The Importance of HR Transformation
The dynamic landscape of human resources and the increasing globalization of business requires organizations to adapt and mold for success. HR is no longer strictly about hiring and compensation. Today, organizations leverage HR and its functions to help achieve their goals and carry out their strategy. Thus, it is important for companies to assess their current HR departments and practices and determine how the structure can be re-designed to adjust to the changing landscape. Below are some factors that companies should consider when going through the re-design and re-structure process.
Redefining the Strategy
One of the first steps in the re-design and re-structure process is to define the HR strategy. Defining the strategy gives the department a focus and direction. It provides employees with a common goal to work toward. This will unify an organization’s workforce so that everyone will contribute to one common objective, optimizing the results of employee effort and performance. Everyone is on the same page about what they are working toward, so it is important to clearly define the strategy. When thinking about the strategy, companies should consider three elements: vision, mission, and results.
Elements of Strategy
The vision is the organization's identity and determines what people will expect from the company. Thus, when re-designing the HR department, managers should align the company vision with HR practices that will help the organization develop and maintain its identity. The mission is the value and outcomes that the company wants to provide to stakeholders. HR can help realize organizational missions through the talent it hires and develops which directly impacts productivity and results, so during the re-design process, it is important to consider which practices would be best to achieve the mission. Results are the “why” behind organizational functions and processes, whether they take the form of customer loyalty or increased revenue. These can be used to monitor the progress of the HR department and how it contributes to these results during the re-structure process.
Evolving the HR Organization
After developing a strategy, the next step is to combine it with the values, missions, and goals of the organization to create an HR department that reflects the company. The HR department should be structured in the same way as the rest of the organization so that it can operate logically with the company and optimize the value it adds to the company it serves. It should also operate as any professional organization would, having a clear structure and well-defined processes. Defining strategic tasks and operational tasks also helps measure progress. Identifying and differentiating strategic tasks allows the outcomes of those functions to be tracked and assess how they contribute to the organization while administrative tasks ensure the continuous operation of the department. These principles will lead to an HR department that functions like an organization that reflects the company as a whole to help it achieve its goals.
Successful HR Re-design for Organizational Succes
By considering the factors mentioned above, organizations can successfully re-design their HR departments to fit the new demands of a changing business environment. Clearly defining a strategy will ensure that everyone knows which direction to move in to maximize HR outcomes. Ensuring that the HR department reflects the organization it serves will also improve the value it creates for the company because the two are aligned and work logically with one another. Keeping in mind these ideas will help companies in the re-design and re-structure process to establish a high-performing HR department that serves as an integral part of realizing its goals and success.
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