Human capital and proactive strategy in HR management

Academic Journal Entry

I feel as if I acquired several valuable lessons from the first several chapters of the text. The following sections will illustrate some of the points that I felt that were the most relevant to me. One of the most influential sections came at the beginning and helped me to understand what a foundation for a human resource strategy might look like. It is important in my opinion, above all else, to be proactive in employee relationships so that you can foster an environment in which the human resource department can serve as a cornerstone of the organization rather than some distant alien force that only swoops in when there is a major problem.

Human Capital

First of all, I liked the notion of human capital and how it applies to an overall, most holistic approach to a Human Resource strategy. There seem to be two approaches that a HR manager can take. The first approach is reactive and the HR professional will only act when directly confronted by an employee about an issue. In the opening section there was a story in which the HR manager wasn't aware of simple items about their employees such as what their name is or where they worked. The employee only came to the HR office as a last resort out of fear that they might lose their job if some action isn't taken regarding their problem.

In another example, the HR manager knows the employees name and job function and takes the time to speak with them without hesitation. Instead of the HR manager only being reactive to any new situation, in this case the HR manager has half the battle already won. They have created an open atmosphere in which employees can come and discuss issues without anyone blaming them or feeling contempt for their visit. In this case the HR manager acts more like a facilitator that was only made possible through a proactive approach.

Despite the various theories and opinions on what makes a good HR strategy, it seems to me that the proactive approach should be the foundation in which any effective strategy is developed. It is important to be familiar with employees and their positions within the organization. Furthermore it is ideal to create an atmosphere in which employees can voice their issues without fear of retaliation. A HR manager performing this role can act more as a problem solver rather than someone everyone fears. This position also adds value to organizations by creating a level of synergy within the organization by positioning the HR department as an effective tool to address organizational issues which can add significant human capital potential for a competitive advantage.

Art of War -- Strategy Development

Comparing an organizational strategy or a human resource strategy provides many valuable insights. I thought that comparing a business strategy to a battlefield strategy makes the importance of the strategy even more clear because the stakes are much higher. For example, the author talks about a gung-ho strategy which may be a common strategy among HR departments. However, this strategy on a battlefield is almost certainly going to result in unneeded death and loss of human capital; to put it lightly. Instead of being gung-ho arbitrarily, it makes more sense to gather information about the other army or business competitors first. This allows the organization to plan a strategy based on the circumstances that are present in the real world.

Basically, the know your enemy concept which is present in works such as the Art of War is still relevant today in the business world. The goal is to make the best use of your human capital in the environment that they operate in. People and organizations do not exist in a vacuum. As a consequence a more holistic approach must be taken when a strategy is developed. Even though the company's CEO may set the high level broad strategy, the HR executives must also make the strategy fit in regards to the firm's human resources.

Conclusion

Beyond the foundation for human resources that was identified from reading the text, the two other factors that were highlighted dealt with the external environment as well as the organizational culture. These are two factors that I feel are often neglected or discounted in many organizations. The external environment is an extremely important factor in regards to devising a human resource strategy that can serve to provide an organization a competitive advantage in regards to the competition as well as the entire market place as no organization operates in a vacuum. Also, I feel that people ignore the organizational culture to a large degree. No strategy can work effectively if it is not consistent with the culture. A transformational HR leader may be able to gently guide the culture but revolutionizing it is almost unheard of. Therefore the state of the organizational culture should be accurate and included in all decision making processes.