The Inextricable Link Between High Performance And Effective Human Capital Management

In today's technologically advanced, global economy achieving High Performance within your organization is not an alternative it is a requirement. If you want your organization to prosper in the years to come you must create a High Performance environment. That is, one where employee's basic needs are met on a day-to-day basis and where Human Capital Management is designed to address the basic factors of human success.

To be successful at work and to achieve full potential people need to feel that they belong and are accepted, that they are compensated fairly; that they are recognized, that they are responsible and accountable for their work, and that they are respected. Without these fundamental factors employees have no real attachment to their job and they often fail to develop a sense of commitment. Employees who are uncommitted simply show up for work, meet minimum requirements, and collect a paycheck. That paycheck becomes a right-it is no longer earned, but expected and there is no incentive or motivation to work hard or even come close to maximum performance.

So how does a company break out of this "rightful employment" pattern? The key is through effective Human Capital Management (HCM). Effective HCM takes a holistic approach whereby all company systems are interrelated and thus every system needs to provide the elements required for human success.

Effective HCM starts with the realization and acknowledgement that your human, or intangible, capital is as important as your tangible capital and that like the tangible items, human capital needs to measured and accounted for on a consistent basis. Just as you want to keep your equipment in top shape so should you keep your people in top shape - ready and capable of performing the job they were hired to do. Just as you seek investment opportunities for your financial capital to grow, so you need to invest in your human capital and provide them with opportunities to grow and produce more human capital.

By attending to the basic needs of your employees you create an environment where they flourish and that encourages them to perform to their capacity. This maximum capacity yields high productivity and that is when you truly have a High Performance organization. Achieving this High Performance requires developing and linking HCM programs, philosophies, and objectives to corporate organization and strategy.

A high performing company is one that has broken away from the traditional and highly structured model of business organization to one that is more organic and flexible. Within these organic systems managers are encouraged to create teams of employees who work together toward a common business goal. The teams are cross-functional and empowered to make decisions and solve problems, they monitor and improve their quality, and each individual employee is seen as a contributing business partner.

Within this cross-functional team environment, employees are exposed to a variety of perspectives and they begin to see how decisions made in one department affect the challenges and outcomes of other departments. Working on company-wide objectives rather than departmental objectives enables employees to see the big picture and recognize how their contributions impact the company as a whole. They begin to see that they are responsible for achieving company objectives and they understand how their actions have a direct impact on organizational success. This realization is what spurns the transformation from expecting compensation to earning compensation and is what facilitates high performance.

This high performance attitude doesn't just happen and it takes considerable company-wide effort to enact. HCM is not the exclusive domain of the human resources department; it needs to become part of the corporate culture. From the CEO and executives, to the Board of Directors and Shareholders the entire organization needs to understand and embrace the commitment to providing for employee's basic needs. Only when employees are certain that top management gives them the freedom, responsibility, and trust to do their jobs will they truly feel accountable for and committed to their work and the company. Encouraging and facilitating employees' freedom to act and think independently produces the magnitude of energy, creativity, and motivation that is capable of limitless achievement.

High Performance is as critical as it is possible. It is a process that starts with philosophical change and ends with practical solutions that lead to substantial improvements in the way work is accomplished, the way work is perceived, and the amount of work that is achieved. Effective Human Capital Management creates an organizational structure that ensures employee's needs are met. Within this new structure employees are free to explore the boundaries of their capabilities and talents, creating an inevitable leap from mediocrity to high performance and ultimately to a healthy, prosperous company that is capable of sustaining its competitiveness for years to come.

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