
are a building block of high performance?
• What else do you think needs to be in place for this
to be achieved in your organisation?

16 May 2010 Developing HR Strategy

 Target setting: A scientific process or pure art?

Target setting: a scientific process or pure art?

Professor Mike Bourne and Dr Monica Franco- The problem is that what applies well to the individual
Santos does not work well in an organisational setting. The
“high but achievable” mantra works if the whole of the
Setting targets is an important managerial process. individual’s performance is delivered personally with
Missing a target can have serious consequences for minimal interaction with the rest of the organisation. But
employees’ motivation and for their pay. However, how if the individual forms part of a process, the system may
often do we take the time to set the right targets? Do we well fail to deliver. Herein lies the dilemma. Fifty years
really understand the full impact of using performance of motivation research suggests that targets are useful,
targets? whilst a similar period of well-documented practice
Let us start with an example. There was a building materials from the quality movement suggests that targets do
company that managed to set its main sales target in not work in this way. The quality movement looks at
isolation without consultation with its manufacturing organisational performance as a process, and if the process
colleagues. It was an ambitious target, but the sales force is not improved, improvements in performance cannot be
was highly motivated and was soon performing to deliver sustainable.
the target for the year. After a few months the problems So how do we resolve this dilemma? During our two-
started. The combined output of all the UK manufacturing year project, we investigated, in detail, the target-setting
plants was insufficient to deliver the volumes sold. practices in four different sales environments. Our analysis
Deliveries started to slip, customer relationships became of their successes and failures led us to believe that a
strained and, for the second half of the year, the sales force more thorough and systematic process was required that
spent the majority of their time placating their customers. combined aspects of motivation theory with elements
A simple but very costly mistake! from quality management.
So what key problems appear when we use targets? How In sum, the target-setting practices followed by each of
should we set targets? What does academic literature tell these organisations had the following things in common:
us about target setting? What can we learn from theory
and practice? In this article we will outline the results of T
 he forecast was mainly based on past performance.
a two-year research project sponsored by the Chartered This type of forecast generated what is known as the
Institute of Management Accountants (CIMA) into target- “ratchet effect”. Sales people who expected to be with
setting practice. We conclude with a summary of the main the company for the next target period had a perverse
issues that arise when performance targets are used, some reason not to exceed targets even if they could easily do
recommendations for avoiding these issues, and a 10-step so. For instance, a clever sales person would reach 105%
process to help you conduct target setting more effectively. of his or her target to make bonus, never 120% as this
higher figure will generate a harder target for the next
What do we already know about target financial year. The ratchet effect caused sales people to
restrict their performance to well below their potential.
setting?
 Targets were allocated inappropriately across the
Unfortunately there are two schools of thought in
sales force. This aspect of the target-setting process
academic literature: those who think target setting is a
generated what is known as the “threshold effect”.
good managerial tool that can boost individual, team and
According to this effect, a uniform performance target is
organisational performance and those who think targets are
applied to all sales units or regions without recognising
divisive and counter-productive.
their contextual differences. This type of target gave
For those schooled in the classical management literature, no incentive to excellence and, indeed, encouraged top
setting targets as “high but achievable” is the prescription performers to reduce the quality or quantity of their
from the last 50 years of motivation research. Having performance to just what the target required.
a clear, quantified target is more motivational than T
 argets were perceived to be either too high or too
simply “doing your best”, and has been shown to lead low. When targets were set too high, sales people
to better performance. However, those who follow the became discouraged and demotivated. Furthermore, this
quality literature immediately disagree: targets create type of target generated dysfunctional behaviours in
fear, undermine team working and destroy performance the sales force such as outcomes distortion or “window
improvement. dressing”. When targets were set too low, the maximum

Developing HR Strategy May 2010 17

Target setting: A scientific process or pure art?

potential of sales people was not realised and additional

bonuses were paid out without a real increase in true
performance.

 Some targets were based on the wrong performance

measures. Performance measures were not reviewed
periodically. Some performance measures were obsolete
and no longer linked with the business strategy. However,
they were still being used in the sales incentive system for
target-setting purposes. Sales people typically referred to
this issue with the phrase “hitting the target and missing
Figure 1: Perceived satisfaction of performance targets
the point”.
 Targets were entirely based on financial indicators.
This was the case even though most of the organisations
studied emphasised the importance of customer
relationships in their sales strategy.
 The data analysis process on which targets were based
was poor and lacked rigour. Data was analysed without
considering critical statistical rules and techniques.
Besides, data was studied superficially, even though
organisations had the IT system capabilities to conduct Figure 2: Perceived impact of performance targets on behaviour
in-depth analysis.
Based on the insights extracted from each of the companies’
 Targets were not periodically reviewed. Once the
target-setting processes and on the knowledge obtained
targets were set, they were not reviewed until the end of
from the previous literature reviewed, we designed a specific
the target period (eg every quarter) unless some major
process, which aims to improve the way in which performance
event had happened. This generated distrust over the
targets are set. This 10-step process (see Figure 3) is presented
targets as they did not reflect specific contextual changes
next in the form of a wheel.
that occurred throughout the target period.
 Targets were “given” to the sales people. There The 10-step target-setting process
was little communication and negotiation over the
performance targets, which generated a lack of ownership
over the targets. It also produced a lack of understanding
of how the targets were set and how they needed to be
attained.
 The interrelationship between targets was not
considered during the target-setting process. As a
result, some targets were inconsistent with each other.
They could not all be attained.
 Agreed action plans were the exception and not the
norm. Action plans were left to the discretion of the
individual sales person. Some sales people and teams had
very rigorous action plans but others had none. Successful
plans were not openly shared among the sales force as
there was a culture of “healthy” internal competition,
which limited collaboration and organisational learning.

Overall, the majority of the people interviewed or surveyed

during our research believed that the target-setting process
of their companies did not generate the “right” performance Figure 3: The target-setting wheel
targets, nor did it seem to generate the “right” environment
for those targets to be achieved. Sales people were very 1. Review stakeholder expectations: The first step is a
dissatisfied with their targets (see Figure 1) and they review of the organisation’s stakeholder expectations.
believed that the impact of targets on behaviour was not You need to ask, “who are our stakeholders?” and “what
positive (see Figure 2). do they expect from us?”. This will determine the critical

18 May 2010 Developing HR Strategy

 Target setting: A scientific process or pure art?

Developing HR Strategy May 2010 19

Target setting: A scientific process or pure art?

areas your organisation needs to address in order to be 3. Success map: A success map is a very simple visual
perceived as successful. tool. It links the objectives together, so that higher level
2. Strategic objectives clarification/selection: Once objectives are represented as being delivered through
the stakeholders’ expectations are identified, the the attainment of lower level objectives. Expressing
next step is to express these expectations as strategic the goals in this way will provide you with a powerful
objectives. Strategic objectives are clear statements of communication tool explaining what is to be achieved
what the organisation needs to achieve. They must be and why. By developing a success map you will be
few in number and they should address the different able to explain the goals to the whole organisation,
stakeholders’ “requirements” (such as: what do our as well as being able to show where each part of the
customers, and investors, or employees require?). organisation contributes to achieving these goals.
4. Objectives prioritisation: Not everything can be
achieved at once, so you will need to prioritise. Most
companies we investigated tried to achieve too much. It
is much better to prioritise and deliver fewer objectives
than fail to deliver on too wide a range of goals. The
focus will help employees too, as they will be very clear
about what is important in the coming period.
5. Operationalisation: This means designing the
appropriate performance measures. How you define
the measure will drive behaviour. You therefore have
to define the measures so that they i) reflect the goals
the organisation needs to achieve and ii) encourage the
right behaviour from those responsible for delivering
the goals.
6. Data collection: This step is often overlooked. You
will need to collect timely and accurate information
as a basis for setting your targets. Information is never
perfect, but it does have to be consistent and reliable
enough to be fit for purpose.
7. Data analysis: This is fundamental to the process. First,
you will have to forecast drawing on your knowledge
of the past (through data collection and analysis)
and your knowledge of the future to project what is
going to happen. Second, you will have to analyse the
capability of your processes. Are the processes capable
of delivering the forecast? Most companies forecast,
but fewer reassess their capabilities; a common reason
for targets not being delivered.
8. Set targets: Based on the previous seven steps, it is at
this point you set the target. Judgment is required and
you will need to assess the risk of getting the target
wrong. This is also where most of the organisations we
studied stopped, but this is not the end of the process.
9. Action plan design: An action plan is required covering
all the projects and changes to the organisation that
are needed to ensure the target is reached. This may
include training and development, new processes, new
IT systems, new products or ways of working with your
customers. Your targets are based on the activities you
have made in this plan so it is important to schedule
their delivery. You are also assuming that the plan is
delivered, so failing to implement the plan has a direct
impact on achieving the targets.

20 May 2010 Developing HR Strategy

 Target setting: A scientific process or pure art?

10. Action plan discussion and agreement: Finally,

Professor Mike Bourne is
you must communicate the whole plan to all your
the Director of the Centre
staff. Most managers we met thought they did this.
for Business Performance.
However, most staff we spoke with thought they
Mike spent 15 years in
did not. The communication has to be two-way and
industry, before he gained
through appropriate media. It has to be done regularly
his PhD from the University
with a continuing dialogue. Regular staff meetings
of Cambridge. Since then,
where the objectives are restated, goals outlined and
he has been working with
progress discussed is a good format. Sending out the companies supporting
annual targets by e-mail is not! senior management teams through the process of
designing, implementing and using their balanced
Conclusion and recommendations scorecards and related performance management
Target setting is part-art and part-science. It is a difficult techniques.
process and the risks of getting something wrong are He has worked with, and consulted for, a number
high. Organisations now have the capabilities to improve of organisations including Accenture, Amadeus,
their target-setting process. However, few management BAe Systems, European Central Bank, Lloyds TSB,
teams seem to recognise the complexity inherent in any McCormick Europe, NHBC, Oki Europe, PWC,
well-designed system and the care needed in setting and Schering, Tube Lines, Unilever and Wolseley.
applying individual and team performance targets. His current research interests are in the area
To produce an effective system you must make certain of business performance around performance
that targets are: measurement and management techniques,
planning and budgeting and, in particular,
 clearly defined so everyone understands them understanding the impact of HR practices on the
 neither too high nor too low performance businesses.
 allocated appropriately across individuals and teams
 consistent with each other, the company’s economic Dr. Monica Franco-Santos
and competitive environment, and business strategy is a senior research fellow
 based on rigorous data analysis that considers more at the Centre for Business
than just past performance Performance. Monica’s
 periodically reviewed research broadly concerns
 owned and accepted by the individuals that have to the design, implementation,
attain them and management of
 supported by a specific action plan. performance measurement
systems.
If you do not, then performance targets will not serve as
an effective management process. In particular, Monica is interested in the
relationship between performance measurement
Finally, you may be thinking that this is too much systems and reward systems in both private and
work to simply set a target. We would argue that the public sector organisations. Monica gained her PhD
consequences of setting poor targets can adversely affect from Cranfield School of Management in 2008,
the performance of individuals and the business for researching the impact of top executive incentive
several years. If you cannot spare the time and effort in systems on firm performance. She has participated
the first place, then maybe the best resort is not to set in a number of funded research projects looking at
targets at all! the impact that different managerial practices and
tools have on business results.
Prior to joining the faculty of Cranfield University,
Points to ponder Monica was a consultant working for Watson
• To what extent do your employees feel they “own” Wyatt Worldwide. Her expertise was in the design
their performance targets? How could greater and implementation of compensation systems
ownership be achieved? and other HR initiatives (eg employee satisfaction
• What data would you need to know how well the surveys, definition of HR strategic options, etc).
performance target-setting process is working? She has also worked in the HR departments of the
How could you obtain this information? electric utility Endesa and IBERIA.

Developing HR Strategy May 2010 21

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Wolters Kluwer (UK) Ltd. is authorised and regulated by the Financial Services Authority
for general insurance business.
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