February 25, 2021
Company Culture 17 June 2019
HRIS: Structuring HR to Maximize Human Capital
Dillon Chen

Members of the HR team play a key role in handling labor relations and human capital. The way your HR team is structured will have a big impact on productivity and efficiency in the workplace. 

To help you achieve the goal of maximizing human capital by minimizing problems and increasing the engagement and emotional investment of employees, let’s quickly recap everything from the previous articles up to this point.

Organizational Development

The goal of Organizational Development is to increase organization effectiveness and health on a company-wide level. Researchers found that organizational structures and processes influence worker behavior and motivation. 

HR departments should be structured in a way such that they are in a position to influence organizational development issues such as culture, retention, bias and more. You should provide HR with the tools to gather information about the organization’s health and heartbeat, then allow them to apply that data to change the organization’s processes through planning and implementing new procedures. 

By using the proper structure, your HR department will have the ability to improve the employee experience and retention rates while increasing the quality and skill level of all departments. You will also be able to quantify their contribution to the company through measuring KPIs of overall employee effectiveness and productivity.

Role of CHRO

CHRO is an executive level HR role that will be the main point of contact when it comes to gathering data and implementing organizational strategies. Business leaders looking to create change in their company with organizational development should consider implementing the CHRO role. It is important for leaders to grasp the long-term goals and vision of the company as well as be on board with changes in the structure and strategy. The CHRO is key to coordinating these changes with upper management and providing the proper human capital to hit organization goals. Critical in keeping the heartbeat of the organization healthy.

By having a CHRO and giving them the authority to make changes to improve the company, organizations can gain a significant strategic advantage over their competitors to create a successful business environment. 

Organizational Culture

The Organizational Culture or “personality” of a company encompasses the values and behaviors shared by members of an organization. This includes the mission, vision, long and short-term goals, and the deeply-seated norms that employees have become accustomed to.Establishing and maintaining a solid culture makes it clear to everyone inside and outside of the company what your organization does and how it does it. It is a key step to improving employee engagement by providing meaningful work and also attracting top talent to working at your company.  

Organizational Climate

The climate of an organization refers to the “mood” of the company or how people feel about their employee experience in your workforce. Factors such as team effectiveness, leadership, and support from the organization will influence your employees’ mood and the work climate. HR Should measure the climate by getting feedback from your employees on how they feel about different projects and procedures. By gathering this information, you can gain insight into problems that may arise and quickly address them before they become an issue.

Climate is easier for upper management to analyze and change. Besides measuring the climate, the responsibility of improving the work climate also falls on the CHRO and the HR department as a part of continuous performance and organizational development. Organizational structure contributes to a good climate which is an important aspect to nurturing a healthy organizational heartbeat.

Organizational Strategy

Organizational strategy is defined as  “a dynamic long-term plan that maps the route towards the realization of a company’s goals and vision.” Organizational strategy begins with the big picture you want to achieve and then the steps you need to take. Begin by identifying problems keeping you from achieving goals, then plan actions to take to solve those problems.

Once you have determined your strategy and what you must do to make your goals a reality, you need to follow up and evaluate employee progress. Make sure to make the strategy available to everyone and take into account your company's culture as well. 

Focusing on a strong business plan will help your team stay focused and keep your company on track. If you haven't already started, it's time to figure out your own organizational strategy. 

Human Resource Information System

Now that we know what the foundation of Human Resources is built on, it’s vital to find proper HRIS software to help with the process. Administrative tasks like payroll, benefits, taxes, etc. are still an important job that needs to be done. Without filling out the proper HR forms and documents, companies can be put at risk to lawsuits and fines from the government.HRIS software like ProSky’s Pathways can help automate and simplify the more mundane administrative tasks required for the organization to run. By freeing up those administrative hours, you allow HR managers more time to focus on strategic tasks that will benefit the organization. 

ProSky Pathways allows you to automate parts of your hiring, onboarding, and compliance processes. Tools such as pulse surveys will help you to gauge the employees’ moods and the health of the organization. You can even customize a career path for every role in your company and help your employees progress long-term in your company through trainings and projects.

With an efficient HRIS system, upper management will be able to exchange information between different departments to better implement cross-training and internal promotion opportunities. You’ll able to design your structure to maximize the ability to properly implement human capital to fill gaps and find perfect fits for each individual within your organization.

Your organization will have more transparency between managers and employees. Managers can present employees with a specific, step-by-step career path to help employees can visualize their long-term development within the company. 

If promotion opportunities are limited, managers can plan pathways with more lateral growth that allow employees to expand into different roles and develop skills that they are interested in. Find new challenges for employees to allow them to make a difference in the company and contribute meaningful work.