Discussion Replies: Shaping the Future of HR

 Matthew D. Crowley

 

Discussion Thread: Shaping the Future of HR

     Contemporary views of business strategy and human resources have focused on the importance of stronger, more equitable relationships between companies, customers, employees, and stakeholders. While businesses generally exist to generate value for owners and shareholders, there has been a worldwide recognition that companies impact individuals and communities in ways that greatly surpass the profits they generate. Employees of an organization provide the skills, power, and drive to achieve business objectives and positive business outcomes. For an organization to be truly sustainable and serve as a steward of God’s creation, it must enact strategy and policy that encourages the well-being of those impacted by it. This discussion board post reviews three key recommendations that I would propose in a simulated keynote to members of the Business Roundtable. The first portion of this post describes how a company can use human resource practices to increase performance and sustainability through better communication and transparency. Next, I discuss how companies can support and realize gains from fostering a diverse environment built on God’s intention for service and stewardship. I end this post by discussing how building sustainable relationships using a triple bottom line approach can positively impact a company and the planet.

Enhance Communication and Organizational Transparency

     Organizations represent a collection of individuals and teams working together under a shared mission, vision, and values to achieve positive business outcomes. At a base level, workers receive compensation for their contribution towards that effort, and in return, the company uses that labor to generate value for the organization and its stakeholders. This view of a job as a transactional function has evolved, and concepts such as Taylor’s scientific management approach and the general power of organizations to issue dictates to workers have given way to more sustainable and equitable management approaches (Hardy, 1990). Contemporary theories of work involve a more holistic view of the relationship between companies, employees, and stakeholders. This view aligns with the Christian notion that work is an intrinsic part of the human condition (Keller & Alsdorf, 2012). The authors note later in their book  Every Good Endeavor that a holistic approach to business requires that companies treat workers with dignity and respect, qualities that can be demonstrated through transparency and symmetrical information sharing.

     Modern views of workplace best practices include recognizing that aspects of work such as communication, leadership, consultation, and feedback play a role in building competent individuals, teams, and organizations that can generate value and meet strategic goals (Valentine et al., 2019). Using best practices concerning communication and transparency can enhance the performance and output of an organization and foster a strong team culture that is more apt to achieve strategic objectives. For instance, the use of transparent information policies regarding pay and benefits has been shown to increase levels of trust and credibility with employees and stakeholders and directly impact the productivity and value generation of an organization (Fahn & Zanarone, 2022). Of course, organizations must think strategically about the level of transparency they are willing to have: the impact of social comparisons could negatively impact output (Fahn & Zanarone, 2022; Nai et al., 2020).

Foster a Diverse and Inclusive Environment

     In  The Fabric of This World, Hardy discusses that each individual possesses a station, gifts, and talents that are not random but based on God’s intention (Hardy, 1990). He continues in his exposition by stating that each person has a purpose and that, ultimately, individuals must strive to match their choice of vocation with the gifts bestowed upon them. From the theological perspective of Hardy, it stands to reason that God intentionally designed diversity. This intentionality implies that a collection of diverse individuals would result in a more optimal path toward sustaining and growing His creation. This supposition is not merely a theological one, however: building teams and organizations around a diverse set of individuals has been shown to generate positive business outcomes and performance benefits (Becker et al., 2022; Lafuente & Vaillant, 2019; Moon & Christensen, 2020).

     Changes in the modern workplace have created more diverse candidate pools, and this change provides an opportunity for employers to build a thriving environment based on inclusivity (Valentine et al., 2019). The authors acknowledge that while diverse workforces yield positive benefits, employers must also be able to navigate potential challenges and ensure compliance with laws and regulations that protect workers. For instance, Becker et al. (2022) state that while age diversity can increase performance, teams with a wide range of ages may struggle to relay knowledge to each other and communicate effectively. Lafuente and Vaillant (2019) state that issues may arise when there is a gender diversity imbalance within organizations, and unbalanced groups in one functional area of a company can impact the performance of other teams. The positive impacts and challenges outlined here demonstrate that employers must be intentional and strategic in implementing diversity initiatives to ensure positive impacts at an organization.

Promote Social Responsibility with a Triple Bottom Line Approach

     Companies significantly impact the community around them, whether they are intentional in that impact or not. Even pure-profit-driven motives by a company have wide-ranging implications for communities, from monetary infusion in the economy by the employment of workers to knock-on effects and value generation spurred on by their products and services. No company exists in isolation, and it is strategically vital for companies to consider the consequences of their interactions with the external environment. Valentine et al. (2019) highlight that the triple bottom line approach is one strategy for recognizing and adjusting strategy based on this impact. The authors comment that using a holistic method of how a company can positively impact internal and external stakeholders can yield positive business outcomes such as improved public opinion of a company. Moving towards a triple bottom line approach requires an organization to change how it interacts with employees and stakeholders. This process necessitates foundational changes to human resources strategy.

     An organization can signal its commitment to social responsibility and see positive, sustainable business outcomes using people-focused, ethical human resource practices. Valentine et al. (2019) suggest that changes such as creating comprehensive performance management programs, building incentive systems based on socially responsible activities, and tying work towards ethical goals can help drive a company towards greater sustainability. Lopez-Cabrales and Valle-Cabrera (2020) expand on this notion by stating that reaching triple bottom line goals and realizing positive outcomes for all stakeholders requires that companies address employees holistically, supporting work-life balance, enabling their personal and professional growth, and providing equitable compensation. Moving towards more equitable, sustainable, and considerate human resource practices improves an organization’s relationship with employees. It can positively impact a company’s public perception and ensure it generates value for the world.

Conclusion

     This discussion board post reviewed recommendations that I would give to the Business Roundtable on how using sustainable, equitable, and holistic human resources practices can improve the outcomes of a company and ensure a positive and sustainable impact on the communities it serves. This post began with a discussion on the importance of transparency and communication, outlining how the recognition of the dignity of an individual can build trust and motivation to create better outcomes. Next, I reviewed ways that a renewed and strategic focus on diversity realizes God’s intention for human vocation and allows companies to enjoy better performance outcomes. I closed this post by commenting on the importance of social responsibility to the bottom line of an organization and the well-being of its employees, demonstrating that implementing practices and policies that are informed by and attuned to the company’s internal and external environment is beneficial for the company, its stakeholders, and the communities it serves.

References

Becker, K. L., Richards, M. B., & Stollings, J. (2022). Better together? Examining benefits and tensions of generational diversity and team performance.  Journal of Intergenerational Relationships,  20(4), 442–463.  https://doi.org/10.1080/15350770.2020.1837708Links to an external site.

Fahn, M., & Zanarone, G. (2022). Transparency in relational contracts.  Strategic Management Journal,  43(5), 1046–1071.  https://doi.org/10.1002/smj.3348Links to an external site.

Hardy, L. (1990).  The fabric of this world: Inquiries into calling, career choice, and the design of human work. W.B. Eerdmans.

Keller, T., & Alsdorf, K. L. (2012).  Every good endeavor: Connecting your work to God’s work. Dutton.

Lafuente, E., & Vaillant, Y. (2019). Balance rather than critical mass or tokenism: Gender diversity, leadership and performance in financial firms.  International Journal of Manpower,  40(5), 894–916.  https://doi.org/10.1108/IJM-10-2017-0268Links to an external site.

Lopez-Cabrales, A., & Valle-Cabrera, R. (2020). Sustainable HRM strategies and employment relationships as drivers of the triple bottom line.  Human Resource Management Review,  30(3).  https://doi.org/10.1016/j.hrmr.2019.100689Links to an external site.

Moon, K.-K., & Christensen, R. K. (2020). Realizing the performance benefits of workforce diversity in the U.S. federal government: The moderating role of diversity climate.  Public Personnel Management,  49(1), 141–165.  https://doi.org/10.1177/0091026019848458Links to an external site.

Nai, J., Kotha, R., Narayanan, J., & Puranam, P. (2020). Transparency and fairness in organizational decisions: An experimental investigation using the paired ultimatum game.  Strategy Science,  5(1), 55–70.  https://doi.org/10.1287/stsc.2019.0100Links to an external site.

Valentine, S. R., Meglich, P. A., Mathis, R. L., & Jackson, J. H. (2019).  Human Resource Management (16th ed). Cengage Limited.

Demetri

Discussion Thread: Shaping The Future of HR

            There are several recommendations for CEOs of companies that are members of the Business Roundtable. These recommendations begin with the talent and career development within the companies. The recommendations are offering higher education for larger organizations, investing in the transfer of training, and talent and career development programs.

            Offering tuition programs or tuition assistance programs is a great benefit and a way to offer employees more than just their regular benefits. Valentine et al. (2020) many companies are offering tuition programs as benefits for to decrease turnover. Tuition programs can increase retention and employee buy in, as well as increase the number of employees who are willing to grow in or with the organization. There are two major types of tuition assistance programs offered by some companies including tuition reimbursement and full tuition. Companies can manage this through third party companies like Guild Education and offer select programs that are applicable or unique to the organization.

            Keller (2012) people want to feel like they make a difference, or they can be successful when working, when they do, employees are happy; when they don’t employees lose their drive and motivation. This is a direct impact on training and the transfer of the training. Investing in the transfer of training is something that every organization needs to increase. Ensuring that training can easily be applied to the job is essential to everyone, the team, and the organization’s overall success. Being strategic with training helps increase the transferability of the training. This means that training and learning never stops. Managers must work with employees on the job to mentor, teach, train and develop for the training to be fully transferred to the work (Valentine et al., 2020). Dixit & Sinha (2022) ensuring that organizations are getting the proper return on training investment is vital to the overall organizational success. Training without clear goals makes them useless, only about 5-10% of training is transferred to and used on the job. Many training programs have shifted to a technology or computer-based training, while on-the-job training has been minimized or removed. Many organizations have shifted away from training that is position specific and transitioned into a broader, generic training. Investing in ensuring that each person is adequately trained for their position and what it entails increases retention, customer loyalty, and revenue. Managers must make sure that employees are training, and using their training in real-work scenarios, making it applicable to their everyday work life and success.

            The third recommendation is that organizations focus on talent and career development. Initiating a talent pipeline that promotes good behavior and great performance will help managers develop talent better. Hardy (1990) career paths and choices are more likely to take detours than to stay on the planned path. Career development is the vocational counseling that managers can offer to employees to help them achieve their goals within the company. Pinnington et al. (2022) career development should include training, mentoring, action plans, feedback, and coaching. Developing employees increases the chances for organizational success and internal promotions. Career development also leads to job satisfaction, productivity, and overall happiness.

 

References

Dixit, R., & Sinha, V. (2022). Investigating tools and techniques to promote workplace training   transfer.  The Journal of Workplace Learning, 34(6), 513- 531.  https://doi.org/10.1108/JWL-04-2021-0052Links to an external site.

Hardy, L. (1990).  The Fabric of this World: Inquiries Into Calling, Career choice, and the           Design of Human Work. Grand Rapids, MI: William B. Eerdmans. ISBN:             9780802802989.

Keller, T. (2012).  Every Good Endeavor: Connecting Your Work to God’s Work. New York,       NY: Dutton/Penguin Group. ISBN: 9780525952701.

Pinnington, A., Aldabbas, H., Mirshahi, F., & Pirie, T. (2022). Organisational development          programmes and employees’ career development: the moderating role of gender.  Journal          of Workplace Learning, 34(5), 466-496. https://doi.org/10.1108/JWL-08-2021-0103

Valentine, S.R. et al. (2020).  Human Resource Management (16th ed.). Boston, MA: Cengage.    ISBN: 9780357033852.