35th International Symposium on Public Personnel Management

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I. Introduction. The thirty-fifth International Symposium on Human Resource Management was held from ... Maggie Whelan, IPMA-CP, IPMA-. HR President ...
THIRTY‐FIFTH INTERNATIONAL SYMPOSIUM ON  HUMAN RESOURCE MANAGEMENT    Qamardeen Hotel, Dubai, United Arab Emirates, October 31 – November 3, 2010   

Presiding Officer 

Maggie Whelan, IPMA‐CP  IPMA‐HR President  Final Report – Contents        I.

Introduction ................................................................................................................................. 1 

  II. Discussion Summaries ................................................................................................................. 1    A. Discussion Summary:  The Role of HR Managers as Change Agents .................................... 1    B. Discussion Summary:  Workforce Planning .......................................................................... 3     

C. Discussion Summary:  HR Metrics ........................................................................................ 7    III. Appendices 

  A.  Role of Human Resources in Change Management ............................................................. 8    B.  The Context and Challenges of Strategic Workforce Planning & Development in the GCC:            Research Findings & Reflections .......................................................................................... 36    C.    HR Metrics  ........................................................................................................................... 72 

  D. Roster of Participants  ........................................................................................................... 76   

International Symposium Report    I. Introduction    The thirty‐fifth International Symposium on Human Resource Management was held from  October 31st – November 3rd, in Dubai, United Arab Emirates. Maggie Whelan, IPMA‐CP, IPMA‐ HR President welcomed everyone to the International Symposium.     The two primary discussion topics were The Role of Human Resource Managers as Change  Agents and Workforce Planning. David Jones, Middle East Business Leader, Aon Hewitt provided  the overview presentation on the topic of The Role of Human Resource Managers as Change  Agents and Khalid Al‐Yahya, Ph.D., Professor and Director of Governance, Dubai School of  Government gave the overview presentation on the Workforce Planning topic. The  International Symposium also included a presentation on HR Metrics by Neil Reichenberg,  Executive Director, IPMA‐HR. These presentations are included in the appendix.     II. Discussion Summaries    a. Discussion Summary: The Role of HR Managers as Change Agents    Mr. David Jones defined change management as “an approach to transition the organization  from its current state to a desired future state to bring about a particular end result.” He  observed that there are three main aspects to change management – 1) adapting to change, 2)  controlling change, and 3) effecting change. He stated that there are external and internal  factors that influence the need for change management within organizations.     In examining how the human resources department can support change management, Mr.  Jones cited an HR model developed by David Ulrich which establishes the following roles for HR  – employee advocate, administration expert, business partner, and change agent. He indicated  that David Ulrich has developed an HR transformation model that shows how in facilitating  change management, HR is involved with the flow of people, the flow of work, the flow of  performance and the flow of information. For the flow of people, HR contributes toward  effective talent management through workforce planning, an assessment of employee learning  needs, and staff migration. In the area of performance, HR is involved with goal setting,  standards definitions, performance measurement, and rewards. For the flow of information, HR  ensures that proper communication is undertaken with key stakeholders to keep them  engaged, inform them on the impact and outcome of various stages of transition, and convey  messages that set the right expectations and reinforce required behaviors. To extend the  efficiency of the business, HR influences organization redesign, process improvements,  governance, and physical setting.    Mr. Jones described Aon Hewitt’s 5C approach which consists of commitment (clear vision  linked to the business strategy), communication (messages and actions that set the right  expectations), capability (new skills and behaviors defined), consequences (incentives to change  1   

and consequences of not changing), and culture (connection to the broader business and  organization goals).     Following the overview presentation, the International Symposium participants discussed this  topic in greater detail. There was consensus among the participants that the role of the HR  function is changing. Restructuring has occurred that resulted in moving the HR department to  one that is concerned more with strategy and less with implementing rules. In one organization,  there was a restructuring that resulted in merging and abolishing a number of administrative  units.     Change management committees and change teams are used in some organizations to design  the change implementation strategy and to communicate the planned changes to the  employees. In one organization, a change committee exists in each ministry, with the  permanent secretary heading the committee along with the division heads of the ministry. In  other organizations, a communications specialist is brought on board or a communications  consultant is retained to develop a communications package. Having a sophisticated  communications plan before, during and after the implementation of a change is important.  Getting the buy‐in of the impacted employees to a planned change is crucial. There is a need to  ensure that there is uniformity in the communications that are shared within the organization.     All organizations have experienced varying levels of resistance to change. The size of the change  can influence the level of resistance. Having clear, unambiguous, and consistent  communications are important to reduce the resistance to change. One organization reported  experiencing isolated resignations and transfers. In another organization as a result of change,  there was a transfer of employees from the central government to local government. In  another organization, the benefit of the changes was communicated to the employees who  were ensured that there were no hidden consequences. This organization only experienced  silent resistance to the changes. Some organizations provide enhanced retirements to those  who do not want to be part of the change. Organizations offer retraining to those impacted by  the change to ensure that they can perform their jobs effectively. One organization reported  implementing assessment centers for selection to senior positions. There was major resistance  to this change with some senior officers refusing to take part and others filing legal challenges  to the new procedures.     There was agreement that when change is being implemented, the HR department needs to  play a key supportive role. The HR department should play a leadership role in facilitating the  change. In one organization, the human resources department clarified the new roles that  would be undertaken by different stakeholders as a result of the change. Several organizations  reported that the HR department is responsible for providing training to assist employees with  the change. HR also can be part of any restructuring that occurs as part of the change.     The participating organizations reported that HR transformation has been occurring. In one  organization, the HR function has been decentralized with compliance officers being assigned  to the various ministries, with a requirement that they report quarterly to the central HR  2   

department. Information technology is being used to deliver HR services more efficiently.  Another organization reported that it is trying to redesign its HR processes. Another  organization reported decentralizing HR with policy being retained by the Public Service  Commission. This resulted in a need for the training of HR staff in the ministries and  departments. This organization is undertaking a training needs assessment.    The participants recognized that human resource departments have been active in trying to  increase the productivity, efficiency and engagement of employees. If HR is not at the table  when strategies are established, it is tough to increase the productivity and efficiency of  organizations. One organization is working on a rewards system based on individual and  organizational performance and has introduced a training program on the new system. Another  organization has separated core and non‐core functions. Another organization has established  an award for excellence that includes criteria involving people. Working groups were  established to focus on the criteria. Another organization has established a National Public  Service Week and also selects an employee of the month. Annually, the government sponsors a  dinner where awards are presented.     There was agreement that HR is taking steps towards becoming more of a strategic function  within the participating organizations. HR has become part of the corporate planning structure.  HR is needed as a strategic partner if organizations are to achieve organizational excellence. It  was recognized that building the capacity of organizations is essential and HR plays a key role in  ensuring that organizations have the right people. There was acknowledgement that there is a  need for greater skills and training of the HR staff in order to increase HR capacity.    There is a need for HR departments to market what it does and to become more proactive as  consultants to the organization. Decision makers need solutions and HR needs to deliver by  identifying issues and suggesting solutions. It is important for HR to facilitate and engage with  employees. The chief human resources officer should have the same status in organizations as  the chief financial officer and the chief information officer.       b. Discussion Summary: Workforce Planning    Dr. Khalid Al‐Yahya presented a workforce planning framework that included the following  seven steps: 1) workforce/organization analysis, 2) assessment and estimate of future needs,   3) assessment of the gaps, 4) attracting or developing talent capabilities in the right time, 5)  reshaping and aligning organizational elements, 6) implementing and managing talent by  deploying, empowering, and motivating, and 7) monitoring and evaluating.     Dr. Al‐Yahya noted that there is a gap between human resource development and  performance. He discussed a meta‐analysis of 34 studies conducted between 1975 and 2005  that indicates while there has been considerable expansion in human capital through  education, scholarships and training, it did not seem to have a major effect on organizational  performance or socio‐economic performance. He advised that there has been a longstanding  assumption that improvements in performance will automatically ensue as a result of investing  3   

in training and adopting technologies in the workplace. He believes that there is a gap between  human capital development and organizational/institutional development.     He cited an ongoing study of the underutilization of public employees in several countries. The  survey found that the underutilization ranged from 15% of employees to 45% of employees.  The effects of underutilization can be dissatisfaction, lack of motivation and commitment, high  turnover, low productivity, decreased mental health, and reduced citizen behavior.     In explaining human capital utilization and performance, Dr. Al‐Yahya noted that one significant  factor is the empowerment of the workforce. He cited data showing that the more employees  are allowed to participate and be involved in decisions, the greater their contributions. He  noted that organizational culture also is a factor. Younger employees tend to see themselves as  underutilized as compared to older employees. Rank also is a factor with the people at the top  of the organization believing that they are utilized to a greater extent than those lower in the  organization.     He concluded that:  • Although the skills and knowledge are increasingly abundant, they are both  underutilized and misplaced.   • There has been an emphasis on developing and accumulating skills and abilities without  establishing a modernized system of management and a proper organizational design.   • Without effective utilization and activation, the investments in human resource  development programs will do little to improve organizational performance.     Dr. Al‐Yahya discussed knowledge management and a survey undertaken in 2002 by the  Organization for Economic Cooperation and Development (OECD) of 20 countries. The survey  found that knowledge management is a critical determinant of competitiveness and public  organizations are competing for talent. There is increased competition from the private sector  in knowledge intensive services that are provided to the public. Knowledgeable citizens have  higher expectations of government. In the Gulf Cooperation Council (GCC) states, Dr. Al‐Yahya  stated that there has been a low return on education combined with pressure to transfer and  share knowledge from expatriates to locals as nationalization of the workforce and high  economic growth are pursued.     Dr. Al‐Yahya believes that knowledge management matters in the GCC since the region has had  four decades of experience in attracting expatriate expertise and knowledge. The government  and private sectors have hired skilled workers and contracted out major infrastructure projects.  There are new foreign investment laws and increased global competition for talent. There has  been tension between pursuing rapid economic growth and national identity and workforce  nationalization. Finally, he believes that the capturing of knowledge and transferring and  localizing it to people and institutions remain ineffective if not non‐existent.     He discussed a study undertaken of government agencies in Dubai which found that the top  reasons cited for the importance of knowledge management are: 1) identifying and protecting  4   

present strategic knowledge, 2) improving policymaking by making more informed decisions, 3)  protecting the loss of knowledge due to staff departures, 4) minimizing the duplication of  efforts between divisions or units, 5) improving the understanding of customers and service  quality, 6) improving transparency to increase staff acceptance of decisions, and 7) increasing  the organizational knowledge. The study found that the top obstacles or difficulties in  implementing knowledge management are: 1) lack of understanding on how to use knowledge  management tools, 2) lack of awareness and understanding, 3) difficulty in capturing the  undocumented knowledge of employees, 4) difficulty in measuring success and performance of  knowledge management practices, 5) resistance by certain groups of staff, 6) fear of job loss  resulting from the sharing of knowledge and expertise, and 7) comfort with the status quo and  fear of the unknown.     Following the overview presentation, the International Symposium participants considered the  issue of workforce planning. Several organizations noted that they have been reducing the size  of their workforces and this makes it difficult to plan, since they are not sure who will be  remaining with the organization and who will be leaving. In these situations, there is a tendency  to think more short‐term, while it was acknowledged that there is a need to consider longer‐ term workforce issues. Another organization reported that there is not much workforce  planning occurring. The organization is suffering from stagnation at the lower levels, which has  led to frustration among employees. It was noted that in rules bound systems, planning can be  a challenge.    Changes in governments can create instability at the top of organizations. This can result in  plans being discarded by the new governments. Additionally, succession planning can be  difficult for political positions, since the top political leader has the prerogative to appoint the  people at the senior levels of the government. Merit may not be a factor in such appointments.  There also was acknowledgement that while training employees is important, ultimately,  training will not be successful if employees can’t apply the skills they learned.     Other countries reported that they have talent shortages and as a result, they are undertaking  workforce planning. There was agreement that where workforce planning is occurring, ongoing  management involvement is important for success. One organization has launched a two year  leadership program that is a partnership with a university. The program consists of courses,  mentoring, and assessments. It is a high demand program and once individuals assume  leadership positions, they have to identify successors and invite them to apply for the program.  Another organization reported on a management succession program that consists of  establishing a list of qualified candidates and the political leadership selects from within the  candidate pool. A high performance and potential system has been established in an  organization. This program consists of providing training opportunities to those selected as  potential high performers. The training includes international training.  While this is a small  program with less than 1,000 participants, there have been positive results.     Several participants reported that their organizations offer buyouts to encourage individuals to  leave the organization and open opportunities for younger workers. The challenge is that often  5   

those employees who the organization would like to keep may wind up taking the offer and  leaving. Some organizations allow management to decline requests for buyouts. One  organization reported that supervisors will give high performance ratings to individuals that  they would like to see transfer to another department. Several organizations reported that they  use contract employees that can include retirees. Other organizations reported that they are  looking to extend the working life of employees, since people are living longer and this creates  strains on the retirement system.     Flexible working patterns can create challenges. Some organizations have increased the  number of contract workers and there are issues about the loyalty of these individuals.  Organizations allow retirees to work as contract employees for varying amounts of time. One  organization allows retirees to work for up to ten years following retirement. They need to pass  physical and mental examinations and are prohibited from assuming managerial positions.     The importance of identifying and developing future leaders was acknowledged. One  organization has a program to develop future directors general. The program includes a  compulsory training program and there is a 100 person per year maximum enrollment in the  program. Another organization advised that potential leaders are sent for training both within  and outside of the country. The training is considered added value when applying for  promotions. This organization gives a preference to women for promotion to senior positions  due to an underrepresentation of women in senior positions.     Another organization trains middle managers for promotion. The criteria for selection into the  training program includes – years of service, qualifications, and the opinion of supervisors.  Since the minister has the right to appoint the person, the most appropriate person is not  always promoted.     Some organizations reported making progress in the area of knowledge management. One  organization has created a department and section for both knowledge and statistics. They  undertake cross training and shadowing to share knowledge within the organization. Another  organization has established a knowledge management intranet to post information and  training materials. In another organization, every department has a knowledge management  plan included in its public service agreement. The department identifies the knowledge that is  needed to drive the strategy of the organization. Another organization has established a  knowledge management branch.    There was a discussion of the challenge in transferring the tacit knowledge, which consists of  capturing the knowledge of experienced workers and sharing it with others. It is important to  tell the stories of organizations and understand the history. The attitude of management and  the culture of the organization can make a difference. There can be a fear that sharing  information could result in the elimination of positions or prevent some from getting post‐ retirement contracts. There may be a need to provide incentives to get people to transfer their  knowledge.     6   

    c. HR Metrics    Mr. Neil Reichenberg reviewed the results of the 2010 IPMA‐HR benchmarking survey on HR  metrics. He noted that the IPMA‐HR benchmarking project provides both survey data that can  be used to benchmark HR programs and best practice case studies. He indicated that there has  been an increasing amount of focus on the importance of HR metrics. For HR to add value it  needs to become more data driven. He stated that the challenge is to measure that which  matters and the survey results indicate that a disconnect exists between what is measured and  what is important to senior management.     The survey on HR metrics received close to 600 responses. Just over 2/3 of the respondents  indicated that they collect HR metrics. About 40% of respondents have been collecting metrics  for at least five years. The most frequently collected metrics tend to be simple and workforce  based rather than strategic. Metrics relating to hiring such as cost per hire and turnover are of  the most interest to top management. The survey found that only 14% of the respondents  collect cost per hire information. The survey found that the most common ratio is one HR  professional for every 76 – 100 employees. The ratios change depending on the size of the  agency, with the larger agencies having a higher ratio. Agencies with less than 500 employees  have a ratio of 1 HR employee for every 76 – 100 employees. For agencies with 1,500 – 4,999  employees, the most common ratio is 1 HR professional for every 101 – 125 employees.     Mr. Reichenberg discussed the importance of employee engagement, which is associated with  a range of outcomes at the individual and organizational levels. Engaged employees perform  better, are more innovative, more customer focused, and more likely to stay with their  employer. The main drivers of engagement are: meaningful work, senior management  communication style and vision, supportive work environment, good person‐job fit, and line  management style. He advised that Gallup has done extensive research on employee  engagement and found that for the average working population, the ratio of engaged to  actively disengaged employees is nearly 2:1. For world class organizations, the engagement  ratio is more than 9:1. He cited a recent survey finding that due to actions taken by employers  during the recent recession, employee engagement has declined. As the economy recovers,  there could be retention problems for employers, especially among top performers.  

7   

November 2010 | Dubai

IPMA-HR International Symposium

Role of Human Resources in Change Management David Jones To protect the confidential and proprietary information included in this material, it may not be disclosed or provided to any third parties without the approval of Aon Hewitt.

About Aon Hewitt What? What is Change Management?

Agenda

Why? Why do organizations need Change Management?

How? How can HR support the Change Management?

2

Aon Hewitt

3

About Aon Hewitt Aon Hewitt is the global leader in human capital consulting and outsourcing solutions. The company partners with organizations to solve their most complex benefits, talent and related financial challenges, and improve business performance. Aon Hewitt designs, implements, communicates and administers a wide range of human capital, retirement, investment management, health care, compensation and talent management strategies. With more than 29,000 professionals in 90 countries, Aon Hewitt makes the world a better place to work for clients and their employees. For more information on Aon Hewitt, please visit www.aonhewitt.com.

4

World’s Foremost Provider of HR Consulting and Outsourcing Services

#1 90 330 29,000 $4.3 BN

Human Capital Consulting and outsourcing firm in the world The Number of Countries where we have presence

The number of offices that we have. We are consulting partners to more than half of the Fortune 500 Companies Aon Hewitt working to bring you consistent and unique value Our combined revenues (USD)

5

At the Forefront of Human Resources Consulting in Middle East

8 11 60 100+ 2009

The number of years we have been bringing world class thought leadership to our clients in Middle East The count of countries across the Middle East & North Africa that we service from our Regional office in Dubai Aon Hewitt consultants working to bring you consistent and unique value – a team premium in experience and diverse in skills Our client base – we are consulting partners to clients across all major industries including Global Multinationals, Local Conglomerates and Government The year we launched Best Employer Middle East - the largest employee research the region has seen, a study that aims to honor leading organizations as outstanding places to work 6

Aon Hewitt’s International Research Capability and Resources Best Employer Middle East

Best Employer Asia

Best Employer Studies Globally

Rich and Comprehensive Survey Results

Deep & timely Research Projects

Top Companies for Leaders Studies – Asia, North America, Latin America and Europe

Leadership Talent In Asia

Double-Digit Growth Studies

Chief Executive

High-Potential Leaders Studies

Leading the Way

HR Best Practices Database

Leadership Goverance

Thought Leadership

Banking Forums

UAE Banking Forum

Oman Banking Forum

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Jordan Banking Forum

Pakistan Banking Forum

Aon Hewitt’s Solution Offerings

Aon Hewitt Services Consulting  Health and Benefits  Retirement  Investment Consulting  Compensation  Talent and Organization  Corporate Transactions  Global Benefits

Benefits Administration  Defined Benefit Plan Administration  Defined Contribution Plan Administration  Health and Welfare Plan Administration  Post-65 Retiree Health Care Exchange

8

HR Business Process Outsourcing  Workforce Administration, Payroll and Employee Benefits Services  Learning & Development and Performance Management Services  Total Rewards Planning and Design  Hiring and Relocation Services  Recruitment Process & Staffing Outsourcing  Absence Management  Flexible Spending Account Administration  Dependent Audit Services  Supplier Management and Workforce Analytics

What?

What is Change Management?

9

What is Change Management?

An approach to transition the organization from its current state to a desired future state to bring about a particular end result Change management is a systematic approach to dealing with change, both from the perspective of an organization and on the individual level, having three main aspects - adapting to change, controlling change, and effecting change Organisation Development - is a planned, organization-wide effort to increase an organization's effectiveness and viability

10

Why?

Why do organizations need Change Management?

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Why do organizations need Change Management? External Factors:

Political: To hedge against political changes Economic: To grow at a pace as fast as the global economy Social: To capture the changing social trends and hence product preferences Technological: To keep abreast of the latest technology and realize the benefits Legal: To ensure legal compliance in multiple markets 12

Why do organizations need Change Management? Internal Factors:

New Products/Services: To diversify or to penetrate the markets Cost Savings: To realize economies and to increase profitability New Markets: To capture new and emerging markets to boost the revenues Employee Capabilities: To align the employee strengths with the organizational goals

13

How? How can HR support the Change Management?

14

How can HR support the Change Management?

How does HR justify its keep in these turbulent times?

How does HR play a role in Change Management?

How is HR evolving in rapidly changing business environment? 15

Ulrich’s HR Model

Leadership Role

Support Function

Business Partner

Employee Advocate

•Part of strong HR Function •Participates on strategic initiatives

•Knows the interests of employees •Helps to get better conditions for employees •Fights for the employees

•Provides consulting to internal client •Co-operates closely with clients to bring innovative ideas

Administration Expert

Change Agent

•Takes care of legal compliance •Sets the basic necessary pack of documents •Keeps track about employees in the organization

•Facilitates changes in organization •Protects employees against the side effects of constant changes •Aligns different projects together and minimize their impact on employees 16

Ulrich’s ‘HR Transformation' Model Employee Advocate •Knows the interests of employees •Helps to get better conditions for employees •Fights for the employees

Business Partner •Part of strong HR Function •Participates on strategic initiatives •Provides consulting to internal client •Co-operates closely with clients to bring innovative ideas

Administration Expert •Takes care of legal compliance •Sets the basic necessary pack of documents •Keeps track about employees in the organization

Change Agent •Facilitates changes in organization •Protects employees against the side effects of constant changes •Aligns different projects together and minimize their impact on employees

The Work of HR in Facilitating Change Management*

Flow of Performance

Flow of People

HR Facilitates

Flow of Work

Flow of Information

*HR Transformations by Dave Ulrich, Justin Allen, Wayne Brockbank, Brockbank Jon Younger and Mark Nyman

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Flow of People

Ulrich’s ‘HR Transformation' Model

Flow of Performance

HR Facilitates

Flow of People

Flow of Work

Flow of Information

HR contributes towards effective Talent Management through: •Workforce Planning •Employee Assessment •Learning Needs Analysis •Staff Migration

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Flow of People

Ulrich’s ‘HR Transformation' Model

Flow of Performance

HR Facilitates

Flow of Performance

Flow of Work

HR plays a key role to ensure that •goals are set •standards are defined •rewards are tied in •performances are measured

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Flow of Information

Flow of People

Ulrich’s ‘HR Transformation' Model

Flow of Performance

HR Facilitates

Flow of Information

Flow of Work

Flow of Information

HR ensures that proper communication is undertaken with key stakeholders to •Keep them engaged •Inform them on the impact and outcome of various stages of transition •Convey messages that set the right expectations and reinforce required behaviors

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Flow of People

Ulrich’s ‘HR Transformation' Model

Flow of Performance

HR Facilitates

Flow of Work

Flow of Work

Flow of Information

To extend efficiency of the business, HR influences: •Organizational Redesign •Process Improvements •Governance (Decision Making) •Physical Setting

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Aon Hewitt’s 5C Approach Commitment •Clear vision, linked to the business strategy •Sponsorship from major stakeholders •Ability to influence and partner

Communication

Culture

•Messages and actions that set the right expectations •Communication at all levels to both define and reinforce behavior

•Connection to broader business and organization goals •Willingness to drive and sustain change

Consequence

Capability

•Incentives to change and consequences of not changing •Alignment of performance, reward, and recognition •Disable the ability to support old behaviors

•New skills and behaviors defined •Support of organizational capability with education, processes, and tools

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Aon Hewitt’s Research Findings  Hewitt’s Best Employers Middle East 2009 research study identified that •

Local talent have the lowest engagement scores as compared to foreign workers – do we know what drives and motivates local talent in the region?



Local talent are typically less satisfied with their work-life balance as compared to foreign workers – are organizations aware of how to create effective work interventions and manage employee expectations?



Local talent are typically less satisfied with the future career prospects and opportunities for skill advancement – are we spending our training dollars effectively?

 As we develop and implement national human capital strategies – are we mindful of how factors such as age, education or identity may impact success of the policies and practices?

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Thought Leadership | Qudurat – Acumena Center The Acumena Centre: Qudurat What is the Acumena Centre? Hewitt’s research and innovation centre dedicated to the development of Arab national talent within the region Our Vision Is to provide independent research and analysis aimed at informing national human capital policies and practices within the Arab states Our Objectives and Activities  Serve as the think tank on emerging human capital challenges and opportunities, focussing on matters that are distinctive and salient to the advancement of Arab national talent across the region  Connect theory and practice by asking pertinent questions and providing rigorous research and practical applications into the unique attributes of the Middle East’s most valuable asset – its people  Turn the spotlight on a wide array of topics on human capital advancement, ranging from understanding macro talent trends and the future demographic pipeline within the Middle East; to strengthening the national talent growth initiatives within organizations; to developing specific development interventions for Arab leaders; and so on.

Qudurat is the Centre’s Inaugural Research Study dedicated to national talent – both the current and future workforce 

Qudurat will seek to understand the fundamental aspects that drive and motivate national talent



It will explore their unique strengths and orientations and ways to best nurture their innate potential It is the first and largest study of its kind across the Middle East

 

Balancing real world impact while ensuing academic rigor – team of experts at Hewitt are collaborating with our research advisor for Stanford University’s GSB



This is a not-for-profit initiative, fully funded by Hewitt 24

Preliminary Insights from Qudurat | Work Preferences Work Life Balance vs. Achievement | What do employees prefer between work life balance and higher managerial position?

Having a good work life balance is a key priority for a majority of employees

* (n=1276)

However, greater number of GCC Nationals (28%) vs. Other Arabs & Expats (14%) place an emphasis on achieving a highlevel managerial position within the organization

* (n=1344)

% of Respondents

* Denotes statistical significance computed using Z tests at a confidence interval of 95%.

25

Preliminary Insights from Qudurat | Communication Preference Preference for Communication | Who is perceived as the most effective and credible communicator?

Different perceptions on ‘credibility’ of communicator o GCC Nationals prefer communication from CEO/Top Management (30% vs. 23%)

**

* (n=1276)

*

o Other Arabs & Expats prefer it from Manager (40% vs. 29%)

(n=1344)

% of Respondents

Preference for communication through HR not very strong

* Denotes statistical significance computed using Z tests at a confidence interval of 95%.

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Preliminary Insights from Qudurat | Meaning & Culture Tolerance to Diversity | “I dislike working with a culturally diverse group of coworkers”

GCC Nationals display a significantly greater level of tolerance to diversity in the work place over Other Arabs and Expats

Mean Score

**

*

*

3.9

(n=1276)

*

*

*

4.8

(n=1344)

% of Respondents

* Denotes statistical significance computed using Z & T tests at a confidence interval of 95%.

27

Shukran!

To protect the confidential and proprietary information included in this material, it may not be disclosed or provided to any third parties without the approval of Aon Hewitt.

The Context and Challenges of  Strategic Workforce Planning & Strategic Workforce Planning &  Development in the GCC:  p Research Findings & Reflections

Khalid Al‐Yahya, Ph.D. ubai School of Government & Harvard University Dubai School of Government & Harvard University [email protected]

Presentation Overview Presentation Overview • Past Past and current debate on human capital  and current debate on human capital development and management  • Strategic and neglected issues in workforce   Strategic and neglected issues in workforce debate within the context of the GCC  • Review of recent research findings  R i f h fi di – This is Not a complete framework for workforce  planning and implementation

Workforce Planning Framework 1

Workforce/Organi zation Analysis 7

2

Monitor and  Evaluate 

Assess  & Estimate  Future Needs

6

Implement & Manage: 3

Deploy , Empower,  Motivate 

Assess Gaps

5

Reshape and Align  Organizational  Elements

4

Attract or Develop   Talent Capabilities in  Right Time

Workforce Debate in the GCC: Past & Present ‫المھارات ال طنية‬ ‫الوطنية‬ ‫نقص ففي ال ھا ات‬



National skilled workforce shortage & reliance on foreign workforce ‫البشري‬ ‫رأس المال البش‬ ‫االستثمار ففي أ‬ ‫الحاجة لمزيد من اال تثما‬



The need for more investment in human capital: Sole emphasis on  individual and technical skills  ‫انعدام التوازن في حجم ومستوى جودة الموارد البشرية‬



Imbalance in size & quality of workforce: expatriates vs. nationals ‫توطين القوة العاملة‬



Nationalization of workforce & national identity   VS. 

‫ﺍﻟﻤﻌﺭﻓﺔ‬ ‫ين ﺍ ﺭ‬ ‫توطين‬ ‫و‬

Nationalization of knowledge & economic growth

Strategic and Neglected Issues in Workforce  Debate ‐ Gap between HR development and performance   p p p

‐ HR Empowerment and utilization after development  ‐ Knowledge‐authority mis‐matching ‐ Knowledge and talent management Knowledge and talent management ‐ Strategic organizational development, not only individual skill  development Others:  ‐ p g p g Succession planning, leadership turnover and renewal,  strategic  ‐ thinking (not only planning and implementation).  ( )

Recent Research on Challenges related to WF in  the GCC the GCC 1. Persistent Gap between HC Development and  Performance: The Puzzle 2. Disconnect between HCD & Organizational  2 Disconnect between HCD & Organizational Development & Change: The Diagnosis 3. HR Utilization and Empowerment: The  p Prescription 4. KM and Talent Management: The Post‐Crisis  Ch ll Challenge

1. Persistent Gap between HC Development  and Performance: The Puzzle dP f Th P l Why doesn’t performance of work organizations in the  y p f f g GCC improve despite large investments on, and  increases in, human capital resources?  –M Meta‐analysis of 34 studies (1975 – t l i f 34 t di (1975 2005) indicates that 2005) i di t th t considerable expansion in human capital (through  education, scholarships, training) did not seem to have had  major effect on both: major effect on both: • Socio‐economic performance (macro‐level) • Organizational performance (micro‐level)

Diagnosis:  • Gap Gap between HCD & Organizational/Institutional  between HCD & Organizational/Institutional Development!

2. Development Gap (DG) between HCD and OID  and its Impact on Performance

3. HR Empowerment and Utilization 3. HR Empowerment and Utilization The Argument: Workforce performance problems may not  be necessarily attributable to poor skills and capabilities be necessarily attributable to poor skills and capabilities,  but the absence of organizational (activating) environment  to integrate and utilize them and link them to performance! The  long standing “naive” assumption that all good things  go together‐ improvements in performance will  automatically ensue as a result of investing in training and  adopting technologies in the workplace! adopting technologies in the workplace! The role of mediating and intervening factors!

Neglected Strategic Link: HRD‐Empowerment‐Utilization‐ Performance Testing hypotheses with empirical research ..

Research Questions? Q – What is the status of human capital development in the GCC  public sector? public sector?  – Are human capital resources underutilized in the public sector?  – If this is the case, what is the extent and causes of  underutilization?

• Definitions: D fi i i – Human Capital: the aggregate skills, abilities and knowledge of an organization’s g workforce. – Underutilization: the degree of mismatching between an individual's knowledge, skills, and abilities and the opportunity to use these assets. assets

Methods • Testing Ground: Public bureaucracy in 3 GCC countries; (Denmark and U.S. in the  progress)  • Sample: – 600 top public managers, middle managers, supervisors, and subordinates – various occupational functions including general management, office  i ti l f ti i l di l t ffi administration, personnel, finance and accounting, legal, technical, and  research and development.   – Education levels of respondents range from high school, two Education levels of respondents range from high school, two‐year year college,  college, bachelor degree, to post‐graduate degrees.  – The average respondent is a 37 year old male, university graduate with 12  years of work experience, and has completed at least two extensive (4  months or more) on‐the‐job training programs in their respective field of  expertise.

Are human capital resources underutilized?

Europe Netherlands

Countrry

Israel Germany Sweden France Spain Oman Saudi Arabia 0%

5%

10%

15%

20%

25%

30%

(average scores (in %) of underutilization)

35%

40%

45%

50%

Effects of Underutilization Effects of Underutilization • • • • • • •

satisfaction,  motivation motivation,  commitment,  t turnover,  productivity, mental health,  citizenship behavior 

What Explains Human Capital Utilization & Performance? -.26

Age .18

IPC Empowerment

Human Capital p Utilization .38

Experience

.33

.23

.15

.25

10* .42

Rank

.66

Organizational Culture

Performance

OT

.22 .66 Group size

.61 .78

.70

PA

.93

.78

.77

.62

.61

-.18 18

Inv

Education

Estimates are significant at p .001.

TW

MS

Mo

JS

DQ

Mot

CIS

Organizational Structure and Culture Factors 1. Hierarchy and centralization of decision making: Low power‐influence sharing 2. Mis‐match 2. Mis match between knowledge and authority between knowledge and authority 3. Lack of self‐managing teams 4. Strict reliance on seniority rather than consideration of competence in  advancement and empowerment opportunities 5. Lack of acceptance of difference and expression of new ideas  6. Low trust in employees   7. Negative customs and practices (nepotism and favoritism) in workplace 8 Mi 8. Mis‐match between education/expertise and job specialization/role t hb t d ti / ti dj b i li ti / l 9. Excessive organizational and hierarchal levels  10. Less challenging responsibilities and tasks after gaining more abilities and  skills 11. Authority and status given to those with loyalty to organization leadership 12. Less effective communications and low information sharing  13. Inequality in treating employees (organizational justice) 14. Lack of clear vision about the future direction of the organization 15. Criticism here is not encouraged and accepted 

Conclusions  • Although the skills, knowledge and attitudes are increasingly abundant,  they are invariably underutilized and misplaced. • Emphasis on developing and accumulating skills and abilities without  establishing a modernized system of management and a proper  organizational design. g g • The disconnect between human resource development and the larger  process of organizational development and change. • Power‐influence in DM is a key factor. • Without Without effective utilization & activation, investments in human  effective utilization & activation investments in human resource development programs will do little to improve organizational  performance and increase the legitimacy of the governance system.  • Individual development is no longer adequate. Without broad  organizational development & change.

4. KM and Talent Management A survey of 132 departments and agencies from 20 countries conducted in  2002 by the OECD  in the public sector: • It is a critical determinant of competitiveness and public sector  organizations are competing for talent  • Competition from the private sector in knowledge‐intensive services to  Competition from the private sector in knowledge intensive services to the public • Civil servants are aging • Knowledgeable citizens have higher expectations of government  Knowledgeable citizens have higher expectations of government • Shrinking budget and investment in human capital resources p • In the GCC states,  low return on education; pressure to transfer &  share knowledge from expats to locals as nationalization of the  workforce & high economic growth are pursued and oil resources are  depleted

Why KM Matters in the GCC? • The region has had four decades of experience in attracting  expatriate expertise and knowledge expatriate expertise and knowledge • Government and private sectors spending on hiring skilled  workers and contracting out major infrastructure projects g j p j • New foreign investment laws and increased global  competition • Tensions and polarities: Pursuing rapid economic growth vs.  national identity and workforce nationalization • The capturing of knowledge (especially tacit knowledge)  and transferring and localising it to people and institutions  remains ineffective if not non‐existent remains ineffective if not non existent

KM & Workforce Survey KM & Workforce Survey • 70% of government agencies in Dubai 2010 g g • Over 400 questions: – KM definitions, applications, benefits  KM definitions applications benefits – Organizational culture and structure – Workforce planning, development, and utilization Workfor e plannin de elopment and tili ation – Workforce mobility, retention, and turnover – E‐government and e‐governance tools E d l – KM enablers, drivers, and obstacles – Demographics and contextual factors 

Importance of KM (1=Very Important, 4=Not Important) Identifying and protecting present strategic knowledge Improving p gp policy-making y g byy making g more informed decisions Protecting loss of knowledge due to departure of staff Minimizing duplication of efforts between divisions/units Improving understanding of customers and service quality Increasing the organizational knowledge Improving transparency to increase staff acceptance of Ds Improving the competitiveness of org Releasing Info more rapidly and making it available to public Better integration of knowledge to reduce info overload Supporting the introduction of new services and products Sharing and capturing of tacit knowledge

M 1.39 1.39 1.45 1.46 1.50 1.55 1.55 1.59 1.63 1.64 1.68 1 71 1.71

SD .586 .542 .739 .552 .707 .593 .550 .631 .698 .577 .756 .602 602

Improving relations and sharing of knowledge with other departments 1.73

.549

Reducing reliance on external consultants Improving the capture and use of knowledge from outside sources

1.76 1.76

.790 .692

Increasing horizontality and decentralization of authority

1.80

.715

Retaining workers by improving working relations and trust

1.81

.740

Coping with the financial crisis Making the organization more attractive to job seekers

1.87 2.00

.875 .765

Challenges in Arab Organizations g g ‐ Resistance to change and comfort with status quo ‐ Difficulty in identifying and motivating knowledge (tacit) Difficulty in identifying and motivating knowledge (tacit) ‐ Complex and lengthy process that requires time, incentives,  sensitivity    ‐ Sharing knowledge/Info requires sharing power and equal  access to resources and opportunities  ‐ We are busy to share knowledge  ‐ Lack  of trust on and empowerment of employees: Stigmatized  as incompetent Challenge of transferring k from individuals to organizations ‐ Challenge of transferring k from individuals to organizations ‐ Secrecy and lack of transparency within organizations  ‐ Concentration of knowledge in the top level ‐ Demographic challenge: Fear of job loss and replacement D hi h ll F fj bl d l t

Obstacles/Difficulties Implementing KM Lack of understanding g on how to use knowledge g management g tools

M 2.14

SD .798

Lack of awareness and understanding Difficulty in capturing employees' undocumented’ knowledge

2.15 2.16

.989 .764

Difficulty in measuring success and performance of KM practices

2 27 2.27

.932 932

Resistance of certain groups of staff Fear of job loss resulting from the sharing of knowledge & expertise

2.36 2.49

.990 .901

Comfort of the status quo and fear of the unknown Lack of time to concretely share knowledge on a day-to-day basis Concern that other administrations/general public would be able to access sensitive/confidential iti / fid ti l iinformation f ti Your organization has put a strong focus on info and communication technology, rather than on people or organizational matters

2.53 2.58 2.72

.845 1.025 1.031

2.75

.937

Difficulty in sharing knowledge due to different linguistic and cultural backgrounds of employees Lack of communication of senior management Knowledge and information management is not a top priority within the government Knowledge management strategies are adapted to the private sector, but not to the public sector

2 78 2.78

1 004 1.004

2.83 2.95

.923 1.053

3.20

.964

1=Strongly Agree, 2=Agree, 3=Partially Agree, 4=Disagree

On‐going On going & Future Work & Future Work Corporate Governance Corporate Governance Organizational Justice Succession Planning and Leadership Turnover Succession Planning and Leadership Turnover Organizational Social Capital & Trust Ad t bilit Adaptability and Continuity in Family Owned  d C ti it i F il O d Enterprises   • Knowledge Transfer and Institutionalization  K l d T f d I tit ti li ti before Workforce Nationalization • Introducing Strategic Thinking to Strategy Flora  I t d i St t i Thi ki t St t Fl • • • • •

HR Metrics NEIL REICHENBERG EXECUTIVE DIRECTOR IPMA-HR

HR Metrics y There has been an increasing g amount of focus on the

importance of HR metrics y For HR to add value, it needs to become more data driven y There can be a disconnect between what is measured and d what h t is i iimportant t t to t senior i managementt {

The challenge is to measure that which matters

Benchmarking Project IPMA-HR began g the p project j in 1998 99 y To provide members with survey data that can be used to benchmark their programs y To provide best practice case studies to encourage members to develop their own programs y Studies available at www.ipma-hr.org & include: { { { {

2009 – Workforce & Succession Planning 2008 – Performance Management 2007 – Variable Pay 2006 – Recruitment & Selection

Background y Five hundred and eighty-four g y IPMA-HR members y y y y y y y

participated in the survey 53% of participants were from cities & municipalities 18% from counties 12% from states 8% special districts 2% federal 2% combined governments 2% universities/colleges

Background

HR Metrics y Just over two-thirds of IPMA-HR members said they y

collect HR Metrics

HR Metrics y About 4 40 percent p of respondents p said theyy have been

collecting metrics for at least 5 years

What HR Metrics do you use?

HR Metrics y Most frequently q y collected metrics tend to be simple p

and workforce based rather than strategic { { {

Only 14% collect cost per hire information O l 8% measure the Only h quality li off new hi hires Only 10% measure employee engagement

Metrics & HRIS y Two-thirds of respondents p said theyy have an HRIS y Half of respondents said that their HRIS allows them

to collect HR Metrics y Many respondents are unable to use their HRIS to measure metrics such as time to fill vacancies, service i awards d or wellness ll programs y HRIS maybe under-utilized or falling short

Using the Metrics

Using the Metrics y Chart shows that metrics relating g to hiring g such as

cost per hire and turnover are of the most interest to top management y When asked to pick the number one most important metric, respondents divided their answer among three: { { {

Hiring Open p p positions Productivity & performance

Metrics and the economy y Twenty-seven y percent of respondents p p said theyy used

metrics to address the economic downturn y How? y 33% provide information to top management y 21% provide data needed to reduce staff

Metrics and the economy {

Are you receiving more qualified applicants for positions than before the recession? Yes – 56% Ù About the same – 27% 7 Ù Declined – 1% Ù Don’t track – 16% Ù

{

Did you experience an increase in overtime pay or compensation hours earned by employees due to staffing reductions? Yes – 15% Ù No – 63% Ù Don’t Know – 22% Ù

Metrics & Retirement y How do the number or employees who have retired

or are scheduled to retire by the end of this year compare to the past two years? { { {

About the same – 38% Slightly or much higher – 29% Slightly or much less – 16%

y Are retirement i eligible li ibl employees l d delaying l i

retirement? { { {

Yes – 45% No – 14% Don’t know – don’t track – 41%

Staffing Ratios y Most common ratio is one HR p professional for 7 76y y y y

100 employees Ratios change depending on the size of the agency The larger the agency the higher the ratio Agencies with 1 to 499 employees the most common ratio is 1:76-100 Agencies with 1:500-4,999 employees the most common ratio i iis 1:101-125

Employee Engagement y Why y is it important? p { Employee engagement is associated with a range of positive outcomes at the individual and organizational l l levels { Engaged employees perform better, are more innovative, more customer focused,, and more likelyy to stayy with their employer { Main drivers of engagement are: meaningful work, senior managementt communication i ti style t l and d vision, i i supportive ti work environment, person-job fit, and line management style

Employee Engagement y Gallup p ((www.gallup.com) g p ) has done extensive

research on employee engagement {

{

Average working population ratio of engaged to actively disengaged employees is nearly 2:1 World class organizations have an engagement ratio of more than 9:1

Employee Engagement y Gallup’s p 12 elements of engagement g g consist of

statements that best predict employee and workgroup performance: 1. 2. 3. 4. 5. 5 6. 7 7.

I know k what h iis expected d off me at work k I have the materials and equipment I need to do my work right At work, I have the opportunity to do what I do best every day In the last 7 days, I have received recognition or praise for doing good work Myy supervisor, p , or someone at work seems to care about me as a person There is someone at work who encourages my development My opinions seem to count

Employee Engagement y 8. The

y y y y

mission or purpose of my organization makes me feel my job is important 9. My fellow employees are committed to doing quality work 10. I have a best friend at work 11.. In tthee last ast 6 months, o t s, so someone eo e at wo work has as ta talked ed to mee about my progress 12. This last year, I have had opportunities at work to learn and d grow

Employee Engagement y Watson Wyatt/WorldatWork survey found that due to

actions taken by employers during the recession, employee engagement has declined {

{

Employee engagement has dropped 9% in the past year for all employees & almost 25% for top performing employees Top performing employees are 20% less likely to agree that they understand the link between their goals and the organization’s organization s goals

Employee Engagement y As the economy y recovers,, there could be retention

problems for employers, especially among top performers {

Compared with last year, top performers are 26% less likely to be satisfied with the opportunities for advancement & 29% say promotion opportunity would be a top reason for leaving

Conclusion y Metrics are important p to p public sector HR { Nearly 70 percent of respondents collect metrics { 45 percent said they are “important” or “very important” y Next steps for HR & Metrics? { Using metrics to align the people function with the goals of the organization { Using metrics that support business strategy { Using metrics to improve work performance and productivity

Appendix D

www.ipma-hr.org

THIRTY-FIFTH INTERNATIONAL SYMPOSIUM ON HUMAN RESOURCE MANAGEMENT Qamardeen Hotel, Dubai, United Arab Emirates, October 31 – November 3, 2010

ROSTER OF PARTICIPANTS

JORDAN: Husam Abu Ali Director of Pub Rev Directorate Ministry of Finanace King Hussein Street Amman, Jordan E-mail: [email protected] Abedalraheem Al-Ajaleen Assistant HR Director Ministry of Finance King Hussein Street Amman, Jordan E-mail: [email protected] Usamah Al-Farhan Public Finance Economist Fiscal Reform II - USAID Funded Project King Hussein Street 5th Floor, Room 509 Amman, Jordan E-mail: [email protected]

Ahmad Al-Kasasbeh Deputy HR Director Ministry of Finance King Hussein Street Amman, Jorrdan E-mail: [email protected] SWITZERLAND: Ursula Knorr Institute of Landership & Human Resource Mgmt. University of St. Gallen Dufourstrasse 40a 9000 St. Gallen Switzerland E-mail: [email protected] TANZANIA: Edwin Mikongoti Deputy Secretary Tanzania Public Service Commission P.O. Box 9143 Dar-Es-Salaam, Tanzania E-mail: [email protected]

76

Appendix D

Donald Ndagula Acting Secretary Tanzania Public Service Commission P.O. Box 9143 Dar-Es-Salaam, Tanzania E-mail: [email protected] THAILAND:

UNITED ARAB EMIRATES: Nasser Thani Al Hamli CEO - Human Resources Policies Federal Authority for Government Human Resources P.O. Box 5002 Dubai, United Arab Emirates E-mail: [email protected]

Nontigorn Kanchanachitra Secretary General Office of the Civil Service Office of Civil Service Commission DUSIT Bangkok, 10300 Thailand E-mail: [email protected]

Abdulrahman Al Awar Director General Federal Authority for Government Human Resources P.O. Box 5002 Dubai, United Arab Emirates E-mail: [email protected]

Surapong Malee Head, HRM Innovation Group Office of the Civil Service Comm 59 Pitsanulok Road Bangkok, 10300 Thailand E-mail: [email protected]

Khalid Al-Yahya Ph.D. Fellow, Harvard University Dubai School of Government Level 13, Convention Center Prof & Dir of Gov and Pub Mgmt Dubai, United Arab Emirates E-mail: [email protected]

Suchada Rungsinun Deputy-Secretary General Office of the Civil Service Commission 59 Pitsanulok Road DUSIT Bangkok, 10300 Thailand

Aisha Bin Bishr Executive Director for Institutional Services and Support Ministry of Labour United Arab Emirates P. O. Box 5025 Dubai, United Arab Emirates E-mail: [email protected]

TRINADAD & TOBAGO:

David Jones Middle East Business Leader Aon Hewitt P. O. Box 501703 Dubai, United Arab Emirates E-mail: [email protected]

Gloria Edwards-Joseph Director of Personnel Admin Service Commissions Department Cipriani Plaza 59-61 Cipriani Boulevard Port of Spain, Trinadad & Tobago E-mail: [email protected]

Fatima Al Sawayah HR. Director Ministry of Finance 3 A Street Dubai, United Arab Emirates E-mail: [email protected] 77

Appendix D Kawthar Ahmed Saeed Al Kandi HR Consultant Ministry of Finance 3 A Street Dubai, United Arab Emirates E-mail: [email protected] Mohammed Obaid Al Sallaqi Director, Department of Finance & Administration General Authority of Youth & Sports Welfare P.O. Box 1671 Dubai, United Arab Emirates E-mail: [email protected]

IPMA-HR STAFF: Neil Reichenberg Executive Director IPMA-HR 1617 Duke Street Alexandria, VA 22314 United States E-mail: [email protected]

UNITED NATIONS: Almaz Woldekidane Senior Governance and PA Officer United Nations Depart of Economi Two UN Plaza New York, NY 10017 United Nations E-mail: [email protected] IPMA-HR OFFICERS: Margaret Whelan IPMA-CP (IPMA-HR President) General Manager City of Los Angeles 700 East Temple St, #305 Los Angeles, CA 90012 United States E-mail: [email protected] Samuel Wilkins, IPMA-CP (IPMA-HR President-Elect) Human Resources Director South Carolina Budget & Control Board, HR 8301 Parklane Road, Suite A220 Columbia, SC 29223 United States E-mail: [email protected]

78

1617 Duke Street, Alexandria, Virginia 22314, United States telephone: (703) 549-7100 fax: (703) 684-0948 e-mail: [email protected] http://www.ipma-hr.org