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human resource management courses

Human Resources: What Drives an Organization

An organization is deeply rooted in the kind of culture it creates and the people who are part of it. While one might argue that the business results, market conditions, industry trends, economic cycles, competitors and so on are the reasons that drive an organization. However, at the heart of the organization lies its workforce and the biggest resource that drives it – human. Given the criticality of the role and function, if you aspire to become part of this people-driven function,  a great hr certification is your first step. Let us take a closer look at how human resources drive an organization.

 

  • Defines culture – How many times have we heard employees talking about how great their organization’s work climate is? Or on the other hand, how bad it is. The first thing that engages and motivates a person to stay with a firm is the culture. HR has a central role in defining the culture, based on the overall vision and purpose of the organization. It ensures that the culture is a reflection of what the organization stands for and how it intends to move ahead. The employer brand itself is linked to culture.

 

  • Determines best policies – HR has the role of scouring the market to figure out existing and upcoming trends and policies that are most employee-friendly. They then define the business case for it and implement it within the organization. Hence they ensure that the best and market-competitive policies exist within the organization.

 

  • Provides key insights to leaders – The HR function is instrumental in providing data and people analytics to the leaders at all times. This data is very useful in decision making and ensures that the leaders are aware of the employee aspirations, as well as attributes. The insights that are compiled from the data could range from snippets about traits, to general views of the individual. It also covers performance data as well as past employment insights.

 

  • Forms the face of the organization – Usually the first person a potential employee meets is an HR representative. This individual is the first impression and interaction that the latter has, of the organization. So in essence, he/she forms the face of the organization and can actually make or break the way it is perceived in the external market. Employer brand is a very strong market reality and in today’s world, the younger workforce is very cognizant of what an organization stands for. The first interaction, therefore, becomes more crucial.

 

  • Drives all key processes – If you actually review the processes that an organization hinges on, it will be performance management, pay and rewards, staffing and workforce planning, to name a few. These are all processes where accountability lies with human resources. They do not just own the process, but also design and re-design it to suit the needs of a changing organization and market trends. E.g. performance management and rewards ensure that the employees are assessed fairly and recognized for the work they put into the success of the organization. When these are done well, the employee is happy and motivated, which in turn contributes to revenue.

 

  • Percolates the business objectives to the people – Leadership teams make the Corporate Scorecard. They share the details with their Functional heads. The biggest role and challenge is for the Human Resources function to break it down into comprehensible milestones. Business heads are more quantitatively aligned and that makes the definition of objectives easier. For people or behavioural goals and attributes, this is far more challenging.

 

  • Finds the right talent – When an organization decides to expand geographically or receives a key client project, staffing it with the right talent within a short time-frame is what will determine its success eventually. Human Resources has to step in immediately, to use data analytics as well as all its sourcing channels, understand the exact requirement and then find the right people for those roles. One wrong person can mean a billion-dollar client mistake. That can mean loss of revenue not only for the present but also for the future, as well as a dip in the organization’s reputation. With such huge implications in-store, the role of HR becomes crucial and the actual driver of the whole process.

 

  • Forms the link between leadership and the employees – HR forms the key connection between the leadership or management teams and the overall employee base. It ensures that the communication between these two critical segments of the organization remains seamless. It also provides feedback to leadership and gives them frank opinions on what actions are received in which manner, by the employees. Similarly, it explains and interprets the leadership actions and shares it with the employees by way of simple communication, so that they can assimilate it.

 

These are the ways in which Human Resources drives an organization and makes sure that it achieves its purpose as well as vision. The organization might depend on the functions like Sales and Marketing for its revenues, but the roots or backbone are formed by HR.

 

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