Strategic Human Resource Management:Value Deliverables and Function

Dr. Elijah EzenduFIMC, FCCM, FIIAN, FBDI, FAAFM, FSSM, MIMIS, MIAP, MITD, ACIArb, ACIPM,

PhD, DocM, MBA, CWM, CBDA, CMA, MPM, PME, CSOL, CCIP, CMC, CMgr

HR operates within a business environment that impinges on the organisation, acceptability of output, performance, and expectation of stakeholders, that’s why a static response to business is inadmissible. There’s need for proper identification of business implications in every environmental upturn, so as to provide the right human resource input required for driving corporate strategy and attainment of stated objectives.

The Strategic Role of HR

External Factors Impacting HR

Internal Factors Impacting HR

Business Indicators Demanding HR Responsiveness

• Globalisation• Innovation• Operational Mobility• Competitive Advantage• Technology• Competition• Brand Evolution• Customer Satisfaction• Productivity• Financial Performance• Cost Reduction• Regulation

Best Fit Versus Best Practice

In alignment of HR business processes for optimal performance, best fit surpasses best practice and emerge as the right choice, due to characteristic variation of the business environments of organisations.

The key focus in strategic human resource management is identification of appropriate HR function/ culture/ structure/ systems within the context of creation of value required for organisational excellence.

Business Value

Business value refers to a collective set of results generated in sync with goals of an organisation. Organisational activities usually yield some outputs that may be acceptable by certain groups of workers as equitable value due to justification by perception. On the contrary, competitive activity value analysis demonstrates existence and extent of connectivity between activity output and an organisation’s goals.

Business Alignment

Business Alignment is occasioned by placement of key activities with content and direction that are geared for achievement of organisational goals.Effective Business Alignment of HR Function shall occur when every activity output from each section of HR contributes fittingly to organisational pool of output earmarked for generating product or service.

HR Value vs. Business Goal

Contemporary HR Value had been self-centred and somewhat disconnected from business goal orientated perspective. That’s why such output is not identified as ‘value adding result’ in corporate strategic outlay.

HR Thrust

Effective Business Alignment of HR Function implies every component of HR system, structure, policy, procedures, initiatives, objectives and strategy must be focused on provisioning of excellent enablement for achievement of organisational goals. This should be the HR Thrust.

Best Practices – How to Bridge the Business Divide

•Evaluate current opportunity with the business# Bringing insight to investment decisions# Building future value through today’s forums# Bridging the people visibility gap# Removing barriers and optimize performance•Develop platforms for strategic conversation•Transform HR Business Partners into strategic advisors•Report Links

Source: Amy Wilson, Wilson Insight

According to James and Mona Fitzsimmons, the value equation should be as stated below.

Value = (Results Produced) + (Process Quality) (Price) + (Cost of Acquiring the Service)

Prodding Factuality of Value Equation

If value as a function is relevantThen ‘results produced’ and ‘manned processes for producing results’ are both relevant.Therefore, the strategic stance of outstandingly competitive organisations focus on results and what produces results, for the purpose of achieving effective value mapping from Chicken to Egg.

Identity of Results Produced

Results Produced should be within the context of the receiver’s stance and not the perception of producer. HR must identify its service value in terms of relative worth to the receiver.

The right sets of results that are unique, influential and conspicuous constitute competitive advantage.

HR Strategic Resolution

Total Value Deliverables of HR must be planned and implemented to fulfil requirements of all designated customers, with crowning focus on achieving effective alignment to Corporate Mission and Strategy.

Determinants of Strategic HR Capability of an Organisation

Source: Elijah Ezendu, Strategic Human Resource Management

Dave Ulrich Model of HR Roles

PROCESSES

PEOPLE

FUTURE/ STRATEGIC FOCUS

DAY-TO-DAY/ OPERATIONAL FOCUS

Hunter, Saunders, Boroughs & Constance Viewpoint on Dave Ulrich Model of HR Roles

HR Business PartnerAs a strategic partner, the HR Business Partner (HRBP) aligns business objectives with employees and management in designated business units. The HRBP serves as a consultant to management on Human Resource related issues. Successful HRBP will act as employee champion and change agent. HRBP assesses and anticipates HR-related needs. Communicating needs proactively with HR department and business management, the HRBP seeks to develop integrated solutions. The HRBP formulates partnerships across the HR function to deliver value added service to management and employees that reflect the business objectives of the organization. The HRBP may include international Human Resource responsibilities. The HRBP maintains an effective level of business literacy about the business units financial position, its mid range plans, its culture and its competition.

Source: Society for Human Resource Management

Exploratory Engagement

Discuss the man specification for HR Business Partner?………………………………………………………………………………………………………………………………………………..........................................................................................................................................................................................................................................................................................................................

HR Shared Service Center

This provides HR Shared Service, which is an assortment of various services selectively bundled, thus heralding a shift from multiple isolated service provisioning to centralised system.

Advantages of HR Shared Service Center• Economies of Scale• Cost Reduction• Standardisation• Elimination of Waste• Boosts Customer Service Levels• Enhances Intradepartmental Synergy• Greater Accountability• Greater Autonomy• Greater Focus• Improves Communication• Enhances Customer-Centricity• Boosts Quality• Job Enrichment

Disadvantages of HR Shared Service Center

• Problem of Over-Standardization• Loss of Regular Face to Face Interaction• Tendency to lose Top Talents to Competitors• High Initial Cost

Four Perspectives of HR Function

Elements for Improving & Sustaining Productivity

• Time Management• Developing High Performance Teams• Using Realistic Performance Targets• Promote Effective Communication• Flexible Work System• Technology Driven Excellence• Work Environment• Productivity Friendly Culture• Connecting Output to Reward & Recognition• Appropriate Empowerment• Promoting Collaboration and Networking• Using Feasible Work Standards• Promoting Leadership Capability• Using Acceptable Productivity Measurements

HR as Employee Advocate

In this case, HR manages the aggregate contributions of employees through workable engagement, motivation, guidance and capacity development.

Responsibility of Employee Advocate

• Develop and Implement Viable Employee Engagement Framework

• Create Favourable Work Environment• Promote Performance Friendly Culture• Act as Voice of Employees• Provide Fitting Employee Development Programmes• Facilitate Goal Convergence between Employer and Employee• Promote Employer Brand that Elicits Employee Loyalty• Promote a Corporate Family Framework that Ensures Job

Security, Inclusiveness and Diversity.

Exploratory Engagement

Kulamins Hiperium is an organisation with over 35 country operations but greatly affected by high cost of operations, loss of innovation leadership to a competitor, and sudden increase in staff turnover. As the new HR Director, you are required to develop appropriate solution.

Dr. Elijah Ezendu is Award-Winning Business Expert & Certified Management Consultant with expertise in HR, OD, Competitive Intelligence, Strategy, Restructuring, Business Development, Sales & Marketing, Interim Management, CSR, Leadership, Project & Programme Management, Cost Management, Outsourcing, Franchising, Intellectual Capital, eBusiness, Social Media, Software Architecture, Cloud Computing, eLearning & International Business. He holds proprietary rights of various systems. He is currently CEO, Rubiini (UAE); Hon. President, Worldwide Independent Inventors Association; Special Advisor, RTEAN; Director, MMNA Investments Limited. He had functioned as Chair, International Board of GCC Business Council (UAE); Senior Partner, Shevach Consulting; Chairman (Certification & Training), Coordinator (Board of Fellows), Lead Assessor & Governing Council Member, Institute of Management Consultants, Nigeria; Lead Resource, Centre for Competitive Intelligence Development; Turnaround Project Director, Consolidated Business Holdings Limited; Lead Consultant/ Partner, JK Michaels; Technical Director, Gestalt; Chief Operating Officer, Rohan Group; Executive Director (Various Roles), Fortuna, Gambia & Malta; Director, The Greens; Chief Advisor/Partner, D & E; Vice Chairman, Refined Shipping; Director of Programmes & Governing Council Member, Institute of Business Development, Nigeria; Member of TDD Committee, International Association of Software Architects, USA; Member of Strategic Planning and Implementation Committee, Chartered Institute of Personnel Management of Nigeria; Adjunct Faculty, Regent Business School, South Africa; Adjunct Faculty, Ladoke Akintola University of Technology, Nigeria; Editor-in-Chief & Chairman of Editorial Board, Cost Management Journal; National Executive Council Member, Institute of Internal Auditors of Nigeria; Member, Board of Directors (Several Organizations). He holds Doctoral Degree in Management, Master of Business Administration and Fellowship of Several Professional Institutes in North America, UK & Nigeria. He is an author & widely featured speaker in workshops, conferences & retreats. He was involved in developing Specialist Master’s Degree Course Content for Ladoke Akintola University of Technology (Nigeria) and Jones International University (USA). He holds Interim Management Assignments on Boards of Companies as Non-Executive Director.

Thank You