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The Role of Human Resources in Organizational Business Strategy

August 10, 2011 By Leave a Comment

The business strategy of a firm is the way in which the firm has chosen to deploy its’ resources to compete in the market. Strategies exist at several l

evels in any organization – ranging from the overall business, to the departments, through the individuals working within the firm. Strategy is determined to be successful when it provides the firm with a competitive advantage over rivals that is inimitable, cannot be substituted, and is exploitable. Figure 1 shows the VRINE model which is used to determine if a resource or capability delivers competitive advantage to the company.

Figure 1: VRINE Model

There are two categories of resources tangible and intangible. Tangible resources are the buildings, software, capital, equipment, etc. all easily quantifiable. Intangible resources are the knowledge of the employees, the culture of the organization, patents, location, reputation, etc. Intangible resources are the source of a sustainable competitive advantage as they are inimitable and cannot be substituted in other organizations. It is not enough for a firm to possess the intangible resources they must be able to exploit these resources in a way that is beneficial to the company. This is where Human Resources fits into the business strategy.

Human Resource Management in the only discipline that focuses on managing the Human Capital, which is the foundation of an organization.

There are several functions that HR can use to affect the performance of employees, attract talent, and promote talent to meet the business initiatives. Figure 2 shows the HR value chain.

Figure 2: HR Value Chain

 

For an organization to achieve a sustainable competitive advantage, each function area needs to support the business strategy and be in-line with the organization’s goals, mission and vision. Human Resources can provide this key element in the long-term viability and competitiveness of any organization.

 

 

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Increasing Commitment = Increased Profits

October 20, 2010 By Leave a Comment

By Mike Cieri

When we have committed employees, customers, & vendors we create synergies that enable us focus our efforts on efficiencies, exceeding customer service requirements while having flexibility in problem resolution.

There are three categories to focus on that have a direct correlation to developing commitment thus increasing profits.

The three process are:

  1. Mission – The company’s purpose
  2. Hiring – Employees & Customers
  3. On-boarding – Employees & Customers

The Mission:

Many companies have formalized mission statements. Even if yours is not written down, you have one. How else would you know how to react in difficult situations.

Most Mission Statements talk about how they want to serve their customers….grow with their customers… and develop their employees…..

I challenge you to identify what’s inspiring about your mission? How does your mission statement (that is hanging on the wall) inspire people to be creative, take risks, work extra hours, resolve that difficult problem, create commitment with the customer, etc. People want to be inspired, they want to belong to an organization they know what they stand for and can be proud to tell people they work there.

Also answer the following questions: How does your organization fit into the big picture, the community, nation, and/or world? What are the values of the organization, what’s important? What’s the ideal relationship with customers, employees, & suppliers? These aspects of a Mission Statement are particularly important to the younger generation entering the workforce. As a whole they want to be connected to something bigger than their cubical. These people are your employees, customers, and suppliers. Once developed – post it, discuss it, live it!

Hiring:

Thomas Edison is thought of as being one of the most creative and intelligent men in history – in later years, he was to become famous for his saying ‘genius is 1% inspiration and 99% perspiration’. This was certainly true for him in his attempts to develop the incandescent light bulb. He was reputed to have tried and failed over 1,000 times, and when advised by colleagues and friends to give it up, Edison replied with total conviction and some surprise: ‘Why, I haven’t failed; I’ve just found a 1,000 ways in which my formula doesn’t work!’

What are the traits and values you need from your employees, customers, & suppliers that will support your company’s mission? Look for employees, customers, & suppliers that have the same values. If you are successful, you will increase commitment and profitability by developing long term relationships, building in flexibility of problem solving, and reduced recruiting/replacement costs.

On-boarding

Now that you’ve hired the individual or landed the new account, what is the process for assimilation? Social psychologists show that in the first 10 seconds people are capable of making as many as 10 judgments that will form their initial impressions. That formation will continue and they will decide about how they feel in about 30 seconds and your level of credibility is established by the end of the first two minutes. On top of this, they have shown that most people decide about the quality of the relationship within 8 hours. Thus the first 8 hours are critical for laying the foundation of commitment.

Perform an integrity audit of your company’s on-boarding process. Those processes, policies, and information that are not congruent with the mission should be eliminated.

Conclusion

Peter Drucker said, “The best way to predict the future is to create it” And you can begin building commitment to your organization by examining your Mission, is your hiring and on-boarding process congruent with the mission? By looking at these processes you are on your way to increasing commitment which will increase your profits.

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Tips on Dealing with Difficult People

October 6, 2010 By Leave a Comment

By Mike Cieri

Communicating with an angry person is one of the most difficult business challenges a manager can face. Whether the angry person is a fellow employee, a client, or an outside third party, being on the receiving end of heightened emotions is stressful.

When face-to-face with a hostile person, the natural human response is to respond in kind—to match the level of agitation.  In most professional situations, however, this is not an effective strategy. If you match hostility with hostility, the cycle will only perpetuate itself. The key to breaking this cycle is to establish mutual understanding. By finding a common understanding, you can unlock the conflict and begin to build communication step by step.

The most extreme and challenging situation is when individuals or groups are not only needy, but also highly emotional. You must be willing to hear the other person’s concerns. Once an emotionally charged person sees that you are listening and concerned, the anger will likely begin to dissipate. With the anger out of the way, you can shift the discussion to a resolution of the issues.

To calm a hostile person and create understanding, use the four step process:

1. Inquire

  • Use active listening skills.

2. Empathize

1. The first step ,“I” relate to how “you” feel. To do this effectively, name the emotion the person is feeling. For example:

  • Relate to the Person: “I appreciate…”
  • Name of the Emotion: “…your frustration.”
  • Relate to the Person: “I share…”
  • Name of the Emotion: “…your concern.”

2. The second step is to let him/her know that you, too, feel or have in the past felt the same way. Key phrases that accomplish this are:

  • “I also felt the way you do.”
  • “I, too, would want to know the same thing if I were in your position.”

Only when you’ve sincerely communicated that you really see how he/she feels can you move to the next step.

3. Ask permission

The natural inclination when someone has verbally attacked you is to retaliate with a         quick and self-protective response.

  • Resist this “knee jerk” reaction; instead, ask whether or not the other person would like to hear some information.

Below are some examples of appropriate language to use:

  • “Would it be helpful for you to know what we have done in this area thus far?”
  • “What information can I provide you?”

If your listener says “no” to all of these questions, you can then ask:

  • “What, then, would be helpful?”
  • Permission questions communicate that you are a reasonable person doing your best to reach a common understanding.

Once your listener says “yes,” you can proceed to the final step.

4. Explain or offer choices

When you have permission to explain something, keep the explanation short and simple. You may also ask other questions to confirm your understanding. If an explanation of some sort is not appropriate, you may want to offer the angry person choices.

For example:

“Would seeing the plans or the actual figures help you?”

  • The more choices you give the other person, the greater his or her sense of control will be. Knowing that there really are ways to resolve the issue will lessen the angry person’s hostility.

Note that this model does not always move in a simple and linear fashion. You may find yourself in a situation in which some anger surfaces just when you thought the problem had been solved. You may have to cycle through the model again or spend a longer time on an individual step.

Conclusion

  • Your success in dealing with an angry person lies in your ability to communicate with sincerity, consistency, and flexibility.
  • Being flexible means not being so structured that you are not prepared to address new issues that come up.
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