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How can human resources add organizational value?
The HR function is a necessary and important piece to the overall potential for success of an organization. The HR function is there to perform the routine functions of staffing, performance management, policies, compensation, training and development, retention, and workplace culture. Performance has a large correlation to company revenue and will be further detailed to showcase the value HR holds. The performance management process is traditionally used to gauge success based on manager and worker roles that together set expectations, review results, and reward performance (Al-Musadieg et al., 2018). Without the right tools or evaluation process, employees are left with limited guidance or a platform to discuss their performance, and managers are left without a system to fairly evaluate the employee.
HR adds value to the organization when monitoring the legal requirements they are expected to work within. HR can further their value when allowed to operate as a strategic partner within the organization’s leadership team. This could include factors such as new initiatives that will impact employees or an expansion of a product line and how the company will staff for that. The strategic aspect of HR is tied to the company’s actions and management of their workforce that is tied to their strategic goals and mission. When HR is not established and provided the platform to do their job, organizations can be found to not follow policies, make decisions that can lead to legal violations, or leave a workforce with an unsupportive culture. HR provides the context to drive employee motivation and performance, which in turn impacts the productivity of the organization.
What are two strategies that an HR department can take to become a more valuable resource/organizational department?
Managers in an organization are continuously looking for ways to decrease their workload and time spent on administrative factors. HR can play a valuable piece to managers regarding such with how they manage the hiring process. As Feffer (2019) states, HR can lighten the burden on managers when they are looking to fill a position by pre-screening candidates and only requiring managers review qualified applicants. During this pre-screen, the HR professional can showcase to the candidate why they should want to work for that organization, and the compensation and benefits packages available to ensure only those truly interested are moved to the manager for review. To be successful at this requires an established relationship with the manager to gain useful information and trust in capabilities to support them.
Not only does the company need to remain on the cutting edge of what customers are waiting to stay relevant and in demand, so does HR. Innovation plays a large part in how successful an HR team can be. As Al-Musadieg et al. (2018) puts it, “…innovative HR practices are positively associated with organizational performance” (p. 445). There is a level of enhancement that occurs with innovation. This impacting satisfaction, organizational commitment, empowerment, and trust within the employee and management staff (Al-Musadieg et al., 2018). HR must work to stay innovative in how they promote and support the desired workplace culture. Being aware of what employees seek for compensation, benefits, training, and so on is necessary for innovation. To gain this important information, tools such as employee surveys should be utilized to adjust HR practices to remain innovative.
Al-Musadieg, M., Nuriannah, Raharjo, K., Solimun, S., & Achmad, R.F. (2018). The mediating effect of work motivation on the influence of job design and organizational culture against HR performance. Journal of Management Development, 37(6), 452-469.
Feffer, M. (2019, March 26). How to convince hiring managers to work with HR. Society for Human Resource Management. https://www.shrm.org/resourcesandtools/hr-topics/talent-acquisition/pages/how-to-convince-hiring-managers-to-work-with-hr.aspx