Although the strategic role of HR transformation is to create, design and develop sustainable new HR activities that develop business and employees competencies to facilitate long lasting competencies that enable long lasting business capability that sustain the business competitive advantage. Sustainability in employees and business competencies can be obtain through long term investment in the competencies sources that initiate and create the targeted competency.
These sources of the competencies are activities and polices adopted through the HR transformation program that make the competencies durable and sustainable to support the sustainability of business capabilities in order to under pin sustainable and durable competitive advantage. This new argument which colors the main theme of the research hypothesis has very rare literature review. This new argument was developed by Ina Ehnert (2008:58) when she explains clearly her argument "it is assumed that the sources of resources have to be sustained to facilitate long-term exploitation of important resources. The objective is to sustain a permanent resource flow between organizations and their environments because the dependencies are sought to be so strong that in the long run only a common survival of organizations and their environments seems possible". According to this argument business success or even survival will depend on sustainability of its resources and competences that long lasting than those owned by the business competitors
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Sunday, September 4, 2011
HR role in building the business capabilities
The question of HR transformation role in building the business capabilities is going to be achieved through building the HR competency model. The HR role in building the business capabilities are addressed by to Dave Ulrich et al (2009:49) "In focusing on capabilities as outcomes, the HR transformation team should do a capability audit where they identify which capabilities are most critical to their organization’s future success given business conditions and business strategy". The same concept of capabilities underpinning and development is also supported by Garry Johnson et al (2005:116) . The authors argue that when conducting business strategy, strategy team should analyze and investigate all the business internal capabilities and match them with the external environment in order to reach the strategy fit. Moreover, we conclude that when the business needs to develop new HR strategy or conduct HR transformation one of the prime outcomes to this change is to reinvent and rebuild its strategic capabilities to match with external environment. HR transformation specialists have to breakdown each targeted capability to its supporting competences as business capabilities stem from the business and employees competencies when combined together to give the business its distinguished targeted capabilities. Accordingly, the role of HR transformation in building the business capabilities will concentrate on how the competency is created and developed in the business. The strategic role of HR is how to build the employee and the business competences by developing and building the Core Competency Pool 'CCP'. The CCP is reservoir which combines all the competencies that are required in building the business present and future strategic capability. From within the core competency pool HR and business leaders has to select, develop and nurture distinctive competencies that enable the business develop and build its distinctive capabilities that underpin the competitive advantage due to its unique characteristics which are not exposed to other competitors and which at the end sustain differentiation in the market place.
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