ISO 30408 – Human Resources Management standards

Almost all companies in the world are aware that the heart of any organization is people. The human capital management system has a huge impact on the success of the entire company. With proper management of not only personnel, but all stakeholders, it is possible to achieve ambitious goals.

Human resource management primarily refers to the systems by which people in an organization are managed and held accountable. This area of organizational management is no less important than financial or physical asset management. By considering human and social factors in the decision-making process, a human capital management system leads to positive outcomes for all stakeholders – employees, business owners, shareholders, customers and even the community living nearby.

The ISO/TC 260 Technical Committee – a group of HR experts from around the world – has compiled a series of best practices to make it easier for managers to handle stakeholder management while working on the human resource management guidelines (included in ISO 30408). The task of standardized practices in the area of people management is:

• Responding and addressing regulatory, organizational and operational needs,
• Developing the organization’s culture and values,
• Ability to manage human resource risks & costs related to human resources,
• Improving the overall efficiency of the organization and improving the quality of other processes in the company,
• Supporting the company’s management system & effective communication between stakeholders,
• Improving the overall “work environment” and increasing employee job satisfaction.

Who is the ISO 30408 standard for?

ISO 30408 standards can be successfully used in any organization – regardless of size, sector (public, private), industry, for-profit or non-profit activity.

The role of the board of directors in the human resource management process

It is worth noting that effective human resources management requires commitment and coordination at all levels of the organization – not just the top one. However, it is at this highest level of management that the greatest responsibility rests. The commitment and good example of the organization’s top management sets the “right direction” for action, motivates and shapes management systems at lower levels.

What are the tasks of the board of directors in human resources management?

ISO 30408 identifies four main tasks facing the board.

Board of directors should:

1. Understand the role of people in the organization and delivering their value to the organization.
2. Be formally committed to promoting effective HR management.
3. Monitor the human resource management system and take appropriate action when problems arise.
4. Be responsible for human resource management.

What are the tasks of top management in human resource management?

Top management should:

1. Encourage the involvement of people at all levels of the organization in company matters.
2. Define their responsibilities and their role in effective human resource management.
3. Commit to the organization’s values, as well as to creating the organization’s mission and vision.
4. Regularly review the results of the effectiveness of the human resource management process (this process should be measured).
5. Identify key performance indicators (you’ll learn more about them in this article) in the area of human resource management (such as, for example, employee turnover rate, innovation, absenteeism, overtime, recruitment costs).
6. Develop an action plan in case of significant deviations on the way to achieving the set goals.
7. Support and coordinate cooperation among stakeholders.

What are the roles of operations management and HR in human resource management?

Operations management should:

1. Understand its responsibilities and role in the human resources management process,
2. Participate in defining goals and setting performance indicators to evaluate the effectiveness of the people management process,
3. Integrate principles and goals with operational human resource management activities.

Human resource (HR) management should:

1. Ensure that the organization’s practices are consistent with the organization’s external and internal principles and values,
2. Ensure that the human resource management process is in place and functioning appropriately at all levels of the organization,
3. Understand the principles of human management,
4. Control the organization’s people management processes and be responsible for overseeing them throughout the organization,
5. Be competent and responsible for the HR role in their organization.

How to check the effectiveness of the human resource management process?

The authors of ISO 30408 have prepared a list of questions to make a preliminary analysis in assessing the effectiveness of an organization’s people management system.