PRINCIPLES OF HRM
Executive summary
A critical analysis of the case study “People Before Strategy: A New Role for the CHRO” has been highlighted in this report to inform the major findings of the text. It has emphasised several themes concerning the shifting function of HRM in the changing corporate industry. A specific area, performance measurement, and value generation have also been chosen to correspond with the case study. The impact, problems, and suggestions of performance assessment and value generation have been thoroughly examined to present strategies for operationalized recommendations. A reflective blog is also included that emphasises the learning experience, outcome, and effect on future practice.
1. Introduction
In this report, a critical assessment of the case study, “People Before Strategy: A New Role for the CHRO” has been highlighted to inform key findings of the text. It has highlighted various themes regarding the changing role of HRM in the changing business industry. Additionally, a specific area, performance measurement and value creation have been chosen, which aligns with the case study. The critical analysis of the performance measurement and value creation has highlighted its impact, challenges and recommendations, which have been discussed thoroughly to provide strategies for operationalised recommendations. It also includes a reflective blog to highlight the learning experience, outcome, and impact on future practice.
2. Critical analysis of the article
The case study “People Before Strategy: A New Role for the CHRO” highlights the traditional evaluation of CHROs by informing the need for synchronising HR strategies to obtain broad business objectives (Charan et al. 2015). The critical analysis of the case study has informed various themes, which assess the findings of the text.
2.1. Transformation in the role of Chief Human Resources Officer
The case study has highlighted the requirement of changing the conventional role of CHROs challenging the traditional approach to assessing the performance of the HR leaders. It is generally done by implementing various processes within the allocated budget, enhancement of employee job satisfaction, increasing people engagement, and achieving recruitment targets (Charan et al. 2015). However, these traditional approaches can be changed by facilitating a recalibration regarding the system of performance measurement, which goes beyond the conventional measures. It has a direct link with the performance of CHRO and the outcomes of the core metrics of business revenue, market share, and profit margin (Charan et al. 2015). This proposed shift has a significant implication for facilitating the strategic positioning of Human Resources within business firms.
The HR has been positioned as a value creator, which moves away from its traditional position as a cost centre, which is connected directly to the financial success of the business enterprises. It highlights the reevaluation of the role of HR within a business firm focusing on its integrated potential to contribute substantially to value-creating rather than controlling overall expenses (Al-Dhaafri and Alosani, 2021). Furthermore, it highlights the need to reevaluate the relationship between business objectives and HR strategies, which has additional implications beyond performance measurement. CHROs can help in aligning the human capital of the business firms to the organisational goals to ensure the productivity of the workforce matches the company requirements (Charan et al. 2015).
Additionally, the vision, mission and objectives of the enterprise can also be used by CHRos to motivate and engage the employees to facilitate performance. CHROs are an integrated factor in creating a positive culture, which influences the growth and well-being of the workers. The case study has highlighted a significant emphasis on profit margin, market share, and revenue, which is correlated with employee management as the core driver of success in the business landscape (Agustian et al. 2023). Therefore, the suitability of HR initiatives needs to be measured in appropriate market positioning and the financial health of enterprises.
2.2. Evaluation of G3 as a transformative approach
The G3 model has been explained in the case study, and the role of CHRO is a new and innovative approach. It represents major changes in the traditional manner establishments are structured moving away from existing hierarchy. The findings have highlighted the significance of organisational positions such as CEO, CFO, and CHRO and the requirement that they work together (Charan et al. 2015). Working together allows them to blend financial measures with strategies involving humans, which are the other vital resources of the companies. The case study also provided an example of Marsh, which is an insurance and “risk management leader” and “Tata Communication” as another example (Charan et al. 2015). Additionally, the G3 model can be considered a powerful tool that can help in overcoming divisions within establishments.
The study expresses that the proper utilisation of vital organisational positions such as CEO, CFO, and others can act as an element within the companies, which can mitigate traditional barriers between finance and “human resource management” (Charan et al. 2015). The importance not only lies in teamwork but also strategic necessity. It aims to encourage a complete viewpoint, which can show how human capital and financial performance intersect with each other. Furthermore, within the company, Marsh, the responsible persons such as “Peter Zaffino”, “Mary Anne Elliott” and “Courtney Leimkuhler” play several roles, which allows them to shape the organisational structure to achieve specific business goals (Charan et al. 2015). These three leaders work very closely, which allows them to examine business performance and organizational operations.
It not only allows them to stay updated regarding the progress of the company but also to implement changes and development in specific areas that require upgradation (Barba-Aragón and Jiménez-Jiménez, 2020). The effect of the G3 model goes beyond profit and workforce, it further motivates and modifies culture, promoting a strategic, and collaborative method in the process of decision-making of the organisation.
2.3. Alignment of organisational goals with HR practices
The analysis of the case study has highlighted a transformation in HR practices aligning the people management strategies with broad business objectives. It indicates a shift in the traditional roles in HR, which is examined thoroughly by the experiences of Tata Communications and Marsh. The business practices of these corporations have highlighted the strategic imperative of the business enterprises in incorporating HR initiatives with the major business goals (Aldrich and Pullman, 2019). For example, in the company, Marsh, the CFO and the CEO represent the G3 model, which synchronises the intended business results with the HR practices of the enterprise (Charan et al. 2015). The G3 model integrates the HR practices into the strategic goals of the enterprise by including various review processes which analyse challenges of organisational design and business performance.
On the other hand, in small and medium businesses, the role of CHROs becomes more crucial. Small and medium businesses generally have less budget, fewer employees, and a close-knit organisational culture. The responsibilities of CHROs are fostering a culture to facilitate business growth and ensure the satisfaction of the workforce (Marchington et al. 2021). In addition to that, the case study has also highlighted the context of Tata Communication in the aspect of understanding the effectiveness of the G3 model in bringing transformative change in traditional HR roles (Charan et al. 2015). It can be ascertained that companies like Marsh and Tata Communication include restructuring of roles and staffing in the G3 discussions to align it with the new direction of the firms. This collaborative strategy highlights the essential of aligning HR strategies with the major objectives of the organisation to make its workforce a strategic enabler.
2.4. Assessment of challenges in incorporating the G3 model
Despite various significant benefits of the G3 model, which can bring an enormous amount of success to the organisation, the study has also highlighted several challenges in the process of implementation of the G3 model (Charan et al. 2015). The G3 model works as a strategy, which brings financial measures and human capital strategies together that lead to a transformative way. However, the analysis has explored some challenges that organisations can face during the implementation of the model (Cooke et al. 2020). The primary challenge is the resistance to the sudden cultural changes within the establishments due to the implementation of this G3 approach. It produces complications as the G3 model requires a big cultural change in the firm.
The case study has also highlighted lessons from the companies Marsh and Tata Communications, which has shown that encouraging collaboration among leaders holding higher organisation positions can shift the usual hierarchical structures. It suggests that making such large changes can face opposition from the existing regulations and processes (Aldrich et al. 2015). The workers and middle management, who have the authority to make decisions independently within their departments can oppose the idea of collaborating and integrating their efforts, which has been considered a key aspect of the G3 model (Charan et al. 2015). The in-depth examination allows findings that suggest the importance of expecting and handling this resistance, which can contribute to the successful introduction of a strategic HR function.
It has also highlighted that during such big changes, organisations are required to have well-planned strategies for managing the transition, otherwise it not only affects the organisational performance but also leads to an unsuccessful implementation of the G3 mode (Heizmann and Fox, 2019). As a result, it can lead to devastating effects on organisational operations that lead to financial loss and business shutdown. A clear explanation of the necessity of changes can avoid such complications.
2.5. Analysis of cultural shift toward strategic HRM
The case study has highlighted the requirement of cultural transformation with business firms to comprehensively embrace strategic HRM. It aligns with the proposed G3 model in the case study, which contributes to the strategic and integral position of HRM within the organisational structure. The function of the traditional HRM for recruiting, hiring, and training employees needs to be changed to incorporate strategic HRM in their processes (Komm et al. 2021). The application of the G3 model, which highlights the requirement of synchronising HR activities to the business objectives, necessitates a profound change in the existing corporate culture (Charan et al. 2015). A transformed corporate culture can assist in perceiving HR as a strategic partner in facilitating success along with its traditional operational and administrative support.
The example of Tata Communication and Marsh has highlighted corporate culture, where the G3 model has been effectively incorporated. Marsh and Tata Communication has faced a cultural shift, which views HRM as a strong influencer in business outcomes along with employee-related procedures (Charan et al. 2015). Business firms need to facilitate a cultural shift within the workplace to integrate the G3 model. It highlights the requirement of forming a culture where HRM is valued and the effort of the HR professional is acknowledged. This change can transform the conventional hierarchical structure and comprehend the importance of HR in becoming an active participant in the major decision-making process.
Organisational culture is an important element in introducing change in the operational process. Fostering a positive culture is highly recommended to introduce a change while lowering the resistance from the employees (Morris et al. 2021). Making CHROs an essential part of the decision-making process requires effective communication, leadership commitment, and internal collaboration, which can redefine the role of HR within the workplace. In this context, the G3 model is a catalyst for cultural transformation providing a strategy to facilitate collaboration among ECO, CHRO, and CFO.
3. Critical Analysis of a Specific Area of HRM
The specific areas for critical analysis related to HRM are performance measurement and value creation. The change in performance measurement metrics for CHROs aligns with the central theme conveyed in the case study.
3.1. Performance measurement and value creation for HRM
Business organisations strive to develop their business to obtain the possible highest benefits, which require an adequate approach to acquire positive investment outcomes. In facilitating key achievement of businesses, HRM plays a significant role. Traditionally, HRM focuses on solving various challenges related to employees, which contributes greatly to the success of businesses (Ng and Sears, 2018). Performance assessment has emerged as an essential aspect of business organisation as it helps in determining the progress of the company. The performance measurement process is also known as the HR scorecard, which records the performance growth of the employees (Stahl et al. 2020). It focuses on various procedures, which connect individuals, planning, and strategies for evaluating HR activities.
A strategy map is generally developed to illustrate the strategic goals and the way the goals align with the required “Key Performance Indicators or KPIs”. Therefore, the performance measurement approach of HRM analyses to detect, track, and evaluate the performance of the workforce along with its HR department to determine the way it adds value to organisational targets (Tursunbayeva et al. 2021). As HRM is being integrated into the strategic direction of the business firms, it highlights a correlation between HR activities with revenue generation, market share, and profit margins. It establishes a direct link between organisational success and HR initiatives, which helps in providing a comprehensive HR strategy to acquire skilled and experienced employees aligned with the needs of the organisation.
On the other hand, HRM also concentrates on employee development programmes to upskill and reskill employees providing them with opportunities for career development. In this case, the HR department can follow strategic planning to upskill employees to attain the broad objectives of the organisation (Van Ingen et al. 2021). Therefore, including the HRM in the strategic decision-making process can help in creating higher value for the organisation aiding it in gaining required human capital resources to facilitate its overall performance.
3.2. Challenges related to performance measurement and value creation
Companies often face resistance during the process of changing traditional HR metrics. The resistance generally arises from employees, middle managers, and even higher official leaders. The resistance to changes makes it difficult to successfully put “performance measurement systems” in place. As a result, it reduces the ability of the firm to interact with the changing business conditions and remains weak (Vithan et al. 2021). Therefore, it leads to lower morale, reduced job satisfaction, and also negatively influences the workplace culture. The outcome of unsupportive behaviour from the employee regarding the new metrics can lead to less organisational performance and growth (Zhang et al. 2020). There are possibility that employees will follow old metrics, which not only leads to a mismatch of progress and instruction between employees but also organisational goals.
The challenge of traditional mindsets refers to the typical perspectives within an organisation that consider HR as an expense rather than something valuable. This idea mainly comes from observing HR doing administrative tasks such as payroll and compliance. Considering HR as an expense not only decreases its importance in the company but also leads to ignoring its strategic significance (Christensen et al. 2022). Traditional thinking processes also prevent HR from contributing to important strategic decisions. Companies can also be hesitant to invest money and people in HR initiatives by considering them as extra expenses rather than investments. As a result, providing fewer resources to important HR functions can lead to missing opportunities to contribute to long-term value creation.
Furthermore, it also has the negative impact of seeing HR as an expense that leads to overlooking opportunities to use human resources, which can provide a competitive edge to a firm. Incorporating a proper “employee development” program poses various challenges (Richards, 2022). The lack of development initiatives can cause a mismatch between the skills the workforce has and what is organisation requires to achieve its goals. A people implementation of “employee development‘ also requires a sufficient amount of time, money, and resources, which can also considered as a challenge. Additionally, a constant investment in employee development and training is costly, which poses other financial challenges (Sarstedt and Danks, 2022). Employees’ resistance to joining training and development programs also can be caused by the lack of understanding of the connection between the training and immediate job duties of employees.
Moreover, organisations are required to change their perception towards the HR department and require to rethink the concept that reflects HR only as “human resource management” overhead. This thought process only decreases the abilities of the HR department, which prevents this segment of the organisation from contributing to various other creative activities but also affects their abilities in performance measurement and value creation (Cheng and Hackett, 2021). Similarly, organisations also need to identify critical skills and qualities, which can ensure them to achieve their strategic objectives. Otherwise, it can produce challenges such as skills gaps and insufficient future skills, which can contribute to preventing growth and success and lead to financial and intellectual property loss.
3.3. Recommendations for mitigating emerging challenges of HRM
Addressing the challenges is required to connect HR initiatives with financial outcomes by creating a “balanced scorecard or BSC”. BSC is a management tools, which ensure a design that turns big goals of the firm into specific performance targets. It can play a significant role in addressing the resistance towards new performance metrics (Chadwick and Flinchbaugh, 2021). Highlighting that HR has more value than just a human resource supervisor shows its importance and encourages employees to adopt this new mindset (Boselie et al. 2021). The leadership development program is also important, which requires investing resources in developing the skills of the workforce. Customising leadership in a specific manner can help in tackling employee development challenges.
Concentrating on enhancing employees’ abilities, aligning training with company goals, and establishing a clear link between leadership development and job responsibilities. In addition, including HR professionals in the decision-making process can play a significant role in changing the perception regarding HR, which considers HR as an expense (Farndale et al. 2020). Incorporating HR professionals into the decision-making process not only helps organisations to address issues that employees have with management but also enhances company culture positively. Building effective communication channels can also play a significant role in addressing resistance to new performance metrics. It involves highlighting the requirements of the changes and the way the changes can benefit both the employees and the firm (Murawski, 2021). It not only encourages employees to adopt the changes but also maintains a smooth transaction of changes.
Similarly, continuous learning and development also play a significant role in enhancing the abilities of the workforce, which requires establishing a culture that can tackle insufficient development initiatives. Continuous learning and development initiatives also ensure to address issues of skills gaps and ensure skills for future development or implementation of new processes (Lei et al. 2021). Critically, analysing skills gaps and areas that require specific development can ensure reaching strategic goals and guarantee long-term growth and success. Effective cost measurement in spending for training and development and measuring the outcomes of continuous learning provide an overview of these initiatives.
Designing a “cross-function leadership” approach can identify the challenge of finding crucial skills by rotating leaders through different roles. This approach can help HR professionals get experience in various organisational areas; understand the way an organisation works, and contribute to vital strategic projects (Budrienė and Diskienė, 2020). Furthermore, addressing traditional mindsets can also be possible by creating detailed metrics. The metrics can show the direct connection between HR efforts and overall organisational success such as revenue growth, profit margins, and market share. It also connects HR activities to organisational activities, which not only ensures success but also highlights the contribution of HR to this success (Schotter et al. 2021). As a result, it builds a positive perspective for HR professionals and encourages them to work actively and closely with the firm.
4. Operationalising recommendations
In order to operationalise recommendations related to performance measurement and value creation requires a comprehensive strategy to successfully implement the cultural shift programs, balanced scorecards, and initiatives related to leadership development.
Implementation of balanced scorecards
The implementation of the balanced scorecards requires the effective employment of a detailed plan. The implementation plan needs to be outlined adequately to obtain suitable execution to ensure each metric of the scorecard is synchronised with the organisational objectives (Hauff et al. 2021). The metrics need to include the impact on profit margin, market share, and revenue along with the existing HRM measures and various functional aspects to determine the KPIs. It can help in identifying essential KPIs, which contribute significantly to the overall success of the organisations (Díaz-Fernández et al. 2023). Various functional teams and HR departments need to collaborate to recognise the KPIs to make the entire process iterative, which can provide the scope for adjustments for the unprecedented changes in business highlighting the need for changing objectives and strategies.
Implementation of cultural shift programs
Effective communication strategies are essential for the successful implementation of the cultural shift programs. Business organisations need to create an appropriate communication plan, which underscores the essentiality of fostering strategic HRM. In this aspect, seminars, workshops, and training sessions need to be conducted to engage workers from various organisational levels (Díaz-Fernández et al. 2023). The activities need to create awareness regarding the evolving role of HR beyond their traditional purposes and their initiation as strategic partners. It can assist in facilitating knowledge among all the employees regarding the changing role of the HR department and their essentiality in obtaining higher organisational success. The business organisation can also utilise real-world instances, leadership messaging, and open communication channels to foster a positive culture, where HR can be viewed as an essential driver for success.
Implementation of leadership development programs
Identifying and developing leadership potential is the key aspect of the leadership development programs. It helps in creating a systematic process to determine people with effective leadership skills. The leadership development programs include evaluation of competencies, performance assessments, and facilitating feedback (Haque, 2021). It can address various specific gaps among the workforce and aid in initiating effective strategies. Continuous assessment and adaptation of leadership development strategies can help in building leadership capabilities among the workers, which can drive organisational success and future sustainability in the continuously changing business industry.
5. Reflective blog
Engaging with the case study “People Before Strategy: A New Role for the CHRO”, and in-depth analysis has built my understanding of HRM. The case study has highlighted a big change in the role of CHROs pushing for a change from old metrics to create strategic value. It has shown how HR initiatives can affect financial results, which has completely changed my view on how HR can contribute to the success of a firm.
5.1. Experience of learning
In-depth analysis and studying the G3 model in companies such as Marsh and Tata Communications has played a significant role in enhancing my analytical skills. Evaluating the challenges in the process of implementation of the G3 model has enhanced my critical thinking abilities about organisational structures and change management. It has made me realise that focusing on addressing the problem and developing strategies and proactive approaches plays a remarkable role in tackling HR issues. Considering practical application, the theoretical knowledge from the case study can be relevant to my future job. Knowing how HR practices align with overall business goals allows a strategic perspective to improve HR functions at work (Knezović et al. 2020). The skills I have gained can be valuable in the real world, where I would have to handle HR situations and contribute to making the firm perform better.
The learning experience has encouraged me to engage with continuous learning, which can assist in the ground of changing HRM. Identifying the areas that required improvement from the case study has motivated me to explore new developments in HR practices. It can be helpful in the evolving trends and strategies, which can act as a driving force for ongoing professional growth (Fan et al. 2021). Most importantly the case study has also influenced my perspective on how I used to see the role of HR professionals. Identifying HR’s crucial part in the ground of decision-making and how its influence on firm culture reshaped the way I consider my professional identity. This experience aligns with my values by exploring the significance of HR as an effective contributor to the success of a company.
5.2. Outcomes
The case study has highlighted a significant concentration on the changing role of HRM. Analysing the case study has influenced my knowledge and opinion about the role of HRM within an organisation. It has provided me with an integrated knowledge of the connection between business objectives and HR practices within business organisations. The case study has also informed various challenges, which have highlighted the lack of a definite platform to improve problem-solving skills. In order to address the problems related to performance measurement, implementation of the G3 model, and value creation requires in-depth assessment of various practical strategies to formulate suitable recommendations. It has provided me with scope to enhance my ability to critically examine issues and formulate various plans for HRM initiatives. On the other hand, the recommendations have highlighted the implementation of various strategies such as cultural shift programs, leadership development, and the utilisation of balanced scorecards to measure performance (Meijerink et al. 2021). It has highlighted the need to create a positive corporate culture to introduce and make the employees aware of the importance of HRM in strategic planning. In my opinion, it has also enhanced my understanding of the intricacies between organisational objectives and HR initiatives, which makes the organisation more agile and responsive to market changes. The case study has also highlighted the requirement of restructuring, which is highlighted by the G3 model. Gaining adequate knowledge about the G3 model has assisted me in acknowledging the various factors and their interconnection related to HRM. It has provided me with information, which can assist me in navigating organisational challenges with a strategic approach in future.
5.3. Future practice
The learning from the case study and the recommendation of implementing balanced scorecards has enhanced my knowledge, which can be helpful in the future role of HRM. It has educated me to review performance metrics, making sure they match my future organisational goals. Taking ideas from the G3 model, which suggests collaboration among key positions I can create workshops and training sessions in my future practice. It not only ensures the mitigation of challenges in collaboration but also a smooth organisational process (Podgorodnichenko et al. 2020). The implementation of leadership development is a strategic step, which deals with the challenges from the case study. It has also encouraged me to work with the leadership team to identify and develop potential leaders within the company. Most importantly the case study has highlighted the challenges in the process of implementation of the G3 model, which has prepared me to tackle similar types of resistance in my future establishment. It will require me to use clear communication, which can assist me in explaining the advantages of proposed changes, particularly in performance metrics. Moreover, Involving HR officials in the process of decision-making can help to change the perspectives of HR from an expense to a strategic asset, which has a significant contribution to organisational growth and success (Schotter et al. 2021). I have identified the importance of continuous learning and have determined to use it as a fundamental part of my future HR practices. Using lessons from this case study is expected to help me in the position of HR more strategically in my future company.
6. Conclusion
The report has shed light on the critical analysis of the case study and one specific area of HRM. The cynical analysis of the case study has highlighted its focus on the transformation of the HRM role in contributing toward strategic planning and obtaining organisational objectives, which is beyond their traditional responsibilities. It has highlighted the implementation of the G3 model in companies like Tata Communications and Marsh. As a specific area of HRM, performance measurement and value creation have been selected and analysed to describe its various challenges along with mitigation strategies. Additionally, operated recommendations and a reflective blog have highlighted the experience in learning.
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