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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
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
HR Enabling Environment
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
​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.
Exhibit 6
HR priority fully integrated relational database
HR priority fully integrated relational database
We know change is not easy
​Ability to change is related to +ve and-ve forces.
+ve
  • Future Vision
  • Powerful Leaders
  • Major Opportunity
  • Wanting to Change
  • Major Crisis Competition
-ve
  • Successful
  • Long History
  • Focus on Routine
  • Stable Environment
  • Fear Change
  • Few Threat
Exhibit 7
+ve and-ve forces
​Ability to change is related to +ve and-ve forces
How to build change management capabilities?
​Learn how to manage transformation activities
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