How To Make HR Function Effective?
Dr. Masroor Hussain Shah
Fractional CHRO | HR Consultant | People & Culture | Change Management |Talent Management
HR as a function has its own value but when we talk about the stakeholders’ value, it is a different proposition. Especially post Covid times are now demanding how HR can create and upgrade stakeholders’ value.
I was reading through an article of Dave Ulrich I really liked his approach of business context having a logical connection to the human capability (talent, leadership, organization and HR) and then comes the HR function per se.
Under business context, he talks about the environmental trends, future of work, assumptions and stakeholders’ value expectations. As far human capability, its talent, people, competence and employees that fall under its ambit. HR Function has operating model, people, practices and analytics etc. This is really a logical framework. It is a great learning and sharing with the HR professionals.
As? far as the stakeholders, those include communities, investors, Board of Directors, Employees, HR Professionals, Senior Management and the customers.
HR functional effectiveness revolves around HR’s reputation (efficiency, innovation, customer value), customers of HR (both inside and outside), purpose of HR, HR design, HR analytics, Human Capability, HR Digital Technology, HR Practices, HR Professionals and HR relationships.
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Real effectiveness will only be actualized if there is a strong connection between the HR function and the Business Strategy. This is to be established whether the business structure is centralized or decentralized. If it is a centralized business, then linear approach of setting up HR function can be followed by having Talent Acquisition, Talent Management, Culture & Engagement, Rewards & Compensation. But if it is a decentralized business model then business partners or exclusive HR Experts will work for each business or project to create collective HR effectiveness and stakeholders’ value.
To reinforce HR effectiveness, adopt an integrated HR approach, see the business value and clearly define it, identify gaps and fill those appropriately, prioritize goals and investments, take action and track performance, share, engage and reinforce. It is an increased effectiveness of HR function can be created.
I? will share the link of Dave Ulrich’s article that you can further read to enhance your practical knowledge and understanding.