In part 1, I outlined a model of human resources maturity among nonprofit organizations based on the clear delineation of position, person and performance. I also examined the first two phases of this maturity including their implications for the design and the effectiveness of key human resources processes. These processes include recruitment and selection, compensation, performance management, professional development and career/succession planning.

In this post, we’ll take a look at the third and final phase as well as at some questions to ask about your own organization.

Phase 3

The final phase of human resources maturity is typical of larger nonprofit organizations that have achieved a certain degree of organizational stability. These organizations have usually dedicated sufficient staff and resources to the human resources function to allow it to increase in terms of both capacity and sophistication, and they have defined systems and processes clearly differentiating position, person and performance.

Among organizations in this phase, recruitment and selection are systematic and driven by a forward-looking analysis of organizational needs. Human resource staff and hiring managers have a clear understanding of the levels and types of experiences, skills and knowledge required for most positions in the organization.

Compensation programs are formalized. Compensation opportunities for each position are identified based on the external market and internal equity, and there are processes and guidelines for managing individual compensation based on performance. (See my posts last week about salary ranges [[here]] and [[here]].)

Performance management processes are established to effectively measure individual performance versus the requirements of each position. Resources are devoted to guiding and facilitating professional development. Career ladders can be identified, and potential successors for key positions can be identified and groomed.

When organizations reach this phase, both individual employee and overall organization needs are, for the most part, well-served, and the human resources function is established as, or is on its way to becoming, a key, strategic locus within the organization.

Where does your organization stand?

In the context of these three phases of human resources maturity, here are some questions for both nonprofit managers and human resources professionals to consider:

■ Which of these phases is most representative of your organization?

■ Are there steps you can take to help move your organization to the next phase?

■ Are the human resources systems, processes and practices that are in place optimal for the current phase of your organization?

■ Are there human resources activities your organization can or should undertake at this phase that it is not?

■ Are there human resources programs or practices in place that are compromised or undermined by where you are as an organization?

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Joe Brown is the Principal and Founder of Slope Resources, LLC. Slope Resources provides a range of human resources and organization management consulting services to nonprofit organizations of all types and sizes. Joe is also the author of the blog Done by People, which focuses on human resources and organization management in the third sector, and will be a presenter at the 2010 Nonprofit Human Resources Conference. For more information about Joe Brown and Slope Resources, please visit sloperesources.com.

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Photo Credit:  Collin Allen

Human Resources Maturity and the Three P’s, Part 2

Last updated on May 8th, 2010 at 04:08 pm