Innovation in Human Resource Management

Do human resource management approaches, and performance management in general result in poor market performance for organisations? Does HR focus on policies, procedures, job descriptions and competencies actually short-circuit the organisation’s attempts to be innovative, creative and change-ready?

HR has an Image Problem

HR has always had an image problem and one of the ways they try to overcome this and prove they are business focussed and results centred rather than fluffy & touchy feely is to take what appears to be a very businesslike and organised and business-like approach to human resource management.

There is nothing wrong with this in many ways, indeed some of it is vital when dealing with the welfare of people at work and in ensuring organisations comply with the law.

HR at the Top Table

However, if HR is to take its place at the top table, and I sincerely believe this should happen in all organisations;, there must be a much more focused approach on the organisation’s need to be competitive.

Innovation for Tomorrow

Talk of a global market place, massively increasing competition and current overcapacity is clichéd but true. There is no longer an argument; innovation and creativity are the only sustainable sources of growth and competitive advantage.

An article by Arthur D Little, international innovation consultancy, writing about “The Future of Innovation Management” puts it clearly enough “The winners will be those who are able to link strategy, innovation, product, customer, experience and employee engagement, all in a landscape of shifting sectoral boundaries and new bases of competition.”

This description of the future of organisation applies to the public and private sectors and to large, medium and small enterprises.

The Only Source of Innovation is People

There are two clear facts in business:

1. The only source of innovation is people and

2. Companies must work constantly on improving their climate for innovation.

Improving the climate for innovation must come from the top and work its way down. Sadly it does not seem that most HR departments embody that conclusion. No matter how much they include innovation and creativity as required competencies in the jobs they hire for and the performances they help to manage, they rarely display it themselves.

Sweeping Accusation

This is a sweeping accusation but consider the following. When making hiring decisions, applicants are almost always required to meet certain conditions. These will include the level of experience required, the sector, industry or market they have worked in, recent experience and current employment structure, for example whether the applicant is employed –v- freelance or fairly long term unemployed (more than six months); full-time –v- part time and/or job share; office based –v- home based to name but a few.

Applying these kinds of factors instantly blocks young people, free-lancers looking for a change, those in other job groups but with relevant knowledge and skills, the unemployed, retirees wanting to get back to work and anyone else with a slightly different CV. It often means those currently working in a different sector are ignored. But do these factors affect the applicant’s competency to do the job?

Using the process above, many of those who are in fact most likely to be able to bring fresh thinking to the position; to find creative answers to the problems and to build up the ability of the organisation to identify and solve problems creatively as opposed to throwing resources at problems being faced by the organisation are not even considered.

By fishing in exactly the same pool as everyone else, the organisation will come up with the same fish as everyone else; i.e. with the same ideas, approach and ability to change. This is not innovation.

Innovation is not just for NPD or R&D departments.

Innovation is not just for new product design or R&D departments; it is the fuel that drives growth and success. It is not just a change in customer service; it needs to be part of the core values of an organisation. It is not adjusting your processes to match your competitor’s new approach; it is embedding ownership of change from top to bottom and encouraging radical/disruptive innovation.

Enterprises can only climb out of the mire of mediocrity when senior management and the HR function work together to embed innovation and hire and develop a workforce that is truly right for the job as opposed to normal for the industry.