HUMAN RESOURCES
KEY CHARACTERISTICS OF BEST PRACTICE
IN HUMAN RESOURCES
Paper 017-052
CONTENTS
Page
1.
Leadership ....................................................................................................................................2
2.
Communication And Involvement ..............................................................................................2
3.
Teamwork......................................................................................................................................3
4.
Talent Management ......................................................................................................................3
5.
Investment In People ...................................................................................................................4
6.
Standards Of Behaviour ..............................................................................................................4
7.
Professional Advice .....................................................................................................................4
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Paper 017-052
040213
Page 1
HUMAN RESOURCES
KEY CHARACTERISTICS OF BEST PRACTICE
IN HUMAN RESOURCES
Paper 017-052
Management of businesses, both large and small, are all having to react to unprecedented pressures for
change in today’s business environment. In doing so, it is important that management is aware of the key
characteristics of best practice in human resources. Neglect of these basic principles, so essential to
creating good team relations, will cause the business ongoing damage and will not enable the business to
perform to the best of its ability.
There are six major characteristics of best practice in Human Resources:
1.
Leadership
Leadership means that the business has a vision and a plan on how that vision is going to be
achieved. The business has decided how to get things done and how to stimulate team members
to be part of the achievement of the vision. Management must involve their team in achieving the
vision and in so doing should be able to attract their full attention and commitment. Team members
will be hesitant to follow the business’ leadership, unless there is total commitment (at all levels) of
the leadership chain, to the achievement of the vision. For further information, refer to Paper 006001 - Personal Leadership Capacity And Development
2.
Communication And Involvement
It is management’s role to ensure that all team members have a clear understanding of the
organisation’s purpose and vision. They also need to understand the factors that will be taken into
account in determining whether the organisation’s vision has been achieved. Management should
ensure that each team member understands his/her role in achieving the firm’s vision.
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What is management’s expectation of that particular team member’s work, performance,
productivity level, performance to be achieved?
How will these items be measured?
How is it going to be communicated to the team member?
Is the information being handed back to the team member able to be understood and acted on
by the team member?
Does the team member understand the messages that management is sending to him/her?
Are the actions and behaviour of management consistent with the messages being sent to team
members?
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3.
Teamwork
To achieve excellence in human resources there must be excellence in teamwork. Everyone must
be involved to have teamwork achieve management’s aim. Management cannot be a bystander
observing the teamwork being displayed by their team members. Management must be a
participant. Part of the teamwork function is that management must be able to communicate, but
especially listen, to what is being said to them by their team members.
4.
Talent Management
Talent management strategies should commence from the first interview of an applicant and
continue throughout the new team member’s induction process.
The talent management system should assist the SME business to engage people who have, or
who are prepared to develop, “business of business” skills including:

customer relations

customer service

teamwork

communication

basic marketing skills
To employ “stars” your need to ensure that your organisation has a caring attitude and that senior
management spends the time to ensure there is an ongoing job training, mentoring and
communications so as to assist talented team members. It is very hard for SME businesses to
attract talented team members therefore the talent management system should include:

personal development plans for each team member

meaningful team meetings (weekly/fortnightly, monthly)

a real “partnership” with the team members, encouraging them to feel that they really are part
of the organisation.
The business’ systems should encourage every team member to participate and play a real part in
the development of the business. As part of the quality management for the business, team
members should be encouraged to express their views and have a real say in the running of the
business.
A number of reports have indicated that team members believe that their performance could
improve if they had more freedom at work to contribute real ideas and suggestions.
The talent management system should be encouraging innovation and team member engagement
in solving the business’ problems.
SME businesses need to install the talent management strategies so that they can retain good team
members. This can be assisted by:
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Treating team members as individuals.
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Hire internally first (if a suitable person is available).
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Encourage continual training and skills development.
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Instigating succession plans for all positions.
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Discuss career development opportunities with individual team members (at least annually).
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Give team members direct access to clients.
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Encourage multi-skilling.
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Conduct meaningful performance appraisals.
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Seek input from the team member and ensure proper reviews are being undertaken of the
team member’s personal plan and career development, achievement in the last 12 months and
planning for the next 12 months.
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Ensure that the business implements what has been promised.
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It is important that management shows leadership and encourages contributions from all of the
team members.
To compete with bigger businesses SMEs need to introduce well thought out and talented
management systems so that the team members are motivated, challenged, trained and enjoy
working in the SME environment.
5.
Investment In People
It is people who create the difference and give a business a competitive edge. The better-trained,
motivated and rewarded people are, the better the organisation will perform. All businesses
compete in a very competitive environment - therefore the ongoing investment in people is a crucial
key characteristic of businesses that achieve best practice in human resources. Forward thinking
management ensures that the opportunities are provided to enable team members to further
develop their skills and talents through additional training. The work environment needs to be safe.
It needs to be a place with no discrimination and with proper regard to the dignity of individual team
members.
6.
Standards Of Behaviour
Management must ensure that the business lays down its own internal standard of behaviour or
ethics by which the business will be bound. These standards of behaviour or ethics should not be
ignored by management. They should be honoured - whatever the cost. It is the acceptance of
standards of behaviour and abiding by them that develops trust and respect throughout the
organisation. Honesty and openness cannot be expected from team members alone - management
must also be honest and open and fulfil what they have promised to the team members.
7.
Professional Advice
If you would like assistance in reviewing best practice in human resources in your business, please
contact your professional accountant.
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AN IMPORTANT MESSAGE
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sole basis for any advice in relation to the particular situation of any person without first obtaining proper
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