Nov 09

Step 2 - Building HR Credibility - Understand the Business Context

By Rosalinda Batson - 16 December 2009 - Published in Organisation development
This is an obvious step but perhaps one that we don’t always have enough time for as we busily undertake the tasks associated with our role.  Many HR/OD practitioners that I have worked with spend a lot of time increasing their skills and knowledge in their area of expertise.  Undertaking diplomas at night school or attending networking meetings and seminars.  This kind of dedication is to be commended.  What would be just as good, is spending time immersing yourself in understanding the dynamics of the industry that you are in.

When the HR department has an in depth understanding of the business context of the company, they can truly develop HR Strategies that meet changes in the market place.  Simple ones, such as ensuring that there are graduates available with the skills set necessary to be recruited into the industry, or keeping abreast of key senior executive changes in the industry and which ones might be able to be poached to undermine a competitor.  Other business specific strategies can be developed when the HR department is truly cognizant of the business context and wider changes in the economic environment that will impact on the company’s market and as such, the required resourcing and HR strategies.

Imagine what some HR departments have achieved because they were picking up the signs that suggested there would be a downturn in the market place.  In order to have credibility, the head of the HR department needs to be a voice providing information about the market place and organisation strategies both in terms of operations and resourcing.  All strategies need to be tied back to the business context and organisation goals.  This will make you an invaluable part of the executive team.  Understand your business and apply this knowledge to your role, not the other way around.

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