HR function value pyramid-2

In this article we continue to review the value adding pyramid of Dave Ulrich. In other article of this series we will compare the reasoning behind the approach of Dave Ulrich with the approach used by CIMA and CIPD - two organisations in the UK.

The importance of leadership

In his value pyramid Ulrich offers organisations to find the answer to the following question:

How can HR build better leadership throughout the organisation?

Ulrich thinks that the attention should be paid to the following:

  1. Today organisations don't need just one or two charismatic leaders to be successful. Leaders should make sure that each team members demonstrates commitment and full responsibility for what they do.
  2. Leadership brand doesn't stop inside the organisation, it can be developed outside.
  3. To "old" competencies" new are added: ability to consider the interests of all stakeholders, taking calculating risks, storytelling etc.

Leadership standards

Leadership still has the reputation of being intuitive and magic. However, competencies profiles are used very widely. One of the most well-known model is the The National Occupational Standards for Management and Leadership. This model has 74 competencies and is used by Chartered Management Institute (UK)..

This model groups all managerial competencies into four levels and six leadership zones. These six leadership zones are interconnected and mutually dependent. Each competency is described in a separate standard.

On the Team Leader level 28 learning courses are divided into 4 levels, each is designed to be learned in 3 months. To master a Team Leader level one needs 12 months. You can get information for each level in the the following area of this site: NOS UK Matrix.

Developing organisation capital

Beside talent and leadership HR bring organisational capital into their organisation. Usually organisational thinking evolves through four stages and in each stage HR function play its role. The main question to answer:

How can HR build a more competitive organisation?

How can HR build a more competitive organisation?

The research conducted in more than 7,000 companies all over the world allowed to offer the following insights:

  • HR efficiency is more impacted by its activities than by excellent performance of individual contributors.
  • It is especially important for internal stakeholders - line managers and employees.
  • The research shows the importance of teamwork: the organisation can work with HR professionals of high calibre, but efficiency of HR functions depends on how good they are as a team.

Impact on performance

HR function impacts the following areas:

  • Performance: HR activities that help employees be more productive (performance appraisal, learning, engagement).
  • Integration: HR activities that offer innovative and integrative business solutions (HR strategy aligned with corporate strategy, HR as a culture model).s
  • Analytics: HR activities that result in actionable insights derived from HR data.
  • Managing information: HR plays crucial role in supporting better decision making (e.g. by using external information sources to make the organisation more competitive).

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