How to create value through human resources?
Posted by: Mansour Baker
Strategic Intend
Organizations can only deliver strategic intent if certain ‘Levers’ operate.
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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.
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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 interactive.
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 in line with the Business Unit Managers is an essential strategic component 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
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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.
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‘Snap-Shot’ of Delivery: Stronger Strategic Focus
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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.
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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
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How will HR services be delivered?
HR services will be delivered by the center of excellence, HR service center, and HR business partners. The service delivery is as follows:
Center of Excellence
The center of excellence is comprised of teams of technical HR experts (e.g., recruitment, compensation design, and organization development) who are shared by the business units. Center of excellence provides strategic, design and consultative services to HR business partners and assists the HR service center in resolving complex issues.
HR Service Center
The HR service center is a shared service that responds to employee inquiries and processes HR transactions to significantly reduce HR business partner and center of excellence involvement in routine administrative tasks and inquiries (e.g., benefits, payroll, and data maintenance).
HR Business Partners
HR business partners are dedicated to providing business unit specific strategic and consultative services to executives and line managers related to the people-related issues impacting their business unit. Business partners “broker” technical talent (e.g., recruitment services, compensation design, and organization development) from the center of excellence to deliver HR solutions.
HR Framework
A company exists in a business environment made up of customers and clients, their end users, competitors, government regulations, and other conditions in which they do business. Everything in human resources (HR) is about meeting the needs of a company's customers better than the competition.
In the context of a business environment, a company has its own Vision, Strategy, Priorities and Goals that allow it to win in the business environment. The effectiveness of these is measured simply by the ability to have customers buy their products or services, and not their competitors. Everything HR does must focus on assisting the organization implement its business strategy.
For a company to implement its strategy, it must have the core capabilities to support the strategy. This does not mean competencies, but the fundamental core abilities that a company needs to compete and win in the marketplace. For example, one such capability is to bring new services or products to a market quickly, or to deliver services in a creative and unique way, or to deliver services to precise client specifications and terms. Organizational capabilities are created through a co-ordination of people, technological and financial resources.
The prime role of company leaders is to effectively manage their people to develop the corporate capabilities to allow them to win in the marketplace. At the same time, everything that HR does should be focused on leveraging those human competencies to create capabilities that allow a company to win with its strategy in the marketplace. This is how talent aligns with the market, and why all HR work must focus on leveraging human talent.
The strategic framework represents the five fundamental of HR core processes
The below 5 HR core processes are the levers that the organization has at its disposal to maximize its talent and the competencies that individuals bring. They are integrated, not separate, and a change in one area impacts the others: an OD effort that redesigns a workflow needs to look at the impacts on the people, the impact on employee’s well-being, and the new performance issues. Every one of these processes also has a strategic and tactical component: a change in benefits affects business profit and raw costs but can improve motivation.
- Workforce Planning & Staffing: This is the process of identifying, planning, projecting, and getting the right people today, and knowing what a company needs for tomorrow. It is about methods to attract, integrate and retain talent.
- Organizational Development: This is the process that examines organizational processes and systems to ensure they are aligned with the business strategy and customer needs. Planning, measurement, structure, workflow, and budgets can all be developed to enable good work systems and practices.
- Performance Management: Once the essential talent has been hired and good processes are in place, an effective process needs to be in place to ensure a company gets the outcomes that it desires by identifying, reporting, measuring and tracking its performance, in everything it does.
- Learning & Development: Talent needs to change over time, and there is a critical need for a learning and development process to continue building existing talent.
- Employee Relations: This process focuses on the needs of individual employees, providing support so that employees can work effectively and sustain their efforts over time. It is also about managing the relationship between the employee and the needs of the larger organization.
The HR Plan
The HR Plan is a document which guides the new HR organization on what it needs to focus on. It’s like having a car without a driver…the car is simply a means to get the driver somewhere.
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How can HR benefit from artificial intelligence in the workplace?
Human Resources (HR) can benefit from artificial intelligence (AI) in several ways in the workplace.
Here are a few examples:
Automated Recruitment Process
Using AI-powered HR software can streamline and automate the recruitment process by analyzing resumes, screening candidates, and even conducting initial interviews. This is a great way for HR professionals to save time and effort, enabling them to concentrate on more strategic tasks.
Improved Candidate Matching
AI algorithms are capable of evaluating candidate profiles and job requirements to identify the most suitable candidates. By doing so, the likelihood of bias and human error in candidate selection is minimized, and it ensures that the right candidates are provided with the opportunity.
Employee Engagement and Retention
Using data analytics, AI has the ability to examine employee data and recognize patterns and trends linked to employee engagement and satisfaction. This empowers HR to preemptively tackle any problems or worries, ultimately resulting in improved employee retention and productivity.
Learning and Development
AI has the ability to customize and streamline learning and development programs by suggesting training courses or materials tailored to each employee's specific skills, interests, and career aspirations. This assists HR professionals in crafting more precise and impactful development strategies for their employees.
HR Analytics and Reporting
AI has the capability to efficiently and accurately analyze vast amounts of HR data. This enables HR professionals to extract valuable insights and make informed decisions based on data. These insights can cover areas such as evaluating employee performance, pinpointing opportunities for improvement, and predicting future workforce requirements.
Virtual HR Assistants
Routine HR inquiries can be handled by AI-powered chatbots or virtual assistants, which include providing basic policy information, answering frequently asked questions, or assisting with benefits enrollment.
Compliance and Risk Management
AI can help HR ensure compliance with laws and regulations by flagging any discrepancies or potential risks in HR processes and policies. This reduces the chances of human error and helps prevent costly legal issues.
Overall, AI can transform HR by automating repetitive tasks, enhancing decision-making, improving efficiency, and ultimately enabling HR professionals to focus on more strategic and value-added activities.
