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Strategically positioning a flourishing business to achieve long-term success requires an investment not only in buildings and equipment but also in a well-constructed human resources infrastructure. This will help to build and maintain a qualified, well-trained, motivated, and productive workforce.
When a small business sets its sights on expansion and begins to hire additional employees, the need for an effective in-house Human Resources (HR) function becomes increasingly important. Management consultants who advise owners and executives of young companies on the verge of considerable growth usually stress the impact of a good HR function on future growth.
I have been fortunate to have the opportunity to set up HR functions in two growing companies. To add value to an organization through the creation of a consolidated service for the people can be an experience both rich in rewards and fraught with challenges. The initial structure of an HR function may predestine it for either reaching maximum potential or for having a limited existence. In this article, I will share some of the possible challenges and tips for success in setting up and managing an effective HR function, based on my own experience.
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The Vision Gap
A major challenge is what I call The Vision Gap. There may be dissonance between the visions of senior management and the HR leader regarding the goals of the new HR function. The question becomes: can both parties share the same dream? Can there be a compromise between different goals, such as administrative service versus strategic contribution? When The Vision Gap exists and is not properly addressed by the involved parties, it can lead to frustration on both sides and may hinder the setup from progressing smoothly.
To close The Vision Gap, senior management and human resources should jointly establish the purpose and goals of the HR function and align them with the purpose and goals of the company. Taking the time to arrive at a common understanding and negotiate a successful plan can get the wheels turning in the right direction.
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Another challenge can be management support (or lack thereof). If proposals are declined that would require an investment in Human Resources initiatives, it may be because of a lack of support or understanding. Another obstacle can be inconsistency of managers in following approved human resources guidelines. If a manager hires a new employee without taking into account the pre-set guidelines, it can send a negative message about their support for and understanding of the goals of the company's Human Resources team.
Finding ways to secure management support is key for the HR team in dealing with these types of issues. Understanding why a proposal was declined or why a manager did not follow guidelines is a starting point. It may reveal opportunities for learning about the needs of the organization and the management team. It is possible that a declined proposal did not address priorities, provide alternatives, or present a cost-benefit analysis. Perhaps the pre-set HR guidelines and processes are awkward to work with and need to be modified for a better fit. Asking questions is a valuable tool - the answers can help create future proposals that meet organizational needs and implement processes that work for managers; they may even highlight a need for internal education and more effective communication.
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PART 1 OF 2 - Next week: More management support, about administrative overload, and the conclusion.
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