Posted at 09.10.2018
In highly competitive modern world, Managing Human Capital plays a pivotal role in organizational success than previously. The every areas of the human capital has changed drastically as time passes and now it is known as to be the most dominant and critical success factors in achieving in highly demanding and complex corporate objectives.
Human Capital Management (HCM) can be defined and interpreted in many ways however in simplest form it could be thought as the strategic approach to people management in creating sustainable and competitive value to the organizations and people itself. As shown in the introductory slide, proper HCM strategy helps organizations to streamline and integrate with recruiting with the business enterprise to provide stakeholder expectations by addressing entire human resource cycle.
First of all, proper HCM strategy helps organizations to identify, recruit and retain right individuals for the right positions by enabling significant advantage within the competitive edge. Also HCM focuses on effective employee engagement by establishing effective communication channels and increase workforce productivity by employee motivation and incorporating other strategies. Similarly, proper talent management, succession planning, leadership development and strategic alignment strategies more or less defines the organizational success and well defined and planed HCM strategy is the pathway to attain it.
KBSL Information Technologies Ltd (KBSL IT) is the leading Information/Systems Integrator of Information Communication Technology (ICT) solutions for Enterprises in Sri Lanka. KBSL has been around the industry for nearly 25 years and it gets the expertise in the areas of Server, Storage, Voice, Data Networks and Security Infrastructure Integration in providing an extremely sound and an optimal solution encompassing all relevant areas for customers, in meeting the existing and growing requirements in keeping with industry trends. Currently, there are usually more than 75 highly talented individuals employed at KBSL and it is steered by a very flat management team which consists of CEO, CMO and Head of Business Units.
The vision of the KBSL is to become the key business system integrator in Sri Lanka by following values of being fair and honest atlanta divorce attorneys engagement with customers and the shareholders delivering the most innovative solutions.
KBSL is best poised to attain its organization mission through their simplified focus and in delivering customer's information needs, through flexible and powerful solutions, that are central to their business success.
In today's highly globalized, exceedingly competitive and dynamic business environments, managing human capital has become a global challenge for each and every manager in organizations. Discussing a survey done by PricewaterhouseCoopers addressing the main element issues and challenges of human capital management of more than 200 companies from 35 countries, it is noted that change management, leadership development and organizational effectiveness will be the top three issues faced by the firms. Additionally, employee recruitment, retention and succession planning are also considered to be important pain points of the managers in undertaking daily business functions.
Change management is very important to address rapid changes imposed by the business enterprise environments such as mergers and acquisitions, dynamic changes running a business strategy and focus, workforce mobility by managing the employee's reluctance to improve in a positive manner. Leadership development combined with succession planning in addition has turn into a huge challenge for the management since it includes a direct effect on on-going and future business functions and success. As per the survey managing the organizational effectiveness is equally important and organizations should review and restructure their entire organizational process and procedures to have success in local and international market segments. Similarly recruitment and option of skilled employees and retention is equally important and has turned into a serious global challenge mainly due to aging workforce, inexperienced younger generation and competitiveness and agility of the labor workforce.
To identify the main element issues and challenges facing the overall management of human capital, several someone to one brief discussions were completed with the business enterprise Unit managers and finding are listed in the slide listed below. As per the results, selection and recruitment of right applicants is the most challenging task and employee retention and development also goes side by side in general management perspective. Nowadays, it is becoming extremely difficult to find right talent for technical and non technical positions operating industry with right attitudes and qualifications due mainly to the reality that migration and overseas job opportunities and lack of interest and understanding of younger generation employed in SI industry. So that company must invest a lot on fresh graduates for his or her development by providing trainings and guidance without getting any productive outcome from them in return for a significant time period.
Same as globally, coping up with the change is becoming one of the main element challenges facing by the local management specially when handling employee behavior and perceptions in situations like drastic business strategy changes. Also addressing and filling up the gap between the employer and employee engagement happen to be impact negatively on overall business performance which perceptual gap must be filled by establishing proper communication channels throughout the corporate hierarchy. Since we are still suffering and being victims of the global recession, local companies needed to cut down budgets severely and due to that employee's motivation and morality goes down ultimately affecting negatively on obtaining business targets.
Moving on with the discussion of global and local challenges faced by general management in handling human capital, now let's check out current HR management challenges of aligning employee and HR department agendas in KBSL.
Every employee has their own expectations using their company employers and organizational success heavily lies on identifying and satisfying those motivations, preferences and expectations of every individual in a win-win approach where both parties gets benefited. Small round table discussion was held with selective employees from each sections to identify their expectations from the business and listed are the findings of this session.
First of all, every employee expects a confident working environment where they can perform their assigned work productively and efficiently. They expect work-life balance since family life is equally important identical to the working life therefore that they expect it to be stress free, supportive and politics free culture. Also employees expect personal and professional growth just as the attractive compensations and benefits because they want to climb up in the career ladder to attain higher commanding positions than being in the same position for life. Performance based rewarding approach and industry benchmarked salary levels are also expected and more importantly appraisals and evaluations to be achieved in transparently and fairly manner over the organization reward right individuals because of their talent and performance.
Apart from the benefits, employees be prepared to get platform and opportunity to use their progressive ideas directly into work where they can change lives and get proper recognition in return. If employees believe that their work is important and part of something unique and special they will get motivated and perform at their finest to provide more than expected benefiting the organizations by the end of the day.
Similar to the employee expectations, there is always organizational and HR department agenda for each employee expecting to deliver certain results in return throughout the complete employee life cycle.
Foremost of all, HR department wants to employ the best talent available on the market and expecting them to execute at their fullest potential as a team to deliver organizational objectives. At the same time they expect everyone to act upon honestly and diligently with utmost commitment to the business ad hearing to the organization ethics and principals. More importantly, employees should represent their organization in a confident manner to outside world and every work related decisions they take should be produced in the best interest to the customer.
Also HR expects employees to build up their selves by updating with the latest technologies and practices and obtaining professional certifications to reflect the competency. Furthermore they expect employees to check out the directions set by the management, positively accept and study from constructive criticisms and being dependable.
Carefully evaluating and analyzing both employee and HR agenda, following tips were discovered as the perceptual gap and incremental corrective solutions are proposed in the coming slide.
As per the modern practices HR function should be strategically reengineered to closely align with the dynamic business environments and effective human capital management practices should followed. But refereeing to the KBSL entity, strategic focus of HR is minimal and much more traditional administrative HR businesses are followed. Since KBSL has a set management hierarchy and consist of managers with traditional perceptual mindset still believes that employees as a liability and replaceable at anytime rather than treating them as organization's most valued assets. Also management expects employees to deliver more than they have the capability without providing them with proper training and compensations plus some of the employees also expect limitless benefits from the company without delivering their assigned jobs.
Both employees and HR department involves false conclusions by judging on misinterpreted information mainly due to the distant engagement and insufficient proper communication channels eventually affecting the organizational success. Finally there is no specific standard methodology to manage activities associated to employee life cycle creating unnecessary troubles to the business enterprise by following instantaneous ad hoc decisions.
Based on the neighborhood and global trends and guidelines and applying the human capital management theory, following resolutions are proposed to fill up the perceptual gap addressed above.
Since employees are believed to be the most valuable asset to any organization, organizations should develop and maintain a win-win situation for both parties by addressing each other's concerns genuinely. Also HR function should evolve to a more strategic and responsible role by closely aligning with business objective and proper communication channels needs to be established to minimize the misunderstandings between the employee and employers expectations.
Also to address the significant problem of employee turnover, KBSL management should provide competitive compensation and remuneration packages to the employees analyzing competitor benchmarks and concentrate on employee career development prospects positively to create a long lasting relationship with them. Also it is highly advised to include modern HR practices given in the slide so that KBSL as a whole can reap the benefits of positive outcomes.
Talent Management has many definitions and since given in the slide it could be simply define as the systematic methodology in managing talent within an organization in achieving strategic business goals. Talent Management itself has important key components such as workforce planning, selection, recruitment, orientation, performance management, training and development, succession planning, compensation and benefits that can be directly impacted on organizational success.
As per the formula shown in the energy point slide talent should be a collective combination of competence, commitment and contribution so that in addition to the talent development, organizations should motivate and reward employees to get their commitment and contribution to accomplish organizational goals.
The need for the talent management is simply explained by the quotation of "Organize as if the company's survival depends on talent management. It does" by Boston consulting group and further discussed in the coming slide.
Talent management has become a crucial factor to organizational success due to numerous reasons and some of them are mentioned in this slide.
In today's highly dynamic, highly competitive and highly demanding business environments, success is mostly with respect to the talent of the workforce available within the industry. In order that organizations should establish competency based recruitment procedures to attract the best one of the industry and really should retain and develop their finest performers and highly skilled people to stay ahead in success race in the industry.
Talent management plays a vital role in creating a high performing workforce and an absolute corporate culture by implanting high motives in employee's mindset and helps organizations to reduce the risk of losing key talent by initiating proper development programs giving employees plenty of opportunities to grow within the company. At the same time identifying successors for critical positions and develop internal employee capacities to cater emerging organizational needs really helps to address the resource scarcity on the market.
It also helps to identify competency gaps, talent requirements more quickly and make necessary arrangements to overcome those gaps for the betterment of the organizational performance. Finally it can help to control challenging employee expectations effectively creating win-win situation for both parties otherwise which is often damaged very severely.
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