Case Scenario:
The management of HR is a critical component of any organization's strategy, and organizations that approach their employees as strategic assets are better positioned to achieve long-term success. While in the past, HR were considered a cost to be minimized, today, organizations are investing in the cultivation and development of their talent. These organizations realize that a firm's strategy is enacted by the people in the organization, and that success depends on a highly motivated and engaged workforce.
Like an organization's strategy, the first step in developing an effective and defensible approach to HR begins with planning. Organizations should assess the internal and external environment to predict the types of resources that will be needed to meet future challenges. Effective planning incorporates a gap analysis whereby the firm assesses its capabilities compared to what it needs to deliver. The gaps in this assessment form the foundation for HR needs. Having assessed its needs, an organization must then turn its attention to the recruitment and selection of employees. Most firms approach recruitment from an internal and external perspective. Internal hires are generally more productive in the short-term than external hires. A focus on hiring internally also demonstrates that the firm is committed to an employee's development and potential. Despite its advantages, internal hiring is not always an option, especially for jobs that require unique skill sets. Regardless of the approach to recruitment, firms must assess a candidate's abilities in light of the job requirements. This assessment can be based on a number of factors including ability and personality tests, general interviews, reference checks, and situational interviews.
The strategic approach to HR management does not stop when an employee is hired; it just begins. Cultivation and development are critical to ensure that the firm realizes the full potential of all its employees. Many firms have extensive training and development programs that enable both new and existing employees to build their skills and capabilities. As employees continue their career within a firm, they should have access to ongoing professional development programs to enhance their performance and potential for increased responsibilities. Through constant feedback and performance appraisals, an organization can assess how its employees are performing in relation to specific goals, milestones, and objectives. These interventions can also inform the types of training and development that would be most useful in the future. Performance appraisals, in particular, form the basis for decisions regarding raises, promotions, bonuses, and even terminations.
Throughout its lifecycle, an organization will need to confront both voluntary and involuntary turnover. While organizations seek to avoid voluntary turnover, especially from their star performers, they must often cope with involuntary turnover. The two primary causes of involuntary turnover are individual performance issues and difficult economic conditions. When an organization faces a difficult economic situation, they often must engage in downsizing efforts. Firms that conduct downsizing in a fair and transparent manner are better able to reap the subsequent benefits of a reduced cost structure. They are also in a better position to secure the cooperation and assistance of the remaining employees.
The management of HR does not happen in isolation. Organizations must comply with various employment laws to ensure that their HR practices are fair, legal, and consistent. Over the years, employees and members of society have influenced the legislative landscape for business. Unions, in particular, have played a large role in setting standards for fair wages and good working conditions. Though the union movement has waned in recent decades, it is still a viable and influential entity in many critical industries. Two of the most pressing contextual factors today are globalization and increased competitiveness. To compete more effectively in the global landscape, many firms have opted for offshoring some noncore functions. While this approach can save costs, it can also increase complexity as managers need to oversee a globally diverse and dispersed workforce.
Although organizations can help individuals to maximize their potential, the ultimate responsibility for personal development rests with the individual. Individuals should take ownership of their own human capital by seeking employers whose values and culture are aligned with their own. Individual career success is often a result of careful planning and analysis. The unit of analysis in this case is not the organization, but the individual. Individuals who better understand what motivates them will be more likely to pursue career paths that are meaningful and satisfactory.
Question: When selecting a new employee, what criterion about the candidate would you consider to be the most important? What would you consider to be the most accurate predictor of success-job tests, interview performance, reference checks, or some other aspect?