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1、HR DIGITAL TRANSFORMATIONTHE PRACTICAL GUIDE2IntroductionEmbracing transformationFrom automation to AI,HRs work is increasingly digitalized.This frees up time for HR teams to move from mundane and repetitive tasks to more productive and value-adding ones.It allows HR to become a key driver in solvin
2、g pressing business problems.However,leveraging digital in HR is not as simple as implementing a few technologies here and there.It is a complicated process that requires time,effort,and resources.So how do we approach a project of this magnitude?Lets find out!2How to use this guideEvery organizatio
3、n engaging in digital transformation will go through six stages of transformation.At each stage,there are six key components of Digital HR for you to consider and address.In this guide,well take you through each transformation stage and describe concrete action points to improve on every component o
4、f Digital HR until you have successfully transformed your organization.Good luck!3The six stages of Digital HR TransformationStage 1.Business as UsualHR acts on the belief that current solutions will remain relevant in the future.Page 6Stage 2.Present&ActiveVarious experiments throughout the organiz
5、ation drive literacy&creativity.Page 13Stage 3.FormalizedExperimentation becomes intentional&there is more support from leadership.Page 20Stage 4.StrategicMultidisciplinary project teams execute most digital HR initiatives.Page 27Stage 5.ConvergedA dedicated team guides digital support of HR strateg
6、y&operations.Page 34Stage 6.Innovative&AdaptiveDigital transformation becomes a continuous process.Page 414Each stage has six componentsTogether,these six components form the foundation of your successful digital transformation.Strategy&Leadership With a strategy in place,you can put all of your dig
7、ital HR activities under one umbrella with a shared vision.Encourage your HR leaders to lead by example and stimulate experimentation.HR Technology Technology isnt an end in itself.What is important is that your selected HR technology supports your main business priorities,both within HR and beyond.
8、InnovationA culture of(digital)innovation is essential.You will need an agile HR function,a thought-out plan for acquiring and developing digital solutions,and a culture that fosters innovation.HR ProcessesA successful transformation requires automating HR processes.This will not only save you time,
9、but also reduce complexity and errors,and improve your EX.PeoplePeople can make or break your digital transformation.You need people with specific skills,guided by strong leadership,who can collaborate effectively for the project to be successful.Data&AnalyticsData will be a cornerstone of your digi
10、tal transformation.Having access to(real-time)HR data is essential for making informed decisions about the organization and its people.5STAGE 1 Business as UsualRight now,your HR function might still see technology as a supporting element in their work.Many team members probably believe your current
11、 solutions will be in place for the near future.Strategy&leadershipYour first step is to start building awareness with leadership and other key stakeholders on the need for change and a shift towards digital.You can use inspiration to get them on board while also creating a sense of urgency.Tips Inv
12、ite an inspirational outside speaker,such as an expert from another organization or a consultant.Organize a brainstorm on digital HR focusing on whether digital transformation is something your organization needs to be aware of.6Stage 1.Business as Usual7Current situationAt this stage,technology bar
13、ely has any impact on business and HR processes.Your HR technology landscape is most likely scattered.Point solutions are not connected to the HRIS.What should happen HR technology is most valuable when it connects to business needs.Therefore,make sure your technical infrastructure supports your peo
14、ple in their journey through your organization to reduce challenges your workforce faces.HR technologyStage 1.Business as UsualTips Assess the current HR technology landscape on its ability to support the business on people challenges.Encourage incremental improvements where possible&pilot new innov
15、ative solutions.Interview key HR tech users to understand the current match of HR technology to business needs.Hire an external expert to benchmark current business needs and determine HR tech fit-gap.8There is no one-size-fits-all solution for digitizing an HR department.To find what works best for
16、 your organization,youll need to adopt an experimentation mindset and learn to test different solutions.Tips Talk to co-workers from other departments or people outside of your organization who are already experimenting with innovative methods(agile working,lean,or design thinking)and technology.Be
17、specific on your quest for knowledge and advice.Identify why innovation is important within your organizational context.InnovationStage 1.Business as Usual9How to improveHaving HR processes is key to streamlining and standardizing employee-related functions.Ideally,these processes should work flawle
18、ssly to create a positive employee experience.When you begin with digital transformation,your HR processes are probably not yet streamlined or standardized.To get a clear view of where you stand,you can create an overview of your HR processes and assess their level of formalization and standardizati
19、on.After that,you can see if there is potential to digitize standard processes and improve your employee experience.TipsWrite down the HR processes present in your organization,then go through the steps needed to complete these processes.Discuss this result with IT and brainstorm on possible(digital
20、)improvements.Seek help from domain experts in your organization for this and an HRIT expert(internal or external).321HR processesStage 1.Business as Usual10 How to improveChange doesnt happen in a vacuum so its important to get the buy-in of key people within your organization.You can start talking
21、 to a small group of potential change agents to build enthusiasm for digital transformation.At the same time,see if you can gather people with digital capabilities to start experimenting.Tips Organize meetings with people inside your team with digital capabilities.Discuss and note any first ideas on
22、 integrating new digital HR elements in HR strategy and operations.Use these ideas as talking points in the session with leadership(see“Strategy&Leadership”on page 7).Talk to people in your network who might be interested to join the team.PeopleStage 1.Business as Usual11How to improveTo make accura
23、te decisions about which HR processes to improve,youll need reliable data.Your first step is to assess your current HR data availability and quality.After that,you can gather reporting and analytics requirements from the business.Discuss this with HRIT and HR analysts to see what you need to do to i
24、mprove on data and reporting.Tips Work with an HRIT expert(or system administrator,or external IT or data analytics expert)to go through data fields and perform a high-level assessment on data availability and quality,which can be high,medium,or low.Interview business stakeholders to identify curren
25、t reporting and analysis needs.Brainstorm with domain experts to identify data and analytics that would improve people processes and business impact.Data&analyticsStage 1.Business as Usual12STAGE 2 Present&ActiveAt this stage,you will probably notice different pockets of experimentation driving digi
26、tal literacy and creativity in your HR organization.Some people connect over their shared passion for innovation and try to experiment together.Identify a critical business area that needs to change to create clear value for the organization.Partner with corresponding business management to test the
27、 case and work out the details.3Find an urgent people issue(e.g.a dramatic increase in absenteeism)and propose a digital solution.13How to improveNow that youve created awareness among leadership,its time to develop a shared vision on digital HR.Youll need to:Partner with leaders to experiment with
28、different digital solutions for key people challenges.Create enough buzz so executives take notice.A high-impact business case is an excellent way to do this.21Strategy&leadershipTipsStage 2.Present&Active14Start building a roadmap of HR technology for the future.This includes supporting standard HR
29、 processes using technology,data management,data integration,service delivery models,and reporting and analytics.Tips Create a document detailing the business needs and the needed HR technology.Discuss the possibility of replacing HR technology that doesnt meet the current(or future)needs.Involve at
30、 least business and IT stakeholders when designing the roadmap.HR technologyStage 2.Present&ActiveFind out which methods could benefit the HR department and the best ways to train the department on these methods.15TipsInnovationDiscuss the possibilities with leadership and partner up with L&D to cre
31、ate an option for everyone.AtosA strategy focused on transformationGradually introduce new methods and give people room to adjust instead of overselling it.Introduce a culture of experimentation within the HR department.Set up pilot projects to evaluate changes and find out what works and what doesn
32、t.Stage 2.Present&Active16How to improveTo redesign your HR processes,you need to start with identifying your key objectives,which could be:Excellent employee experience Process integration Business impact You will also need to find out which technology is best suited to meet the technical and funct
33、ional needs of your design.Tips Create a high-level employee journey map.Collaborate with domain experts,IT,and possibly external consultants to decide on the preferred employee experience,level of integration of processes,and potential improvements in business impact.Create ambition statements to p
34、lan gradual steps for improvement(e.g.fewer steps in the onboarding process,or shorter time-to-hire for key roles).Check with current vendors how these improvements can be achieved.Discuss options with new vendors if your existing HRIT landscape cannot provide what you need.HR processesStage 2.Prese
35、nt&Active17How to improveTo execute your desired improvements,you will need to train and/or attract people with digital capabilities,such as HRIT specialists,HR analysts,technical consultants,or software developers.Work with other departments to implement new approaches where possible.This could be
36、a data warehouse,a KPI dashboard,or collaboration tools.PeopleStage 2.Present&ActiveTips Hire 1 or 2 digital talents for short-term success(might be interim)&train selected few for future skills.Identify business issues&create an impact-effort matrix.Focus on high-impact,low-effort issues.Learn by d
37、oing&form a few multidisciplinary project teams to achieve small changes with big impact.18You can team with a data scientist from another department to create customized reports with key insights,or perform an advanced analysis on people data.Make sure to focus on actionable insights and data that
38、are crucial for decision-making.Tips Team up with a business manager and data analyst,and decide on a specific and current challenge they are facing.Collect relevant insights from a people perspective,and build a report with actionable insights.Identify what data is missing but is crucial for decisi
39、on-making and achieving better business results.18Data&analyticsStage 2.Present&Active19STAGE 3 FormalizedThis stage is all about intentional experimentation.You will notice initiatives becoming bolder,which requires executive support for new resources and technology.20Support from executive leaders
40、hip is crucial at this stage to gain access to resources to start building a formal digital HR strategy.Make use of internal and external examples to get the resources you need.After that,its time to start transforming your HR operating model to your desired new situation.TipsUse examples to make a
41、compelling case for resource allocation.1Strategy&leadershipIdentify relevant stakeholders and sponsors.2Be specific about what you need from leadership and why.3Create a rough timeline for clarity.4Stage 3.Formalized21How to improveIts time to buy and/or build new technological solutions to replace
42、 legacy systems.When you select replacements,make sure to be specific about business and user requirements before deciding on your exact strategy.If youre implementing key technology,consider working with an implementation partner.Dont forget to keep experimenting with new tools!This is how you can
43、improve collaboration,dashboarding,employee experience,and project management.Tips Be specific about business and user requirements if you want to replace or buy new technology.In large key technology replacements,choose a capable implementation partner.Make sure to be precise about data requirement
44、s and data collection protocols for every technology replacement or addition.This can affect the future functionality of your tools.HR technologyStage 3.Formalized22How to improveAt this stage,youll need to start thinking about how you can integrate innovation into the work of your department.Tips F
45、ormalize methods that work for your department.Enable specific teams to act as change agents by training them on a selection of innovation methods.Be clear to your trainees why its useful to learn this new method.For example,explain that design thinking will help you be more creative in your recruit
46、ment strategy.Prepare yourself for change.Youll need to build a powerful coalition to gain support from your team.Dont forget to communicate your message and plan short and long-term wins!InnovationStage 3.Formalized23Tips Continuously measure process efficiency and employee experience by analyzing
47、system data and the time necessary to complete each step.Regularly discuss process efficiency and impact with domain experts and managers:Where do they think improvements can be made,and how can automation help?Communicate and train people involved in the process to execute the new and improved proc
48、ess properly.How to improveStart systematically cleaning up HR processes.This means youll need to:Eliminate non-essential time-consuming steps.Automate essential time-consuming steps(if technologically possible and permitted by privacy laws).From there,you can continuously assess the employee experi
49、ence and implement potential improvements.HR processesStage 3.Formalized24How to improveOnce you have a clear understanding of the digital skills gap in your organization,its time for action.Start building new training programs to improve digital literacy.Make sure your colleagues understand and can
50、 apply these new skills.If there are certain skills you cant train for in your organization,identify what digital expertise you currently have and what you will need to outsource or hire new people for.Tips Identify the skills gap.Train for digital expertise,design thinking,and customer-centricity t
51、o enable people to get the most out of technology and innovation.Explain and communicate the added value of these digital skills for the organization and the employees.Actively build data skills among your strategic HR Business Partners.Implement data practices and awareness to promote consistent hi
52、gh-quality data(entry).24PeopleStage 3.Formalized25How to improveYou can create a service delivery model to deliver HR information,insights,and advanced analyses.Team up with IT and other departments to systematically enrich and improve data.You can also consider building a prototype dashboard(using
53、 a tool such as Tableau or PowerBI)for a key strategic theme.When you create a plan for any new dashboards,processes,and roles,keep in mind that your goal is to deliver people insights that support the business.Tips Collect business needs for structural delivery of people insights.Decide with your t
54、eam what needs to happen on the following topics to meet these business needs:Dashboards and reporting Data Skills Processes and governance Roles and responsibilities Align with HR services(or a similar department)as they might already have a service delivery model.Data&analyticsStage 3.Formalized26
55、STAGE 4 StrategicIn this stage,HR teams recognize the strength in collaboration.This is because their research,work,and shared insights all contribute to digital transformation,ownership,efforts,and investments.27How to improveIts time to partner with executive leadership to reach an agreement on a
56、solid digital HR strategy and transformation roadmap.You will need to define short and long-term goals and allocate your resources accordingly.Make sure to clearly communicate how this will benefit your business in the long term to secure the resources you need.In this phase,you will need visible an
57、d active support from HR leadership.But dont forget about IT:a strong relationship with IT executives is also crucial.Strategy&leadershipStage 4.FormalizedTips Take the lead in proposing a Digital HR roadmap and be bold in doing so.Invest in mapping employee journeys and touchpoints for HR.Create a
58、set of compelling reasons to invest in Digital HR,focusing on boosting future growth&competitiveness.Get buy-in from IT executives&build a solid relationship with them as you will need them,a lot.28How to improveAlign the HR technology roadmap with the organizations overall digital roadmap.You can p
59、artner up with IT to integrate your systems with other organizational programs,knowledge bases,and data platforms.This will ensure your success when creating value with HR tools,such as dashboarding and collaboration tools.Tips Work with IT to build connections from HR technology solutions to an exi
60、sting business data warehouse or data lake.Develop a process to combine and extract data from the data warehouse or data lake in a uniform way.HR technologyStage 4.Strategic29How to improveMake methods such as design thinking and the lean startup experimentation methodology mandatory in your HR trai
61、ning,at least for specific groups.You can partner up with L&D and select colleagues to build a learning program that can encourage continuous learning.In the meantime,challenge HR leadership to set the right example by leading programs using innovative methods.TipsWork with L&D and a selection of ea
62、rly adopters to create an inspiring continuous learning program for HR innovation.Move away from classical Excel&language learning into relevant fields with the potential to cross-pollinate&spur innovation.Challenge HR leadership to set the right example through suggestions&quick sparring sessions.3
63、21InnovationStage 4.Strategic30How to improveStart looking for ways to have HR processes communicate with each other to optimize business impact,the employee journey,and employee experience.To this end,you will need to create in-depth employee journey maps.Work with domain experts and business stake
64、holders to determine how to best add value by linking HR processes.For example,you can directly link performance management goals with L&D offerings,and let strategic workforce planning goals feed into talent acquisition efforts.Tips Create highly detailed employee journey maps.Discuss this integral
65、 approach with domain experts and business stakeholders to determine the best way to add value by linking HR processes.Involve vendors and IT to plan for a first experiment where two HR processes are linked and add value.HR processesStage 4.Strategic31How to improveBy this point,digital literacy sho
66、uld be a mandate across all groups working within HR,including executives.Integrate digital skills within all roles in HR and plan for the future by attracting key digital talent.Help new digital HR initiatives flourish with regular follow-ups and inspiration.Make sure to celebrate successes and dis
67、cuss lessons learned.Tips Provide regular inspiration&follow-up on new initiatives(e.g.weekly live updates,newsletters,posters/infographics).Celebrate successes,and discuss lessons learned from failures.Integrate a digital skill set in all HR recruitment profiles.PeopleStage 4.Strategic32How to impr
68、oveMake sure to communicate to all stakeholders how information requests should be handled.You can start implementing proper tools so any request,from simple to advanced,can be processed.This can be done either by self-service dashboards or a dedicated team of analysts who can quickly provide the ri
69、ght HR insights based on a solid dataset.Tips Build and pilot reports or dashboards.Hire or train team members to improve information delivery.Create simple and straightforward communication materials.They should include which channel people can use for which information request,and how they can mak
70、e their requests.32Data&analyticsStage 4.Strategic33STAGE 5 ConvergedIts time to form a dedicated digital transformation team to support HR strategy and operations.Make sure to focus your activities on business and customer-centric goals.The new infrastructure of the department will take shape as yo
71、u determine the roles,expertise,models,processes,and systems needed to support digital transformation.34How to improveBe sure to regularly align with business developments and needs within your new HR operating model to boost digital transformation.You will need to integrate these new digital compon
72、ents into your people strategy.Dont forget to also team up with IT leaders on new plans for the future.You can consider creating temporary cross-functional teams to experiment with new ways of working and innovative ideas.Tips Stay in touch with internal and external customers through HR business pa
73、rtners and/or HR advisors.They need to gain input on business developments and align people challenges and solutions accordingly.Once business developments require a new approach to the organization of people,you can create a nimble team to tackle that challenge with a custom solution.Consciously wo
74、rk towards enabling individual customization to achieve the workforce of one.Strategy&leadershipStage 5.Converged35Work towards an integrated set of platforms and tools to suit every need on people issues.Make sure all relevant HR tools are easily accessible for employees,management,and executives.T
75、hese tools should provide real-time information fed by one single data source.You can partner up with IT and vendors to make this possible.Tips Exchange of data is crucial to deliver value for the organization and employees,so work with IT and vendors to create a situation where any data can(safely)
76、be accessed by any HR-related app or solution.Estimate the value of data and the cost of gathering data for both existing and non-existing data sources.Develop smart algorithms(with data scientists and vendors)that combine information from different apps and platforms to deliver suggestions and cust
77、om HR services to both employees and teams.HR technologyStage 5.Converged36How to improveAlthough innovation might be more streamlined and formalized at this stage,pockets of experimentation are still important and crucial to keep it new and fresh.Encourage working in hybrid teams to solve specific
78、people issues.Its a good idea to form teams around HR thought leaders to stimulate their ideas.You should also make sure that there is time for people to come up with and work on new ideas.InnovationStage 5.ConvergedTips Leverage Organizational Network Analysis as a tool to spot opportunities for co
79、llaboration and networking.Prompt internal communication between departments through events and liaison roles.Identify innovative thought leaders within the department&form teams with them to pilot ideas.Encourage people to make good use of their time to be creative,develop,and pilot ideas.Use quick
80、 pulse surveys to gather feedback from employees and business stakeholders on the effectiveness of your processes.You can then use this input to optimize HR processes,HR effectiveness,and employee experience.Another place where you can find more input is your HR systems.Here,you can get access to L&
81、D suggestions for courses,or suggestions from algorithms to further optimize your processes.Tips Use quick pulse surveys to gain input for process effectiveness.Optimize HR processes with suggestions from existing HR systems.37HR processesStage 5.Converged38How to improveAs data analytics becomes in
82、creasingly important and complex,you will need to train or hire more data-savvy people.Make a business case for hiring specialists,such as data scientists with HR affinity,to work on advanced analyses,or developers to build in-house software solutions.But be aware:talent is in high demand,so make su
83、re to build an attractive employer brand!TipsIdentify a clear business case for bringing data-savvy people and developers in,or cooperate with other business lines for this expertise.Explore the added benefits of Centers of Excellence to foster unique and hard-to-come-by skills.Make yourself attract
84、ive to outside talent by emphasizing digital ambitions for the future.321PeopleStage 5.Converged39How to improveTeam up with other departments to decide on data definitions and formats for your entire business.After that,you can start building integrated dashboards and reports across multiple depart
85、ments,starting with Finance.Combine business(customer)data with employee data to deliver rich analyses with business impact.Encourage HR business partners to provide research questions,and proactively provide the business with advanced analyses based on these.Tips First and foremost,align on data de
86、finitions and formats with IT,Finance,Control&Business before you start building integrated dashboards.Challenge your HR business partners to be creative and come up with research questions that address pressing business issues.Ensure you have the capability to analyze data and answer these research
87、 questions.39Data&analyticsStage 5.Converged40STAGE 6 Innovative&AdaptiveDigital transformation is now a continuous process in your organization.Your business relies on HR to provide the best digital solutions for their challenges.You will need to establish a new ecosystem to identify and act upon t
88、echnology and market trends.41Use feedback from data and analytics to finetune the digital components in your people strategy.These should be components that work and impact business success.And dont forget to allocate significant budget and resources for experimentation and pilot programs.Pick thos
89、e which can bring value to your overall business strategy.How to improve Build methods for continuous listening in HR and business processes.Map critical points in the employee journey and align them with your continuous listening/data capturing capabilities to capture critical data points.Connect t
90、hese data in a data warehouse.Fully implement the workforce of one.Build KPIs that provide the necessary feedback on the added value of digital components(e.g.frequency of use and effectiveness of a recruitment game on the website).Track key business outcomes and relate the input data to the output
91、data through analytics.Structurally optimize the HR input that impacts business outcomes.Strategy&leadershipStage 6.Innovative&Adaptive42How to improveIn the final phase of your digital transformation,set up your HR technology so that you can create a continuous feedback loop for employee experience
92、 and business impact.You can work with IT and vendors to achieve this and continue to finetune your configuration over time.What works now might not be enough in the(near)future.For that reason,you will need to either make sure that your current solutions are enough,or replace them to achieve your g
93、oals.HR technologyStage 6.Innovative&AdaptiveTips Train algorithms with behavioral data to continuously learn from the organizations actions,preferences and other input.Link these data to business measures&identify patterns that work in your specific business contexts.Set up intuitive user interface
94、s for your HR tech so people can find the best way to boost their development,happiness&effectiveness.43Its now time to make HR innovation a continuous process rather than a one-off program.To achieve this,you should encourage an innovative mindset by creating time and resources for new approaches a
95、nd collaboration.Keep everyone focused on the right goal by identifying value-adding innovation KPIs and driving intrapreneurship.43InnovationStage 6.Innovative&AdaptiveTips Create extra roles for those delivering outside-in inspiration,connection,innovation,and ideation.Networking will help them ga
96、in access to promising startups and frontrunners in the HR innovation field.Identify relevant innovation KPIs that add long-term value to the business.Commercialize your innovative capacity.Stimulate intrapreneurship and tolerate failures(to a certain extent).44How to improveThink about how you can
97、optimize your EX in such a way that HR processes are practically invisible.This will ensure that users of digital solutions enjoy their interactions and your employees are happy to share data.Analyzing data will also help you understand organizational patterns and profiles.Customize your HR processe
98、s and continuously measure how tweaks and customization of HR processes can impact business outcomes.Remember:what works for one department might not work for another.Tips Analyze system and business data to discover distinguishing patterns and profiles in the organization.Find out how to customize
99、HR processes to meet the needs of different groups within the organization.HR processesStage 6.Innovative&Adaptive45Make a person or small team responsible for the continuous delivery and growth of innovation within HR.You can do this by networking with interesting third parties,suggesting innovativ
100、e ideas for people challenges,and challenging current solutions.Regularly ask for your innovators for input on skills that will be needed within HR in the future.Continuously review the talent gap for digital skills within HR.TipsPeopleStage 6.Innovative&AdaptiveSelect business-savvy innovators to i
101、mplement solutions and commercialize new ideas that are generated in the organization.1Ask your innovators to identify skills needed within HR in the future(e.g.blockchain developer to manage exchange of personal HR data).246How to improveMake real-time data analysis by setting up proper architectur
102、e and processes.You need to ensure that your analytical tools are lean and actionable.Design thinking would be ideal for this.You will also need to create self-service dashboards for all HR employees and provide quick and actionable custom advanced analytics for more complex people challenges.Its al
103、so vital to keep asking HR business partners and domain experts about what analytical insights they need to add value.TipsRegularly ask for input from HR business partners and HR domain experts about their data and analytics needs.Ensure your analytics unit can handle multiple projects and initiativ
104、es and deliver constant business value.Use design thinking to make analytical tools as lean and actionable as possible(e.g.highlight outliers from a KPI dashboard instead of a flat list of results).321Data&analyticsStage 6.Innovative&Adaptive 100%online Inspiring HR community Digital certificate&LI
105、token HRCI&SHRM creditsLearn moreGet the knowledge,tools,and templates you need to build efficiencies and manage change in HR with technology.Digital HR&Future of WorkDesign Thinking&Employee ExperienceAutomation in HRDigital Change ManagementHacking HR:Developing Digital ExpertiseLead HRs Digital T
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