Management Perspectives

Integrated Human Resources Management

Companies are facing an increasingly intense competition and turbulent business environment. Companies must compete smartly to create long-term sources of competitive advantages and capitalize on every single source. One of the very few sources of competitive advantages is “High Performing Human Resources”. Nevertheless, it is a tremendous challenge for companies to provide the high performing human resources, unlock their potential, and maintain the resources to continuously grow the business. Executives are completely aware of the unprecedented challenges but struggling to find the effective way for to drive lasting step improvement in human resources management. How we could address these challenges and drivelasting step improvement in human resources management?

The Integrated Human Resources Management is a starting point of developing truly high performing human resources. An integrated human resources management enables companies to stimulate a comprehensive handling of human resources and unlock their full potential and in return, will create and maximize shareholder value. It enables company to answer three fundamental questions: What will we do? How will we do it? How will we tract it?

Integrated Human Resources Management has 4 strategic objectives: (4C)

  1. Competent Employees: To attract and get competent employees in the company to ensure the accomplishment of company vision and missions.
  2. Commited Employees: To maintain the high performing employees in the company to keep the sustainability efforts towards the company vision and missions.
  3. Congruence: To build the congruency between employees’ value and company’s culture to increase the engagement of the employee within the organization.
  4. Cost Effectiveness: To ensure an effective cost of human resources activities to increase company’s profit.

To ensure the achievement of the four objectives (4C), company needs to perform 4 key activities of human resources management (4P) as follows:

  1. Providing: Activity in providing competent human resources to ensure the accomplishment of company vision and missions. This activity covers: Human Resource Planning, Recruiting, Selecting and Placing of the human resources, and Succession Planning.
  2. Preparing: Activity in preparing and increasing the capability and the human resources capacity to be able to complete his work well and to unlock their full potential. The activity covers: Training and Development, Mentoring and Coaching.
  3. Performing: Activity in ensuring high performance of employees to reach the target that was hoped by the company. This activity covers: Performance Management and Performance Appraisal.
  4. Paying: Activity in rewarding and punishing the employees towards their performance to create a high professional culture. The Paying activity covers: Compensation, Promotion, Mutation, and Job Enrichment.

To support the four main activities, HR department also needs to perform the supporting activities as well, that is:

a)      Competency Mapping: Activity to assess and determine the strength and the weakness of the employees in performing their jobs, both as the individual and as part of the organization, to put the right people on the right job.

b)      Job Analysis-Description-Evaluation-Grading: Sequential activities in matching the job and the job holder. With the series of this activity, the company also could maps all of jobs in a stage (level) that will be useful in the process of giving of compensation (paying) and to  bring fairness between the employees.

c)      Industrial Relationship: Activity in maintaining relationship with all stakeholders (especially with policy maker/ government) to ensure the company’s compliance towards the existing regulation.

Welcoming your opinion…

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3 thoughts on “Integrated Human Resources Management

  1. The advent of social media has meant that the Intranet and the web are starting to play a more important role in high performance HR, in both the 4C’s as well as the 4P’s.

    It does of course mean that the HR team needs to start exploring technology with the IT team and collaborating on defining the processes required for attracting competent employees, motivating them, creating concruencies, providing HR services, performance management etc.

    Kate Elphick

    http://digitalbridges.wordpress.com

    • Totally agreed with you Kate…

      Software and database systems, Web services, remote access capabilities and network hardware have made major contributions to increasing HR productivity. Aligning the HR strategy, human capital assets in its employ, and the judicious investments in technology will enhance the HR management role, of course in collaboration with the IT team. But the most things to consider are the automation of a HR’s processes should result in a tangible metrics; such as: reduced employee turnover, reduced HR cost, reduced number of inquiries to HR, increased management and employee satisfaction, as well as an array of other metrics that clearly demonstrate the efficiency and cost effectiveness of HR area.
      Thank you for your great opinion.

      Roy Nelson

  2. Hey…

    I agree to what you have said Kate and Roy…I think HR analytics has taken a major role in HR along with 4 P’s and 4 C’s

    To be able to determine the Attrition rate, productivity and high raters, along with geopgraphical and ethinic origin is giving a lot of insight to HR to acheive company’s vision and improvement. Big companies are also looking at Mass Career Customization to better help the employees to unlock their true potential and achive high performance..

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