How the HR department may contribute to business strategy, in order to achieve competitive advantage?
The HR department could make significant contribution to the competitive advantage to the organization's business.
The first step is to align HR with the business objectives and strategies, understand what role each team/department are playing in achieving those objectives, and than HR can develop KRAs / KPIs to define measureable performance parameters.
Key Result Areas: “Key Result Areas” or KRAs refer to general areas of outcomes or outputs for which a role is responsible. A typical role targets three to five KRAs, which capture about 80% of a work role. The remainder of the role is usually devoted to areas of shared responsibility.
Key Performance Indicators: These are the areas within the organization’s functions/departments, where an individual or group, is logically responsible / accountable for the results. To manage each KRA, a set of KPI are set, KPI is attributed to the person who can have effect on the business results and is self measured where applicable
Value of KRAs & KPIs: Identifying KRAs helps individuals: Clarify their roles, Align their roles to the organization’s business or strategic plan, Focus on results rather than activities, Communicate their role’s purposes to others, Set goals and objectives, Prioritize their activities, and therefore improve their time/work management & make value-added decisions.
Above all documenting the KRA & KPI for each role gives the management insight in to performance of each role & department. Eventually presenting a clearer picture of top & under-performers.
