Organisation Development

Arra HRD Ltd provide Consultancy Support to business with regard to Organisation Development Initiatives. This work envisages working with Management to identify current practices and HR Structures. Arising out of a review of current practice and structures, Arra HRD Ltd has experience and knowledge in the revising and developing new systems of reporting, new Communications Structures and new Management Practices. The following submission sets out our general approach in examining and recommending the Organisation Development Initiative.
ABC Ltd Submission

Introduction
Arra HRD Ltd wishes to submit a proposal to undertake a review of the Organisation Structure, Policies, Staffing and related issues of the Company and a HR due diligence to access the current and future requirements of the Company.

Requirement
The scope of the HR Review requirement is broadly to cover the following areas:
• Organisation Structure
• Review of each functional area
• Grading structure, salary scales etc.
• HR policies
• Due Diligence

Our approach
We propose conducting this review in two phases – Initial Investigation and Detailed HR Review.

Initial Investigation
The first phase of our work would entail a structured interview with the CEO to discuss the business and operations of the Company and to meet with each of the other members of staff to gain an insight into their views concerns and aspirations for the future.

Prior to the series of meeting’s, we will develop a meeting checklist to ensure that all topics are consistently addressed throughout. See Appendix 1 – Meeting Checklist.

A similar approach would also be used for meetings with members of the Board nominated by the CEO to be interviewed as part of the HR review.

We set out in Appendix 2 a HR Due Diligence Checklist which the CEO might complete with us to ascertain the current position regarding HR in the Company.

We will prepare a summary of our initial findings and present these for discussion and feedback to the CEO and nominated personnel.

This phase of the assignment shall be completed in a period of two calendar weeks from commencement.

Detailed HR Review

1. Organisation structure
We will map out the current organisation structure by function and job in accordance with the existing organisation chart. This will be completed over a period of two calendar weeks from commencement of the project with consultancy input from Michael O’Sullivan.

We will use the outputs from meetings with the CEO and her team to assess how the structure meets current and expected future business needs. Expected business needs would include compliance and regulatory issues, the impact of further growth strategies, market development, new product offerings, technology changes etc. and the implications of the X medium term strategy.

Utilising our knowledge of organisation design, work processes and management systems we will map out the proposed evolution from the current organisation structure to one that meets current and future projected demands of ABC Ltd.

Although primarily desk research we will also benchmark with our knowledge of other credit unions and comparable organisations. This will be completed over a period of two calendar weeks from commencement of the project with consultancy input from Michael O’Sullivan.

2. Review functional areas
Outputs from Phase 1 will inform us of current shape and the requirements for each functional area. Michael O’Sullivan shall conduct this aspect of the assignment and will liaise with staff directly to collect data as well as taking the outputs from Phase 1 and their overall management consultancy experiences to capture future requirements across each function for the company. This aspect of the assignment shall be completed within 4 weeks of commencement and will be carried out in weeks 3 and 4.

We will assess the skills, competencies and qualifications of staff in each position. Relevant staff will complete a Skills Analysis Form – this will capture key information about job content and individual competencies, qualifications and evidence of professional development. We will collect the job descriptions to assess gaps. Where necessary we will probe further with staff directly either by phone or in person to get clarity. Appendix 3 attached.

3. Grading structure, salary scales
The earlier work will have identified any issues in the current structure and grading scales. Our experience in these areas with other companies, linked to future requirements will inter alia inform our proposals and recommendations in this area. Michael O’Sullivan shall develop an alignment of the current grading and salary structure into a fit for purpose model to meet the requirements of the Company. This aspect of the assignment shall be completed between weeks 5 and 6 from commencement.

Our approach to designing grading systems and salary scales for an organisation of this scale (and for the future) is to keep it practically structured & simple, allowing for flexibility within roles and for staff to develop additional relevant competencies/responsibilities to ensure continuous on-going performance improvement and contribution to the business. This will ensure any formal salary and grading system works with any performance management process developed. We are familiar with comparable external practices and will also benchmark against those.

4. HR policies
We would review existing staffing, HR policies and procedures, work practices etc. that currently exist in line with current best practice and current legislation and recommend a common set of terms & conditions, policies etc. appropriate to the future requirements of the company.

We will draft/recommend revised HR policies in conjunction with the management team. All policies will be developed into a composite policy document/ staff handbook. Our broad HR management and HR consulting experience in a range of organisations will provide a solid foundation for HR policy development and current best practice.

This work shall be completed in weeks 5 to 8 from commencement by Michael O’Sullivan.

5. Due diligence
The CEO’s HR due diligence exercise will provide an agenda for cross-referencing the status, content and quality of HR management systems and procedures in place and our detailed recommendations.

This work will be completed as part of Phase 1 and may include reference to some other members of management, as required, to explore issues of detail or practice and areas needing attention as part of the overall review. Michael O’Sullivan shall work on this aspect of the review.

Recommendations
We will provide clear and concise recommendations which are appropriate for the business, its plans for the future and capable of implementation within current resources.

Michael O’Sullivan
Michael has a BA in Management, a Masters in HRM and is a Charter Fellow of CIPD. He has a Diploma in Employment Law from the Law Society of Ireland and a Diploma in Mediation & Conflict Intervention from NUI Maynooth. Michael has been awarded certified member status with The Mediators Institute of Ireland in 2011.

Michael worked as Human Resources Manager at Kerry Group plc, Bord na Mona and Green Isle Foods prior to working full-time in HR consultancy since 2001.

Michael has represented employers in the Labour Court, at Conciliation in the LRC (now WRC), at Rights Commissioner Hearings (now Adjudicator Hearings), the Equality Tribunal and the Employment Appeals Tribunal. In addition, he advises in company in both Union and Non-Union employments on all aspects of Human Resources Management. The focus of his work is in the area of employment law, re-structuring and conflict intervention through mediation, negotiations on terms and conditions of employment and employee relations interventions.

Track record – Organisation Design
We attach some case studies below to illustrate some of our previous work in organisation design.

Appendices

1. Meeting Checklist 2. Due Diligence Checklist 3. Skills Analysis Form 4. Case Studies

Appendix 1
Executive Team Meeting Checklist Topics

Organisation Structure
Existing structure, strengths & weaknesses
Structure in the X, strengths & weaknesses
View of future requirements
Business plan – products, markets, technology, mergers

Review of functional areas
Existing functional areas, strengths & weaknesses
Functional gaps
Requirements for enhanced scale of operations
Observations

Grades
Overview of current grading structure
Identifiable weaknesses
Irregularities, misalignments with responsibilities
Salaries; Hiring issues

General HR matters
Work practice anomalies
Employment terms in each location
Standardisation of HR practice
Recent case history
Due diligence / Enquiry Template Attached

Appendix 2 HR DUE DILLIGENCE QUESTIONS

GENERAL
• What is total headcount o
• Total Salaried o
• Total Waged
• Who retains responsibility for HR matters

BENEFITS
• What is the list of employee benefits and who is entitled.
• What is standard notice period
• Pension – is there a scheme in place • DC or DB?
• How many members?
• If DB, what is value of fund?
• If DC, what does the company contribute.
• Does business have a PRSA scheme?
• Is there a Sick Pay scheme? Provide details.
• What exceptions exists re benefits
• How often are salaries/wages increased/ reviewed?
• Has there been reductions in terms and conditions and if so how implemented?
• What bonus arrangements are in place
• What is the holiday entitlement
• Is there a Car Mileage allowance payable? What are the details?
• Does anyone have a company car? What are the details of the scheme?
• Any arrangements for staff to travel to sub offices/sites/customers/suppliers and if so what is in place?
• Is there a Share Scheme?
• Is there an SAYE scheme?
• What incentive schemes are in place? Provide details?
• Is commission paid? If so to whom and what are the rules?
• Are any additional allowances or bonuses paid?
• Are they tax free?
• If tax free, provide evidence that they comply with relevant revenue requirements?
• How are expenses paid – cash/payroll? Receipted?

TERMS & CONDITIONS
• Standard details of Contracts / Terms & Conditions
• Does all staff have a signed contract?
• Do you have copies of all contracts?
• What is frequency of pay (weekly, monthly)?
• Do you have pay bands, scales or ranges? If so, details needed.
• Is anyone on minimum wage or less?
• What exceptions exist re pay?
• Is anyone paid in cash or by cheque – provide details of cash payments
• Is anyone paid a subsistence allowance? If so what are they paid, is it tax free? Provide evidence that they comply with revenue rules for receiving it.
• What are the standard working hours and times?
• What are the overtime rates or alternatives if in place e.g. TIL
• Do you have a T&A system?
• If no, how is time and attendance logged?
• Are you fully compliant with the working time directive re 48 hours and breaks and recording of working time
• Who manages Payroll?
• What payroll system is used?
• How are expenses claimed?
• Does anyone have a fixed expense payment?
• What Special allowances exist? Please provide details of allowances and recipients.

UNIONS
• Does the company recognise any union? If so, what union.
• How many employees are members of unions?
• Are there other means of engaging with employees on terms and conditions other than through unions?

REDUNDANCY
• How many redundancies in last 5/10 years?
• Does the company pay statutory redundancy only?
• If the company has paid in excess of statutory, has it paid the same to each person or different amounts? Provide details of amounts and criteria for amounts.
• Is there anything in contracts or elsewhere, written or verbally, committing to a specific % in excess of statutory redundancy?
• Is there a standard selection criteria for those made redundant? Details.

GENERAL
• Is there a policy handbook? Please provide copy.
• Provide evidence of how handbook was communicated. Does all staff have a copy?
• What is the attrition rate? How many senior staff has left in the last two years?
• How many non-nationals are employed?
• Do they all have relevant work permits?
• Are any contracts, policies, H&S or other documents translated? If so, into how many languages?
• Is there a grievance process?
• Are there any current/live issues?
• Is there a disciplinary process? How many stages does it have? Provide copy
• Disciplinary Issues – are there any active warnings on file?
• Are there currently any claims or appeals against the company – i.e. unfair dismissals, bullying etc or any work place injury cases? If so, please provide details.
• Are there any Rights Commissioner, EAT or Labour Court cases ongoing/forthcoming/recently resolved? Details needed.
• Is any staff on Long Term Sick leave? Please provide details.
• Is any staff on maternity or other special leave? Please provide details
• Is any staff on short time working or other forms of reduced working hours? If so please give details
• Is any staff on lay off? If so please give details

Organisation Development