Online Reporter
Employee Relations
Dr Request Machimbira
The human resources (HR) landscape of an organisation is a complex and dynamic terrain, shaped by a multitude of factors and stakeholders.
IN the search for sustainable answers to effective HR leadership and practices, a “three-degree audit” is necessary — not to find a culprit, but in pursuit of genuine solutions.
This audit must transcend the conventional boundaries of the HR office and involve a broader range of stakeholders, including shareholders.
Unfortunately, the majority of approaches to HR challenges are exclusionary, focusing solely on the HR office as the source of solutions.
This is akin to trying to find water in a desert by digging deeper into the same dry well.
While the HR office is an integral part of the problem-solving process, it is not the only player.
The search for solutions must go beyond the HR department, just as a ship navigating treacherous waters requires more than just a skilled captain; it needs a reliable navigation system, a sturdy vessel and a supportive crew.
The HR value chain
The delivery of HR solutions is a value chain involving several actors: supervisors, line managers, executives, the CEO, the board of directors and shareholders.
Indeed, shareholders are a crucial part of this value chain, and their input is essential in shaping the organisation’s people management philosophy.
Without their contribution, the organisation is like a ship without a radar, sailing blindly into the unknown.
The absence of shareholder input on people management is a stark reality in many organisations.
It is akin to deploying a radarless ship into the deep sea for a rescue mission — soon, the ship itself will need to be rescued.
Shareholders have a critical role to play in setting the tone and direction of an organisation’s HR philosophy.
Their absence leads to a lack of clarity, purpose and direction.
The “absentee landlord” syndrome
In many organisations, boards operate on a “blank cheque” approach, where shareholders focus more on defining the return on investment (ROI) than on the management of that investment.
This has led to a situation where shareholders are the missing cog in the HR value chain.
They act like absentee landlords, neglecting their responsibilities and leaving the farm to become weed-infested.
One reason for this lack of engagement is the dearth of HR expertise on boards.
Many boards lack proven, qualified HR experts, leading to a deficiency in HR thought leadership and strategic direction.
This must change.
Shareholders must prioritise the appointment of HR-savvy board members who can bring a deeper understanding of the people agenda to the table.
This requires balanced and judicious board appointments, committee-specific inductions and rigorous HR committee appraisals.
Beyond the ghost
employee audit
The search for HR solutions must go beyond the “ghost employee audit” that often characterises HR reviews.
It requires a more nuanced and comprehensive approach, analysing the strengths and weaknesses of the HR function, alongside the efficacy of each actor in the value chain.
An HR value chain analysis is a critical tool in this regard, providing a framework for identifying areas for improvement.
This analysis must be double-pronged: examining both the technical HR function and the actors involved in the chain.
Only by taking a holistic approach can we identify gaps and develop sustainable solutions.
A new narrative:
Share-hoarding vs stewardship
Shareholders are often complicit in the current state of HR.
It is time for them to take responsibility and “come to the party”.
They must move beyond the traditional focus on ROI and engage with the people management philosophy of the organisation.
This requires a new narrative — one that prioritises the management of the investment and recognises that people are the primary drivers of business success.
When shareholders do nothing and still expect a dividend, it is a form of “share-hoarding”.
This formula has created many casualties, especially across the people landscape.
It is time to reconstruct this narrative in search of sustainability.
The contribution of shareholders to the HR landscape is critical.
They are the foundation of the value chain. It is time for shareholders to take an active role in advocating for best practices in human resources management to ensure productivity optimisation.
Dr Request Machimbira is the executive director of Proficiency Consulting Group and the International Wellness Institute. He is a human resources expert, strategy facilitator, board trainer, team-building coach, wellness consultant, independent labour arbitrator and published author. He writes in his personal capacity. Feedback: request @proficiencyinternational.com, Phone: +263772693404.
