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Chapter 2:22 Core Knowledge Requirements for HRProfessionals
As we discussed inChapter 1,“Certifying Human Resource Professionals,” the BOK for HR consists of  six functional areas plus the core knowledge requirements. These core areas have been identified asknowledge and skill capabilities that are essential to competency as an HR professional. Because each of these knowledge areas may have implications for practice in two or more of the HR functional areas, I amintroducing the basic concepts in this chapter. These introductions are brief, designed only to provide arefresher for each of the concepts.
1. Needs Assessment and Analysis
Needs assessment and
needs analysis
 are terms used interchangeably to describe methods for obtainingthe information necessary to make decisions that will best accomplish an organization’s goals. Thesemethods can measure needs in any area of business; in HR they are often employed in the areas of training and development, staffing projections, and benefit planning, but they can be utilized to gather information for any program.There are many models for needs assessment. The common elements involve the following steps:1.Describe the objective.This step answers the question, “Where do we want to be?” and looks at the various elementsnecessary to accomplish that objective. It is important to obtain relevant information from all thepossible stakeholders to ensure a full understanding of what is needed, as well as to ensurebuy-in when recommendations are presented. In developing the objective, consider elementssuch as strategic business goals, department goals and objectives, budget constraints, availableresources, and any other factors that impact the situation. These include the people, skills, or materials necessary to meet the objective.2.Define the current situation.This step answers the question, “Where are we now?” and looks at each element described inStep 1 to determine what is already available within the organization and create an inventory of skills, people, equipment, technology, and whatever assets are already in place.3.Conduct a gap analysis.A
gap analysis
 compares the objective to the current situation and results in a list of people,actions, or items needed to attain the objective described in Step 1. As part of this process, it’simportant to gather as much information as possible about the gaps so that they are clearlyunderstood and to identify any constraints that may inhibit efforts to close them.4.Set priorities.In a world of limited resources, it may not be realistic to expect to go out and obtain everythingthat is needed to fill all of the gaps immediately. Prioritizing identifies the gaps most critical toachieving the objective and focuses on closing them first.5.Investigate and develop options.This step answers the question, “What is the most effective way to fill this gap?” Be as open-minded as possible when developing options and collect data from as many sources as areavailable. Involve others in brainstorming sessions as appropriate and look for ways in whichsimilar needs have been met in and outside of the organization.6.Evaluate options and determine budget impact.Determine which of the possible options will be the most effective way to fill the gap. A crucialelement of this step is the cost of implementation. It is important to consider both direct and
 
1.Need Assessment andAnalysis2.Communication skills &strategies3.DocumentationRequirements4.Adult Learning Processes5.Motivation Concepts6.Training Techniques7.Leadership Concepts8.Project ManagementConcepts9.Diversity Concepts10.Human Relations Concepts11.HR Ethics & ProfessionalStandards12.Human ResourcesTechnology13.Qualitative & QuantitativeAnalysis14.Change Management15.Job Analysis & Description16.Employee RecordsManaement
 
indirect costs: the impact on the company’s bottom line in the short term, as well as the returnon investment (ROI) and long-term costs and savings. Another budgetary consideration is thecost of not implementing the option: in the long run, will it cost more or less to operate without it?7.Recommend solutions.Whether you or someone higher in the organization is the final decision maker, it’s important todocument the reasons for selection of a particular solution.
Third-party Contract Management
A
contract 
 is a legally enforceable agreement between two or more parties in which all parties benefit insome way. Generally, one party makes an offer to do or provide something of value (a product or service),and the other agrees to do or provide something in return (payment). Contracts can be formal or informal,oral or written. While an oral contract can be legally enforceable, written contracts provide more protectionfor the parties involved.In a 
third-party contract 
, some part of the transaction is provided by an entity other than those who havesigned the contract. There are many examples of third-party contracts in business; perhaps the bestknown for HR professionals is an agreement with a temp agency in which the company agrees to pay thetemp agency for services provided by an employee of the agency. As an increasing number of HRfunctions are outsourced, the need for practitioners to understand the issues involved in effectivelymanaging third-party contractors becomes more important. A critical factor for a successful contractor relationship is a clear understanding of the product or service to be provided, along with clearly definedexpectations for quality and service levels. This information is best communicated through a processknown as a 
request for proposal (RFP)
.In many organizations the RFP process is handled by a purchasing group or is outsourced to someonewho specializes in preparing them, but it’s important to understand what information is needed to developan RFP that satisfies both parties. A well-constructed RFP serves as the basis on which the product or service is obtained, a guide to ensure that the delivery meets the organization’s requirements, and ameans of evaluation at the end of the project.While there is no standard RFP format for use in all situations, the elements for developing one aresimilar.
Conduct a needs assessment
Whether you are requesting bids for a one-time project or an ongoingoutsource relationship, you must be able to describe your objectives and budget clearly so that vendorswill provide an accurate and appropriate proposal.As part of the needs assessment process, a client may conduct informal “pre-proposal” meetings withpossible vendors. This is particularly useful when the client has little direct experience with the project or wants to learn more about the product or service in order to describe it more clearly in the RFP. This issometimes known as “scoping” the project, and can become a more formal process with the use of ascoping document that solicits information from a variety of possible vendors before the RFP is written.
Developing the RFP
The format of an RFP varies with each organization. In general, the followingcomponents are included:1.A brief description of the organization, including information that will help vendors provide anaccurate bid, such as number of employees, locations, and so on.2.An overview of the project summarizing what is needed.3.Administrative details about the process, including submission deadlines, how to request anextension, the format requirements for submissions, and what happens if there are errors or omissions in the RFP. Information about how the proposals will be evaluated should be includedhere as well (for example, will the project be awarded to the lowest bidder or will other criteria be
 
more important?). Any penalties for late delivery and how to handle work that is beyond thescope of the RFP are included here as well.4.A clear, complete, and detailed description of the project (also known as the scope of work,technical description, or project specifications) that contains information significant to the abilityof the vendor to prepare a bid and that can be measured during the evaluation phase.5.The name of the contact person for additional information about preparing the proposal.
Proposal formats
As per Step 3, the RFP provides vendors with a format to follow when submittingproposals. This serves two purposes. First, it makes an evaluation of the proposals easier, and second, itensures that vendors provide all the relevant information for an evaluation of the project. While the formatwill vary between organizations and different projects, the following elements will make it easier tocompare and evaluate the proposals:
Executive summary
A brief overview of the vendor’s qualifications to provide the product or serviceneeded by the client.
Vendor qualifications
Includes references from other clients.
Project management plan
Describes specifically how the vendor intends to supply the product or service.
Project team
Includes personnel who will be supplied by the vendor as well as the client’s employeeswho will be involved.
Roles and responsibilities
Includes information about members of the project team.
Delivery schedule
Provides a timeline and milestones for the completion of specific events.
Pricing information
Includes how the project will be billed and whether it is based on project completion,time and materials, or completion of specific milestone events. The vendor should also provide pricinginformation for any requested work that is beyond the scope of the proposal.
Evaluate the proposals
Once the proposals have been submitted, the evaluation process can begin.There are many factors to consider, including the reputation of the vendor, the qualifications andexperience of the project team, the size of the company and whether or not it has the capability tocomplete the project, how flexible the vendor can be in terms of schedule or other issues, the proposedcost, whether the schedule submitted meets the needs of the organization, and whether the vendor’sapproach to the project is compatible with the organization’s culture.
Select a vendor 
When the evaluation has been completed, notify the successful vendor, along with thosewhose proposals were not accepted.
Negotiate the contract
Formalize the agreement and sign a contract with the successful vendor.
Execute the agreement
Implement the project. Initially, gathering together all the members of the projectteam, both those who work for the vendor and those who work for the organization, is important to ensurethat the project gets off to a good start. It is also important to maintain contact with the vendor during theimplementation phase to ensure that it stays on track and meets your expectations.
Evaluate the project
Whether this is an ongoing outsource function or a one-time project, an evaluationensures that the project continues to meet organizational needs and provides useful information for futureprojects.
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