Sunday, June 29, 2008

In praise of HR generalists

Let me begin by saying that I am a specialist - I am in a specialist role now (in Learning and OD) and I have spent most of my career so far in specialist roles in HR. But I have also handled HR generalist/HR business partner roles where I was the 'internal customer' for specialists roles in HR. Again, I have been fortunate to get opportunities to work in the HR domain in multiple contexts - HR consulting, Internal HR and HR Shared Services Centre. At this point, I am very happy to be back in a specialist role. But I have much higher appreciation/ respect for HR generalists now - as compared to what I used to have during the early years of my career.

Earlier (when I was looking at HR generalist roles as an outsider), I used to consider most of the HR generalist roles to be rather 'shallow' - in the sense that most of those roles (when it comes to the way they are actually executed) don't require any significant application of HR/behavioral science knowledge (please see HR Professionals and Multiple Personality Disorder). The main requirement for those roles seemed to be 'a bit of common sense coupled with knowledge of procedures/policies'.

Now that I have closely worked with some very effective HR generalists (and also seen generalist roles from an 'insider perspective'), I am convinced that what appears to be straight forward common sense decision making often involves fine judgement - the kind of judgement that requires knowledge and much more than knowledge - often requiring the kind of 'wisdom' that I spoke about in 'Wisdom-level consulting'. Since HR generalists need to interface with employees & managers, they need to ensure that what they do/the decisions they are communicating appear simple, clear and consistent. But these simple 'front-end/user interface' is often achieved by absorbing a lot of complexity at the 'back-end' of decision making - and you have to be an insider to see/appreciate this 'back-end' of decision making!

I have seen many senior HR generalists do the kind of great process facilitation/ process consulting work with business leadership teams that would make an Organization Development (OD) specialist proud. But usually these HR leaders don't call it OD and they don't talk too much about it - may be because they see it as a very natural part of their job and may be because they don't want to annoy the 'designated OD specialists' in the organization! I have also seen these leaders being able to synthesize the inputs from multiple specialists (staffing, compensation, resource management, workforce planning, employee relations, capability development etc.) and provide the the business leaders with an integrated HR response (diagnosis and solutions) to business challenges.

This ismuch more useful for the business leaders than receiving separate recommendations from various specialists. I feel that integrating multiple perspectives and answering the 'so what' question for the business is a much higher craft than coming up with isolated findings. Again, some of these HR leaders have a much higher understanding of the business as compared to that of the specialists and they are able to look at the organization from a 'total system perspective' - to identify and exploit 'leverage points' - those points/areas/factors in the system where a small change made can have a huge impact on the overall system/business.

Another reason for my increased respect for HR generalists is a gradual shift in my definition of 'what really makes a difference'. These days, I am more inclined to think that unless what an HR professional does makes a difference at the level of individuals, it is not making much of a difference. Of course, I agree that often a system level intervention is needed to impact a large number of individuals and that the definition of individuals is not limited to particular employees. But I have seen that technically perfect work (or 'high-end HR work') done at the system level does not always translate into making a difference at the individual level (to the individual stakeholders).

From a diagnosis and solution design point of view, it is required to go beyond the immediate appearance of people related problems/issues and look at the 'underlying form/patterns/principles'. But, we need to ensure that these solutions designed at the 'pattern/underlying form/principle/theory' level, need to be converted back to the level of individuals - solutions to the actual problems/issues that we had started our analysis with.

This is similar to the 'physical problem-mathematical model of the problem-mathematical solution-physical solution' process used in approaches like Six Sigma. Since specialists work mostly at the pattern/principles/system level (similar to the mathematical/'ethereal' part mentioned above), generalists are required to bring the solutions to the ground level - to make them 'real' - as solutions to the actual problems of particular individuals.

Specialists enjoy an advantage over the generalists - specialists usually support more than one client group, where as the generalists are often embedded in a particular client group. So it becomes relatively easy for a specialist to take a objective/neutral perspective as compared to a generalist. Thus balancing the interests of the particular client group that one is supporting with that of the larger organization becomes a more difficult task for the generalists.

There is another tricky balancing act that HR generalists (especially at senior levels) often have to do. Many of these generalists have a good amount of specialist functional expertise and there is one part in their personality that craves for technical perfection of the solutions. But their roles demand that the solutions should be pragmatic/workable/easy to communicate and implement - keeping in mind the organizational constraints. Also, because of their greater proximity to the particular businesses they are supporting, HR generalists are much more aware of the organizational constraints (especially the tacit ones) as compared to specialists.

This leads to an interesting situation when these generalists are the internal customers of specialists roles in HR. When the specialists push for technical perfection of a solution, the generalists often have to push back - to keep the solutions implementable. This would mean that in addition to arguing with the specialists, they also have to argue with themselves (i.e. the specialist part of their personality). Believe me, this is not a very enjoyable situation to be in! Of course, specialists also face these kind of issues as they grow in their careers. Please see 'Of specialists and business alignment'.

Overall, I feel that HR generalists roles are more 'messy' as compared to specialist roles. Often, HR generalists have to act as the 'face of the organization' when it comes to communicating unpleasant decisions (like disciplinary actions, layoffs, reduction in employee benefits etc.) to the employees. It becomes a challenge to maintain integrity (at the intrapersonal and at the interpersonal levels) when an HR generalist has to to stand in front of the same group employees -within the short span of time - first to announce employee engagement initiatives and then to announce a layoff.

As I have mentioned earlier (Please see 'At the receiving end of change management'), even in the case of major changes in the organization that have significant impact on the organization structure, jobs and on the employees, often the HR generalists are able to get involved only when it is too late. By that time 'emotional wounds' have already been created and what is left is more of communication and 'dressing of wounds'. This is definitely not the 'strategic change management' role that they were supposed to do. Now, I am not saying that these 'organizational scavenger' (or 'organizational earthworm') kind of roles played by HR generalists are not important. Actually they are very critical for maintaining the health and vitality of the organizations (just like earthworms increase the vitality of the soil/scavengers help to maintain the health of the ecosystem). My point is that these aspects of HR generalist roles are often very messy.

Again, since HR generalists often have to respond quickly there might not be enough time to come up with neat solutions. The specialists also have their own battles to fight in organizations and there is always the risk of 'injuries'(Since these are 'organization battles', these injuries are unlikely to be physical in nature - but they can really hurt. Please see 'Leaders and battle scars' for a related discussion.). The 'injuries' sustained in 'specialist battles' are more likely to be similar to 'cuts' , whereas those sustained in 'generalist battles' are more likely to resemble 'wounds'. It is important to note that here we are talking not just about the 'injuries' sustained by HR specialists/generalists. We are also talking about the 'injuries' to the other players in the organization and to the relationships - the relationships between HR professionals and business leaders/managers that are very important (especially for the HR generalists) to get their work done! In general, 'cuts' tend to heal faster (and neater/with less scarring !) than 'wounds' !

Another factor here is that the boundaries of generalist roles are often not well-defined and hence all kinds of tasks/problems (especially those no one wants to touch) can get dumped on the generalists. In some contexts this can also imply that HR generalists are 'on call' 24x7. Work can become a series of small activities with nothing substantial to show (or to add to the CV !) at the end of the year. Again, there is the greater need to walk the thin line between confidentiality and openness, empathy and objectivity, cooperation and capitulation, emotional intelligence and emotional manipulation etc. One can even end up feeling like a 'mouse in a maze' - running here and there, feeling extremely busy- but not reaching anywhere! Now, what amazes me is that I have seen many HR generalists being effective and producing very 'neat' work in such a 'messy' situation. So how can I stop myself from writing this post - 'in praise of HR generalists'?

Any comments/observations?

Saturday, May 31, 2008

Job and identity

Recently, I left the job that I had been doing for the past three years and took up a different type of job with another organization. I also got the opportunity to take a 3-week break in between - the first in my career that I have done so. I spent most of this time outside Bangalore - with some of my close relatives. This also meant that I met a lot people (the friends/relatives of my relatives) - and I was meeting most of them for the first time. One side effect of this was that I had to answer the question "So Prasad, what are you doing now?" - roughly 3 times/day - about 40 times in total, over a two week period.

Initially, I tried the answer "I am on vacation" - but that did not seem to work. People would wait for me to say more and if I did not say anything more they would ask me something like "What do you do for a living?". To this I tried to give the answer "I work mainly in the area of Organization Development". But even that answer did not seem satisfactory. Sooner or later people would ask me "Which company do you work for?". To this I tried answering "I am in between jobs" (or "I am taking a break") - but this also did not appear to work well (and sometimes this answer elicited a confused and/or sympathetic look/expression also). So finally I was forced to answer "I was working for company 'C1' till date ' d1' and I would be joining company 'C2' on date 'd2' ". While this turned out to be 'satisfactory answer' (from a social perspective), I did feel quite uneasy.

My uneasiness was mainly at two levels. At the 'social level' I was bothered about how would I have handled this question if I was not in a position to say that "I would be joining company 'C2' on date 'd2' ". At more personal level, I was wondering whether I can articulate a clear answer (just for my own consumption) to our initial question ("So Prasad, what are you doing now ?"), without referring to any of my employers (past, present or future!) or to the job titles. After I thought about it for a while, I felt that uneasiness at the first level was not a very important - as it was arising mainly from 'social desirability' and 'norms of polite communication in a particular social group' - and hence it should not bother one unduly so long as the 'economic viability' angle has been taken care of. The uneasiness at the personal level was more difficult to address. Once I resisted the temptation to 'destroy the question' by resorting to philosophical answers (e.g. one should be bothered about 'being' as opposed to 'doing'), the real issue became "Have I wrapped my identity too much into my job/career ?". I feel that this is an important question that needs to be looked at more carefully.

There are conflicting trends operating here. On the one hand, many of us spend a very large part of our waking lives at work. Many of the jobs are very demanding and they occupy a lot of our 'psychological space' - much beyond office space and office hours. Our 'passion for work', might make work and the achievements at the workplace very important for us. It has also been argued that in an environment where the role holder has the opportunity to shape the role to a large extent (and/or where people are expected to be responsible for managing/developing their careers), role identity and career identity are essential for success/effectiveness. On the other hand, these days many people routinely change jobs or even change careers. Again, often people are forced out of their jobs and careers by organizational changes(right sizing, restructuring etc.). Thus, if your identity is wrapped up in what you do, a change of job or a change of careers (especially if they were forced on you) becomes traumatic (much more so in the case of a job loss).

So where does this leave us? Developing and understanding our identity as individuals is essential for personal effectiveness. This would serve an anchor point for us when everything around us are changing. While job and career identities are useful from a job/career effectiveness/success point of view, they can't define who we are as individuals. Jobs and careers are like the cloths that individuals wear and change. Just as we can't let our cloths define us (though some of us might choose to express some aspects of ourselves through the way we dress), we can't let our jobs and careers define us completely. So it is very important for one to examine one's current definition of oneself and if the results don't show anything beyond job and career identity, it is time for investing significant time and effort for expanding the boundaries of those definitions. Of course, developing and understanding our identity as individuals is a lifelong process.

By the way, there is another reason for being careful about this 'sense of identity wrapped up in job' . It has been argued that 'sense of identity wrapped up in job' is one of the factors that could predict the risk of violent behavior at the workplace. So now the relevant questions are - "Are you at risk ?" and "Are you a risk ?" !!!

Related Link: HR carnival at Strategic HCM blog

Sunday, April 27, 2008

Passion for work and anasakti

" People here are not passionate about their work. If you ask them to do something more, they start speaking about their deliverables, resource constraints and work-life balance. People should show passion for their work and they should be willing to work beyond office hours and on weekends to go beyond their job descriptions", said the senior HR professional. I did not know how to react to this immediately. There were many themes and assumptions (in addition to many emotions!) in his statement. I needed to think through this before I could come up with a reasonable response. So I just shook my head (in an ambivalent manner !) and tried to change the subject of the conversation.

Now, if you have been in the corporate world for some time, it is highly unlikely that you would have been able to avoid hearing these kinds of statements about 'passion for work'. While most of these statements are made in the context of 'motivational speeches' (without any concrete action points on this 'passion for work'), this is not just a 'philosophical' issue. It has been observed that while 'passion for work' might or might not have a significant impact on actual job performance, 'perceived passion for work' is an important factor in selection decisions. Of course, we have more fundamental issues here - like 'how exactly do we define passion for work' and 'what are the behavioral manifestations of this passion for work'. To begin with, I don't agree with the assumption made by our senior HR professional that 'passion for work can't be demonstrated during normal office hours'!

While the connection between 'passion for work' and job performance seems logical (though I am not sure how much empirical evidence is there to support this), I do wonder if one can do anything to develop/enhance 'passion for work' in oneself and/or in others. It appears that it is very difficult to train/'inject'/'program' this 'passion for work' into anyone (including oneself !)- especially on a sustainable basis. 'Passion for work' seems to be a byproduct of more fundamental things like meaning, purpose, talents, basic personality orientations etc. (Please see 'Employee engagement an the story of the Sky maiden' for a related discussion). So it appears that 'passion for work' is more like something that we can discover/re-discover and help others to discover/re-discover (as opposed to something that we can directly create).

While this seems promising, we might find it difficult to align the 'passion for work' that we have 'discovered' to the immediate job requirements/context - as passion for work might not be bothered about 'minor' things like job descriptions!. May be we should 'let our passions find work that meets them' rather than the other way around. Of course, this is not a simple task - either for the individuals (in terms of actually finding such work - over the span of an entire career) or for the organizations (in terms of developing/maintaining the flexibility required - in organization design and in talent management).

This could explain why our senior HR professional came to the conclusion (based on many years of experience in the corporate world) that passion for work requires working beyond normal office hours. However, the problem with this approach/conclusion is that it tries to work around (and even perpetuate) a problem rather than trying to solve it. From both 'organization effectiveness' and 'personal effectiveness at work' points of view it is worth trying to solve this problem - though it would involve significant amount of effort. By the way, it can also be argued that since passion for work is not easily trainable, using 'demonstrated passion for a particular type of work/job' as one of the selection criteria for that job is not a bad idea - especially if we can find a reliable way to define/ assess it (e.g. formulating a definition in terms of its behavioral indicators in the particular context and using targeted/behavioral interviews based on those indicators).

Another aspect that intrigues me is the possibility of 'undesirable side effects' of this 'passion for work'. For example, I do wonder if 'passion for work' comes as a package deal - along with complications such as too much attachment to the task/job/position, tendency to attempt for local optima (at the task/individual level results) that might not add up to global optima (at the team and organization level results) etc. On a more philosophical plane, this discussion has similarities with the discussion on the fundamental issue of 'whether happiness and sadness are a package deal' (i.e. "can one be 'emotionally open' to feeling happiness while being 'emotionally closed' to feeling sadness" or "can one reduce one's sensitivity to sadness without reducing one's sensitivity to happiness"- assuming that the person has no major psychological disorders !).

So is there a type of 'passion for work' that is does not involve attachment? There does exist such a concept (in yogic literature) - anasakti. While anasakti is sometimes translated as 'detachment', the true meaning of anasakti is closer to 'non-attachment'. Actually, there are three related terms here - asakti (attachment), vairagya (detachment) and anasakti (non-attachment). Non-attachment is acceptance of situations (and responding to them adequately) without getting emotionally affected by them. This is similar to the ideas of 'being in the world but not of it' and of 'engaging in tasks, yet not being concerned with rewards involved'. It is also interesting to note that anasakti has similarities with Scott Peck's definition of true love. A person high in anasakti carries out tasks (as a karma yogi) with a sense of responsibility and task enjoyment without any additional expectation (while this person does not refuse to enjoy the 'fruits of his labor', he/she does not get hooked on to these conveniences).

I must say that there is a huge difference between finding the concept of anasakti and implementing the same successfully in work-life (as a model of the ideal type of 'passion for work')! Finding a term that describes what we are trying to achieve, does not automatically enable us to achieve it. However, we can get some useful ideas from the thoughts/experience that have already been developed around the term (though in a slightly different context) and this in turn might help us avoid 'reinventing the wheel' in some aspects. So our quest for finding and implementing the ideal type of 'passion for work' continues.

Any comments/thoughts/ideas ?

Note1: In this post, I haven't really tried to define 'passion for work'. There are essentially two reasons for this. 'Passion for work' is essentially an internal phenomenon (more like a feeling) and internal phenomena are 'better experienced than defined'. The exact nature of the feeling can also be highly individual-specific/personal. Hence any formal definition given in the post can create some sort of a 'disconnect' in the minds of some of the readers - as some parts of the definition might not match with their own tacit/intuitive personal definition. Hence by using the phrase 'passion for work' without defining it I was trying to prompt the readers to use their own personal/intuitive definitions of 'passion for work'. Now let us look at the second reason. This post was focusing mainly on the implications of 'passion for work'. Hence I was concerned that dwelling too much on the technicalities of a formal definition could shift attention away from the main focus of the post. Of course, this approach would work best when there is quite a bit of 'common ground' among the personal/intuitive definitions and when we are concerned more about the implications of 'passion for work' (especially for particular individuals) as compared to 'passion for work' itself.

Now that we have got the reasons and rationalizations out of the way, let us look at some of the common themes/terms/phrases/definitions associated with 'passion for work'. One of my favorites is 'spark in the mind' - that a person brings to work (and that makes him/her look forward to coming to work!) - that encourages him/her to care deeply about the work and to put in his/her best - and even to approach work as an act of love . We can also try to define 'passion for work' in terms of its typical behavioral manifestations - increased energy, creativity, commitment etc. This bring us to another term related to passion for work - enthusiasm - to be inspired . If we look at the original roots of the word enthusiasm (en + theos = 'in god' or enthousiazein = 'to be inspired by a god'), it is not difficult to arrive at the 'work as an act of worship' idea associated with 'passion for work'. Another related dimension is 'finding/ experiencing deep meaning in the work that one is doing ' - in the work itself and/or in terms of one's work contributing to a worthwhile objective (in the 'laying bricks - building the cathedral' sense). Since we are also speaking about anasakti and non-attachment, it is important to avoid any undue attachment to these objectives/goals - even while being inspired by them!.

Hence, 'being inspired, caring deeply and feeling an intense connection (or even 'oneness') with what one is doing - without developing any undue attachment' is the closest that I can come at this point to a definition of the kind of 'passion for work' that I am talking about here. Quite a tall order, I must say!

Note2: As I have commented here, I feel that 'passion’ is closely related to meaning and purpose. Yes, if one is passionate about something, one will be willing to stretch/extend one self (‘suffer’) for it. Interestingly, this again takes us very close to another aspect of Scott Peck's definition of 'true love' that was mentioned earlier in this post(Etymologically speaking, the origins of the word passion can be traced back to the Latin words pati (to suffer/endure; the word 'patience' also has similar roots) and passus(suffering). But it is ‘meaning’ and ‘purpose’ that take ‘suffering’ into the realm of ‘passion’ (as in 'Passion of the Christ'). After all, there is a lot of meaningless (neurotic) suffering in the world, in addition to meaningful (passionate) suffering.

Sunday, March 2, 2008

Mysteries of 'being a good team player'

"My team is not happy with me. They have told me that I am not a good team player", said the young engineer. The latter part of his statement triggered alarms in my mind. Over the years, I have learnt that when it comes to receiving negative feedback, one is in a much better situation if the negative feedback is about some particular action/task that one has done. In that case one can understand the mistake made and try to do better/avoid it next time. However, if one receives feedback like 'you have an attitude problem' or 'you don't have passion for work' or 'you are not a team player' then the situation becomes much more tricky. Firstly, it is often very difficult to figure out what exactly one did wrong. Secondly, it is usually very difficult to change these impressions/perceptions (regardless of what one does).

Let us come back to our young engineer. What happened in this case was that the team/ work group that he was part of decided to on a picnic to a neighbouring state. Our friend did not go along with the team for the picnic. He did not want to go out of station for very strong (but very personal) reasons. However, he covered for the team during that period by putting in extra hours in office- including many night shifts. This lead to a peculiar situation. Our engineer felt that he displayed 'team work' as he had put in additional effort - enabling the team to minimise work disruption while they enjoyed the picnic. Some members in the team felt that our engineer did not display 'team work' as he did not join the team for the picnic (or as he declined to 'play with the team' !). So what could have been a 'win-win' arrangement degenerated into a 'lose-lose' situation.

There are many dimensions here -the possible differences in the understanding of even very commonly used terms & their adverse impact, power of metaphors in our thinking and of course our primary topic - mysteries of 'being a good team player'. It has been argued that human thought processes are mainly metaphorical and that we understand and experience things and concepts (e.g. the concept of 'team work' in our case here) in the network of their metaphorical affinities.

The underlying metaphor in the case of 'team work' is essentially that from the field of sports - a sports team. While this appears rather straight forward, there could many complications here. There are many types of sports/games. The type of 'team work' that is required varies widely from game to game. The type of team work required (and hence what makes someone a good team player in that context) is different in the case of a soccer team as compared to that of a cricket team, a relay team (in athletics) or a Davis cup (tennis) team. Now the amount of interdependency among the players in a soccer team is higher as compared to that in a cricket team and much higher as compared to a relay team. In the case of a relay team, what is required to be a good team player is essentially to run his/her part of the race as fast as possible and to exchange the baton well with the other team member(s) involved. In the case of a Davis cup team, all that is required from a team member in a singles match is to win that match and get a valuable point for the team/country. Obviously, the same type of approach will not make one a good team player in a soccer team!

Now let us take a closer look at 'team work' in a workplace context. As we can see from the above discussion, when different people say 'team work' or 'team player' in a workplace context, they might be using the sports metaphor (team) with very different types of games in mind. This can lead to a lot of misunderstanding. Actually, there are additional factors involved here that could complicate the situation even more. The tacit definition of 'team work' in highly individualistic cultures could be significantly different from that in collectivist cultures. It has also been observed that there could be gender related differences in the understanding of what makes one a good team player. Part of this could be because of the fact that young boys and young girls tend to prefer playing different types of games (e.g. 'war games' and 'doll games' - to use a stereotyped example)! By the way, it is interesting to note that we can learn a lot about an individual/ team/ organization from the metaphors/expressions they use to describe key experiences.

It can be seen that, from a team effectiveness point of view, different types of team work are required in different workplace contexts. So it would be a good idea to analyse, understand and agree upon what exactly is type of team work required in the case of a particular team/work group in a particular organization context. This would also help us to develop and communicate a good 'operational definition' of 'what makes a good team player' in that context. Of course, an 'operational definition/working definition' is not very glamorous and it does not fully capture the mysteries of the 'broad concept of team work'. But it can help to avoid a lot of 'avoidable unhappiness' at the workplace!

Friday, February 15, 2008

Why pigs have wings (Importance of differentiation in people management)

The more interesting part of the title comes from 'Through the Looking -Glass' (by Lewis Carroll). The other (related !) part - importance of differentiation in people management - is something that I have often thought about. There are many issues here. Is differentiation really important in people management? What types of differentiation are relevant? What are the implications of differentiation ? Is it worth the trouble and effort?

Now, there are many types of 'differentiation' possible in people management . We can look at differentiation in terms of the parameters on which differentiation is based on (i.e. input parameters/criteria) and/or in terms of the ways in which differentiation is implemented (i.e. results/outcomes). For example, differentiation could be based on (inter alia) performance, potential, criticality/ impact of the role, job level, job family, market value of the skill set, tenure, business unit etc. or a combination of them. Again, the differentiation could be made/ implemented in terms of (inter alia) compensation, benefits, recognition, career progression, development opportunities etc. or a combination of them.

If we look at the large number of input parameters and outcomes listed above, it becomes apparent that there are a large number of combinations possible here. The relevance of a particular combination would be context specific. To keep this discussion manageable, let us classify the input parameters into three broad categories - parameters that are related most to the
(a) individual (performance, potential, tenure etc.)
(b) position (criticality/impact of the role, job family, job level, skill set)
(c) part of the organization (business unit/function/geography)

I must say that these catagories are somewhat arbitrary and there could be some amount of overlap among them also. For example 'skill set' is related to both the role and the individual. It also raises some interesting questions like 'if an employee has a skill that is in the list of 'hot skills' (as defined by the organization) and if the employee is currently in a job that does not need that skill, should the employee be given any sort of differentiated rewards? ' OK, OK, let us come back to our discussion.

Based on our classification, the question now becomes whether it makes sense to differentiate based on individual, position or organization/business unit related factors? Different business unit in a company might face different markets (both product and factor markets) - with different dynamics and market practices. Business units might also differ in terms of their performance. Hence there is a strong case for differentiation. However, too much differentiation might lead to a situation where the employees in different business units don't really feel that they are working for the same company ! Thus, the organization culture and philosophy becomes a key factor in determining the extent of differentiation. Similarly, it can be argued that some positions in the organization have a much higher impact on organization performance and that some skillsets carry a greater market a higher market value at a particular point - there by making a case for differentiated treatment. Of course, we should keep in mind the fact that the list of critical positions and the list of key skills could change - sometimes quite quickly.

Now, if we examine differentiation based on individual related parameters a similar argument holds good when it comes to individual 'performance' - higher performance merits higher rewards. The case (if any) for 'tenure' based differentiation usually has more to do with organization culture/values. The case for 'potential' based differentiation (on a stand alone basis) is more complex. Anyway, the most common practice is to use a combination of performance and potential. This also leads to interesting situations and challenges. Please see
'Paradox of potential assessment' for a detailed discussion.

Now let us leave aside all these details and examine the core of the issue. I feel that the most important factor driving differentiation related decisions should be 'contribution/value addition to the organization'. So if there are some business units/positions/individuals that create more value to the organization as compared to other business units/positions/individuals they could be given preferential treatment. By the same logic, the extent of differentiation should mainly be a factor of the variation in the 'contribution/value addition to the organization'.

While this sounds quite neat/logical, there are a few important prerequisites to make this work. For example, everyone should understand and agree upon what exactly is meant by 'contribution/value addition to the organization' at the business units/position/individual levels. In addition to this we might need to include probable 'contribution/value addition to the organization' in the future, apart from the current ''contribution/value addition to the organization' (e.g. in the case of differentiation based on 'potential'). Also, it should be possible to track/ measure/ assess this relative 'contribution/value addition to the organization' (to the satisfaction of everyone involved) at all these levels . Again, there should clear norms in staffing the positions/business units to answer the question 'how can I move to that position/unit that gets better treatment'. As we can see all this could get quite complex.

As I see it, what really matters most here is the dynamic interplay of the factors (as opposed to a particular factor per se) in a particular context. For example, it is worth it to have a 'key talent program' ( that aggressively differentiates 'high performance - high potential' employees in critical job families) if we are in a context
(a) some positions (say critical positions) have a much higher business impact as compared to other positions &
(b) in critical positions, a high performer in creates much more value as compared to an average performer &
(c) it is very important that senior positions are filled by developing talent from within (say because of the nature of work and organization culture)
In such a context, the business case for the key talent program is clear even if the program could have possible side effects in terms of annoying a large section of the employees who are not part of the program. However, if one or more of the conditions mentioned in (a), (b) and (c) above do not hold good (or if they hold good only to a limited degree/extent), the business case becomes less compelling.

While this does not negate the existence of the complexity that we were discussing earlier, it can be seen that some patterns can be found amidst the complexity that can lead to actionable inferences in the area of differentiation in people management. Also, while we are caught up in all this talk about differentiation, we should not forget the importance of 'individualization' (managing each employee as a unique individual - please see previous posts like
'Paradox of HR systems' and 'Feasibility of mass career customization')- though it is not really 'differentiation' - in the sense we are using the term here.

Tuesday, January 8, 2008

Paradox of 'HR Systems'

"But I don't need HR systems", said the senior business manager. I had gone to this gentleman to seek his buy-in (and sponsorship, if possible) for implementing an internal HR product/ solution that I was managing at that time. The main selling point for the HR product was that it would improve the effectiveness of core HR systems in the organization (like Staffing, Rewards and Training). I had just finished my sales pitch and then I was hit with this response. Actually, he was not being difficult. He had a point. This gentleman was managing one of the most profitable units in the organization. This unit had a relatively small number (as compared to the total headcount in the organization) of employees - but with a highly specialized (and difficult to find/retain) skill set. His point was that because of the nature of the skill set and high business impact of the positions in his unit, key people related decisions (hiring, rewarding, training etc.) are directly handled by him and his direct reports in a highly individualized manner and this has been working very well. So any (standardized) HR system/process would be more of a hindrance for him in running his unit !

While the above scenario is not representative of the typical organization context in which HR systems function, it brings us to an interesting paradox in 'Human Resource Systems/ Processes'. There is a clue in the name itself. The words 'system' or 'process' convey an impression of standardization/ consistency. The word 'human' implies a unique individual. As I have mentioned earlier (while discussing the various terms used for HRM), the new business environment has forced organizations to pay more attention to the 'human' part (as opposed to the 'resource' part) of 'human resource management'. This has resulted in a quest for more individualized approaches for managing people (See here for an example in the domain of career development. Another example could be the shift/progression from 'level/grade-based' to 'position-based'' to profile-based' to 'individual-based' approach in compensation and benefits management.). Now the question is that "how can standardized processes/systems be effective in managing unique individuals?" But we can't jump to the conclusion that HR systems/ processes are not required. Absolute chaos can result if there are no HR systems/processes - especially in the case of large organizations. Moreover, how can we forget what we have learned about 'procedural justice' ! However, it has also been established that human beings are managed most effectively in small units. This again brings us back to the importance of customised approaches to managing people - at individual and small group levels - even as many organizations are becoming larger in size. Thus we have a paradox in the true meaning of the term - multiple perspectives/opinions (doxa) that exist alongside (para)- each of which is true - but they appear to contradict/to be in conflict with one another.

One 'solution' that has evolved/emerged in response to this paradox (which is often seen in MNCs) is to establish well-defined processes across the organization and also to give a lot of decision making power to the managers. For example, the process (steps/procedure) for giving a salary increase (or a promotion) would be very clearly defined; but the manager has absolute freedom to decide on the quantum of salary increase for a particular employee (or to decide whether or not to promote a particular employee) subject to an overall salary increase/ cost of workforce budget for the entire team. Thus, highly individualized approach can be taken for managing a particular employee while maintaining standardization at the group level.

People management is a field which is full of paradoxes (for more examples of such paradoxes please see paradox of 'hiring good people and letting them decide' and paradox of potential assessment). . The 'human' dimension of the issues in this domain is one of the main contributing factors. Also, any system (including a human system), when it becomes sufficiently complex, becomes difficult to 'manage' in the normal sense of the term 'manage'. As I have mentioned earlier (while exploring the behavioral science foundations of HR), a key prerequisite for managing is the ability to predict. In the case of complex systems, we face a dilemma - predictions about the behavior of the system that can be made accurately are not very relevant/helpful in managing the system and predictions that are relevant/helpful in managing the system can't be made very accurately ! However, a paradox per se is not a bad thing. If there were neat/linear solutions to problems in people management there wouldn't have been many deep-specialist jobs in HR (which in turn would have forced many of us to look for jobs in other domains !). Paradoxes also contribute to the richness of the domain. However, managing paradoxes might require approaches that are different from traditional problem solving methods. They might need approaches similar to those that I have described in posts like 'Making problems disappear' , 'Wisdom-level consulting' and 'Of problems, paradoxes, koans and wisdom' - approaches that reflect simplicity at the other side of complexity !

Any ideas/comments?

Related posts : See here and here for related posts.

Saturday, December 8, 2007

Of Ghosts, Blogs and Undigested karma

This month, 'Simplicity at the other side of complexity' is completing one year. When I started this blog, I wasn't sure about how it was going to evolve. One year and forty posts later, the situation remains more or less the same, though some patterns have emerged.

The nature of posts in this blog has become more focused - on Human Resources, Organization Development and Personal Effectiveness (as opposed to being scattered in the broader domains of 'life and work'). The posts have also become more 'experience driven' - with the concept/ theory part limited mainly to concepts/inferences that emerge from the situations/experiences. I got to know a quite a few great people through this blog and I have greatly benefited from the interactions with them. Of late ,I have noticed that the comments/ discussions around many of the posts are longer (and more interesting !) than the posts themselves ! (see 'Career Planning and the myth of Sisyphus')

It is interesting to note that this 'evolution' mirrors (to some extent) the basic theme of this blog - 'Simplicity @ the other side of Complexity'. By the way, I have kept the name of blog as 'Simplicity at the other side of Complexity' (as opposed to 'simplicity on the other side of complexity'), to stress the point that this simplicity is something that one 'arrives at' (with a significant amount of effort) after working through/wrestling with the complexity. This blog also gave me the opportunity to explore the paradoxes and opportunities in the people management domain. I am sure that the process of grappling with these paradoxes and dilemmas has helped a lot in enriching my understanding of the HR/OD domain in particular and life in general!

There is a concept in 'Tantric philosophy' that ghosts get created because of 'undigested karma'. I feel that 'ghosts' could get created in the domain of thoughts also - because of 'undigested incidents' (i.e. the undigested thoughts arising from the incidents). The ideal way to exorcise these ghosts is to listen to them, revisit those incidents/thoughts and deal with them properly to ensure that the thoughts/ideas are digested/absorbed/integrated. In a way, it is very similar to the regurgitation/'chewing the cud' behavior of some animals (called 'ruminants'). This blog has given me an opportunity to exorcise quite a few of such ghosts (see 'Competencies and Carbohydrates' for an example).

Many of my posts contain stories (fables, legends, anecdotes and myths). I feel that it is mainly because of the nature of the thoughts discussed in those posts. Many of these thoughts/ideas deal with things like 'reality', 'essential nature', 'meaning', 'wisdom' etc. that are very difficult to express in words.

Stories have the capability to 'capture' complex meanings , though these 'meanings' are not contained in the words/text of the story. Actually, the role of the words/text of the story is to 'trigger' the 'meaning' in the mind of the reader. Thus, stories can be very useful in capturing and communicating thoughts/ideas/ meanings that are difficult to verbalize. The other option is to use complex (unusual) combination of words and symbols to try to communicate the thoughts/ideas/meanings that we are talking about. This could come across as 'using big words' and often it fails to meet the objective. Hence I feel that stories present a much more elegant solution. Of course, my favorites are myths - as myths allow us to transcend even the 'limitations' imposed by reality! (see 'So true that it can't be real').

I find the process of generating an idea, letting it evolve & crystallize in the mind and capturing it in a blog post is highly rewarding intrinsically. Blogging is also a form of self expression that is aligned to my 'INTJ' personality type.  These along with the opportunity to exorcise ghosts, to make problems disappear and to interact with wonderful people have made my first year of blogging a deeply enriching experience for me!.

Tuesday, December 4, 2007

Of deep-specialists and jumping around

This post is on one of my favorite topics : 'deep-specialist' roles in internal HR. Please see here (Specialist roles in internal HR - An endangered species ?) and here (Business alignment of specialists) for previous posts in this domain. The first post explored if these deep-specialist roles are becoming fewer in number. This post is about another related dimension : the average time that these 'deep-specialists' spend in a particular organization.

When we say 'deep-specialist' roles, we are talking about those roles in internal HR that require deep specialist skills/expertise in one of the functional areas in HR (e.g. organization development, reward management, leadership development etc.). It takes many years to develop skills/ expertise to this level. Often, this would also imply that

(A) Very few people can become deep specialists in more than one area

(B) Deep-specialists are high cost resources to hire/ maintain.

If we combine (A) and (B) above; it can lead to some interesting scenarios. (A) would imply that most deep-specialists would find it hard to find another deep-specialist role that they can move into within the organization. (B) would imply that the deep-specialist would have to maintain a very high level of contribution/value addition to justify his/ her cost. For this to happen there has to be a very close match between the the skill/ expertise area of the deep-specialist and the needs of the organization. Now the problem is that in many organizations the 'needs' (that necessitated the hiring of the deep-specialist) change - often quite quickly. This could happen because of many reasons - including those related to the changes in the business and/or those related to the HR strategy/structure/operating model. Now if the the 'original needs' (that necessitated the hiring of the deep-specialist) don't exist any more, that puts our deep-specialist in a peculiar situation : he/she can't maintain the high level of value to justify his/her cost and also he/she can't move into another role in the organization. So this could force the deep-specialist to leave the organization/look for another organization that provides a better fit. However, it could just be a matter of time before the same story gets repeated in the new organization. Again, if we assume that the above changes in business/HR happen frequently, 'logically speaking', this should lead to relatively shorter tenure for deep-specialists.

Since I know that a purely logical approach might not always lead to correct conclusions, I decided to do some sort of a 'reality check'. I spoke to some of my friends (who are deep-specialists) and asked them what is the average tenure they look at when they take up a new job. The answer : about 4-5 years in terms of aspiration and about 2-3 years in terms of the likely result. I feel that these (relatively small) numbers and especially the gap between the 'aspired figure' and the 'likely figure' for tenure, seem to support the inference/line of reasoning regarding the 'relatively short average tenure for deep-specialists'. Of course, this is far from being any sort of conclusive proof ! May be (since I am a 'deep-specialist at heart') I am just looking for excuses to jump around frequently !

What do you think?

Tuesday, November 27, 2007

Towards a philosophy of HR

"HR is like gardening", said a senior HR professional when he was completely drunk. "We are not using any functional expertise in this recruitment assignment; our role in this project is similar to that of a pimp", said a Project Manager from a reputed HR consulting firm when he was in a reflective mood. "The HR leadership team is thinking about strategies to build the firm for the next 150 years", said a global HR leader in a 150-year-old MNC. Three senior HR professionals and three interesting perspectives - in three different contexts.

What is the basic 'philosophy' that underlies the domain of Human Resources? Does this (and should this) vary significantly across organizations? Is it a clearly defined and commonly accepted philosophy ? If not, can we derive some sort of 'emergent philosophy' from the way the craft of HR is practiced ? How has this philosophy been evolving? Is it worthwhile for organizations to invest time and effort in formulating and articulating an HR philosophy?

Now that I have been working in the HR domain for a decade, these are some of the questions that I have found myself thinking about quite a bit these days. Of course, I don't claim to have definite answers to these questions. What I do have are some 'thought fragments'. So the objective of this post is to seek comments from the readers so as to have a discussion on the topic.

Since this is a very broad topic, let us make a couple of simplifying assumptions for the propose of this discussion. Here we are taking about HR only in the context of business organizations. We are using the term 'philosophy' in a limited sense, to mean the basic assumptions, premises or tenets that underlies the field of HR.

There are many ways to approach this topic. One of them is to look at the applied behavior science foundations of HR. It can be said that the objective of applied behavior science is to understand human behavior in order to make predictions regarding probable behaviors in various situations so as to be able to influence those behaviors. This 'understand-predict-influence' sequence underlies all applied behavior science including Human Resource Management. From this it can be inferred that one basic assumption in the philosophy of HR is that it is possible to understand and predict human behavior so that it can be influenced to be in line with the organization objectives.

Another 'trick' that is often used is to look at the various terms used for HR and derive inferences from the choice of words. Here we comes across many terms, including Human Resource Management, Human Resource Development, Personnel Management, Human Capital Management, Talent Management etc. Then we could make 'inferences' like

(a) use of the term 'Management' indicates the intention to 'control' (more than what is meant by the term 'influence')
(b) use of the term 'Resources' implies that employees are a factor of production or even that they are essentially costs of production that needs to be minimised to the extent possible
(c) use of the term 'Capital' implies that employees are more like assets than costs and hence they are worth investing on or even that they add significantly to the value of the firm
(d) use of the term talent and avoidance of the term resource implies that employees are like investors who invest their talents in the organization and that they would continue to do only if they see attractive benefits like rapid appreciation in the value of their talent and good revenues in terms of salary.

While some of these 'inferences' do not necessarily follow from the terms, they do give us a flavor of the underlying assumptions.

Now if we look at many of the HR practices (that originated many years ago), we can figure out that they make some assumptions like 'continuity of the employment relationship', 'good amount of predictability regarding the business growth and hence career growth' etc. If we examine what actually happens in organizations these days (especially in highly dynamic industries), we are likely to find that these assumptions no longer hold good. Please see here for an illustration of this point in the context of career planning. Based on this we could argue that some of the basic underlying assumptions and hence the de facto philosophy of HR is evolving - often quite rapidly.

It is interesting to note that to some extent this 'evolution' also gets reflected in the changing names for the various sub-functions in HR. For example the function of 'Compensation' (which can be interpreted to mean that the organization is compensating the employees for some harm done to them) evolved into 'Rewards' and then into 'Total Rewards'. Another example could be the 'Training' function evolving into 'Learning' function. Training sounds like something that is done to the employees (or even forced upon the employees), almost similar to training animals. Learning happens inside the minds of the employees and hence can only be facilitated (and not forced upon the employees) by the 'Learning' function. Of course, the change in the name need not always imply a change in the underlying assumptions/philosophy. But it does show that it is fashionable/desirable (at least from a PR point of view) to have (or at least to create an illusion of) a more progressive philosophy of people management.

Now let us look at the basic issue of why should we be bothered about the 'philosophy of HR'. The 'philosophy of HR'/'basic assumptions in HR' in a particular organization context shapes the way the employees are managed in that organization.

Lack of a clearly articulated and understood 'philosophy of HR' can make the organization susceptible to 'taking up the latest fad in people management and discarding it soon after to take up the next one'. It can also result in highly inconsistent attitudes/practices in managing the employees (e.g. swinging wildly between high empowerment and high control, between large investment in employee development and no investment between 'intense focus on encouraging employees to form emotional bonds with the company and 'downsizing and then scaling up shortly after that' etc. This in turn can cause a lot of avoidable confusion.

More importantly, the 'way the employees are managed' will influence how the employees respond to that/how the employees behave in the organizations. What happens here is similar to the 'Pygmalion effect'. Thus 'wrong/bad' assumptions/philosophy, might result in creating 'wrong/bad' reality. For example, 'Theory X' kind of assumptions/philosophy (i.e. that the employees are inherently lazy and will avoid work if they can) in people management will promote 'Theory X' kind of behavior among the employees. Hence, though the 'initial reality'/'employee behavior' might not be in line with 'Theory X kind of assumptions', after people management based on 'Theory X assumptions' have been practiced for some time, employees might start to behave in a fashion that validates 'Theory X'. This makes people management a very dangerous domain !

We also have to be mindful of the possible conflict between the stated HR philosophy in an organization and the 'actual' HR philosophy practiced in the organization. What really matters is the HR philosophy (basic assumptions about HR) that emerges/can be inferred from (or gets reflected in) in the decisions made by the organization. It will be a tragic-comic situation if an organization says that 'people are our greatest assets/people are our main source of competitive advantage' and at the same time practices 'downsizing' and/or 'cutting employee benefits & training' as the first response (instinctive response!) to any business downturn. There is no better way to create mistrust and cynicism in the organization ! The same holds good at the level of managers also. Managers (especially direct supervisors) represent/symbolize the 'organization' to the employees and the real 'HR philosophy' of the organization (as perceived by the employees) is the one that gets reflected in the behaviors of (or in decisions made by) the managers. So we can't overemphasise the need for congruence between the 'articulated HR philosophy' and the 'HR philosophy in practice' ! It is interesting to note that discussion mirrors the discussion on the need for congruence between the 'espoused values' and the 'enacted values' in an organization. Logically speaking, HR philosophy of an organization should be closely linked to (or even derived from) the core values of the organization. Thus, the issues at the level of core values are likely to get reflected at the level of HR philosophy also!

So, these are some of my preliminary thoughts. Now over to you for your comments.

Tuesday, November 6, 2007

Paradox of 'potential assessment'

Most organizations have some sort a process for assessing the 'potential' of its employees. This is very much required as the 'fallacy of promoting an employee to a new job based on high performance in the current job' is well known. There won't be many HR professionals (or even business managers) who haven't heard about the 'tragic story' of the 'star salesman who was promoted to the sales manager position and failed miserably'. So the business case for 'potential appraisal' is quite strong.

The problem begins when one asks questions like

a. How exactly should organizations go about assessing potential?

b. Can potential assessment be done (within the organizational constraints) in a reasonably valid manner?

c. If there are serious doubts regarding the validity of potential appraisal in a particular organization context, is it worth the trouble and effort to put in place a potential appraisal process in that organization?

There are different points of view when it comes to the answers to these questions and that is what makes potential assessment paradoxical. A paradox occurs when there are multiple perspectives/opinions (doxa) that exist alongside (para)- each of which is true - but they appear to contradict/to be in conflict with one another.

The common methods used for 'potential appraisal' include managerial judgment, 360 degree appraisal, psychometric testing, assessment centres etc. Sometimes, a combination of these methods are also used. In most cases the choice of method(s) is driven mainly by the amount of time and resources that the organization is willing to invest in the process and the 'cultural readiness' of the organization. Sometimes the choice could also be driven by things like 'casual benchmarking', latest seminar attended by the HR Head, pet methodology of the consulting firm hired etc.

I feel that the basic issue in potential assessment (which sometimes does not get enough attention) is 'potential for what?'. Many answers are possible here. They include

1. potential to be effective in a particular position
2. potential to be effective in a particular job family
3. potential to be effective at a particular level
4. potential to take up leadership positions in the company
5. potential to move up the organization ladder/levels in an accelerated timeframe etc.

Logically, the first four answers should lead to the creation of a capability framework that details the requirements to be effective in the job/job family/level/leadership positions that we are taking about. Similarly, the fifth answer should lead to identification of attributes/capabilities that enable an employee to quickly climb up the organization ladder.

It is interesting to note that since these capability requirements can be different for different organizations a person who is rated as 'high potential' in one organization might not necessarily be rated so in another organization (and vice versa) - even if we rule out any errors in measurement. However, the capability frameworks (especially the 'behavioral competency frameworks') tend to be quite similar across organizations (for a variety of reasons including the generic nature of the frameworks, attempt to include all possible 'good' behaviors in the framework, casual benchmarking of competency frameworks, hiring the same consultant to develop the framework etc.). Hence, assuming reasonable consistency of measurement, the potential ratings for the same person might not vary too much across organizations - unless the underlying definitions of potential (i.e. answer to the question - 'potential for what?' mentioned above) are different across the organizations.

The potential assessment has to be done with respect to the requisite capabilities mentioned above. Depending on the nature of the particular capability, the method for assessing it can be chosen keeping in mind the organization constraints/context specific factors. In many cases the employees might not have had an opportunity to demonstrate the requisite capabilities (for the future/target job) in their current/previous jobs. This would call for some sort of simulation, similar to those used in assessment centres. For some aspects of particular capabilities that are close to work styles/ personality attributes some sort of psychometric testing could also be useful. Psychometric testing also becomes useful if the fit between ‘certain dimensions of the organization culture and the employee’s personality’ gets identified as a key factor for potential. Managerial judgment (especially if it is calibrated through an in-depth discussion by a group of managers who have had significant amount work related interaction with the employee) and 360 degree feedback are useful to supplement the data from assessment centres/from other assessment tools - particularly from a data interpretation/'reality testing' point of view.

In the choice of methods/process, it is very important to strike the right balance between accuracy of the assessment (from a validity point of view) and the time/resource investment required (from a sustainability point of view). Some capabilities are easier to develop through training/experience in a short period of time while it is not the case for some other capabilities. So if the time/resource constraints do not allow the potential assessment to cover all the capabilities, the capabilities that are difficult to develop through training/experience in a short period of time should get priority. Of course, we need to look at the relative importance of various capabilities for enabling effectiveness on the job. Thus, to achieve a reasonable amount of validity, 'potential assessment' requires a significant amount effort and if the organization is not willing to use anything other than 'judgment of the immediate manager' for assessing potential, the usefulness of the assessment becomes doubtful.

This brings us to the issue of how would the organization use the results of the potential assessment. Most common practice is to combine the potential assessment with the performance assessment in order to arrive at some sort of 'talent classification' that segments the employees into various categories and to define particular courses of action for each category (e.g. promote, invest, retain, develop, move out etc.). It has to be kept in mind that even if the performance assessment has been done in an objective manner, if the validity of the potential assessment is doubtful, the talent classification and the consequent actions become debatable.

There are also other interesting dimensions here such as whether the organization would disclose the results of the potential assessment and talent classification to the employee in question. Not disclosing this could create issues related to transparency and even those related to data privacy/data protection. Disclosing the information might lead to a situation where the employee questions the results/methods, forcing the manager/organization to explain how exactly were the results arrived at and also the steps taken to ensure the validity of the process/ results.

There is also the issue of employees who were assessed to be 'low potential' feeling discouraged/demotivated. Sometimes, these negative reactions are even worse than those to a 'low' rating on performance. In many organizations, the results of potential assessment for a particular employee tend to remain the same across years (especially for assessment of 'leadership potential'). Thus once employees get a 'low rating' on potential, they might feel that they will never get an opportunity to take up leadership positions. Many employees also feel that they have a better chance of influencing their performance rating as compared to influencing their potential rating, especially when the potential appraisal process is not very transparent.

I have also come across situations where the potential assessment has been misused. Sometimes potential assessment is positioned/communicated to the employees as 'purely for capability development' though the potential ratings get used for making key decisions that impact the employee's career advancement. Of course, there could be much worse scenarios. Many years ago, when I was doing a diagnostic study of the HR systems of a company, I was told that though the performance planning and review system of the company provides an option to the employees to disagree with the manager on the performance rating, no one exercises that option. When I tried to investigate the reason for this, I found that the process provides for a 'potential rating' in addition to the performance rating and that the 'potential rating' is not even shared with the employee. It was common practice among the managers in that company to give a 'low' rating on potential for any employee who disagrees with manager on the performance rating. Since a 'low' rating on potential would have ruined the career of an employee in that company, no one wanted to take the risk of disagreeing with the manager on the performance rating. I hope that this scenario is a rare one. However, the point is that potential assessment can be misused and this could have serious adverse effects on employee engagement and retention.

Thus, the organization needs to think through the entire gamut of issues related to potential assessment in its context (objective, methodology/process, validity, initial investment/effort required to put the process in place, time/effort required for each cycle, sustainability, use of the results, employee communication, cost benefit analysis etc.) before a potential appraisal system is put in place. While perfect solutions may not be feasible/required, it does require thinking though multiple scenarios, options and implications and making informed decisions/trade offs. This would enable the organization to maximize the implementation effectiveness and to minimize/mange the possible adverse side effects of implementation. This is the requirement for being able to give a positive answer to the question that we started off with (Is it worth the trouble and effort to put in place a potential appraisal process in the organization?)!!!