HR Strategy Design for Management Consultancy
Management consulting
Management consulting is an industry committed to helping other organizations improve their management performance, by analyzing existing corporate challenges and formulate a new strategy for the betterment of the organization.
Why do organizations hire management consultants?
-To gain more objective suggestions and recommendations based on the consultant’s area of expertise.
-to help them put up a one-time project, where hiring of employees is not necessary
Since consultancies are often part of one project to another, they are presumed to be more exposed to best strategies in managing institutions, although, according to some, the transfer of management strategies from institution to another is an debatable.
Because of their exposure, their advice and assistance are often solicited during a change of management, coaching skills for employees, technology implementation and innovation, development of management strategy, or project-based operations.
In addition, ’boutique’ consultancies, are smaller organizations like management consultancies, which only cater to few specializations such as technology implementation.
The service rendered by management consultancies have become a necessity not just to business institutions but also to government-owned institutions, quasi-government, and non-profit agencies. They are now turning to management consultancies, adapting their managerial principles.
The task of Human Resource
How important is Human Resource to an institution? defined Human Resources in her book “the Human Resources Glossary”, as the people that staff and operate an organization”; as contrasted with the financial and material resources of an organization. Human Resources is also the organizational function that deals with the people and issues related to people such as compensation, hiring, performance management, and training.
A Human Resource is a single person or employee within your organization.
, author of Global and Local Balance in Human Resources Leadership made Another definition of Human Resource. “Human resources is a term with which many organizations describe the combination of traditionally administrative personnel functions with performance management, employee relations and resource planning. The field draws upon concepts developed in Industrial/Organizational Psychology. Human resources has at least two related interpretations depending on context. The original usage derives from political economy and economics, where it was traditionally called labor, one of four factors of production. The more common usage within corporations and business refers to the individuals within the firm, and to the portion of the firm’s organization that deals with hiring, firing, training, and other personnel issues. This article addresses both definitions.” (., 2005)
Without Human Resource, there can’t be an institution. The human resource basically comprises of the major part of the production of a particular institution. Human resource can be associated with the people in a Kingdom, where in the king nor can a kingdom not exist without its people.
Formulating a Human Resource Strategy for Management Consultancy
Formulating a strategy for Management Consultancy imposes higher standards than other institution. Management Consultancy has always provided solution to human resource problems of other institutions. Thus, it should depict an almost perfect human resource strategy of its own, designed for its nature.
According to one of the interview made by to , last January 4, 2008, said that workstream talent management solutions are a critical tool for maximizing employee value, which is the essence of operating a successful business. “As a board member, I look forward to sharing what I have learned over the years about increasing Return on Talent, and the best ways to reinforce company-to-employee bonds. These practices, coupled with Workstream’s industry leading technology, can be a powerful combination in the marketplace.”
see the Human Resource as an investment, thus, he focuses on making the best out of the talents of the Human Resource. He does that but making sure that talents are well-returned, encouraging the human resource to work more.
This approach is called the Sociological Approach. It deals primarily with human interaction. It is bounded by rationality, satisfying behavior, and profit sub-optimality. This approach is the opposite of the Industrial-Organizational Approach, which was based in the economic theory. It progressed from a competitive rivalry and resource allocation. The main goal of this theory is profit maximization.
’s choice of Sociological approach develop an environment which is still, competitive in nature since it maximizes ones talent’s and abilities. At the same time, there is a strong bond between the company and the workers, enabling the workers to stay in the company for a longer period of time. The longer the time they spend in the company, the more it created an area of specialization which will still be of the company’s benefit.
This type of approach very much fit to the nature of management consulting. Management consulting imposes a very high standard of qualifications to its consultants. Only those who have earn Masters degree, license in their field, and have proven to specialized in their field qualifies to be employed in Management Consulting.
According to in her study, “…although management consultancy is open to all graduates, those with strong basis to their academic backgrounds are often sought after. Hence, the following suspects may increase your chances - business/management, economics, mathematics and information technology.” (., 2006)
Given the very high qualification that management consulting demands from its consultants, it is not bad to maximize their efforts and talents using the sociological approach.
Their typical work from day to day is gathering data, analyzing numbers and figures t be presented to the client as a background data. Conducting research interviews with the employees, team managers and other people in authority.
Tenured consultants normally perform the more sensitive type of work. They research on the problems concerning policy, markets , strategies and the organization itself. They are the ones who formulate necessary course of actions and those are presented for approval to the client.
Management Consultants normally operates at financial institutions such as banks and insurance companies, healthcare and pharmaceuticals, aerospace and automotive engineering. They also operate on media and telecommunications, energy and gas providers, information technology, central government, non-profit organizations, hospitals, consumer goods, retain and leisure.
Management Consultancy has to have a strong Human Resource strategy, with an unlimited, if not, sustainable technology that would help them access and collect the necessary data, which they would analyze in order to arrive to a good management strategy.
They should be given enough compensation and enough tools to keep them in the functioning in the job.
In designing the strategy, we need to take into account the following factors. First is the “demographic assessment”. Who are the employees and managers that completes the workforce of the institution? Second is “capability inventory”. Their talents and skills should be taken into consideration before formulating a strategy. Third is “succession planning”. In this step, we concretized the steps that we need to change or it improves in the current system. Fourth, is maximizing the performance. This is what has discussed before. Fifth should be “aligning compensation for results”. Here the rewards system will come in, making sure that all efforts are accurately rewarded.
Sources:
Credit:ivythesis.typepad.com
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