Monitoring Human Recources through People-Capability Maturity Model

15 Pages·2014·1.07 MB·English

APJEM
Arth Prabandh: A Journal of Economics and Management
Vol. 3 Issue 9 September 2014, ISSN 2278-0629, pp. 121-135

Monitoring Human Recources through People-Capability Maturity Model (P-
Cmm) in Ansar Bank

Zahra Vazifeh*, Bahram Tayerani Darbandi**, Fazlollah Khamari***

*Assistant Professor, Department of economic and management, Public Management branch, Sistan & Baluchestan
University, Zaheadn, Iran

**Co-Author MA Student, Department of economic and management, Public Management branch, Sistan &
Baluchestan University, Zaheadn, Iran

***MA Student, Department of economic and management, Public Management branch, Sistan & Baluchestan
University, Zaheadn, Iran

Abstract

Many consequences from researches about importance and role of human resource in
organizations’ improvement and growth and somehow in development of human
societies emphasize on this point that no society has not developed unless it has paid
attention to the development or human capital. Meanwhile, banks and knowledge
based financial institutes are easily able to take advantage of current opportunities
using different models of maturity of human resource in order to achieve competitive
advantages to survive and face with variable condition of e-payments market. One of
appropriate models in this field is People-Capability maturity model (P-CMM) which
has been designed to increase human force capabilities. This model helps
organizations to identify maturity of its human forces; creates a continuous program
to develop human resource and prioritize more important performances. Current study
1 is cross-descriptive research and in terms of research methodology, it is applied
2
1 research. Statistical population includes employees of Ansar bank in Zahedan city who
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uo. Keywords: People-Capability maturity model (P-CMM), Organizational Maturity,
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APJEM
Arth Prabandh: A Journal of Economics and Management
Vol. 3 Issue 9 September 2014, ISSN 2278-0629, pp. 121-135

Introduction
In recent years, various tools about human resource development have been suggested to the
managers. Development of competencies Model, evaluation and choosing people based on
intelligence and their competencies. 360 degree feedback, knowledge management, team
building, participatory decision making, performance-based payment, rote learning and reminder
system are such advices, but using these means in most of cases haven had a considerable result.
Why organizations are unsuccessful to use these means (Curtis, 2009)? This problem is in all
over the world, but undoubtedly, it is more transparent in developing countries like Iran. In our
viewpoints, the most important reason and the origin of these failures is "no real need of
organizations to perform some management tools" and " development of fashion phenomenon”
in these areas (Ghafarian and Emadzadeh, 2004). Changes in global markets of e-commerce
have made many challenges for organizations, banks and other financial institutes. Even to
survive in local markets necessitates competition. Organization maturity knows the root of each
kind of ability and flourishing the human attempts domain in “human maturity” and also
accounts human as the major basis and fundamental factor of any changes. Now, organizational
maturity is one of the important and underlying lessons of educational courses in many schools
of behavioral sciences especially management in all over the world (Moosa Khnai and Monshi
Zade, 2006).
Literature Review
Organizations in order to move toward strategic management of human capital have applied
different techniques. Some of them are: Combined downsizing with restructuring, , re-
engineering and process improvement, improve information sharing, promoting the
organization's mission clearly throughout the organization, employees’ participation, establish
formal procedures for dealing with complaints, profit sharing or implementing motivational
plans, workforce training, performance management and feedback processes, Analysis and
Design jobs, support job rotation, teamwork design, formal mentoring programs and ultimately
align HR strategies with business objectives (Mirvis, 1997, Becker, 1998, Becker, 1996).
2 Until a few years ago, most of the strategic planning projects with following the prescriptive
2 approaches, moreover use the SWOT approach to develop and plan their strategies, pioneer
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al management. In fact, this model creates strategic management framework of special processes. A
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Pin H umphrey for continuous improvement of software productions. This model has 5 levels which
APJEM
Arth Prabandh: A Journal of Economics and Management
Vol. 3 Issue 9 September 2014, ISSN 2278-0629, pp. 121-135

move from inconsistent management to learning level (Humphrey, 2000). Following the
development of this model, various maturity models developed based on this framework which
can be referred as People-Capability maturity model (PCMM) and Business Process Maturity
Model (BPMM). Framework of these models is based on Humphrey’s model and their contents
due to the discussed area are changing. 5 maturity levels in Humphrey’s model and evolution
nature of passing different maturity levels of this model have been shown in figure 1.

Figure 1. Five-Level Maturity Humphrey Model (Curtis Et Al., 2009)
Maturity network of quality management by Crosby (1996) expresses the underlying principle of
maturity model in this way: an action is not improved until it is repeated. After that, maturity
models have been applied in broad activities including software development, suppliers’
relationship, research and development activities, production development, innovation,
cooperation, production design as well as reliable information procedure.
People-Capability maturity model (P-CMM):
3 People-Capability maturity model is the path map that helps with implementation and
2 improvement of human resource capabilities in organization. P-CMM model establishes
1
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l 1) Human force capability has a direct relationship with organization’s performance.
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APJEM
Arth Prabandh: A Journal of Economics and Management
Vol. 3 Issue 9 September 2014, ISSN 2278-0629, pp. 121-135

9) Organization provides promotion opportunity and people are responsible for using
provided opportunity.
10) Due to fast changes, continuous development and ongoing review is necessary.
In any level of maturity, especial processes and activities are needed which are based on built
infrastructure from previous level. Figure 2 shows the processes of maturity levels in P-CMM.
In HR’s viewpoint, this pattern is a kind of HR strategic management which emphasizes on HR
processes due to strategic orientations (Prahalad, 1990).

Figure 2. Process Model Of P-Cmm (Curtis Et Al., 2009)
4
2 In following of maturity levels, internal processes and relationships will be studied. Since, most
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naclhttp: India. Some of well-known firms which have used this model are: IBM, Citibank, Ericsson,
Pin B oeing, Oracle (Curtis, 2001).
APJEM
Arth Prabandh: A Journal of Economics and Management
Vol. 3 Issue 9 September 2014, ISSN 2278-0629, pp. 121-135

Maturity levels: It indicates a new level of HR capability which has been created through
designing and developing one or some of HR processes.
Maturity level1 (initial level, inconsistent management): most transparent organizations’ feature
in this level is their problems in maintaining talented people. Despite of emphasize on this issue,
organization’s attempts in this regard are incoherent and aimless (Rothman, 2001).
Organizational characteristics which are at the first maturity level are:
1) Incoherency HR activities
2) Replacement and irresponsibility.
3) Unclear tasks
4) Human force and emotional environment
Organizations In this maturity level develop forms and tools, but training and required following
to take advantage of is not happened. Managers of such organizations don’t have common vision
about management responsibilities and most of them consider management to reach
predetermined results not people development. So that, HR activities would have less importance
than real activities and it is not taken seriously (Buckingham, 1999).
Maturity level 2 (managed level, people management): In this level, managers pay attention to
the issues like coordination, commitment, resource supply, performance management and skills’
development. Reasons which force managers to pay attention to HR activities are:
 Low spirit of employees
 Weak organizational communications
 Lack of required knowledge and skill among employees
 Obscure performance objectives
 High workload
This level aims to accept the responsibility of people and foster them. Some of features in this
level can be summarized including: 1) Organization has to provide a basis to apply common
processes, 2) Management has to establish a sustainable environment for professional
occupations, 3) Required condition has to be provided to basically control management, 4)
5 Enable people to repeat activities.
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APJEM
Arth Prabandh: A Journal of Economics and Management
Vol. 3 Issue 9 September 2014, ISSN 2278-0629, pp. 121-135

Figure 3. Relationships Among Competency Management Process Areas(Curtis Et Al.,
2009)
Maturity level 3 (defined level, competency management): After implementation of HR activities
in units, the next step is to develop organizational infrastructures which link HR capabilities to
strategic goals. This level is mainly aimed to help with achieving competitive advantages with
required competency development in employees. The conception of human force competencies
in People-Capability maturity model (P-CMM) is different with what has been proposed by
Prahalad and Hamel. “Core competency” points to the combination of technology and
production skills which lead to create services and goods and provide competitive advantages in
markets. In P-CMM, human force competencies point to one of abstraction levels in the
organization shown in figure 4.
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APJEM
Arth Prabandh: A Journal of Economics and Management
Vol. 3 Issue 9 September 2014, ISSN 2278-0629, pp. 121-135

1. Organization identifies the best activities and aligns them with common processes.
2. Processes especial for exclusive environment are combined, documented and integrated
with activities especial for sustainable environment.
3. Organization defines standard processes to do activities leaded to establish underlying
context for professional culture.
Activities regarded in maturity level 3, competency management, are: 1) Competency analysis,
2) Workforce planning, 3) Competency development, 4) Career development, 5) Competency
based practices, 6) Workgroup development and 7) Participatory culture. Mutual relationships
between these processes have been shown in fig 5.

Figure 5. Relationships Among Competency Management Process Areas (Curtis Et Al.,
2009)
Maturity level 4 (predictable level, capability management): the important feature of this level is
7 quantity-oriented approach. This approach should be dominant on the design, implementation
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APJEM
Arth Prabandh: A Journal of Economics and Management
Vol. 3 Issue 9 September 2014, ISSN 2278-0629, pp. 121-135

Figure 6. Relationships Among Capability Management Process Areas (Curtis Et Al., 2009)
Maturity level 5 (optimization, organizational learning and change management): In this level,
change management has become a permanent process and information in units and organization
levels are analyzed and any kind of non-alignment is identified and action is taken to resolve it.
Characteristics of this level include following cases:
1) Organizations use deep and quantitative knowledge for continuous improvement in
processes.
2) Organization, based on data, finds which process can better exploit continuous
improvement practices.
3) Development management is built as a standard organizational process and process
improvement and like sustainable and permanent thought in all over the world. Processes
regarded in maturity level 5, change management, are: 1) Continuous capability
improvement, 2) Organizational performance alignment 3) Continuous workforce
innovation. Mutual relationships between these processes have been shown in fig 7.

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APJEM
Arth Prabandh: A Journal of Economics and Management
Vol. 3 Issue 9 September 2014, ISSN 2278-0629, pp. 121-135

Implementation advantages of P-CMM
Implementation advantages of P-CMM have been theoretically shown in numerous studies
(Huselid, 1995, Labor, 1993, Kling, 1995, Appleby, 2000, Delaney, 1996).
Organizations which have applied HR integrated strategy have considerably stood in world-class
organizations level (Appleby, 2000). In some cases, even the influence of their reputation
relevant to HR practices has been directly related to the increase in their share value ،(Hannon,
1996). Analysis of different samples in 1990 shows a strong (positive) relationship between high
performance of job activities and organization’s financial performance (Becker, 1998). In a study
about job force activities which has been done in almost 100 companies, it is brought that
applying such activities causes 7.05 percent decrease in job quitting and at the expense of each
employee, it is along with 27.044 dollars more sale, 18.841 dollars increase in market value and
3.814 dollars increase in profit (Huselid, 1995).
Now, according to aforementioned descriptive cases, advantages of P-CMM have been
categorized as following:
1) Regarding capabilities rather than job elements
2) Establishing an appropriate context to implement excellence systems
3) Having comprehensible HR systems
4) Repeatability of activities
5) Accurate and clear practices to implement systems
6) Decrease deviation in performance
7) Continuous improvement of activities
8) Spread best practices throughout the organization
9) Institutionalizing systems

P-CMM applications
Organizations use P-CMM for different objectives which the most important ones are:
9  Determining extent of maturity practices of HR
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APJEM
Arth Prabandh: A Journal of Economics and Management
Vol. 3 Issue 9 September 2014, ISSN 2278-0629, pp. 121-135

Research Hypothesis

1) There is difference between current and expected situations of staffing system.
2) There is difference between current and expected situations of communication and
coordination system.
3) There is difference between current and expected situations of work environment system.
4) There is difference between current and expected situations of performance management
system.
5) There is difference between current and expected situations of education and
development system.
6) There is difference between current and expected situations of compensation system.

Research Methology
In this research, at first after studying books, papers and different researches conducted in the
organizational maturity field and also using professors’ and experts’ opinion, theoretical basis
and literature review and questionnaires were provided and questionnaires’ reliability was
verified. This study in terms of research categorization based on their goals is accounted as an
applied research. In terms of the way that required data was obtained (research plan), this
research is accounted as cross-sectional one. Statistical population includes employees of Ansar
bank in Zahedan city who are almost 42 persons. Due to limitation of statistical population, all of
statistical population was chosen as sample. Out of this number, 37 reliable questionnaires were
collected. To test hypotheses, obtained data collected by questionnaire which has been measured
based on 5-point Likert scale was used for quantification the responses. It includes standard 42-
question questionnaire which has been originated from P-CMM introduced by Software
Engineering Institute (SEI). Reliability of questionnaire was verified by literature review and
scientific reliable references such as second volume of P-CMM which has been developed by
SEI in 2009 and also experts’ and professors’ opinion. Questionnaire durability also was
calculated using Cronbach’s alpha (0.878). Statistical methods used for data analysis is
0 descriptive one. To test hypotheses, single sample T-Test was used. To prioritize hypotheses,
3
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Friedman test was used.
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