Effective Human Capital Management : An Organization's Success

The current function of HR can be defined as supporting “the delivery of the organisation’s strategy and objectives through the effective management of people and performance” (Taylor & Woodhams, 2012; 22). This definition is furthered by a CIPD survey (2007; 2-3), which indicated that the key functions of HR are: recruiting and retaining staff, progressing performance management to maximise the value of employees and increasing employee engagement.

Over the years in business HR have been looked at in positive and negative ways. Nevertheless, they are essential to the well-being of an organization. Some of the faultfinders don’t give HR credit for the significant contributions they make. Despite the negative feedback, HR department can gain respect by being brought to the table as a business partner and into the realm of strategic planning. As the senior VP of our HR department, I think by improving in the area of innovation and creativity and all departments working together, HR can siege the opportunity to create a competitive advantage for the organization. HR is the department that views their human capital and their talent also as a valuable asset to the organizational success. In our organization, the HR department approaches their human capital in a more sensitive way to win the loyalty and commitment of them, while increasing profit and maximizing the efficiency/effectiveness of its work power (Ozlen, 2014, p. 1367-1375). Our HR department endeavors to strive to be more and more creative and innovative regarding making new ideas and implementing productive processes into practice. If the present role of the human resource department is to be a vital facet of successfully competing in the marketplace, then we need a different thinking about issues and innovations. Also, we need to be more transparent regarding who we are and what we do as human resource employees.

This essay is to write a discussion paper which argues the benefits or disadvantages of Human Resources being a strategic business partner giving consideration to the impact of Human resources polices and practices on strategy, people and organizational culture.

In this role, the human resources person participates to the development and the accomplishment of the company business plan and objectives. The HR business objectives are established to support the attainment of the changing strategic business plan and objectives. The human resources professional should be knowledgeable about the design of changed work systems in which people succeed and contribute. This strategic partnership effects human resources services such as the design of work positions, performance development and appraisal systems, and employee development (Ullah,

The HR function has been changing over the years. More businesses are realigning the role of HR. So they can best manages and grow their company. It’s safe to say that companies today are contently examining their HR function with a goal of figuring out best practices and best allocation time. HR deals with many challenges. Here at Spectrum paints the main issues facing the company management are:

HR as strategic Partner is gaining momentum as being one of the best way yet in making human resources as the most important asset in an organization.

It is telling that Becton (2009) stated that the effective management of a particular organization’s HR tends to be critical to that organization’s profitability, and its general ability to compete. As a result, HR activities of a particular organization need to be managed from a strategic perspective in order to accomplish competitive advantage through its human resources. However, in order for HR to become a strategic business partner, there needs to be a change in mindset (Becton, 2009).

HR has taken on many different roles and strategies throughout its history. They have grown from trying to improve economic efficiency in manufacturing jobs to making a case for strategic workforce management. The need to align HR with the business has become more vital than ever. Financial markets exert persistent pressure for growth, especially in evolving markets. Customers demand more and superior service at lower cost. And cost-efficiency, resource preservation and governing compliance have become issues for almost every business (Mundy, 2012). This is why understanding the basic roles of HR can help as well as understanding where they need to be to grow. HR positions generally fall into one of two categories: generalist and

As outlined above, the strengths of the company depicts the productive means by which the company has the capabilities and opportunities to create a competitive advantage, provided the company begins to link its organizational strategies with HR strategies and activities. Unfortunately, due to the constant turnover in some key executive positions, namely the HR Department, having a consistent and capable HR Director to provide strategic human resource management during a crucial and pivotal stage in the company’s efforts to gain a foothold competitively has been challenging. Pursuing this further, Mitchell, Obeidat, and Bray (2013) point out that, “Given the importance of consistency between what a role purports to achieve and its actual impact, a strategic role for HR professionals should focus on the achievement of organizational goals by aligning HR practices with business objectives (Conner & Ulrich, 1996), (p. 900).

In today’s work environment, organizations are continually seeking an advantage over the competition. One resource to assist with this ambition is to utilize the human resources (HR) department as a strategic partner in the micro and macro planning of the organization. This paper will define the role and function while distinguishing the duties and responsibilities of an effective HR department.

Today Human Resources (HR) is at the centre of business performance. HR professionals have an important role to play in driving decisions that enable their organisations to thrive in both the short and the longer term. Where in the past the function delivered the fundamentals that underpinned the employee lifecycle (such as recruitment, induction and salary administration) supporting organisation performance is now the theme running through HR’s work.

Strategic human resource management is the approach of dealing with the human resource that backings long haul business objectives and result with a strategy system. This technique on the human resource concentrates on the long individuals’ issues, coordinating assets to future needs, and full scale worries about quality, structure, qualities, culture and duty to the human resource in a business firm. The human resource administration spins around the procuring of workers, train end finance and how to associate with the representatives to meet the needs and benefits of the organization. The approach on the human resource and its administration is a critical factor of the business which characterizes how the undertaking

Human resource management consists of planning, organising, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organisational and social objectives are accomplished. Human resources are a critical, if not the source of, competitive advantage for the business, rather than, say access to capital or use of technology. Thus attention needs to be paid, at a strategic level, to the nature of this resource and its management, as this has impact on the performance of the organisation, however defined. Batt and Banerjee (2012) found that, in an analysis of strategic HR research articles in British and American journals, the link between

“To manage people well, companies should elevate HR to a position of power and primacy in the organization, and make sure HR people have the special qualities to help managers build leaders and careers.” (Jack Welch 2005: 98)

One of the challenges that HR’s leaders are faced with is to convince the business executives that human capital is one the most important resources in which the company or business needs to invest in. So now this return on investment is an essential part of the argument for including HR as part of an overall business strategy.