Saturday, February 7, 2015

How to Digitalize Human Capital Management

Organizational talent management, performance management, knowledge management, and culture management need to be well integrated in order to well align organizational vision with staff engagement.

As always, talent is the most significant asset in any organization today. However, many businesses still treat their people as cost or resource only, lack of integrative approach to manage performance & potential; knowledge & culture in a holistic way. With the latest digital technologies and social platform, how to manage your human capital with effectiveness and agility?

Leveraging the latest digital thinking, technology, and methodology to invest talent smartly. It is understood that Human Capital Management has been made complicated using means of traditional approaches, because there are silos thinking and rigid processes in HR to stifle innovation, the traditional hiring or training programs also are out of date and costly; too much focusing on searching for static knowledge and maintain the cost, rather than hunting for the right mindsets and dynamic capability to make smart investment. The main principles keep the same -  it is treating the HR assets as you would treat another capital asset -it takes calculated risks and makes a smart investment. With the digital evolution and innovation taking place in organizations globally, the management also must be mindful that driving force behind the success and prosperity of organizations are employees and they deserve to be rewarded accordingly. Reward creativity, not mediocrity; reward "thinking productivity" to improve business agility & maturity, not just “working productivity” for achieving efficiency. This, in turn, is a motivating factor for their staff engagement, output capacity improvement, and it needs to be a reality in many organizations around the World.

Integrate different pieces of HR into a holistic human capital management solution: Organizational talent management, performance management, knowledge management, and culture management need to be well integrated in order to well align organizational vision with talent engagement. The integrated HR has been adopted in many organizations globally today and varies with the size and value-based economy. It’s a good idea to network and share views and perceptions in regards to the innovations and undergoing change process taking place in the field of HR & Management in organizations. The modern Human Capital Management programs and the key HR Programs are integrated including the establishment of the contribution of the role (Size and value based on the country and market placement). The critical issue is that the size and value of the ideal role are determined first and then you assess the employee or applicant against this and end up with a size and value for the employee as well. The modern and innovative HR Approaches is also essential as get employee directly involved in the means of production and attain equitable returns.
The employee involves into the decision-making process with the management and their team participation certainly produces excellent results in many organizations around the world. The valuable contribution of employees in the decision-making process enables employees to feel the sense of belongingness to the organization and sets a mission to achieve organizations common objective in a sustainable manner.

The challenge is still about how to improve staff engagement and achieve a high-performing business result. It takes hard, disciplined work to get it right, especially when either a change in direction is needed or if the leadership isn’t clear on what the desired values are (or if they themselves fit), it is the key to engagement, success, and easier management in the long-run. However, it is fundamental to a synergize organization. The values identify why and how the organization exists and how it consisting of the people within operates, reacts to circumstance, communicates internally and externally and also attracts and expels people. Hiring people with fitting attitude & behavior, but “misfit” thinking or cognition, not only manage performance to keep business on; but also unleash potential to lift up organizations to the next level. It is a challenge to build a high-performing team with complementary talent or skills because businesses naturally tend to hire homogeneously, such teams look fit, but not creative enough to perceive things from different angles or approach the problems via alternative solutions.

It makes strategic sense for the organizations to exercise integrated HRM and engaging the employee in the means of production with a shared vision, it reasonably shared benefits to both stakeholders which eventually reduces class conflict, and creating a stable organizational environment, highly motivated workforce as to achieve management goal solidly.

Digitalization is like a flywheel, and Digital Masters are the one riding above it. Surf more Information about Digital Master:


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