Why do companies need hr

Some ways of doing this include planning company events and ensuring that company values are upheld. In the long run, you will realize how important your employer brand is.

A company is only as good as its people and the HR team is in charge of building and maintaining a strong team. A good Human Resource team with the right resources will help your company get the most out of your employees. This is really a nice article. A strong HR strategy makes it possible to attract the right talent to job competitions and to identify these as the job applications pour in.

A proper human resource sets the tone and perception of business culture. Here are three HR functions that are key in running a business: 1 Recruiting Top Talent The HR team have way more people to deal with than just the new employees.

Make it easier for your HR team to recruit by trying out our end-to-end recruitment system now! Request a Demo. Download the Guide. Start investing in your HR team now! Share this! About the Author: Miira. Helping companies to improve their Employer Brand with modern recruitment methods and superior Candidate Experience. Everyone—and no one. That imperative requires them to move people, ideas, products, and information around the world to meet local needs.

They must add new and important ingredients to the mix when making strategy: volatile political situations, contentious global trade issues, fluctuating exchange rates, and unfamiliar cultures. They must be more literate in the ways of international customers, commerce, and competition than ever before. In short, globalization requires that organizations increase their ability to learn and collaborate and to manage diversity, complexity, and ambiguity. During the past decade, most Western companies have been clearing debris, using downsizing, reengineering, de-layering, and consolidation to increase efficiency and cut costs.

The gains of such yard work, however, have largely been realized, and executives will now have to pay attention to the other part of the profitability equation: revenue growth. The drive for revenue growth, needless to say, puts unique demands on an organization. Companies seeking to acquire new customers and develop new products must be creative and innovative, and must encourage the free flow of information and shared learning among employees.

They must also become more market focused—more in touch with the fast changing and disparate needs of their customers. From videoconferencing to the Internet, technology has made our world smaller and faster.

Ideas and massive amounts of information are in constant movement. The challenge for managers is to make sense and good use of what technology offers. Not all technology adds value. But technology can and will affect how and where work gets done. In the coming years, managers will need to figure out how to make technology a viable, productive part of the work setting.

They will need to stay ahead of the information curve and learn to leverage information for business results. Otherwise, they risk being swallowed by a tidal wave of data—not ideas. Knowledge has become a direct competitive advantage for companies selling ideas and relationships think of professional service, software, and technology-driven companies and an indirect competitive advantage for all companies attempting to differentiate themselves by how they serve customers.

From now on, successful companies will be the ones that are the most adept at attracting, developing, and retaining individuals who can drive a global organization that is responsive to both its customers and the burgeoning opportunities of technology. Thus the challenge for organizations is making sure they have the capability to find, assimilate, develop, compensate, and retain such talented individuals. Perhaps the greatest competitive challenge companies face is adjusting to—indeed, embracing—nonstop change.

They must be able to learn rapidly and continuously, innovate ceaselessly, and take on new strategic imperatives faster and more comfortably. Constant change means organizations must create a healthy discomfort with the status quo, an ability to detect emerging trends quicker than the competition, an ability to make rapid decisions, and the agility to seek new ways of doing business.

To thrive, in other words, companies will need to be in a never-ending state of transformation, perpetually creating fundamental, enduring change.

The five challenges described above have one overarching implication for business: the only competitive weapon left is organization. Sooner or later, traditional forms of competitiveness—cost, technology, distribution, manufacturing, and product features—can be copied. They have become table stakes. You must have them to be a player, but they do not guarantee you will be a winner. In the new economy, winning will spring from organizational capabilities such as speed, responsiveness, agility, learning capacity, and employee competence.

Successful organizations will be those that are able to quickly turn strategy into action; to manage processes intelligently and efficiently; to maximize employee contribution and commitment; and to create the conditions for seamless change. The need to develop those capabilities brings us back to the mandate for HR set forth at the beginning of this article.

To be full-fledged strategic partners with senior management, however, HR executives should impel and guide serious discussion of how the company should be organized to carry out its strategy. Creating the conditions for this discussion involves four steps. First, HR should be held responsible for defining an organizational architecture. Several well-established frameworks can be used in this process. What matters more is that an architecture be articulated explicitly.

Without such clarity, managers can become myopic about how the company runs—and thus about what drives strategy implementation and what stands in its way.

They might think only of structure as the driving force behind actions and decisions, and neglect systems or skills. Or they might understand the company primarily in terms of its values and pay inadequate attention to the influence of systems on how work—that is, strategy execution—actually gets accomplished.

Senior management should ask HR to play the role of an architect called into an already-constructed building to draw up its plans. The architect makes measurements; calculates dimensions; notes windows, doors, and staircases; and examines the plumbing and heating infrastructures.

Next, HR must be accountable for conducting an organizational audit. Blueprints can illuminate the places in a house that require immediate improvement; organizational-architecture plans can be similarly useful. They are critical in helping managers identify which components of the company must change in order to facilitate strategy execution. When the answer was no, HR was able to guide a discussion of how to obtain or develop what was missing. The third role for HR as a strategic partner is to identify methods for renovating the parts of the organizational architecture that need it.

In other words, HR managers should be assigned to take the lead in proposing, creating, and debating best practices in culture change programs, for example, or in appraisal and reward systems. Fourth and finally, HR must take stock of its own work and set clear priorities. At any given moment, the HR staff might have a dozen initiatives in its sights, such as pay-for-performance, global team-work, and action-learning development experiences.

But to be truly tied to business outcomes, HR needs to join forces with operating managers to systematically assess the impact and importance of each one of these initiatives. Which ones are really aligned with strategy implementation? Which ones should receive attention immediately, and which can wait?

Which ones, in short, are truly linked to business results? Because becoming a strategic partner means an entirely new role for HR, it may have to acquire new skills and capabilities.

Its staff may need more education in order to perform the kind of in-depth analysis an organizational audit involves, for example. Ultimately, such new knowledge will allow HR to add value to the executive team with confidence. In time, the concept of HR as a strategic partner will make business sense. For decades, HR professionals have been tagged as administrators. In their new role as administrative experts, however, they will need to shed their traditional image of rule-making policy police, while still making sure that all the required routine work in companies is done well.

In order to move from their old role as administrators into their new role, HR staff will have to improve the efficiency of both their own function and the entire organization. Within the HR function are dozens of processes that can be done better, faster, and cheaper. Finding and fixing those processes is part of the work of the new HR. Some companies have already embraced these tasks, and the results are impressive. In all three cases, the quality of HR work improved and costs were lowered, generally by removing steps or leveraging technology.

Many HR processes can be done better, faster, and cheaper. HR executives can also prove their value as administrative experts by rethinking how work is done throughout the organization. For example, they can design and implement a system that allows departments to share administrative services.

At Amoco, for instance, HR helped create a shared-service organization that encompassed 14 business units. Human resources curbs excessive spending through developing methods for trimming workforce management costs, which includes negotiating better rates for benefits such as health care coverage. In addition, human resources ensures competitive and realistic wage-setting based on studying the labor market, employment trends and salary analysis based on job functions.

As some small businesses have budget constraints, this human resources function is especially helpful. Workplace conflict is inevitable, given the diversity of personalities, work styles, backgrounds and levels of experience among employees. A human resources manager or a staff person specially trained to handle employee relations matters can identify and resolve conflict between two employees or a manager and employee and restore positive working relationships. Human resources conducts needs assessments for the organization's current workforce to determine the type of skills training and employee development necessary for improving skills and qualifications.

Companies in the beginning or growth phases can benefit from identifying training needs for existing staff. It's much less expensive than the cost to hire additional staff or more qualified candidates. In addition, it's a strategy that also can reduce turnover and improve employee retention. Human resources specialists usually are charged with the responsibility of determining the level of employee satisfaction — often an ambiguous measurement at best. With carefully designed employee surveys, focus groups and an exit interview strategy, human resources determines what underlies employee dissatisfaction and addresses those issues to motivate employees.