Audit of the human capital management system in a recovery company in Cuba

The research was carried out at the Ciego de Ávila Raw Materials Recovery Company, with the aim of designing an Audit Program for the Integrated Human Capital Management System, which is adjusted to the new existing conditions and regarding good treatment and development. of the man within the entity, protected by the family of Cuban Standards (NC) 3000/2007 (3001-3001). This brings about the change of old structures and definitions of any activity, process or system that an entity executes.

The program designed becomes an important element for the managers of the entity of an instrument that makes it possible to diagnose, control and evaluate the Integrated Human Capital Management System.

SUMMARY:

The research was conducted in the Company Recovery of Raw Materials of Ciego de Avila, in order to design an audit program to the Integrated Management System Human Capital, that new and existing setting conditions relating to good treatment and development man within the entity, protected by the family of Cuban Standards (NC) 3000/2007 (3001-3001). This brings change old structures and definitions of any activity, process or system running an entity.With the implementation of the designed program could know the weaknesses and shortcomings which disturb human capital management in the state and in turn make a number of recommendations aimed at minimizing or eliminating the impacts resulting from them.

It designed the program becomes an important managers of the institution of an instrument that enables diagnose, monitor and evaluate the Integrated Management System Human Capital element

Introduction:

The fate of any organization depends largely on its Human Capital, if its members are capable, they can successfully face the competition and make the most of the technical and material resources available, which is valid for any type of organization. then it can achieve its objectives.

The rapidity of the economic, political and social changes that are currently operating in the world, such as globalization processes, new approaches to the market and production, the development of information technology, among others, make companies find themselves in an increasingly complex situation. In this context, companies need to adapt and anticipate this environment in terms of establishing strategies that allow them to survive and further develop. The situation described also concerns Cuba, which is immersed in the process of forming a new socialist economic model called Business Improvement, which has as fundamental pillars to maximize the efficiency and competitiveness of companies, based on grant you the powers and establish the policies,principles and procedures that promote the development of initiative, creativity and responsibility of all managers and workers.

Through Resolution No. 146 dated September 25, 1984, issued by Irma Sánchez Valdés in her capacity as Minister President, the Ciego de Ávila Raw Materials Recovery Company (ERMPCA) was created, with its own legal personality, which It is integrated into the Union of Raw Material Recovery Companies, subordinate to the Ministry of Industry, authorized by Resolution No. 157 dated February 23, 2005, issued by the Ministry of Economy and Planning. This entity located on Calle F s / n% 7 and 14, Canaleta distribution, It operates under the principle of business self-financing, so it must not only cover its expenses with its own income, but must also generate a profit margin. The Company for the Recovery of Raw Materials in Ciego de Ávila is characterized by being an economic organization, with its own legal personality, with an independent financial balance and autonomous economic, financial, organizational and contractual management, which is created for the technical, economic and commercial management, which must be achieved with the greatest economic efficiency.

The corporate purpose of the company, approved since its creation by Resolution No. 157 of the Minister of Industry is as follows:

• Recover, process and market in a wholesale way all kinds of waste, packaging, articles, equipment and others that are generated in the industrial, commercial sphere and products, in services, in social consumption, that can be reused in the economy as materials secondary premiums in national currency and currencies, according to nomenclature approved by the Internal Trade. Offer specialized collection, distribution and transportation services for all types of recycled products; as well as dismantling of industrial, commercial and service facilities in national currency and foreign currency. Collecting raw materials from the population, exchanging with these products, complying with current regulations.

Due to the importance of Human Capital Auditing in organizational development, this research covers issues related to Integrated Human Capital Management Audit in the Ciego de Ávila Raw Materials Recovery Company.

Materials and methods:

To carry out this research study, different scientific research methods were used, such as:

M ethod historical and logical: to deepen the regularities and qualities of the object of study, as well as the experience of the work done concerning the related information with Human Capital Management, its background and historical development.

Analysis-synthesis method: it is manifested in the way of studying in isolation the different phases identified in the management of Human Capital registered in the Cuban Norms (NC) 3000/2007 and his family (3001-3002).

Heuristic method : consultation with specialists related to the management of Human Capital considered of great utility for the development of work. The consultation with specialists represented a valuable source of information that allowed knowing the characteristics of the entity and the object of the study.

The research techniques used to carry out this work consist of bibliographic review, observation, analysis, consultations and specialist criteria, in addition to computer techniques without which it would not have been possible.

Development:

The Ciego de Ávila Raw Materials Recovery Company prepared the Strategic Planning until 2017, being approved by the Board of Directors, the Mission that identifies respectively its reason for being, the future for which it competes and the basic lines of action.

MISSION

The Ciego de Ávila Raw Material Recovery Company profitably guarantees the recycling of ferrous and non-ferrous, non-metallic metallic raw materials, electronic scrap and packaging, recovering them through the population and state entities to To satisfy the existing needs in the national industry, substituting imports and preserving the environment, we have solidarity, sensitive and identified workers with the revolutionary ideology. of scrap metal by rail.

VISION

The Ciego de Ávila Raw Materials Recovery Company is a perfected growth organization that continues to replace imports and has optimal levels of liquidity and solvency. The contractual relationships they establish are of total benefit to the organization. The technology of hoisting, oxyfuel and transportation is cutting-edge and computerization and communication techniques have gained popularity in the Company. The quality of the products that are recycled is certified. The entity has an organizational structure made up of:

• General Management

At the executive levels attached to the Management are:

• Management Center, Security and Protection Group, Commercial Management, Production Management, Supervision and Control, Human Resources, Economics and Technical Management.

At the functional levels attached to the management are:

• Insurance and Services Units, Transportation, 10 Municipal Offices and the Cayo Coco Tourist Center.

The company has 339 approved positions, of which only 334 are covered for 98.5% of the total workforce, broken down as follows:

• Leaders: 8 Technicians: 29 Services: 6 Operators: 291

The Human Capital Management Directorate is made up of 8 key job positions, defined as follows: a Director, whose objective is the control, supervision and decision-making of all the elements that make up this activity, a Protection Specialist and Occupational Hygiene (PHT), one Panel Specialist, two Labor Resources Technicians, two OTS Technicians and one Training Technician.

The behavior of each of the subsystems or activities that make up Human Capital within the entity is detailed below.

• TRAINING

Training is one of the main investments made in an entity, because its objective is towards the future, while investments in tangible assets are the present.

This approach to training is not limited to the traditional conception of the incorporation of workers into higher education courses, this should not be confused with stopping working to dedicate themselves to studying, but applying it as a new concept of employment, it should be achieved that each worker according to his possibilities and voluntariness is overcome regardless of the job he occupies, the goal is for the entity to become a lifelong learning company.

Currently, there are a total of 66 workers, of whom 23 do not meet the Formal Qualification requirement to occupy the job, highlighting that there is no unsuitable worker due to both a broad profile and standards of conduct.

• Employment and Income

In this process, the entity has an Expert Committee for the selection and integration of any worker, always having a personnel registry that characterizes its workers in terms of their general identification data, instruction, training received, experience, career in the organization, job performance and other skills data, allowing to locate or classify the most suitable applicants to fill vacancies. The company applies as a basic principle for the selection of a candidate, as well as for its integration (income, permanence, promotion, training and development) the demonstrated suitability that includes the comprehensive analysis of requirements, such as the formal qualification necessary for the position, carrying out the work with the required efficiency, quality and productivity,compliance with the rules of conduct of a general or specific nature and the personal characteristics required in the performance of certain positions.

At the same time, it makes an assessment of the workers from the political, economic and social point of view and not only from the interests of production to achieve an impact on efficiency as well as on improving the climate, satisfaction and work motivation..

• Work Organization

For this activity, the company hired the advice of the Provincial Institute of Labor Studies (IPEL) to carry out the Work Organization studies, in which the fundamental activities are selected, in which the key jobs are located, which are those that allow to fulfill the production plan.

• Security and health

The non-occurrence of accidents is a fundamental objective of Occupational Safety and Health, since in addition to guaranteeing safe conditions for each job, individual and collective protection means were provided to achieve these results.

The non-occurrence of accidents becomes an indicator that contributes to the increase in the Accrued Salary due to the fact that the company is included in the Payment by Results System and Production levels have increased considerably, which implies an increase in wages with productive support.

• Performance evaluation

The annual performance evaluation governed by the ministerial provisions in force in compliance with Resolution 21/2007 of the Ministry of Labor and Social Security (MTSS) is applied to all workers, in which all workers must obtain more than 70 points. that gives the average of adequate or superior work performance according to the established parameters.

• Payment system

Payment by results constitutes the main form of remuneration for work in the business activity applied by the Business Improvement.

This system is applied with the objective of increasing productivity, raising the utilization rate of equipment, decreasing costs, increasing production and services, obtaining the profits provided for in the plan, improving the use of the working day and complying with the contributions in Cuban convertible pesos planned to the Central Bank or to the reserve, where applicable, among others.

• Attention to Man:

Among the main actions of the company is caring for men as a way of motivating work and improving the quality of life inside and outside the institution.

Regarding the main indicators of attention to men, it can be said that in general it behaved favorably, since all the growths are related to the growth of production.

Audit Program for the Integrated Human Capital Management System.

As part of the Business Improvement process carried out by the entity, a program is prepared to verify the Integrated Human Capital Management System according to Cuban Standards 3000/2007, constituting a tool for the work and with which it is complied with. to the proposed objective.

That is why it is necessary to verify this system through the objectives, normative references and procedures contained in the following program, which was structured for two fundamental aspects:

1. General Premises: the one that includes five (5) aspects related to the management of the entity for its workers and of these for their job position. Subsystems or Activities of the Integrated Human Capital Management System: related to nine (9) fundamental aspects.

Goals:

• Evaluate the Internal Control System that exists in relation to the activity, based on the fulfillment of the entity's objectives. Evaluate the integration and coordination of the elements that merge the Integrated Human Capital Management System for effective administration. Evaluate the degree of application and compliance with the established norms, as well as the laws and ministerial resolutions that govern the management of Human Capital and the regulations used by the entity.

Procedures:

General premises:

Strategic Orientation

1. Verify the elaboration by the company management, with the participation of middle managers and workers, the mission and the vision with the aim of promoting change. Verify that the problems and solutions with a strategic focus that the company has to face are identified. company in the next three years. Verify that the functions and responsibilities of the areas and workers that ensure product quality and satisfy customer needs are established. Verify that the company is organized with the flexibility to assimilate changes in production or services, by process, by products, in chains or other forms Verify that there is a work planning system.

• Effective Participation of Workers

1. Verify the level of participation of the workers in the direction and projection of the work of the company. Verify that the entity has a strategy of participation of the workers. Verify that the participation strategy is linked to the business strategy. Verify that they are The political, mass and social organizations of the company have been incorporated into the participation strategy. Check the level of information and economic education of the workers to participate in the direction and strategic projection of the company.

• Competence of Managers and Technicians who attend to Human Capital Management

1. Verify the organizational structure of Human Capital management Check the status of the person responsible for the Human Capital function Verify that the person responsible for the Human Capital function possesses the skills required for proper performance.

• Satisfactory Work Climate

1. Verify how the workers' sense of belonging is manifested. Verify how relations of respect and companionship are manifested between workers and between leaders and subordinates. Verify if effective attention to man is correctly expressed.

• Leadership in Human Capital Management

1. Verify the style and method of management of the company. Verify the relationship between management and the union and the support provided to their tasks. Check the priority given to Human Capital Management in the company.

Modules of the Subsystems or Activities:

Labor Competence:

1. Verify that the key job competencies of the company, the processes of the main activities and the workers are defined Verify that the key job competencies of the company, the processes of the main activities and the workers are identified and approved. Check the advantages in competency management in favor of quality, the reduction of defective productions and user satisfaction.

Work Organization:

1. Verify that studies are carried out aimed at improving the organization of work in the company. Verify that the analysis and design of the jobs are carried out to meet the objectives and business strategy. Verify that an adequate planning of Human Capital is carried out.

Selection and Integration:

1. Verify that the selection of personnel is carried out by job competencies. Verify that the personnel selection process is aligned with the entity's objectives and strategy. Verify that the company has an integration plan for the selected personnel.

Training and Development:

1. Verify that the training and development of workers is planned in accordance with the mission, vision and labor competencies. Verify that the quality of the training process contributes to improving the performance of the workers. Verify the socio-labor impact of training in the company. and workers.

Moral and Material Stimulation:

1. Verify that workers feel motivated to raise their returns and contributions to society Verify that there is a relationship between the income of workers and the results of efficiency, effectiveness and quality of work in the company Verify that moral and material stimulation contributes to the results achieved by the company.

Security and health at work:

1. Check that the identification and analysis of risks in the company was carried out. Check that there is an action plan to solve the problems of Occupational Health and Safety in the company. Check that Occupational Health and Safety is integrated. to the company's leadership and management system.

Performance evaluation:

1. Verify that there is a Worker Performance Evaluation process. Check the criteria that are required in the Performance Evaluation. Verify the actions carried out by the company with the Worker Performance Evaluation.

Institutional comunication:

1. Verify that there is a communication policy in the company Verify that the types of information conceived in effective business communication are defined Verify that the responsibilities of the members of the organization related to the communication process including the political and mass organizations are specified.

Self-control:

1. Verify that the self-control of Integrated Human Capital Management is defined in the company Verify that it is defined in relation to the self-diagnosis which level of the company approves it, who performs it, the frequency with which it is executed, the content and the evaluation of the results Verify that the self-control of the Integrated Management of Human Capital in the company allows obtaining a diagnosis of the existing situation.

Analysis of the results

The Management Audit practiced at the Ciego de Ávila Raw Materials Recovery Company (ERMPCA) in the period from September 17 to 21, 2015 was aimed at the exhaustive verification of the actions related to the Integrated Capital Management System Human in order to fulfill the research objective proposed in this work.

For a better performance of this audit, a rating scale was created so that the procedures designed for this purpose could be evaluated in a qualitative and quantitative way, and see the degree of compliance or non-compliance with the steps and processes that the entity must perform. generally in the good development and performance of its Human Capital.

So: Qualitatively

• Low Level: Referred to the low compliance or total non-compliance with the designed procedures. Medium Level: Given for those procedures that have a slight noncompliance but that do not determine the current performance of Human Capital Management and that enables a correction for the future. High Level: For those procedures that are totally satisfactory and without the need for improvement.

The evidence obtained with the application of the program designed for this purpose is set out below.

General premises

As a result of the application of the Audit Program, it was possible to verify that there are deficiencies which were evaluated according to the behavior of each one as a High, Medium or Low Level, as appropriate, which we offer in detail for each of the General premises to take into account in the correct implementation of the Integrated Human Capital Management System.

Strategic Orientation.

It was verified that the entity adopts the strategic decisions based on the updated mission and vision with the consensus of the middle managers and workers. (High level)

1. The problems to be faced in the next three years have been identified and solutions with a strategic focus remain to be defined. (Medium Level) Neither the roles nor the responsibilities are defined. (Low Level) There is a hierarchical and rigid organization. (Low Level) Work and general activities that are carried out in the company are planned. (Medium level)

Effective Participation of Workers.

1. Workers participate when consulted, providing initiatives to solve problems of production or services. (Medium Level) There is a short-term and medium-term participation strategy and it is applied to promote participation based on strategic objectives. (High Level). Participation is promoted conjuncturally, depending on needs, problems and situations. (Low Level). Political and mass organizations are integrated into the participation strategy. (High Level) They have a weak economic education that is expressed in the lack of information and knowledge on how to achieve economic efficiency and quality in the production and services they provide and waste of financial, material and fundamentally energy carriers. (Low level).

Competence of the Leaders and Technicians who attend to the Management of Human Capital.

1. The Human Resources activity is part of the first level of management of the company. There is a department for your attention. (Medium Level) There is a director of the Board of Directors in charge of the attention of the Department or Human Resources Area, with a functional approach. (Medium Level). Has mastery of the traditional management of Human Resources but does not have the knowledge, techniques and tools for its integrated management. It does not have full command of the financial, technological and organizational capacities of the company. It enjoys recognition in the labor and management community. (Medium level).

Satisfactory Work Climate.

1. There is a sense of belonging in the workers of the processes of the main activities and it is weak in that of the support processes. Companionship relations prevail and unity of the labor group and fraternal relations are achieved, of respect and cooperation between boss and subordinates. There are economic-financial difficulties, there is concern for the improvement of the living and working conditions of the workers, their participation in the life of the center and the stimulation for the contribution they make.

Leadership in Human Capital Management.

1. The style and method of management of the entity does not show a significant balance since the main feature is exemplary and participatory work style, without implying political and mass organizations in making strategic decisions in accordance with the mission. and vision. (Medium Level) The excellent systematic cooperation relationships of the management with the union organization in the company were confirmed. (High Level) The activity of personnel is conceived, in support of the business management system. (Medium level)
   • Human Capital Activities.

In the evaluation carried out on the main activities of the Integrated Human Capital Management System, the results achieved are shown below.

Labor Competence.

1. The key job competencies are at a medium level of definition in which only the high profile qualifiers and the principle of demonstrated suitability are applied and the gap of knowledge and skill needs of each worker is identified according to the requirements of the position of work it performs. (Medium Level) The key competences of the company, of the processes of the main activities and of the workers are not identified, only the suitability of each worker is established by commissions chaired by the director of the center. (Medium Level) The advantages in the management by competences in favor of quality are remunerated for the quantity and quality of the work. It works in the reduction or elimination of defective productions. Quality management begins. (Medium level)

Organization of work.

1. It was verified that work studies are carried out with a functional approach to increase productivity and the results are applied with the participation of workers, without meeting the objectives and key competences of the entity. (Medium Level) On the other hand, the analysis and redesign of the jobs is carried out and the qualifier with a broad job profile is applied, without taking into account the job skills profile of the jobs to guarantee their contribution to compliance. of business objectives and strategy. (Medium Level) Another analysis carried out showed that Human Capital is planned with a short, medium and long-term focus, to attract workers with the required skills and suitability that make it possible to obtain maximum efficiency, maximum productivity,with a rational use of human capital through load and capacity balancing, and optimization of staff. There are no surplus workers and the workers show versatility and multi-function. (Medium level)

Selection and Integration.

1. Personnel selection is made based on the broad profile qualifier. The Department of Human Capital carries out the selection process taking into account the labor file, the experience declared by the worker, the results of the trial period. The role of the Entry Committee or the Committee of Experts is formal in relation to the approval decision of the candidates. (Medium Level) Personnel selection is made to fill vacant and newly created positions, but is not aligned with the objectives and business strategy. (Medium Level) There is an activities program for the reception of workers incorporated into the collective, which is executed by the direct boss together with the political and mass organizations. There is fluctuation in the labor force,Labor relations violations occur. (Medium level)

Training and Development.

1. A diagnosis of each worker's improvement needs is made to close the gap between the knowledge, skills and aptitudes they possess and the requirements of the position they carry out and the demonstrated suitability. (Medium Level) The quality of the training process does not contribute to a greater extent to raising the actions of workers since it is aimed at closing the gap arising from the diagnosis of needs, as a result of the wide profile of the job position and suitability or not, demonstrated, without bearing in mind that this is the way par excellence to materialize the individual development program prepared as a result of the evaluation of the performance of each worker. (Medium Level) It contributes to suitability, to improving individual and collective performance and to raising productivity and quality. (Medium level)

Moral and Material Stimulation.

1. The workers express that the remuneration and moral acknowledgments do not correspond to the effort and the results achieved. All the workers and leaders have linked the income to the results of efficiency and effectiveness. The same relationship with quality is not reached. The companies that apply the Business Improvement receive a higher income than the rest, because they receive a higher income for an additional payment for showing greater efficiency, organization and discipline., the quality, the development of the skills and the income of the workers. (High level)

Security and health at work.

1. The identification of the risks was carried out although the dangerousness has not been evaluated. The company's strategy does not consider Safety and Health at Work as a priority. (Medium Level) In the verification carried out, it was shown that there is a risk prevention plan, although it is not aligned with the business strategy. A reactive approach prevails to reduce or eliminate the accident rate. (Medium Level) In detail, it was analyzed and verified that Occupational Safety and Health is carried out independently of the company's leadership and management system, this being the lowest indicator of this activity and of the actions of Human Capital, so that one way or another this procedure is not fulfilled in the entity. (Low level)

Performance evaluation.

1. Only the Performance Evaluation of the Technicians is carried out. (Low Level) The results achieved are measured based on the defined rules that allow promotion and sending to courses. (Medium Level) It was verified that the actions developed by the entity with the Performance Evaluation of the workers present progress steps but without reaching the maximum in which all workers are evaluated, except the leaders. The performance evaluation serves for the permanence, promotion and sending to courses of the workers. There is no integration between performance evaluation and business strategy. (Medium level)

Institutional comunication.

1. There is a low communication policy in the company that is not aligned with the mission, vision and its strategic objectives, so it does not contribute to the participation of workers and the development of work skills that makes possible the integration of Capital management. Human with the strategy and objectives of the company. (Medium Level) The types of information conceived in the entity are defined and applied operationally. In turn, these are not aligned with the mission, vision and strategic objectives of the company, therefore limiting their operation. (Medium Level) They are specified for all workers although only managerial positions are controlled. Political and mass organizations are incorporated but do not participate in the process in a planned way. (Medium level).It is not defined. (Low Level) The self-diagnosis of Human Capital is approved by the person in charge who manages this department and does not respond to a planned activity. It is done to control the results of some specific activities. (Medium Level) Has diagnosed the existing situation in relation to different activities of human resource management, but not of integration with business objectives and strategy. (Medium level).but not of integration with business objectives and strategy. (Medium level).but not of integration with business objectives and strategy. (Medium level).

CONCLUSIONS:

1. The entity under study needs a tool that allows it to control and supervise the Integrated Human Capital Management System endorsed by the Cuban Standard (NC) 3000/2007 and its family (3001/3002). To evaluate this System in the Company Recovery Program for Ciego de Ávila Raw Materials, an audit program was drawn up to determine the degree of application and compliance with the controls established in accordance with Cuban Standards 3000/2007. With the application of the designed program, the situation existing in the entity in terms of the implementation of the Integrated Human Capital Management System and, based on these results, prepare the corresponding Plan of Measures to eliminate the shortcomings of the System as soon as possible.The program designed for this purpose becomes an important tool that will guide the Center's Directorate, the Supervision and Control Directorate and the Human Capital Management Directorate in the effort to assume this new standard regarding the Integrated Human Capital Management System.

BIBLIOGRAPHY:

• NC ISO 9000: 2005, Quality Management System-Foundations and vocabulary NC ISO 9001: 2000, Quality Management System-Requirements NC ISO 9004: 2000, Quality Management System-Guidelines for performance improvement. NC ISO 14001: 2000, Environmental Management System-Specifications with guidance for its use. Resolution No. 31/2002 of the Ministry of Labor and Social Security (MTSS) - Occupational Risks. NC 18000: 2005, Safety and Health at Work-System of occupational safety and health management- Vocabulary.NC 18001: 2005, Occupational Safety and Health-System of occupational safety and health management- Requirements.NC 18002: 2005, Occupational Safety and Health-System of occupational health and safety management-Guidelines for the implementation of NC 18001.NC 3000: 2007,Integrated Human Capital Management System - Vocabulary NC 3001: 2007, Integrated Human Capital Management System - Requirements NC 3002: 2007, Integrated Human Capital Management System - Implementation Resolution No. 21/2007 of the Ministry of Labor and Social Security (MTSS) - Performance Evaluation. Regulation for the Performance Evaluation 2015 of the Ministry of the Iron and Steel Industry (SIME).

Download the original file