Is balance between ‘being customer-centric’ and ‘being staff-centric’ Impossible? Often companies think so! Are they correct?

With the word of business getting more and more competitive, day-by-day, it is natural that the pressure on employees increase manifold. This is evident from the facts like high proportion of disgruntled and stressful employees at any workplace. Every Company wants to create an employee friendly Organization, but most of those are rattled by the fact, at least at operational level of the entity, that friendliness towards organization is like getting away from customer-centric approach. This results in massive leakages on employee output. Then what is the way out!

Despite rapid changes in the concepts of Human Resource in the present world, every organization is trying to align to employee needs while balancing output. Strategic Human Resources Management (HRM) focuses on developing and implementing HR programs that aims to address and solve these business problems and contribute to achieving long-term business objectives of the organization.

HR was previously thought of having an administrative function focused on day-to-day responsibilities such as employee recruiting and selection and managing employee benefits. But with rapid development in the labour market conditions, HR has now moved to a more strategic role that include recruiting and retaining the right people, as well as providing ethical and cultural leadership.

The Plan to create equilibrium between customer-centric and employee centric philosophies:

HR aims to develop plans to promote the behaviours and competencies of the people which are needed to achieve the organizational goals. This is done by assessing the current situation, envisioning the future, formulating and implementing a strategy and then establishing the methods to execute it and evaluate the progress. It must be ensured that whatever steps are taken by HR, it must be thoroughly researched and analysed, from both employee as well as customer perspectives, before implementing the changes. 

To assess the current situation, the technique of SWOT analysis (Strength, Weakness, Opportunities, Threats) is done. The SWOT approach offers a clearer picture of customers, markets and competitors. The objectives that are developed by the HR must be aligned with the organization’s mission and vision.

It begins with identifying the primary actions required to achieve the objective, setting milestones for each action, identifying the resources including budget and staff, establish methods to measure success and communicate the message to the employees.

Benefits of Strategic HRM

The closer the HR is aligned to business objectives, the better is company’s ability to anticipate the issues, respond and provide solutions for the customers thereby maintaining a competitive advantage.

Strategic HRM provides a sense of direction as to how work gets done, it improves employee productivity and thus overall organization’s success. Employees are focused towards the organizational goals and appropriate training and development initiatives are taken.

Strategic HRM encourages a favourable attitude towards change and provides a cooperative, enthusiastic and integrated approach towards solving problems and meeting customer demands.

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