hbr’s case study
Post on 19-May-2015
299 Views
Preview:
DESCRIPTION
TRANSCRIPT
CASE STUDY: HR AS A STRATEGIC PARTNER:THE MEASUREMENT CHALLENGE
HRMMBA
Imran Ghaznavi
Introduction
Issues Much has been talked about HR’s role
today and it is a brutal reality that HR as function is under extreme pressure to justify its position and sphere of influence.
Most organizations view the HR department as an administrative function.
The senior management is generally skeptical of HR’s role in the firm.
What the case study is all about
Human Resource should be at the table not on the table
HR contribution towards the value creation should be measured
HR has to play a strategic role in the organization
HR must has the ability to align the employee efforts with the organization's overall vision.
How is it possible
We need to understand and develop the HR “Architecture” of the organization.
The HR Architecture has three basic components HR Function The broader HR system The resulting employee behaviors
Outcomes of HR ArchitectureTraditional HR attributes
Crucial HR attributes
Total Compensation Employee turnover Cost per hire %of staff with
appraisal Employee attitudes –
job satisfaction
Capable & committed Work Force
Development of essential employee competences or training systems
Above are also known as strategic HR drivers
HR creates value
Aliening every employees effort with the organization's overall vision
HR to shift from traditional administrative role strategic role Strategic assets keep organizations
competitive edge sharp for long haul, as they are difficult to copy.
However the impact of organizations strategy is difficult to see in short run.
Importance of intangible assets
New economic paradigm characterized by speed, innovation, quality, customer satisfaction has increased the importance of intangible assets like Brand recognition, Knowledge Innovation and Human capital
HR measurement system
Development of HR - measurement system That convincingly showcase HR’s impact
on business performance.
This is possible with properly developed HR architecture
Managers throughout the organization should understand how people create value and how to measure the value creation.
HR’s strategic Architecture
The HR Function •HR professionals with strategic competences
The HR System •High performance, strategically aligned polices and practices
Employee Behavior •Strategically focused competencies, motivations, and associated behaviors
HR Architecture
The continuum from the HR professionals with in the HR function to the system of HR-related polices and practices, through the competencies, motivations and associated behaviors of the firm’s employees
The HR Function
The foundation of a value-creating HR strategy – is a management infrastructure that understands and can implement a firms strategy.
Technical HRM – HR basics R, C &B Strategic HRM- Delivery of services
which directly support the implementation of organizational strategy.
HR System
The system is the lynchpin of the HR strategic influence.
High Performance Work System (HPWS) Each element of the HR system is
designed is to maximize the overall quality of human capital throughout the organization.
Develop strategies that provide timely and effective support for the skills demanded
Comparison of High and low Management Qualities
The firms with most effective HR management system has: Dramatically high performance Employees turnover was close to half Sales per employee was four time higher The ratio of market value was more
then three times in large high performing companies
Strategic employee behavior The productive behavior of the
employees plays vital role in the success and growth of the organization.
HR need to continuously monitor the internal environment and create an environment which jazz up every individual and display a positive behavior in building good will for the organization
Conclusion
The CEO’s and the senior management has to bring HR at strategic table.
HR managers need to take lead in aligning the HR strategies towards accomplishment of organizations goals.
Develop effective measurement system for the HR contribution towards the organizations profit maximization.
All this has to be done through systematic thinking.
top related