Leadership

Every organization has their own business interests such as profit maximization increasing their market share, cost reduction and introduce innovative products into the market. But in order to achieve any of those targets, a leader should possess the ability to promote creativity and innovation, stimulate the subordinates to challenge their own value systems and improve their individual performance (Karamat, 2013)

WCH Prentice defined leadership as “the accomplishment of a goal through the direction of human assistants” Real effective leader should be able to motivate, engaged and Aline their employees to achieve organizations goals whist giving opportunity for employees to lean and grow. By way of giving the opportunity for employees to participate with creative and innovative ideas to growth of the organization leader can improve his democratic leadership qualities. By being a democratic leader, leader can make his followers to feel that they are valued asset of the organization, and which will motivate employees to deliver quality outcome (Prentice, 2004). 

However, in most of the organizations of leadership rely solely on single sources of satisfaction such as monetary rewards or the fear about losing job. Followers reluctantly compel to adhere the task assigned by the leader. Since following orders will lead to a paycheck unless follower will end up unemployment. Monitory reward and fear of losing job can be used as a tool to drive employees/ followers up to some extend. But it will not the best approach as human being is much more complex than machines . When it come to humans work force, leader should handle them in a more sensitive manner as there are complex with care , prestige , loyalty , love and etc, . Leader should have a proper understanding about human emotions . Failing which they will not be able to utilize their employees capabilities up to the potential as this is no longer feudal time or rather slavery era (Prentice, 2004). 

But leader should be flexible on his approach depending on the situation . Because democratic leadership is always not the best approach . some time there can be times that leader should show some autocratic leadership qualities in order to handle the situation . Specially when prompt action needed to rectify a issue (Prentice, 2004). 

Conclusion

A leader should have diversified qualities and he or she should have to be flexible enough to use his approach depending on the scenario or rather case by case

 

References

Prentice, W., 2004. Harvard Business Review Home. [Online]
Available at: https://hbr.org/2004/01/understanding-leadership
[Accessed 30 July 2021].

Karamat, A. U., 2013. Impact of Leadership on Organizational Performance. Business Economics and Tourism , 5(3), pp. 195-197.

 

 

 

 

 

Whistleblowing policy

 

What is whistleblowing policy.

Whistleblowing policy is process implemented by the employer to make a platform and also to encourage employees to reveal / disclose information about any wrong doings and illegal activities of co-workers, supervisors or even may be customers or suppliers.     

Importance of a whistleblowing policy to an organization.

In an organization hierarchy there can be so many levels and there can be thousands of employees and may be a huge branch network depending on the volume or the capacity of the organization. In such scenario’s it’s not an easy task to overlook each and every employee.

Whistleblowing policy encourages employees to raise all the concerns internally to highest levels of the organization rather than going public. Other main importance of having said policy is it creates encouraging culture to report illegal or wrong doing at the very early stage so the employer and address and correct issues before causing a serious reputation damages from any illegal activities , regulatory breaches or corruptions

Even though whistleblowing policy is not compulsory requirement in our country it is best to have a proper whistleblowing process in organization. And also it’s necessary to train senior managers to handle whistleblower’s inquiries in a proper way whilst protection the confidentiality of the whistleblower. (Lucas H,2019)   

Source - (UEM Edgenta Berhad, 2021)

 

HR Division has a Key Role in handling managing and specially protecting Whistleblowers. Depending on the nature of the complaint reviewing committee can be changed yet HR has a vital role to play when it comes to disciplinary actions.

 

What if Whistleblower wrong - Sometimes whistleblower can be wrong or misinformed. But they will still be protected under the company whistleblowing policy and should inform the outcome accordingly. Even though information they disclosed turnout be an allegation still protection under whistleblowing policy should be applied unless they fabricate evidences in bad faith.

 

Whistleblowing is an accepted concept and many countries have a legal projection to whistleblowers. As an example In the United States, federal whistleblower protection laws have been in place since 1978,   and also stating from 2010 all the listed companies in US stock market implemented a new rules and guidelines rewards for anonymous disclosures   prohibiting whistleblower retaliation under the Dodd Frank Act (Opensocietyfoundations.org. 2019).

Many organizations now recognize whistleblowers’ role in reducing corruption and improving integrity however whistleblowing is a very sensitive subject in HRM and it should be handled with lot of care , confidentially and more importantly independently . (Lucas H,2019)

 

References

Lucas, H., 2019. Helen L, Author at Citrus HR. [online] Citrus HR. Available at: <https://citrushr.com/blog/author/helenl/> [Accessed 25 July 2021].

Opensocietyfoundations.org. 2019. Why Whistleblowers Matter. [online] Available at: <https://www.opensocietyfoundations.org/explainers/why-we-need-whistleblower-protections> [Accessed 25 July 2021].

Available at: https://www.uemedgenta.com/whistleblowing
[Accessed 24 july 2021].

 

 

 

Exit Interview Matters

 

What is an exit interview

Exit interview is gathering information and opinions from a leaving employees to assess the overall employee experience within the organization to identify new opportunities to improve quality of organization and it’s working environment(Muller, 2020).

Most well organized and reputed companies conduct exit interviews when leaving their employees.  But Many companies don’t even conduct exit interviews. Some companies conduct interview just sake of following standard HRM procedures But they don’t analyze the data gathered from the exit interview .

Some companies handle a proper exit interview, and they independently analyze data, and they even prepare very comprehensive reports but do not share the outcome with senior line leader to take necessary actions. However very few collect, analyze, report and even follow up the entire process and they are getting a significant advantage in terms low employee turnover and high performance from employees.

Importance of exit interviews

Since we are dealing in a knowledge-based economy, the key to organizational success is skilled employees. Hence it’s a necessary for organizations to know why they leave , why they stay and how the organization needs to change for them to deliver a better outcome. 

Since we established exit interview is an important process , next is to find out how to get the maximum out-come , data or rather honest opinion of person who leave the organization. Its not an easy task. They may not want to say anything negative about their supervisors or might not express their honest opinion. They might think now that I am leaving it doesn’t matter.  As one HR leader at a European mining company puts it “Are they really going to tell you they’re leaving because they don’t like their boss? Probably not, because they want references.” So interviewer should have to be smart enough with following to get a honest opinion or correct reason for leaving.

Timing and frequency – Timing or the date of the exit interview and how many interviews are crucial factors. Soon after handover the resignation notice can be too early as employee’s emotions and mentality will not let him properly express his or her ideas because of the initial rush and all. But it should not be the last day or week as employee has checked out mentally. after the initial rush of emotion has died down, but before the employee has checked out mentally. 

So experts argue that first exit interview should place halfway between the announcement of an intention to leave and the actual departure. And another interview after leaving the company may be after one month. Then they are more relaxed and will speak freely. This second interview can conduct over the phone.

Interviewers should be smart enough to listen more than they talk and to argue. People willing to talk more openly to second line managers (Direct supervisors managers). Since they have power to follow-up immediately and effectively. Further it’s important not to make the employee feel he has to defend his or her choice (Spain and Groysbeg, 2016 ).

Finally we can see that exit interview is very important and it should handle properly and smartly  

References

Muller, D., 2020. Purpose & Importance Of Exit Interviews [10 Reasons To Conduct Them]. [online] Hracuity.com. Available at: <https://www.hracuity.com/blog/importance-of-exit-interviews> [Accessed 23 July 2021].

Spain, E. and Groysberg, B., 2016. Making Exit Interviews Count. [online] Harvard Business Review. Available at: <https://hbr.org/2016/04/making-exit-interviews-count#:~:text=Exit%20interviews%2C%20when%20conducted%20with,t%20work%20inside%20the%20organization.> [Accessed 23 July 2021].

              

 

 

Succession Planning in HRM

Succession planning is a crucial part of long-term stability of any organization. Succession planning can be defined as finding and grooming potential employees for higher positions such as senior management, CEO, COO or even for the director board. it ensures that businesses continue to run smoothly even after a company's most important people move out of the firm, retire, or deceased.(Kenton,2020) 

Importance of succession plan

Succession planning is very important part to any organization. As future of the organization is depend on company addressing proper Successors to take over the organization. Even in accounting we have leant “going concern concept”.  A core part of the said concept is consists with that the company continues its business for the foreseeable future. In order to continue the business for foreseeable future organization needs financial assets as well as human assets (Human resource)  .Stake holders, mainly investors are more concern about organizations succession plan. As their investment’s future is on the hand of potential leaders of the organization . Having a proper succession is beneficial for both organization as well as for the employees.  When employees know that they have a future or rather potential to become a future leader of the company, their loyalty and dedication towards achieving company’s goals will automatically goes up. (Hirsh, 2000) 

The Role of HR in succession planning

In nature senior managers do not prioritize succession planning as their major task. they do not voluntarily commit their time to succession planning, As their main priories are to perform as best as possible during their tenor (Mostly achieving quantitative targets. Such as profit maximization, Increasing market share).  Hence HR should act as a facilitating function to help them to plan future successors. The HR should support and act as an impartial adviser to make sure the process happens. Further proving independent evaluation and reporting process is HRM Even although senior managers or BOD identifies successors, some candidates may not have the required skills, succession planning also often includes training and mentoring for potential candidates which is also a major task of HRM. (Day, 2007)

The Succession Management Process

 

Source: (Day, 2007)

 

And more importantly employee’s awareness about companies’ expectations as a successor is also very important. As once Elon musk said “people work better when they know what the goal is and why, it’s important that people look forward to coming to work in the morning and enjoy working" also HRM department should not limit their task of Implementing succession just for the sake of internal auditors to tick the box: succession plan in place.

References 

  Kenton W 2020. Understanding Succession Planning ( Online ) Investopedia Available at   https://www.investopedia.com/terms/s/succession-planning.asp [ Accessed 21 July 2021 ]  

   Hirsh, W., 2000. Succession planning Demystified. [online] Employment-studies.co.uk.       Available at: < https://www.employment-studies.co.uk/system/files/resources/files/372.pdf > [Accessed 21 July 2021

  Day, D., 2021. Development Leadership Talent. [Online] Shrm.org Available at: <   https://www.shrm.org/hr-today/trends-and-forecasting/special-reports-and-expert-views/Documents/Developing-Leadership-Talent.pdf  > [Accessed 21 July 2021