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The
key differentiator between good and great organizations is the ability
to find, develop and retain human talent. If an organization is to survive, it will only be through ensuring the continuity of
good business practices and
having the skilled people at the right place and at the right time. The
following examples show how important human capital is along with the
financial capital.
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Case 1:
Failing to succeed in 5 years, the owner is considering to closing
down the company. Why do they reached to this stage when they had
spent huge amount in business? The investigations showed that the
firm key persons were more or less taking ineffective decisions
without evaluating the situation.
Case 2: One
of the educational institutions hired services of an ex-Brigadier, who
served in education branch in military, as Director General to
grow the institution but failed to put the institution on the
right path. The crucial question is
why did the institution could not grow? Discussion with the owners
and observation revealed that the DG spent more time in
shouting at others and developing differences between partners than
concentrating on other aspects of business. Qualified educationists
were either fired or left the system. Students were dissatisfied
with his policy of interference in their private matters that
decreased number of enrolments. Eventually, the institution was
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Why Do You Need External Consultants
Learning Organisations
always busy in
finding new ways to achieve strategic advantage in a growing and
competitive economic environment.
As shown in the above examples, financial capital
alone is not
sufficient to bring effectivity and efficiency in organizations unless
appropriate Human Capital is developed.
It can be said,
if finances are extrinsic factors for running an organization so
managing human capital is an intrinsic factor for organizational growth.
Contemporary research shows that only those organizations grow, maintain
quality, absorb internal and external pressures and survive in a long run that
spend on human capital through retaining skilled human capital and enhancing employees' skills.
In the era of
globalization, speculative management style cannot be effective
because speculative decisions are more prone to fail in a long-run. One of
the reasons of a
large number of businesses failure in developing countries is that owners are
reluctant to learn new learning and rely speculative style of management.
Spending on the development of employees is seen as waste of financial
resources. They are unconcerned about the growth needs of their
employees that can help business to grow further. Gained
profits by spending on employees development might not be assessable in
short span of times; however visionary organizations are more concerned
about the growth in long run.
For the growth of any
organization, it is imperative that issues such as employees’ motivation,
division of work, organizational culture, delegation of power, and
required skills in managing people should be addressed properly.
It is
often asserted by the senior management that we have qualified people;
hence we do not need external consultants. This is a wrong conception. If
external consultants are not important, multi-nationals companies never
hire services of them. We do not argue that qualified people are not
working in your organization but possibility is that they might not be able to
see the angle from which the external consultant will view it. There are
many reasons why this is possible that they could miss a key point(s) that
is important for the growth of the organization.
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Being a
permanent member of the team they might be so busy in handling day to day
affairs that they oversight the situation.
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Studies on
culture show that it is difficult to see beyond ones own culture that you
have internalized over the period of time and this finding is also
applicable on your team members.
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Another
factor that may hinder you and your managers to view the system
innovatively is human bias, which is very common in organized systems,
thus you and your members might not be so open in accepting and
appreciating new situations as they should be.
External consultants are
free from any cultural effects and bias because they are not part of your
system. They are neutral and act professionally. They prepare reports and
recommendations based on the research that they conduct in your system.
About CMS?
Corporate
Management Solutions (CMS) provides consultancy in Human Resource and Management Development. Our basic objectives
is to provide best solutions on rehabilitation of the organizational
culture, leadership, organizational structure and developing good human
resource practices, which is vital for ultimate success of a business in
local as well as international markets.
We, at Corporate
Management Solutions, are part of your winning team and desire to
experience your business grow. We provide services to
build your Human Capital so that you have competitive advantage on your
competitors. We are here to find
adequate solutions to the issues that you are facing in your organization.
We have a pool of
qualified professionals who
Free service: If you have any question regarding management and
organizational development, send us your
QUESTION
and we reply
back to you as soon as possible. We do not charge any fee for consultancy
that is given by email.
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