The Human Resources Department As a Profitability Factor
Expectations of the Human Resources Department Have Changed
These three emerging concepts in the practice of HR bear examination:
- What value does the HR department bring to the organization. Many HR teams lack a vision that includes their value to the organization. Do the HR department’s activities directly help the company achieve its broad business objectives? Are the HR team’s arguments for or against a business strategy credible to the other department heads at the decision making table? How are the HR department strategies, that benefit the employees, the shareholders, the customers, and all other stakeholders in the organization, selected and implemented?
- What value does the HR department generate for the customer – the end user of the company’s product or service? Sales and quality are no longer restricted to the sales and quality assurance teams. Edwards Deming taught organizations that quality and value must be built into every step of the process. The HR department doesn’t just hire a salesperson based upon a manager’s request. The end result of HR’s recruiting and hiring efforts is that the customer who interacts with the new sales person receives continuing world class service from the company. HR shares the quality of the new hire with the other departmental silos to insure that the company is, or becomes, the vendor of choice for that customer.
- The final of the three emerging concepts for the Human Resources Department is: What core business competencies must HR leaders possess in order to be credible strategic partners with the rest of the executive team? Each company and each industry can generate its own list of core business skills their teams must have that go beyond their individual specialties.
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