How the Human Resource Manager Benefits from R-pM
Human Resource Managers are important capital managers
Are you a human resource manager? How do you approach your work? As a routine administration function? As responsibility for the enterprise human capital to ensure that human capital maintained ready to perform, is developed to acquire new capabilities to increase human worth, and provided with knowledge needed to provide value to the business?
If your answer is closer to the latter, you will clearly benefit from R-pM. The impact of R-pM on human resource management is explained in the Human Capital Management Forum, and in human capital articles, such as “Integrate Human Capability Capital with the Business” in 21st Century Management Magazine. R-pM goes beyond 20th century human resource administration to provide professional 21st Century Human Capital Management.
Result-performance Management (R-pM) organizes the business for 21st Century Management
The means to understand the actual business and the human capital that you support is through Result-performance Management (R-pM). The enterprise business and your business is defined by only two entities:
- Results: The economic outputs that create the value from the business
- Performance Solutions: The human and other capital consumed in performance to generate the costs incurred by the business to produce result value
Even as human capital manager, you manage only these two entities in your business, as a sub-set of the enterprise business. Planning, gathering information, and managing other entities like activities, tasks, functions, positions, etc. diverts your time away from managing your business.
The 20th century enterprise has never managed the business
The dilemma that you face is that your enterprise has never organized or managed the business. Therefore, human resource administration structures, such as organization structures, jobs and position, career paths, salary scales, etc were laid over the business. These contrived structures are replaced by one integrated business structure with R-pM.
Results are the economic outputs that can be counted and measured that you and the human capital working under you must produce, and that you must manage. Some of the results you produce may be defined today as separate entities such as new staff recruited, employees paid, training course completed, etc. You have one set of results that you are responsible for. Some results may be completed and new results may be added. Many of these results likely are not defined today, but they are part of your business.
Your business also includes your capabilities, the capabilities of those you manage, the processes you follow, the information you use, and other performance solutions you use. You might be identified as an employee and your office and equipment may be fixed assets or property. but likely most of the performance solutions you utilize are not defined and may be classified as “intangible assets”. The set of performance solutions you need to produce your results is likely not defined or managed. Some capital like human resources and equipment may be administered, but no one is responsible to provide the performance solutions you or other managers need to produce high value-quality results.
R-pM replaces human resource administration with Human Capital Management
R-pM manages three groups of results:
- Revenue results: the results produced by the line business to produce revenue results and meet enterprise objectives
- Capital results: the results that manage human and other capital utilized and provide specific performance solutions to produce all results
- Investment results: the results in development to produce new capital and performance solutions
R-pM incorporates the human resource function into human capital management. Human capital management produces capital results to support human capital and develop human performance solutions to produce other results. Human capital management includes human capital performance management to provide and support specific solutions to produce specific results. Human capital is organized in three classes:
- Human Personnel Capital: Human capital solutions maintained ready to produce results and assigned to be utilized by the result manager to produce a set of results as Readiness Capital
- Human Capability Capital: Human capability solutions needed by the business and deployed to produce specific results as Production Capital
- Human Knowledge Capital: Human knowledge solutions to develop human capabilities, and solutions developed to help human capital utilize specific performance solutions and produce specific results as Information Capital.
Human Personnel Capital includes all individual human capital utilized by the enterprise and managed by the enterprise to produce results. This included full and part-time employees, contracted staff, seconded staff, etc. Human Personnel Capital management maintains personnel in readiness state through remuneration, personnel actions, extra activities, counseling, and deployment, where qualified, to produce results. Human Personnel Capital performance management assigns and monitors personnel solutions in result roles in the business organization solution as Readiness Capital.
Human Capability Capital is the capability required to produce a high value-quality result. The capability solution is the capability, not the human personnel solution. Several human personnel solutions may possess the same capability. Capabilities needed by the business are defined by the business process solution to be applied to produce one or more specific results. Human Capability Capital needs provides focus for human development. Special capability solutions such as salesmanship, equipment repair, data analysis, etc are needed to produce high-value results. Adding a capability and utilizing the capability to produce higher value results increases human capital worth. Human Capability Capital performance management understands business needs, and works with business process capital managers and result managers to redeploy, develop, or recruit personnel with the specific capabilities needed. Human Capability Capital is integrated with the business process, where needed, as Production Capital.
Human Knowledge Capital is the knowledge solutions needed to utilize other performance solutions effectively to produce high-quality results. Knowledge solutions development is an important part of all capital development. Knowledge includes all instructions, guidance, procedures, manuals, on-line help, etc to increase the effectiveness of human capital. Knowledge solutions are developed to provide result-performance specific and more generalized learning of importance to the business. Knowledge capital performance management coordinates the development of knowledge and manages and maintains knowledge in the enterprise information base. Human knowledge is integrated or accessed with business data as Information Capital.
The human capital manager role is different than 20th century human resource administration
As human resource manager you likely perform administrative functions like recruitment, payroll, and personnel administration, without the onus of producing results yourself or providing qualified solutions to produce enterprise results. Human resource development is likely only generally related to actual business needs. Human knowledge management is likely directed at making general knowledge available for access, if someone wants it.
R-pM replaces administrative functions with specific result management. With R-pm you utilize your solutions to produce specific results that include recruited staff, paid employees, or completed personnel action. R-pM enables you to produce results effectively in the business framework. You can understand the enterprise business much better as a structure of results to be produced. The human capital recruitment, development, support, and deployment problem is described in the requirements from result managers for human capital solutions. Human capability and knowledge development is very specific to the business to provide specific solutions to produce specific results.
As the Human Resource Manager, you have the opportunity to adjust to R-pM and be responsible for Human Capital Results.
R-pM provides the solutions needed to produce value-quality capital results
R-pM enables you to focus on producing human capital results. Unneeded or low-value results are discontinued. As human capital manager, you produce capital results as a sub-set of enterprise capital results. You have your own result-performance business structure to manage. Your results may form a result value-quality chain to produce final results as solutions that go to the internal and external customers who utilize human performance solutions.
R-pM enables you to manage the performance that produces each result
With R-pM, you, and all result managers, quickly become used to managing the results and performance solutions under your responsibility. A performance manager is responsible to provide the business, human, facility, and management solutions you need to produce results. Solutions have performance expectations to qualify solutions provided and manage the adequacy of solutions. Your normal set of performance solutions is defined as a performance module to be managed as a whole. The human capital solutions you provide are also part of your performance module
You have a wider span of result responsibility and specific result goals to achieve. Goals can plan the volume, timing, costs, or quality of your results. You use information technology to quickly add and deactivate results and the solutions you use. You define specific results and goals to be produced by those you manage.
You set the value of your results with the internal customer who wants you to produce results. You and the customer can evaluate the result and know the cost of producing the result. This lets you know and manage the value you add.
You manage performance costs against result value for result value-added
You and those you manage enter personnel and capability time against the results produced. Other performance costs are preset or are captured against results produced in facility records capital management. This enables you to manage the result value-added. If a result value-added is negative, you must reduce the performance costs or work with customers to increase the value of the result and decrease the value of another result in your chain. Or else, the result should not be produced.
Even as human capital manager, you manage the effectiveness of the solutions you utilize to produce quality results. The business process, human capital, and other solutions are utilized result by result. If a defective result is produced, it is brought up to quality or replaced in the result value-quality chain. If a human or other solution is ineffective, the solution must be improved or replaced.
You optimize your performance to produce value-quality results
The information you use to manage focuses on the results produced and the performance solutions utilized. The impact between others results and your results can be managed. You can optimize the costs, effectiveness, and capacity of performance solutions you utilize against the value, quality, and volume of results you produce. You can see the value you add to the value of enterprise capital results.
R-pM provides the environment to increase your capital worth
R-pM enables you to eliminate wasteful activities performed today. You can focus on producing value-quality results. You are supported for the solutions you need. The integrated information solutions you need are delivered by result and performance solution. You are able to increase the known result value you provide to the total enterprise result value. You increase your human capital worth and the worth of those you manage.
21st Century Management eliminates 20th century problems
21st Century Management is coming in 2008. Your enterprise will have to eliminate costly 20th century problems by organizing the business for 21st Century Management. Your enterprise can slash costs, simplify business management, and boost competitive advantage through Result-performance Management (R-pM), the conventional method for 21st Century Management. Human Capital Management is an important 21st Century Management responsibility.
Download your 21st Century Management Manual today
This article included only pieces of R-pM, and may have left you confused. Go to result-performance-management.com to learn more under What is R-pM?.
Your 21st Century Management Manual, The R-pM Toolkit, is available today and is under continual development to expand and refine 21st Century Management. Learn more about the R-pM breakthrough for 21st Century Management and subscribe to your 21st Century Management Manual, including free updates through 2009, at result-performance-management.com.
