2.7 HR's Role in Creating Value
The value created by the HR function is frequently questioned by line
managers. This reflects how many human resources functions are perceived
to be out of step with the needs of business
Research suggests, time and again, that organizational change fails as often
as it succeeds. Even where change projects do succeed, delivery of value is
rarely as easy as it appeared, at the outset. Why? Too often, emphasizing the
business and economic rationale of a project obscures the fact that value, in
all of its forms, is actually created by the application of human talent.
But, amidst unprecedented uncertainty, deriving value from human talent is
harder than ever. This has placed an increasing responsibility on HR
function's to source the scarce human talent which can create the highest
value for organizations. HR functions are also required to identify and sustain
diverse talent pools which will maximize value creation in rapidly changing
market environments.
So how are human resources professionals able to enhance the value
creation process? experience suggests that:
there is no single best way - a 'silver bullet' - of doing things as far as
organizational success and productivity is concerned;
the HR organization, processes and technology need to be integrated
and aligned with business strategy to maximize their impact as value
creating opportunities;
engaged employees create more value for the organization; and
there are many legitimate HR metrics which can measure the
contribution that HR makes to value creation in a business.
There is no one single 'best way'
In recent years, there have been numerous new initiatives focused on
creating more value out of a business - total quality, total customer
satisfaction, customer chains, business process improvement, partnership