Improving HR effectiveness through organizational performance

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Ensuring HR’s Effectiveness in Improving Organizational Performance

As we look ahead to 2023, we cannot help to ponder as to how HR continues to improve its’ effectiveness in improving performance. This means at the individual, team, and organizational levels. Here are a few considerations.

Build a Highly Competent and Effective HR Team

At the core of HR, is the ability for HR professionals to lead organizations. HR professionals do not only perform historical HR tasks. They also use strategic HR planning and implementation of the respective strategies to enable organizations to win. There’s hyper competition today given the global economy. HR professionals cannot be novices but have to be trained professions with competencies earned through education, experience, and training.

The literature has clearly explained that a more competent HR team will lead to higher effectiveness. Effectiveness in HR will include the ability to attract, motivate, and retain the employees who bring the relevant skills to the organization that will help to improve performance at the individual, team, and organizational levels.

Therefore, it’s important for organizations to select HR professionals who have a relevant HR education, experience, and understanding of leading organizations as a whole. Connecting HR to all aspects of the organization to ensure the effective flow of people and information is essential. It is therefore an important aspect of an organization’s success to ensure HR professionals understand how an organization operation, the different functions, and connecting the different pieces to ensure an effective sum.

Align HR Strategy to Business Outcomes

How do any and all HR strategies impact the organization’s success? An audit of HR’s activities will list each HR strategy. What is the value added through that particular strategy? Is it worth doing? Does the organization allow adequate or excess time in that particular activity? Historically, HR spent a lot of time on administrative tasks. Much of these can be automated or even outsourced.

Understanding sources an organization uses for advertising shows which sources are more effective. This also delineates the respective sources as far as which employees are better performers. Training and development activities have proven to be effective in unleashing expertise. At the same time, are organizations providing training on the relevant topics? Are employees able to use the training to improve their practices on the job? Does the organization’s compensation philosophy and practices help to attract and retain the candidates and incumbents who are effective in creating competitive advantages? Does the performance management system really evaluate the practices, behaviors, and attitudes that lead to higher performance and productivity?

The point is that whatever HR practices are used should impact the effectiveness and efficiency of the organization in general. Apple, as an example, uses innovation as a core source of competitive advantage. In its’ recruitment practices, Apple emphasizes the human capital that is able to enhance its’ innovation practices and who will flourish in an innovative culture.

Measure All HR Activities

How does the organization know if the HR strategies are effective? To what extent does an HR strategy impact the established measures of success of the organization? How do the HR activities help to distinguish the organization from its’ competitors? With scarce economic resources, an organization has to be prudent in its’ investments considering if an investment is necessary, where that investment should be, and how much investment should be made in a particular area.

Be Compassionate with Employees

In a world rocked by Covid-19, there is an immense level of stress, mental health issues, and emotional turmoil that are impacting so many individuals, families, and organizations. The advice for organizations would be to demonstrate a genuine nature of compassion for all employees while holding all accountable for expected levels of performance. No one knows the grief, anxiety, or other feeling one is experiencing. Ultimately, showing compassion to a colleague can be meaningful to that individual and may also mean salvaging a person’s hope and optimism.

Earning a DBA can help you improve your skills

Concordia University Wisconsin’s DBA program includes a concentration in Organizational Performance and Change (OPC) that helps to develop expertise in developing highly competent and effective HR leaders. Our students in the DBA program are current and aspiring leaders who help to create and lead organizational strategies. The OPC concentration emphasizes studying HRM and HRD strategies that genuinely improve performance that align to organizational strategies and outcomes.

Originally published on December 22, 2021. Now updated with current information.