How can an HR sourcing strategy add value to organizational performance? This is a relevant question that arises not only in minds of HR leaders, but also in minds of CEOs as they want their investments for the development of HR departments be fully covered and effectiveness of HR work totally correspond to company’s short-term and long-term business goals and expectations. CEOs in general want to see highly professional staff that strives to raise company’s income and goodwill, and that is why they tightly cooperate with HR leaders positioning them as business executives next to them. To this extent, successful HR managers are equally building company’s investment attractiveness, address corporate governance and impact to the company’s strategic performance.
It is top management task to provide HR department with clear goals and define future priorities. There are four key dimensions for successful HR activity- business strategy, human capital strategy, HR function strategy and HR operating model. There are all interconnected, and if all adequately followed at the end they all bring maximum contribution to company’s business performance. Let me discuss those four dimensions in details. First comes business strategy, in other words company’s overall goal and aim of company’s existence. Then comes human capital strategy that touches such aspects, as securing, managing and motivating workforce for better performance. HR function strategy relates to what efficiency and effectiveness goals should be achieved during defined period of time for delivering business performance. And the last dimension is finally HR operating model that has three sub-dimensions: sourcing (about what activities should we do with our company’s staff and which of them we can delegate on others), infrastructure (what do we need to fulfill HR strategy: technologies, process, talent, organization), governance (about managing related investments). Performing all stated dimensions consequently at the end can lead to the following results: spending more time for strategic planning and not for administrative tasks, reaching more effectiveness in technological issues, achieving expected return on investments (Armstrong, 2006).
HR should determine an optimal sourcing solution taking into consideration organization’s structure, its business goals and the type of business it is in. HR leaders should also understand what are company’s internal needs and wants. Then Hr should make an analysis of resources and processes that will be necessary for provision of stated services. And only after performing of all necessary tasks, HR leaders can choose optimal sourcing solution for the benefit of the enterprise’s performance, rising quality of its products and services and lowering expense for implementation and service delivery. In such case, sourcing strategy will bring the following results:
The organizations today are in the process of change. The economic relationships across the world are changing rapidly. The process of global organizational transformation has led to research into effective leadership in relation to change (Paglis & Green, 2002). The imperative need of transformational leadership is evident in the change that is considered essential to business growth and development. A transformational leadership is therefore essential when the transforming company has the visions of a big picture ahead that must be attained.
Vision of the final result. As I have already mentioned it is important to have a vision of “endgame” and understand what your organization and top management expect from the chosen sourcing solution. Vision should be constructed in details including investment plan with demonstration of how investment will be returned.
Technological developments and direct technology investments makes emphasis on driving decision-making process of the organization. So, sourcing strategy or in other words “make versus buy” provides HR department with an opportunity to create a perfect ratio of inside talented HR resources and attracted HR force from outside for overall better performance of the organization and can add value to business outcome at lower level of expenses (Gilly, 2002).
Organization behavior is the study of behaviors and attitudes of people in an organization. After all human behaviors and attitudes determine effectiveness of any organization. The approach used in studying OB is the system approach. In other words, this approach interprets people-organization relationships in terms of the whole person, whole group, whole organization, and whole social system. Its purpose is to build better relationships by achieving human objectives, organizational objectives, and social objectives. In this paper we propose to study leadership, motivation and organizational conflict, as among the most pressing issues in organizational behavior. Further, we shall discuss how these issues can be addressed.
To optimize work of overall HR department, a company should move from form-intensive and paper-based organization to the company that is technologically equipped and has service specialization. It can also restructure the staffing structure in order to define strong and weak sides and make it more effective from the point of view of cost-effectiveness.
For example, Mercer HR Outsourcing had developed wide self-service strategy that is based upon organizations’ business goals. They have determined the components of their design that can utilize HRIS architecture and their adapted technologies that can be involved. Their approach not only made innovations more available, but also simplified access and understanding of legacy system. They made an analysis of HR department activities and identified key points of new activities and processes that are needed to be addressed. Finally, they created an operating scheme with servicing structure with several tiers that can be supportive as at the level of basic administrative tasks and as well as at the higher level while making decision for cutting costs. The scheme starts with strategy experts on the top (tier 3), then contact center specialists (tier 2), contact center generalist (tier 1), health and welfare, absence management, pension administration, workplace administration, compensation management, workforce acquisition and effectiveness (tier 0) and finally date management and reporting. This structure is interconnected with three more elements that are cost savings, decision support and customer satisfaction. So, we obtain the total variant of option that we must take into consideration while making sourcing decisions.
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The paper looks at some of the marketing activities of (1) auto racing, now the countrys second most popular sport (surprise!) following only football in revenues and viewership; (2) Notre Dame, alone among college sports organizations who conduct their own licensing pursuits; and (3) the Carolina Hurricanes, an ice hockey team that ended the 1996 hockey season as the New England Whalers, based in Connecticut.