promotes the special needs of human resource in an organisation setting which is no different from similar needs in any community setting. directionally personnel management converges to community health.
Thursday, March 27, 2014
Organisation effectiveness : complexity of the intangible
Organisations fail for strategic reasons. Success in business strategy could be from effective management of the resources in ones control, while executing the action plans around that strategy. While we have systems to manage the tangible resources like Finance what is slippery are the intangible ones. We still follow an ancient accounting practice of double entry book keeping when it comes to managing revenue & costs:despite its increasing complexity.However, the same is not the case on the intangible resources side. Earlier, businesses were largely dependent on tangible resources. maybe to 70%; now its the intangible ones that command 70%. With intangible resources getting prominence, with lack of effective control systems, strategy execution at times trips. For eg resource like knowledge/talent, Information, brand , Internet, media, Communication, patent etc. Organisations that addresses the intangible side on a daily basis are gaining edge against competition. eg the best employers. They take predictable strategic decisions anchored over the strength of such resources. Otherwords, predictive analytics is gaining ground fast. HR is one functional area which is lagging behind in this ability. Also scope for predictive analytics is often localised in HR. Because of this such Analytics, as tool/system becomes difficult to get packaged and prescribed to another context/place. Its marketability or portability is limited again in HR. This in turn has resulted in non availability of reliable solutions in the market. What we often come across are the plug and play systems to manage the tangible elements related to HR. Be it pay, employee data, or past event data or systems that helps to tap progress or measure variables in these areas. They come in form of softwares ,ERPs, licences, training modules etc. Only Tools but hardly with any Solution. SAP for eg capture the people data into a core table, helps you to classify it and present it; at times correlated to data from other resource bases eg FI. On its own it does not analyse the causative factors say, behind an attrition figure, for eg to predict the likely replacement costs/ employee satisfaction next year for a particular function. And that's where one fail to expect the unexpected/intangible; and strategies fail. Can a Dashboard KPI give a predictive indicator? An indicator showing progress towards a likely event? In turn to reflect success of a strategy execution? from balance score card , perhaps? Organisation effectivess becomes then measurable.
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