How to create value through human resources?

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How to create value through human resources?

By Mansour Baker, SHRM-CP

Posted 01 September 2020

Strategic Intend

Organizations can only deliver strategic intent if certain ‘Levers’ operate.

Exhibit 1

We need to think about the results we are seeking

HR seeks to get results from strategic intent

What should HR provide?

Its own understanding of Mission and Vision so that managers and staff are clearer on their role
The key strategic objectives so that the ‘HR delivery is clear’
An organization structure to provide clarity on how accountabilities are shared
Processes that are being developed
Performance levels and targets
An understanding of the importance of technology for the delivery process

How should HR provide these and what about Measures?

Seeking to be clear on Mission and Vision
Identifying the key strategic objectives
Working on the organization
Linking strategies to activities so that we understand more about the processes
Setting performance levels and targets
Seeking to harness technology for the delivery process

HR Mission & Vision Example

Mission: To become an employer of choice aiding; meeting the manpower plan by providing quality staff and then helping managers to develop and motivate their staff in an efficient and effective way.

Vision: The company is a benchmark for high performing staff continually seeking new and higher standards of excellence.

Mission & Vision Provide a Strategic Platform

HR needs to understand the existing organizational and strategic imperatives.

How is value added?

Know how
Developing opportunities
Changing ideas into profitable businesses

What is the value of the business?

Current & fixed assets
People
Information
IT
Ability to respond to customer needs

What is the combination of?

Culture
Structure
Style
Leadership
Vision
Responsibility
Accountability
Communication
Change

HR Strategic Objectives

The following key strategic objectives:

To develop a manpower plan which provides the human resource requirements of the business
To develop the organization to support the key value-added processes being clear on how jobs add value and seeking to enrich these positions in line with job holder capabilities
To identify the best talent in the market and recruit in accordance with the job requirements specified in the manpower plan
To develop this talent internally so that they are fully empowered, following a well thought out clear career path that meets the succession plans for the company
To support the development process with training facilities that develop the required technical and behavioral skills
To ensure the performance management process facilitates the highest standards of management and motivates staff to seek stretching targets in line with top level organizational objectives
To fairly and competitively reward all staff so that the best is retained and continue to develop, sharing in the added value that they contribute
To develop policies and procedures which provide a clear message to staff on company’s expectations, level of integrity, manner of presentation, required conduct and all employment terms and conditions
To manage employee relations so that staff can communicate their needs and concerns while being fully informed of organizational directives – knowing that they are valuable to the organization and are fairly treated
To coordinate all HR activities throughout the regions so that uniform standards of excellence are applied in all geographies, ensuring that staff feel they belong and contribute to common goals

The next step is to set targets for key activities and the relevant performance measures.

Exhibit 2

How the organization is structured is crucial

Many organizations are re-engineering the HR function to meet best practice standards

Seen as fully accountable for the most valuable asset in the business: Human Resources sometimes now referred to as ‘Human Capital’.

Is a strategic function; focuses on high level business issues and seeks to minimize routine functions through automation and in some cases out-sourcing.

Relies heavily on state-of-the-art technologies to ensure systems are integrated and inter-active.

The Head of HR sometimes referred to as the Chief Human Resources (or Human Capital) Officer is held fully accountable for all HR Strategic Activities:

Developing the Manpower Plan with Line and Business Unit Managers is an essential strategic component which is input into the Business Plan and revised annually in order to determine the budget
Also accountable for the Compensation Strategy; Development of Policies; Organizational issues and the whole area of ‘Talent Management’
Frequently a member of the Top-Level Strategic Committee

Centralize/Decentralization Issues

If a company operates in several regions and will continue to expand into new geographies. It is essential that HR service lines offer consistent high standards of excellence in all locations.

HR is held fully accountable for all human resource related services provided, regardless of the location. HR at the Head office makes all strategic decisions and passes these out to the regional offices for action:

Manpower Plan; Organization Development; Development of Policies; Management of Performance; Compensation Strategy

HR therefore retains ‘functional control’ of its staff across all regions:

Recruitment; Execution of Duties; Development; Compensation; Promotion; Performance Review

The HR Function in the Regions is accountable for all routine/operational tasks:

Recruitment of Staff; Employee Induction; Local Payroll; Communication and Compliance with HR Policies & Procedures; Personnel Assistance; Assistance to Line Managers; Maintenance of the HR Database; Problem Solving

HR Enabling Environment

Inspired leadership
Clear, doable targets
Strong Bonds
Accurate Assessment
Willing to Develop Others
Manage Stress & Conflict
Able to develop opportunities and counter threats
Understand Strengths & Weaknesses

Exhibit 3

Enablers to improve business performance

How well are HR services being delivered?

Prioritize a ‘First-Cut’ view of delivery of services to be provided based on current HR issues.

Sample HR service delivery from high to low:

Manpower Plan
Organization Development
Employee Relations

HR Processes may need to be re-engineered and some changes will have a significant impact.

Exhibit 4

Magnitude of HR Process Improvement

‘Snap-Shot’ of Delivery: Stronger Strategic Focus

Exhibit 5

Becoming more strategic should be a top priority

Becoming more strategic is a top priority

The strategic framework represents the five fundamental of HR core processes

HR Strategic Framework

Technology will Play a Key Role

HR should leverage technology to help deliver integrated decision tools to managers and staff to fast track the development of HR solutions. HR should seek to facilitate the development of managers and staff and the communication of HR processes using HRIS tools.