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If you don't know the role and meaning of human resources, then you will think this department is redundant. In fact, HR is the only one that has been questioned as having an existential value. But now that it exists, you should understand why it exists.
There is no doubt that any department exists because it brings value to the business. No one has a department that only spends money without creating value. Now that HR exists, you need to ask two basic questions: Is there really a need for such a department? If so, what value does it bring? The answer to the question varies from person to person. If you can hand over all the issues of enterprise human capital management to department managers or outsource, you should disband the department. But if there is a human resources department, it should be stated: With such a department, work will be done better, faster, and more economically.
Internal and external factors that need to be adjusted
Several studies have shown that more than 50% of the world's human resources departments are not functioning as they should. But don't jump to conclusions yet! Before you cut down the HR department, recall who hired these people and gave them instructions? The answer is the CEO. But even so, about 20% of HR managers are still able to complete the task and can show their contribution to the appreciation of the company's tangible assets. These 20% of managers are able to adapt their HR department to changing external circumstances.
The following questions are important for any adjustment:
Expectations: Where should we be?
Control: How are powers and obligations structured?
Competitiveness: Are you ready for the challenge?
All other questions and answers, problems and solutions are derived from the above three points.
These three points can help us get a general idea of what's going on before we make a decision: What internal and external forces are working together? In short, what happened or will happen that finally made the decision to adjust?
Look at the outside first. Several market factors and forces will force you to believe that your business needs to adjust. They are: access to talent, employee productivity, technological sophistication, competitors' plans and actions, mergers and acquisitions, entry into new markets, and the state of the country's economy. Each factor will give rise to many specific problems. The combination of these factors constitutes external factors that enterprises need to adjust.
Look inside. Service improvements, cost reductions, and the foresight of HR executives were the main drivers of adjustment. Often, it's the CEO who thinks the HR job needs to change, hires a new HR head, and tries to transform HR into something that adds value.
Business Core: First and foremost, adjustment requires a strong commercial motivation. This requires companies to have a deep understanding of their future, values and mission, as well as to understand the principles of business operations. Human resources work needs to be familiar with the work processes of internal members of the enterprise, so as to understand the needs of these internal members (employees and management).
Plan: An effective plan consists of several parts: specific measures to make adjustments and a clear target plan; a communication plan; the most forgotten point, specific implementation steps; A plan for the impact of the company's customers; and finally, a method for evaluating the results.
Communication: The importance of communication cannot be overemphasized. Well-run companies believe that communication never ends. This is especially important during chaotic times when companies are adjusting. Power changes, management structure adjustment, production process redesign, the shock brought by adjustment affects every corner of the enterprise, and employees need to track the progress of enterprise adjustment at any time. Insufficient communication can cause fear in employees, and fear can lead to confusion in behavior.
Teamwork: The large-scale adjustment of the enterprise requires the close cooperation of the team, and it is only rare for a few people to complete the company's projects. Companies make adjustments that affect every employee, and HR will keep an eye on each employee's response, which requires a lot of teamwork. Establishing cooperative relationships with people in other departments is conducive to the smooth progress of the adjustment, so as to establish the belief to overcome the difficulties together.
Active Participation: Senior management should actively participate in the adjustment of the enterprise. Otherwise, employees may suspect that the corporate adjustment is just another go-ahead. The role of project leadership is crucial, and the company should assign senior managers to lead the adjustment. Managers should be prestige, conscientious, proactive, creative, and influential people.
Benchmarking: Three-quarters of companies referenced and compared external standards before implementing adjustments. Through benchmarking, you can generate some good ideas, pay attention to some problems in advance, and learn from some effective methods. It should be noted that when practicing, what you have learned should be combined with the current environment.
Assessing Return on Investment
After all the work is done, you need to know if the results of the adjustments are on target. Obviously, right from the start, you should set goals for ROI and determine how to measure it. A fundamental question for ROI assessment is, "Where do we want to improve: service, quality, productivity, management, across business processes, or something else?"
By comparing, you can determine whether you have achieved your goal. The focus is to look at what happens when the adjustment begins, ends, and quarterly progresses.
Breaking down the results of adjustments into individuals can help boost morale. People want their efforts to be rewarded. They need affirmations like: "You're doing a good job." or "You can do better." That way, employees can see how fast and how they're doing.
Some changes come quickly, while others take time. For example, adjustments to the employee recruitment process can be made when time is more plentiful, or an automatic applicant tracking system can be installed. Considering the relationship between the number of recruiters and work efficiency, if you can minimize the number of recruits in the recruitment process, then you can invest more in the more value-added work of human resource management. You can move some of your recruiters to other departments or downsize your HR department. From a cost perspective, it's easy to see the value-added effect because the cost of recruiting is reduced.
Improving service to employees will obviously boost morale, which in turn will increase productivity, and turnover will soon rise. It takes at least six months for this effect to be felt and recognized by employees. But if you have a tracking system monitoring progress, you'll find out in time how the time and money spent on tweaking is paying off. By studying the adjustment project, you will find that companies are shifting their focus from emphasizing technical expertise to emphasizing services to the core business; from managing human resources departments to managing human capital; and from managing processes and policies to managing programs and operations.
Originally adapted from Proven Change by Jac Fitz-enz in the May 2000 issue of Workforce Magazine, with permission from ACC Communications Inc., Global Workforce, Costa Mesa, CA. all rights reserved. Translated by Guo Yanhang. Dr. Jac Fitz-enz is the founder and president of the Saratoga Institute.More Sourcing News
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