Saturday, May 21, 2016

Capabaility Audits: Adding Value to a Company


This week has been a great week of learning from the standpoint of credibility within Human Resource Management. The key concept for this week is capability audits. The purpose of a capability audit is to allow a company the opportunity to determine which capabilities dare important and beneficial to the organizations strategy, stakeholders, and context (Smallwood, N. 2004). The audit allows the company the opportunity to see strategies that are successful, strategies that do not work for the company, and analyze the steps of the company. This allows HR the ability to be viewed as effective and can also increase success for the company.

When conducting an audit it must be supported by all major parts of leadership to ensure it is conducted correctly. The first step of the audit is to identify the critical areas within the company that currently assist in meeting company goals. Next the company must review the success or performance rate on the critical areas. This will show gaps between current and potential revenue and goals. The results will provide the company with the current positive and negative strategies that are effecting the company. Using the data could help fix problems areas and increase company values. The figure below is an example of what an audit that I conducted for my department. I am currently employeed in the higher education field focusing in Academics.. The overall goal of this audit is not to point out errors within the company but to identify areas of improvement for the future of the department and the company. I only selected capabilities that applied to my department. The results are listed below:

 

Talent: 5- We have a combined total of more than 20 years of experience within the department.

Speed: 3- Room for improvement because we do not all utilized the correct methods

Accountability: 5- We are held accountable for all actions taken within the department

Collaboration: 1- We only work together when we are forced to do so

Innovation: 5- We are looking for ways to make the structure of the department better

Learning: 5- We have a weekly team meeting to learn new methods
 

Management Tie In and Personal Review

This week’s lesson about capability audits was a very eye opening experience for me. This week I was allowed to see the strategies upper management utilize within the company to identify different strengths and weaknesses. The audits are very informative and can help a company grow and overcome potential and current issues. From a personal standpoint my company or department should utilize this audit. Currently I am a team lead for my department and help manage a team of ten employees. There are members on the team that have been with the company for more than twenty years and possess a ton of knowledge about the department and the company in general. We currently have an issue within the department dealing with employees not expressing their concerns and issues that are occurring. Upper management has reached out several times however no one is willing to speak out due to job security within the department. I think that this audit could be very beneficial to our department. This audit could reveal the issues within the department and help upper management create ways to solve issues. Management could conduct quarterly and help boost staff morale and retention rates. It could also help the department and company forecast the future to help prevent issues. This audit is something that I am going to suggest to my supervisor to help our department. I really enjoyed this week’s lesson.

 

References

Ulrich, D., & Smallwood, N. (2004). Capitalizing on Capabilities. Harvard Business Review, 82(6), 119-127

HR From The Outside In – Six Competencies for the Future of Human Resources”; Dave Ulrich, Jon Younger, Wayne Brockbank, Mike Ulrich; McGraw Hill

 

 

Capability Audits SHRM Post and Replies: This week I did not receive any replies from my post. I did however locate other posts related to the topic and provided feedback. Example is listed below

 


Posted 2 days ago

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Hello,

I am researching capability audits used with HR. Can anyone provide any feedback regarding this topic. Does anyone think this is a good method to use within companies? Are other methods better? Please explain.

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Britney Taylor





 

Topic: Capability Audits

1.  Capability Audits
 SHRM Discussion Post:
Posted 2 hours ago
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Capability audits within a company are a very important factor. The purpose of the audit is to identify strengths and weaknesses within a company. The audit must be supported by upper management and all areas must be reviewed. The audits provide valuable information to the company. The results from the audit reveal key areas that are used on daily basis with a company. Leaders can review the data from the audit and select which capabilities are important for the company. The data can help companies select the correct goals and strategies for the future of the company and also help HR align and create the correct strategies for the employees. I personally feel that capability audits can work for a company but this is just the beginning of the improvement process. Capability audits provide a broad range of solution that can make it difficult for companies to select which areas the company should target first. After companies complete this audit they should probably complete another analysis that could narrow down or eliminate unnecessary results.
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Britney Taylor
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Capability Audit
By Patricia Price posted 02-24-2016 17:37
  
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This week in my Strategic Human Resources Management class, we were asked to perform a capability audit this is presented in the book "HR From the Outside In" by Ulrich, Younger, Brockbank, and Ulrich. I am currently working as a customer service representative in a local bank, so I do not know how exactly how the corporate office functions, so I conducted my audit on the branch that I work in. Some of the questions were a little difficult to apply to the branch itself, but I did see where some of our weaknesses and strengths are as a team within the branch itself. I am unfamiliar with how to use such a tool and was wondering if there is anyone that has ever performed one? What is the best way to go about figuring out what kind of questions should be asked on the audit? What is the best way to collect the data for the audit and also the best way to analyze it once it is collected?
Ulrich, D., W., Younger, J., Brockbank, & Ulrich, M. (2012). HR from the outside in:





Hello,
I am currently enrolled in a course and we are researching capability audits. I am currently working in Academics and I feel that this audit is necessary for our department. The core part that should be used within our department is accountability. I work within a department in which accountability is the key role in our department. We are accountable for all actions and what we do effects the department as a whole. This audit can reveal what methods are working and not working for the department. This can measure growth and ensure that we are using the correct methods within the department.



02-25-2016 21:43
Patricia. Just to comment on your post of the Capability Audits, I too am reviewing the same part of the HR spectrum in my HRM-501 Strategic Human Resources Management course. I'd like to elaborate on the thirteen core components that navigate through the capability audits. These components include: "talent, speed, a shared mindset, learning, collaboration, innovation, accountability, leadership, strategic unity, efficiency, customer connectivity, social responsibility, and risk." These components are used to measure the growth strategies that will assist a leader with how well a company performs these tasks. Depending upon the outcomes, a leader can use this information to monitor core components that are being mastered or strategize on components that need to be capitalized on. (Ulrich, D. & Smallwood, N.)
References:
https://hbr.org/2004/06/capitalizing-on-capabilities
Ulrich, D., W., Younger, J., Brockbank, & Ulrich, M. (2012). HR from the Outside In: Six Competencies for the Future of Human Resources.



 


 

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