Six Steps to Creating an Ethical Culture

Six Steps to Creating an Ethical Culture
by Agatha Gilmore

First there was the case of the Wal-Mart whistleblower who alleged that a senior executive was engaging in questionable financial practices. Then there was the Societe Generale scandal, in which a rogue trader lost the French Bank a whopping $7 billion in fraudulent transactions.

These incidents might seem extraordinary, but according to a study by the Association of Certified Fraud Examiners (ACFE), U.S. organizations alone lose 5 percent in annual revenue to fraud.

The solution is to create and enforce an ethical organizational culture, according to a new white paper from talent management solutions provider Allegiance.

According to Allegiance's research, organizations with strong ethical cultures report fewer cases of fraud, suffer less litigation and overall have happier and more engaged employees. They also cut their fraud-related losses in half, said Greg Heaps, COO and ethics specialist at Allegiance.

"Not only is having an ethical culture a good idea, but it's now practically a requirement," he said.

As a result of these findings, Allegiance devised a set of six steps talent managers can take to help create ethical cultures within their organizations.

1. Establish an enforceable code of conduct.
Talent managers should work to create an enterprise-wide code of ethicalconduct that describes appropriate behavior and acts as a proactive solution, rather than reaction to past missteps. It also should incorporate employee preferences and opinions because giving them a stake in development will ultimately make them more apt to adhere to it, Heaps said.

And like most HR programs, the code must not only be championed by but also clearly demonstrated by senior executives for employees to take it seriously.

"Employees have a hard time buying in if management isn't buying in," Heaps said.

2. Offer ongoing training.
"Training is not a one-time, one-shot deal," Heaps said. "The purpose is to help employees know what is expected of them and to help them understand that having a strong ethical culture can protect the company's reputation and ultimately can impact their bottom line."

Live workshops, online courses and printed materials all are helpful, and organizations also should provide annual training on specific issues, including proper use of company assets, discrimination, harassment, use of e-mail or use of the Internet. Talent managers should also custom-fit training to the needs of different departments, Heaps said.

3. Issue regular communications.
According to a 2007 report by the Ethics Resource Center, fewer than 40 percent of employees are aware of their companies' ethics and compliance programs.

"Programs exist, but organizations aren't doing a good job of communicating [that] fact," Heaps said.

Senior-level management must establish this line of communication that can take the form of broad announcements in the corporate newsletter or more personal discussions, either by department or individually.

4. Set up an anonymous reporting hotline.
According to the ACFE, an anonymous tip is the most likely way to reveal fraud, accounting for 34 percent of the cases uncovered. But employees must feel their anonymity is safe and secure for them to participate in a whistleblower policy.

"Employees can sometimes be met in the parking lot or somewhere else and physically abused by the perpetrator if their anonymity isn't maintained," Heaps said. This potential conflict may explain why 42 percent of employees who witness misconduct do not report it, according to the ERC survey.

Heaps recommends that employees have access to anonymous Web- and phone- based reporting tools and that talent managers also consider a third-party hotline provider, as employees often feel internal avenues are less secure.

The reporting tool should require whistleblowers to answer targeted background questions, as opposed to open-ended voice-mail or e-mail questions, and it also should have management capabilities that allow talent managers to track incidents.

5. Enforce and take action.
Imposing consequences for violation of the code of conduct will result in all employees - from the CEO to the frontline worker - taking it seriously. Heaps said that research done by ERC found that misconduct is cut by 75 percent and reporting is doubled at companies with strong and enforced ethical cultures.

6. Reward employees who demonstrate the culture.
"Like a manufacturing company that brags about its safety record with signs indicating how many days [it has gone] without an accident, companies should do the same and publicly congratulate employees that adhere to the code," Heaps said.

He added that some organizations might even share the "profits" - the amount of money saved by avoiding fraud - with whistleblowers.

"Employees prefer to work for an organization that has an established ethicalculture. They end up happier, they end up enjoying their jobs more - they're more engaged with the organization," Heaps said. "When you have that kind of environment and that kind of attitude with employees, it directly impacts your bottom line."

[About the Author: Agatha Gilmore is an associate editor for Talent Management magazine.]

Generate More Revenue By Making Training Everyone's Job

Generate More Revenue By Making Training Everyone's Job
by Doug Kennedy

During the past few years of record profits many hotels and hotel companies have invested heavily in ramping up their in-house and corporate level training resources. Now that we are in a down market, one can easily see which organizations truly comprehend and believe in the value of ongoing training versus those who view it as window dressing.

As a vendor-partner to the hotel industry for training and development resources, it is interesting to see and exact names of hotels, hotel companies, and industry organizations are still investing in their team's personal development. From what I hear from my colleagues and competitors, it seems to be the top-tier companies across all organizations, market segments and locations that are still keeping hotel training companies like us plenty busy during what is one of the biggest downturns in industry history.

This is not just because these excellent, top-tier hotel companies think training is a nice thing to do; it's because visionary leaders realize the tangible ROI that training can achieve, if properly implemented, measured, and followed-up on.

Unfortunately though, from what I hear of the industry at large, way too many companies are instead blindly cutting back on training and development at every juncture across the board. Depending on the type of organization or company, this plays out as:

1. Hotel trainer positions that are left unfilled or eliminated.
2. Cut-backs in budgeted hours for recurrent training.
3. New-hires being scheduled to cover shifts before they have had proper one-on-one coaching with a supervisor.
4. Lack of access to new training multimedia resources such as DVDs; missed opportunities for managers and staff to attend webinars and to use eLearning tools.
5. Cutbacks in budgets for managers and leaders to attend management company or brand conferences and events.
6. Training components of conferences and events being reduced; or annual educational and training conferences that are being cut out altogether.
7. Reduction in the quality of the educational experiences being offered at annual conferences for associations, brands, and other trade groups.

It's understandable that when facing drastic, unexpected declines in revenue that some cuts absolutely have to be made and it is never pleasant nor easy to decide what to cutback. Certainly in markets such as what most hotels are currently seeing, even the training budgets need to be pared back. But this is not the time to have an "abandon ship" paradigm that views all investments in training as an "extra" that needs to be cast overboard to stay afloat.

Instead, it is precisely in times like these we must remember training is the responsibility of every manager, every supervisor, and every leader; every month, every day, every shift. Certainly the ideal situations is to have a designated training manager or director to inspire, organize, and lead the training and development effort throughout your organization. Interestingly, the top-tier companies that use the most outside training resources seem to also have at least a full or part time trainer in place. A few I know have even added training positions even during downturns; others have found a way to sustain these positions at all costs, even if having these staffers work temporarily in other departments during slower monthly accounting periods.

Yet even companies that do have designated training manager or director to lead the charge still understand: training is a process not just a title, position, or job description. Instead, they view training is a core best practice necessary to sustain the ongoing journey to excellence, versus a program to complete, a workshop we have to attend, or a certification we must to achieve. The best training managers know this well and see themselves as a center-point nexus directory and resource.

Whether you are a hotel trainer by title, or a department head, assistant manager, or shift supervisor, here are some ideas to make training happen every week, every day, every shift:

1. When forecasting temporary dips in business activity, schedule formalized, workshop style training during down-times.

2. Even during periods of peak activity, there always seems to be dips in the "cycle of service" during which staff have predictable periods of down-time. This is a great chance to schedule some on-the-job training.

3. Sometimes business levels drop unexpectedly; during these times it is not always possible to cut hours by sending staff home early. If so, conduct impromptu "grab and go" training meetings.

4. Conduct individualized coaching with frontline associates directly in their workplace between transactions during actual shifts.

5. Reinforce what was done well; focus on what could have been done more effectively.

6. Distribute copies of article reprints from publications such as this for discussion/review at meetings.

7. Checkout cost-effective multi-media (DVD's and videos) from resources such the Educational Institute or the Sunrise Basic Training series.

8. Reinforce training themes with workplace displays that can be made fun with simple word processing programs.

9. Find ways to cut costs but to still attend industry conferences or events; book early to reduce registration fees. The biggest cost historically is usually airfare and travel costs, which can be secured at value rates if you plan ahead to send your leaders to such events.

10. If you are a hotel company or association, this is a terrific opportunity to show value to your stakeholders by finding a way to still offer quality educational and training events at future meetings.

By making revenue-generating training part of the realm of responsibility of every manager and leader, you can ensure your frontline staff is capitalizing on every opportunity to capture sales, reduce unnecessary costs, and ultimately maximize profits during this industry downturn. The best part is that when the recovery starts, your well-trained team will be ready to optimize profits when demand begins to soar once again.

[About the Author: Douglas Kennedy is the founder and President of the Kennedy Training Network. Doug has been a fixture on the hospitality and tourism industry conference circuit since 1989, having presented over 1,000 conference keynote sessions, educations break-out seminars, or customized, on-premise training workshops during in the past 17 years.]

Use Tuition Assistance to Aid Development

Use Tuition Assistance to Aid Development
by Lila McCain

As tuition costs continue to rise and personal student debt follows more employees into the workforce, providing staff with tuition assistance options can increase employee engagement and foster career development.

The Educational Testing Service has decreased its 2009 projection for number of applications for the GRE, which is required for most graduate school programs, from 675,000 to 621,000, indicating today's economy is impacting enrollment. Tuition assistance programs allow talent managers to provide a timely and attractive benefit to individuals and also invest in employees.

In addition to tuition reimbursement benefits, some companies take their assistance programs a step further by offering student loan repayment options. These options can help employees pay down existing debt and encourage enrollment in additional education opportunities.

The Workforce Challenge

While the economic downturn has altered the employment environment, by offering tuition assistance and other tools such as student loan repayment, employers have the potential to retain talent interested in higher education, career development and cross-departmental growth within their organizations.

The average tuition and fees at both public and private institutions rose almost 6 percent in 2008. Given these economic hikes, deciding to pursue further education after entering the workforce can be heavily influenced by company benefits that can reduce the costs. Recent grads are entering the workforce with a greater debt burden: Loans made through the Federal Family Education LoanProgram increased 8 percent during 2007-2008.

Further, entry-level employees are facing a stringent salary environment. According to management consulting firm Hewitt Associates, companies are reducing salary increases in 2009 due to economic concerns, making the decision to go back to school more financially difficult while pursuing a career.

"Due to the current state of the economy, companies now have to make cuts to a number of budgets," said Lauren Rolfe, vice president of human resources at American Student Assistance (ASA). "In 2009 we made it a priority to keep our tuition reimbursement and loan repayment programs fully intact and will continue to offer the same level of assistance as in year's past, and will offer even greater flexibility to how the program can be leveraged by employees."

Tuition Reimbursement Benefit Strategy

There are various levels and approaches to tuition reimbursement. ASA, which has helped finance higher education for the past 50 years, offers the IRS maximum amount of $5,250 per calendar year as a nontaxable benefit, with no limit on the number of courses an employee can take. While nonprofit companies such as ASA do not qualify, for-profit companies may receive a tax benefit for offering tuition reimbursement.

More progressive programs provide compensation for actual degree or certificatecourses, but also for books and other tools students require once enrolled.

At ASA, test-preparation courses and fees also qualify for reimbursement. Most graduate programs require standardized testing, such as the GMAT or GRE, prior to application. Allowing employees the opportunity to apply their tuition assistance to the preparation process provides a broader spectrum of ways for a company to enable higher education in the workplace.

Companies also have the option to offer a nonrestrictive reimbursement programthat allows employees to pursue any type of degree within approved organizational parameters. Especially in organizations that have various divisions and career tracks, not limiting degree selection can encourage employees to grow their career interests and pursue lateral or upward career choices in-house.

Along these same lines, companies also can opt not to restrict tuition reimbursement, either by the letter grade received in the degree or certificateprogram, or if an individual is pursuing an unfamiliar discipline.

"Our philosophy is that a learning mind is a productive mind," Rolfe said. "Our employees are enrolled in programs such as culinary arts and paralegal courses that fall outside their career descriptions. However, what this does is cultivate a motivated, engaged employee base that is able to pursue whole-life interests, which in the end leads to a productive workforce."

Student Loan Repayment Strategy

Since 2000, ASA has provided funds to help employees repay federal education loans currently in repayment status - up to $2,400 per calendar year.

Employees are eligible after six months of service. Part-time employees are eligible on a prorated basis. However, because this benefit does not qualify under IRS regulations the same as tuition reimbursement benefits do, the employee still is required to pay taxes on their student loan repayment benefits.

According to a 2008 internal analysis conducted by ASA, offering tuition reimbursement promotes participation in higher education while serving as a full-time employee in the workforce. Between 2003 and 2007, enrollment in ASA's tuition reimbursement program grew at the same rate as the total population of the company.

ASA HR managers also determined that allowing employees to self-select degreeprograms of their choice promoted interdepartmental movement, empowered and satisfied employees.

These programs have helped position ASA's culture as that of a learning organization, evidenced by employee satisfaction surveys categorizing them as an employer of choice. Also attributed to employee satisfaction surveys is ASA's 2008 recognition as the Boston Globe's Top Places to Work in Massachusetts.

A tuition assistance program can be an integral piece to an organization's well-rounded internal talent strategy. At ASA, it has been integrated into talent management to develop what the organization calls "whole leaders" at all levels of the workforce. To maintain this people strategy in a rapidly growing organization, ASA management promotes training and development that will position employees to manage and lead the organization into the future.

Companies can measure program success by tracking employee enrollment and demographic data that can help to establish career tracks within the organization. Specifically, employee's current careers, part-time education decisions and learned expertise can allow talent managers to better match individuals to appropriate projects, promoting overall efficiency across company divisions and the employee base.

"By administering internal surveys to track participation in our tuition reimbursement program over the past five years, we have created the opportunity to leverage employee skill sets in the future," Rolfe said. "Particularly within a project-based work environment, we hope to build out an infrastructure for managers to track individual career paths, and also best pair employees with work they are interested in and for which they are most qualified."

Jason Burke, a client manager at ASA, was hired in 2004. The company's tuition reimbursement allowed him to pursue a master's degree program at Emerson College, even though it did not directly relate to his position. In December 2008, Burke completed his final class and received a master's in media arts.

"While my program wasn't directly related to my job, I find myself using the skills I've learned from grad school - skills like project management, teamwork and data analysis - at ASA on a daily basis," Burke said. "Grad school has been one of the most challenging and rewarding experiences of my professional life."

Tuition and loan assistance programs can be a powerful addition to workforce development and benefits. They provide employees with compensation for tuition. They can allow flexibility in the number of classes in which employees can enroll, the types of classes employees can enroll in, and can reduce existing higher education debt.

Ultimately, tuition assistance allows companies to cultivate an improved employee base. These types of benefit programs, promote better career pathing, particularly in project-based work environments.

Putting forth the effort to preserve tuition assistance programs helps keep employee morale intact and supports employees interested in growth within their current workplaces. This creates a situation in which both the employee and the organization win.

[About the Author: Lila McCain is director of HR for American Student Assistance.]

Some inspirational Sanskrit verses

Worth printing out.

source: http://hitxp.wordpress.com/2007/03/03/great-sanskrit-hymns/

Here are some great sanskrit hymns from ancient Indian texts..

Nahi Jnanena Sadrsham
Nothing is equivalent to knowledge

Vasudaiva Kutumbakam
The whole earth is a family

Satyameva Jayate
Truth always triumphs

Dharmo Rakshathi Rakshithaha
He who carries out his duties shall be protected

Sarvejana Sukhinobhavanthu
May all the people in this universe live with happiness and prosperity

Janma Jaata Shudra Sarve
Karmenu Brahman Bhavati
All humans are inferior (Shudra) by birth and they become superior
(Brahmins) only by their good deeds later in their life.


Asatho Ma Sathgamaya,
Thamaso Ma Jyothirgamaya
Mruthyorma Amrthangamya
Lead me towards truth from untruth
Lead me towards light from darkness
Lead me towards immortality from Death

Yatra Naaryasthu poojyanthe
Ramanethe thatra devathaha
Where women are treated with dignity and Womanhood is worshipped,
there Roam the GODS

Ekam Sat Vipraha bahudha vadanti
There is but one God, learned scholars call this God by different names

Isha vasya midam sarvam
The entire universe is pervaded by God

Sarve amritasya putrah
We are all the children of God

Ati Vinayam Dhoortha Lakshanam
Too much of humbleness is an attribute of a wicked person

Aham Brahmasmi
I am God (indicating God lives inside humans)

Lobhaha Papasya Karanam
Greed is the root cause of sin

Matru Devo Bhava Pitru Devo Bhava
Acharya Devo Bhava Athithi Devo Bhava
Treat your Mother, Father, Teacher and Guest like a God

Satyam bruyat priyam bruyat na bruyat satyam apriyam
priyam cha nanrutam bruyat esha dharmah sanatanah
Only speak the truth that is pleasant to others
Do no speak the truth that might be unpleasant to others
Never speak untruth that is pleasant to others
This is the path of the eternal morality called Sanatana Dharma


Annam na nindhyath
Annam na pari-chaksheeta
Annam bahu kurveeta
Do not abuse food
Do not discard food
Grow food in abundance!

shubham karoti kalyaaNam aarogyam dhanasampadaa
shatrubuddhi vinaashaaya deepajyoti namostute
I salute the light from the lamp, the one that brings auspiciousness,
prosperity, good health, abundance of wealth, and the destruction of
the intellect’s enemy!
(said while lighting the evening lamp)

Kaalaaya Tasmai Namaha
Salutations to that great entity called TIME

Satyam Vadha Dharmam Chara
Speak the truth, follow the righteous path

Aa no bhadrah kratavo yantu vishwatah
May auspicious thoughts come to us from all over the world.

Mata Bhumih putro ham prithvyah
Earth is our mother and we are its children.

Organizational Culture !!

Organizational Culture   by Carter McNamara 

What is Culture?

Basically, organizational culture is the personality of the organization. Culture is comprised of the assumptions, values, norms and tangible signs (artifacts) of organization members and their behaviors. Members of an organization soon come to sense the particular culture of an organization. Culture is one of those terms that's difficult to express distinctly, but everyone knows it when they sense it. For example, the culture of a large, for-profit corporation is quite different than that of a hospital which is quite different that that of a university. You can tell the culture of an organization by looking at the arrangement of furniture, what they brag about, what members wear, etc. -- similar to what you can use to get a feeling about someone's personality.

Corporate culture can be looked at as a system. Inputs include feedback from, e.g., society, professions, laws, stories, heroes, values on competition or service, etc. The process is based on our assumptions, values and norms, e.g., our values on money, time, facilities, space and people. Outputs or effects of our culture are, e.g., organizational behaviors, technologies, strategies, image, products, services, appearance, etc.

The concept of culture is particularly important when attempting to manage organization-wide change. Practitioners are coming to realize that, despite the best-laid plans, organizational change must include not only changing structures and processes, but also changing the corporate culture as well.

There's been a great deal of literature generated over the past decade about the concept of organizational culture -- particularly in regard to learning how to change organizational culture. Organizational change efforts are rumored to fail the vast majority of the time. Usually, this failure is credited to lack of understanding about the strong role of culture and the role it plays in organizations. That's one of the reasons that many strategic planners now place as much emphasis on identifying strategic values as they do mission and vision.

Some Types of Culture

There are different types of culture just like there are different types of personality. Researcher Jeffrey Sonnenfeld identified the following four types of cultures.

Academy Culture

Employees are highly skilled and tend to stay in the organization, while working their way up the ranks. The organization provides a stable environment in which employees can development and exercise their skills. Examples are universities, hospitals, large corporations, etc.

Baseball Team Culture

Employees are "free agents" who have highly prized skills. They are in high demand and can rather easily get jobs elsewhere. This type of culture exists in fast-paced, high-risk organizations, such as investment banking, advertising, etc.

Club Culture

The most important requirement for employees in this culture is to fit into the group. Usually employees start at the bottom and stay with the organization. The organization promotes from within and highly values seniority. Examples are the military, some law firms, etc.

Fortress Culture

Employees don't know if they'll be laid off or not. These organizations often undergo massive reorganization. There are many opportunities for those with timely, specialized skills. Examples are savings and loans, large car companies, etc.

 

Q&A: How Do We Begin to Inventory Our Employees' Skills?

How Do We Begin to Inventory Our Employees' Skills?
	My CEO wants me to prepare a report that gives an inventory of our employees' skills. The issue is important as this report will be submitted together with a succession-plan project for the company. With such a huge undertaking, where should I begin?—Planning for the Future, human capital officer, construction, Lagos, Nigeria
	Depending on the industry, job and/or technical discipline, there are literally thousands of skills, and evaluating all of them could be an endless task. So it is important to narrow down the project by zooming in on the skills most desired by your CEO, and understanding how this information will be used. Considering you mention succession planning, I suspect the list is narrower rather than broader. If your CEO could pick 10 to 15 of the most important skills or skill areas, what would they be? Are they the same ones you use to assess employee performance reviews and individual development plans? Is this an inventory for the purpose of knowing that they can do something, or how well they have been doing it? It's worth a follow-up question or two to clarify the actual need and avoid wasted effort. The next question: Is this skill inventory a do-it-yourself project, or is it something that can be delegated to others? Depending on the total number of people being evaluated, it seems that a divide-and-conquer approach to the task would work best. Create a simple form, pre-filled out with each employee's name, the generic list of 10 to 15 skills being sought by your CEO, and a place to either check off the skill (yes they have it, no they don't), or provide a rating (such as 1 for rudimentary, 2 for intermediate and 3 for advanced, depending on how your CEO answered the questions above). Set a deadline and create a review process to make sure the inventories are done consistently. Finally, if this is an "all-skill" inventory, meaning you want to know all of the relevant skills everyone has, the process is largely the same. You still will need to find out the most important and relevant skills your CEO expects employees to possess, but this list will be longer. You may need to build or buy a generic "skill list" and narrow it down from there, but it's critical to get guidance from your CEO. I've been through large all-skill inventories, and while the information is interesting, it tends not to be used thereafter, unless the skill lists being collected are relevant to the work at hand and where the organization is headed.   [SOURCE: David Peck, Leadership Unleashed, San Francisco, August 29, 2006]

Q&A: How Do We Implement Career Management as Part of Succession Planning?

How Do We Implement Career Management as Part of Succession Planning?
	We are implementing a career-management framework to groom future leaders. What methodologies or best practices provide a clear road map?—Not Sure Where to Go, skills coach, finance/insurance/real estate, Sydney, Australia
	Basing a career-management framework on proven methods is indeed effective. However, consider some key questions before delving into specific practices. What is the ultimate objective for implementing your new system? Do you want to deepen your leadership "bench strength" and develop emerging leaders? Are you aligning organizational roles and competencies with strategic business objectives? What are your future workforce demands ( i.e., critical employee roles and competencies)? What external factors (i.e., market conditions) might affect talent availability or a shift in your business objectives? The answers will help you create a customized strategic workforce plan based on both current and future business requirements. Implemented effectively, your planning will match job roles, competencies, HR systems and business objectives, as well as define leadership behaviors and robust succession management. Here is how you create a successful framework: Involve top leaders and gain their commitment to growing talent, model the behaviors considered instrumental to the organization, and encourage others to do likewise. Link business strategy to talent requirements so your organization can execute on its three- to five-year business plan. Identify talent gaps and address them, such as development opportunities and recruiting needs. This is an opportunity to connect with employees and managers and gauge their views on critical talent gaps and development needs. Depending on the size of your organization, it can be done through on-the-job observation, informal interviews, employee surveys, and/or focus groups. Use a variety of developmental activities including mentoring, coaching, job rotation, traditional educational programs and formalized feedback processes. Don't be afraid to try new approaches to development, including 360-feedback, special assignments, action learning and Web-based educational activities. Create enterprise-wide, formal employee development plans that dovetail with your performance management cycles. Formally identify and track high-potential employees' performance through partnerships with executives and managers. Form a structured, ongoing process of objective assessment and focused development, including direct feedback. Ensure that tools, development activities and HR systems are integrated with and support core and leadership competencies. Although this is not an exhaustive list of key best practices, following these suggestions will assist you in creating a framework of tools and systems that engender a sense of engagement and collaboration with every employee.   [SOURCE: Tameka B. Moss, Capital H Group, Waltham, Massachusetts, September 12, 2006.]