Hbr’s case study
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This case study discusses the challenge for HR to demonstrate its strategic value through effective measurement. It outlines an HR architecture with three components: the HR function with strategically competent professionals, an HR system of high-performance policies aligned with organizational strategy, and strategically-focused employee behaviors. Developing this architecture allows HR to create value by ensuring employee efforts support organizational vision and goals, while an HR measurement system can convincingly showcase its impact on business performance.
Hbr’s case study
- 1. CASE STUDY: HR AS A STRATEGIC PARTNER: THE MEASUREMENT CHALLENGE HRM MBA Imran Ghaznavi
- 2. 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.
- 3. 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.
- 4. 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
- 5. Outcomes of HR Architecture Traditional 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
- 6. 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.
- 7. 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
- 9. 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.
- 10. 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
- 11. 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
- 12. 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.
- 13. HR System The system is the lynchpin of the HR strategic influence. High PerformanceWork 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
- 14. 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
- 17. 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
- 18. 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.