If Your Human Capital Unit a Cost Save Your Organization Now

If your human capital unit a cost save your organization now

Date: 06/01/2017

Human resources management has been practiced for many centuries now, and the more human developed in their culture, science, civilization, education, technology and social the more demand for developing human resources concepts and practices. Managing resources has always two sides Investment and returns like investing money returned profit and interests, corporation shares returned dividends, land returned harvest natural resources and so on, all this are known for centuries ago but the question now is managing human resources does it make returns? The world today has shifted dramatically towards more technology, science, social media, globalization knowledge economy and advanced education, this lead the world of business to be shifted as well towards more scientific approaches when it comes to business management, leadership, production, finance and even human resources, which it transmitted today to human capital management (HCM). M The paradigm shift that shake that shake the world of yesterday facts and science added many concepts and approaches for human capital management like, talent management, succession management and planning, performance management, coaching and mentoring and so on, all these concepts and approaches added value to human capital practices and models and it has been now more understanding the importance o the human capital in any organization, but since these organization are profit driven they are still been derived towards other units and functions that make profit such as marketing and sales, finance and production and consider human capital management cost unit, these units are important no doubts of that without them the organization cant work or even exist today, but does human capital management considered as cost unit for real?

The answer for this question can be found in an article wrote by Dr. John Sullivan "Transform HR into a Revenue-Impact Function to Increase Your Strategic Impact" in 2012, in this article you can clearly see if human capital management is a cost or profit unit, an example quoted from the article to demonstrate it,  "If the new process hired salespeople that sold on average 10% more (than those hired under the previous recruiting process), you could (with the CFO’s blessing), publicly state that this HR action had improved sales revenue by X dollars (i.e. the actual amount would be the 10% improvement in the average salesperson’s yearly sales revenue, multiplied by the number of new salespeople who were hired under the improved process)". From this example we can see the following:

1.       All units incurred cost to operate wither they make profit or not.

2.       All units even the profit one except human capital management unit need to be developed individually to improve and make profit.

3.       Improving human capital management unit mean you have improved all other units.

4.       Improving human capital unit is much less costly than improving and investing in other units even the profit one, as the above article example stated.

Let us take one more example to see the result of considering human capital unit as not a cost unit, if you think of succession management or talent management the unit who will establish the program, make the policies and procedures, prepare the model and guidelines and prepare the training and development need programs are all done by human capital unit, so no matter how much you invest in making marketing and sales successor, finance successor or CEO successor the rerun depends on how well you invest in human capital unit that prepared all the infrastructure for implementing the program, if you want to increase sales, make more profit or maximize share price by new product line or innovation and creativity its much less cost if the human capital unit recruitment process and people are talented to identify and attract the people who has these skills already than investing more in the existing people, even investing in the existing people if you have talented human capital unit it will be less cost and better result outcome to identify the need and the development needed for achieving it.

Investing in human capital unit not just related in reducing the cost but also to making profit, for example to incorporate organizational culture, strategy, values and objectives with employee engagement for better, safe and productive work environment, motivating, leadership practice, employee loyalty and discipline, reduced turnover, promote innovating and creativity and implement human capital programs efficiently that will enhance and improve organizational performance towards more profit, share price maximization and competitive advantage in the market, by just having talented effective and efficient human capital unit.

Once an organization improve human capital unit it will affect the organization as a whole and just the unit as the other function do, so the question is now do you still think human capital unit is cost for your organization? Think about it again.

 

Mohamed Alzayani

Acc.CIPD and Acc.IHRME for human capital management

References:

·         ERE Media. 2012. Transform HR Into a Revenue-Impact Function to Increase Your Strategic Impact | ERE . [ONLINE] Available at: https://www.eremedia.com/ere/transform-hr-into-a-revenue-impact-function-to-increase-your-strategic-impact/. 

People do not need training today

People do not need training today


Date: 30/12/2016

Training has become the subject of the world of business there is always a new concept, new practice new model and new skills that come up every few months, and you can see professional coaches and trainers are travelling all around the world to market it and write books about it and conduct seminars and conferences for it, these training tactics have been practiced before time but the question is that enough for the people of this era?

Today world has changed into small village where knowledge and information broadcast all around the world all day to all people, with this power of knowledge that previously wasn’t available people today have access to huge amount of knowledge and information through small devices that can be carried all the time even children use these devices these days, although the idea is to spread the knowledge in the world but it has made it challenging for those who provide training to cope with the knowledge people can and have obtained by the technology of today, you can see in many training courses, conferences, seminars and even leadership programs people always ask the providers what  new you have to add, or comments by didn’t we know that already, or this is basic staff, so why people have become more challenging when it comes to training these days?

To answer this question we have to remember that people are self motivated to seek for knowledge and information to help them achieve what they need to achieve, and with today technology can reach to massive books, articles, training courses, conferences, researches and other sources of knowledge and information by just sitting at home and click one button on their devices and obtain what they need, therefore when it comes to knowledge and information people are not like before where they lack resources of knowledge and information, that is why training is not what they seek anymore, so what people seek then?

People are guided by subconscious all what they know, practice, believe and react to is the result of their subconscious, whatever knowledge, information, skills, behavior they need to learn and practice it has to embraced in their subconscious first, but what this has to do with training? The normal training is providing for today people what they know or could know but what they seek is how to make it work for us, another word mean how to embrace it in our subconscious, not all people realize the concept of conscious and subconscious process in person life but they know that they need to know how to make it work for them since their conscious is already filled by all these knowledge and information they receive every single seconds of their life today and block it from the subconscious to make it work for them.

Now the question is does training not needed in today world? The t is answer for that is no, people will always need training such as kids, youth and junior employees but what people today most looking for is consultant coaching training, they need expert people to shift their paradigm, reach their subconscious and embrace the positive for change and adopt the knowledge and information for better life, achieving their objectives, career growth, taking risks and facing challenges by using what they already know, incorporating consultant and coaching within training is a skill that need experience and massive knowledge of human physiology, that is why it become more challenging for old school trainers to satisfy today people need.

Training today should be about counseling and coaching people subconscious and conscious toward embracing the positive knowledge and information during training and provide them with tools and ability to drive the change and practice the knowledge by their own so it can grow with them in time to an experience and way of life.

Mohamed Alzayani

Certified CIPD & IHRME for human resources management 

Succession management and planning Why not working for Me

Succession management and planning Why not working for Me

Date:26/12/2016

In my search and working in developing human capital for ten years it come across of my attention the practices of Succession management and planning especially in Bahrain organizations in privet or public sector that made me share the outcome with business people.

It has become more and more important in business world since the business continues and success depends on who lead the organization and, resources and human capital. There are many practices, models, strategies and forms of succession management and planning performed by different kind of organization in different fields, some of these models and practices work perfectly and some are not?, the question is why some organization succeed and some do not is there one type of model for succession management and planning that can work for all?

The answer for this question is succession management and planning is a concept like any other human resources concepts that should reflect and align with the organizational culture, vision,  politics economic social technology environment legal (PESTEL) and strategy. Succession management is all about making sure the organization has the successors needed to make sure of successful business continuity, the model an organization can use for depends on the above mentioned and how to align it together in order to create a model that can work for the organization, there is no one size that fit all for sure.

In addition we need to understand the difference between succession management and succession planning in order to implement it properly. Succession management “Is the process of management resourcing strategy, workforce planning and analysis, skills analysis, the job filling process, and management development including graduate and high-flyer programs”. Succession planning “is Identification and development of potential successors for key positions in an organization, through a systematic evaluation process and training”. The difference between these two concepts should be aware for all decision makers and human resources implementing the program for the organization which will make it work for them, the reason is the concept is mostly understandable but the planning part is where the organization need to adopt, architect their model design and detailed the process and polices in order to make it work for the organization taking into account the these factors PESTEL, organizational culture and human capital that affect the implementation and the result of the program.

But still why some organization can succeed in succession management and planning and some cannot. For organization that wants to implement the succession management and planning there are three important questions they should ask before starting the designing the program these questions are:

1.     Why we need succession management and planning?

2.     What position we target for succession management and planning?

3.     How to identify potential successors for the program?

These three questions can help the organization to draw their road map for designing the program and make it work for them. Starting with a clear need, vision and results for the program will provide the perfect answer on how to design, how to make it work and how to evaluate the process and results for improvement.

But is that all what we need to design the succession management and planning, the answer is no, like any recipe there is always the secret ingredient that make it work and special, the secret ingredient for any HR program in the organization as well as succession management and planning is values, the values of the organization is what make it stick together and align with people working in the organization toward achieving the goal, it's the fuel that never end or stop even during the worse time and economic that organization face, values is what drive people with passion to matter what stand in there way, by incorporating values in the succession management and planning program from the design stage it will make all the difference in the implementation and outcomes  of the program since those who will be identified for the program will incorporate the values that the program aim with their values that serve the organization interest and workout for both in win/win situation no matter what the result was for the program.

Written by:

Mohamed Alzayani

Certified CIPD and IHRME Human Resources Management