Human Resources is a cross-functional process in the organization. HR collects feedback, ideas, internal knowledge about processes and best practices. HR Role is to work with the feedback and share the responsibility for the organizational effectiveness. The organizational effectiveness is crucial for the success of the modern organization. The effectiveness has a enormous impact on the profitability of the organization and allows higher investments or better development opportunities for employees. HR has to challenge the effectiveness of the organization (and has to share the responsibility for the improvement).
The organizational effectiveness is hard to measure as there is no unified definition of the organizational effectiveness. Each company has to design its own measures and has to define the desired target values. The top management has to deliver the definition of the effectiveness. The effort of employees and managers is aimed to reach the defined target values.
The effectiveness is not just about the performance of the organization. The volumes and sales numbers are just one part of the effectiveness. The biggest organization with the greatest market share does not have to be the most efficient organization. The most efficient organization usually spends less resources to produce the desired profit or outcome (for the nonprofit organizations).
The organizational effectiveness is also about the people management in the organization. The empowerment, pushing the responsibility to lower levels of the organization, and the right to make a mistake has a immense impact on the speed and efficiency of the organization. This area is a primary focus of Human Resources. The HR Role is in education of managers to empower employees as the processes are smooth and quicker.
The role of HR is in identifying and challenging gaps in the organization (including HR Processes). HR can have a significant impact on the overall company results when it focuses on right gaps. HR connects managers. HR can influence many managers to focus on key gaps causing the organizational in-effectiveness. Empowering employees and involving employees into finding solutions improving the effectiveness of the organization can have surprising results.
Challenging managers is about the courage of HR. HR has to collect the evidence, and it has to gain some influence before it can present ideas openly. Many managers do not perceive proposals as the help. They can perceive ideas as the attack.
HR Role is in finding the innovative approach for the introduction of initiatives aiming at the organizational effectiveness. The contributing HR Function always delivers solutions, which improve the organization on a daily basis.