The role of HR in creating transformational cultures
Traditionally the human resources (HR) department has struggled to become a key player on the executive team. Executives have not understood what would happen if they took a strategic approach to HR and how it would impact an organization growing from transactional to transformational within its processes.
Strategic Human Resource Planning (SHRP) is a synergistic process intersecting an organization’s management practices and human resource practices to bring about efficient and satisfied human capital within an organization.
Once the process is in place, SHRP becomes the road for a transformational HR department, providing committed employees and resources, strategically aligned to fulfill the key objectives and metrics of the organization.
A strategically aligned human resource department will have every decision, action, and initiative it undertakes focused directly or indirectly on supporting the fulfillment of the organization’s annual objectives and be able to share “how so” if asked.
The SHRP process is pivotal for understanding how a firm effectively manages people to support one’s organizational strategy and create a competitive advantage. The SHRP process contains six (6) key result-focused areas, with each area being strategically vital to support the objectives and mission of an organization through the human resources department. All initiatives ultimately fall under one of these key areas, with specific topics as sub-headings. The key result areas include:
Determining the Organizational Climate Towards Your Human Capital
Fulfilling Human Capital Needs
Acquiring Human Capital
On-boarding Human Capital
Developing Human Capital
Retaining Human Capital
Transaction and Transformation
The word “transaction” literally means to “go through” or complete an action. For the purpose of Human Resource Management (HRM), transaction is taking content, either internal or legal, and placing it in a process or system that is necessary for the legal and administrative aspects of HRM to be completed. Transactions include, but are not limited to, payroll, attendance, benefits, hiring, feedback, discipline, performance monitoring, terminations, workers’ compensation to name a few.
Any process or system can be transactional in nature if the process is followed correctly. The real question is what was the quality of the process i.e. when the transaction took place, was it transformational in nature and promoting a change in the quality of a person or process for the enhanced betterment of those involved, including but not limited to, other employees, the team, department, and/or organization. What was transformed as a result of the process? …or was the transaction simply “completed”, not taking in to account the impact on the people or organization (so often the case)?
One key focus of HRM within the various necessary transactional processes, is to have the processes presented in a transformational manner that focuses on both the employee and key departmental initiatives and organizational objectives. Then and only then can the process become strategic in nature.
Key Result Areas for Strategic Transformation
The first two areas are assessments that support the planning process.
1 - Determining the Organizational Climate Towards Your Human Capital Management
4 key questions are asked with a Line-of-sight focus.
Does my organization have a clear vision, mission and set of values?
Does my organization regularly conduct a SWOT analysis et al?
Does my organization set both organization and department objectives et al?
Does my organization display a managerial attitude that HR is vital to its’ success?
2 - Fulfilling Human Capital Needs
Today HR is responsible for many areas. Assessing the fulfillment of human capital needs is a key focus of HR. Once assessed, it allows an HR department to determine if they are fulfilling the current administrative and functional needs of the organization while looking deeper strategically. The question to be asked; “is HR demonstrating a timely responsibility in the KEY transactional areas that can impact the strategy of the organization and result in transformation?
3 - Acquiring Human Capital
Companies with better selection capabilities report a 20% increase in company performance.
4 - On-boarding Human Capital
When on-boarding human capital, every part of the process becomes a key variable within the employee’s orientation in to the organization. What are the total costs and time for on-boarding?
5 - Developing Human Capital
Solid training & talent development programs have a 46% positive impact on organizational performance and retention. Most important, growing others builds trust.
6 - Retaining Human Capital
Turnover, the opposite of retention, is clearly one benchmark that demonstrates the value an organization places on human capital. What programs are in place to support longevity in the organization?
Pulling it All Together
Being strategic is a philosophy resulting in action. When an HR department is being a strategic partner within an organization, they are ensuring that every transaction, every initiative, every action is focusing on meeting the objectives and metrics of the organization within the 6 KEY RESULT areas of the Strategic Human Resource Plan. The strategy is focused on the organization and/or the objectives of other departments:
Determining the Organizational Climate Towards Your Human Capital
Fulfilling Human Capital Needs
Acquiring Human Capital
On-boarding Human Capital
Developing Human Capital
Retaining Human Capital
By assisting the departments to achieve their initiatives and results focusing on these key result areas of the SHRP will assist the HR department to think, act and respond consistently in a strategic manner to the other departments and the organization as a whole.
Whenever anything is carried out in the HR department, transactional or developmental in origin, the employee, if asked, should always be able to share the transformational aspects of what is being carried out and how the action or process is strategically assisting the organization to reach its annual objectives and metrics within the vision, mission, and values of the organization.
If this cannot or does not occur chaos, strife, miscommunication and distrust are the outcomes.
When it does occur, and only when, HR will be implementing culture change in the organization that will bring about synergized impact moving towards becoming nothing short of “good to great”!
About the Author
Ron is both president and founder of Synergistic Resource Associates, a full service human resources (HR) / development boutique consultancy group that successfully brings about strategic transformational change for both marketplace and ministry organizations.
