Human Resources Capability Model - What are the CEOs missing?
Before the start of any new venture or financial year, we see a lot of buzz on the business plans, cash flows, manpower requirements, et al which are full of projections and expected results to be achieved over the next fiscal year. These figures are then, driven down the line and performance rated against the achievement of the same, which again is filled with lots of personal whims and biases.
As important as any business plan and financial cash flows, the CEO should have a clear understanding on the HR function - the very need for one, objectives of HR functions, measures of quantifying HR performance, and how HRD can participate in boosting the organization's performance.
Working 'at large', participating right from hiring people for different roles and involving in all stages of employee life cycle, HR gets an opportunity to get exposed to various challenges being faced across the organization as well as an opportunity to have a one to one interaction.
Being a key role, which can influence the personal and professional returns of the executives, HR can be evolved by the organization to be a key participant in achieving business outcomes. A properly designed HR function supports the Executive, line managers and staff with HR initiatives designed to:
Get the right people, with the right skills, in the right place at the right time.
The HR Capability Model sets out the skills required of highly effective human resource people; those who effect organizational change, build agency capability and strengthen the impact of HR on business outcomes.
From a CEO's perspective, the performance benchmarks, would be:
- Shareholder value - which includes investors, human capital and vendors,
- Profit (Bottom Line), and
- Revenues (Top Line),
which are influenced by factors, like
- Product / Service Margins,
- Product / Service Branding,
- Customer Satisfaction,
- Speed of Product Development,
- Time to Market,
- Output Quality and Market Expectations,
- Customer Retention and Attraction,
- Supplier & Partner Satisfaction / Retention,
- Anything which can give Competitive Advantage
As can be seen from the factors that make a difference, it is the line managers and their teams who can significantly affect the overall organization performance.
Unemployment all around, but the growing skills gap coupled with a declining “work ethic” only adds up to the woes of the CEO, emphasizing that the need to focus on the HR function to build the ability to successfully recruit and retain is a must-have for making the Organization’s Vision and Mission turn true.
About the Author
Ravi (Kumar) Chava, CEO at Metier Software Solutions
Currently involved in web enabling business processes by developing web applications to take business processes online enabling executives to access and process business requirements from where ever they are.
Developed and deployed HR portal which includes executive offer letter to separation letter online, appraisals, counseling, competency assessment and succession planning, training scheduling and tracking for M/s Coromandel International Limited, a Rs. 10,000 crore flagship enterprise of Murugappa Group. Other products include invoice tracking system, vendor indent and delivery tracking, HR Metrics, Fertilizer Control Order - Product Failure and legal action tracking, etc.
