The day to day operations of an organization are run by employees. Organizations cannot operate without sufficient workforce that involves individuals who offer both skilled and unskilled labor, to assist organizations realize their goals and targets. Performance of any organization is largely dependent on the type of workforce put in place. Organizations have tried different strategies in trying to employ the right workforce for the purpose of improving performance. One of the best strategies that an organization can utilize is human capital ( Lawler & Boudreau, 2012 ). Human capital refers to skills, attributes, knowledge and expertise that are gained by employees over time and that help them be more productive in an organization. Most organizations invest large amounts of money and resources to train and equip employees with new skills of operations for the purpose of increasing their productivity.
It is vital for any organization to set aside enough money and resources each financial year to aid in training its employees on new work mechanisms. The world is advancing technologically and every organization need to set clear guidelines on how to cope with the technological advancements. There is a need of keeping employees updated on the new technological advancements through training ( Lawler & Boudreau, 2012 ). Time to time trainings on employees increases their production ability and impact the organization positively. A good human capital system will ensure that any new skills in the market are absorbed and availed to the organization’s employees. A good human capital must also be in line with the financial plans of an organization. An organization which has proper human capital system will ensure its employees are fully equipped with skills and knowledge about the organization’s operations ( Boudreau & Ramstad, 2007) . Such an organization will definitely perform well in the market and will be in a position to effectively compete with other organizations.
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Through employing the necessary human capital processes, organizations are able to discover different talents and capabilities among its employees. Some employees possess unique talents and capabilities which are not realized until the individuals are taken through training ( Lawler & Boudreau, 2012 ). An organization which fully implements human capital systems is able to discover these special talents and capabilities among its employees and optimize on them to better their performance. Special talents and capabilities can be realized both at an individual level and at a team level. It is therefore necessary for organizations’ management to put in place proper human capital processes and system to always ensure that their workforce possess the required skills and knowledge for better performance.
Human Capital and HR Processes Analysis
Human resource processes are very important in any organization because they implement human capital and ensure that employees’ performance is improved. All issues to do with employees are handled by human resource departments in any organization. Amgen organization is a profit making organization with its headquarters in California. Amgen organization’s HR department is the one which implements all human capital systems of the organization. This paper will analyze the human capital and HR processes in the following areas; Talent acquisition, learning (training and development), Culture of innovation and career development and succession planning.
Talent Acquisition
Talent acquisition and management in Amgen organization is a key strategic process which incorporates both the organization’s HR department and the human capital processes. Amgen organization recognizes the importance of acquiring the right talent for a certain task in a world which is full of unending workforce. The main aim why Amgen organization focuses more on talent is to enable the organization achieve its strategic objectives and ensure a long term success of the organization. The work of an organization does not content at hiring the right personnel for a particular job but goes far to consider a wide spectrum of activities like career management, leadership development and talent planning. A proper talent management is important to help the organization meet its future needs adequately (Watson, 2010). A properly managed talent acquisition system ensures that talents are passed on to new employees easily so that an organization does not have to recruit every time the need for appropriate talent arises.
Amgen organization HR department provides a cost-effective and quick talent acquisition and management process of high quality. The HR department ensures that it recruits the best and most qualified workforce with the allocation of minimal resources and within the shortest time possible. The department also carries regular analysis on the performance of the employees to ascertain whether further training is needed. The HR department also carries research in certain industries and sectors which helps it to maintain unequalled success in meeting all the talent needs of the organization for the current and future activities (Watson, 2010). The HR department conducts a thorough behavioral interviews to establish the leadership, team-building, decision making and problem solving capabilities of a prospective employee. They also assess the ability of the employee to work individually and to work as team with fellow employees.
The Amgen organization’s HR human capital processes aim at creating a pool of talent within the organization to assist the organization in meeting its set goals and standards. The human capital process ensures that all the organization’s employees are fully equipped with the necessary knowledge and skills to help them accomplish their tasks effectively. The HR puts in place several methods which help Amgen organization to manage talent acquisition appropriately. The HR department of Amgen organization carries out individual development guidance and coaching on all the employees to keep them on the right track. The HR department also focuses on team building exercises to improve overall performance of the organization. Leadership development programs are also incorporated in all sectors of the organization to help nurture future leaders for the organization.
Amgen organization is faced by several challenges while trying to obtain the right talents for its operations. One of the ‘gaps’ that Amgen organization faces while recruiting candidates is the problem of limited resources. Regular recruitments and trainings require huge capital and qualified personnel to accomplish. In some instances, the organization finds itself in a situation where it requires a certain specialist in one of its sectors but cannot afford to cater for the training. In such a situation, the organization is forced to rely on the only available employees who might not be competent at times. There is also the problem of employee-management crisis which mostly arises when fully skilled employees demand for big salaries. For instance, an employee who has unique capabilities in executing certain task better than any other employee might demand a pay increase. In such a case the organization is forced to comply with such employees’ demands in fear of losing them.
Learning (Training and Development)
The business world is advancing and new opportunities are emerging everyday globally. The business advancement is mainly enhanced by technological and infrastructure change which is occurring at a very fast rate. Organizations need to learn and cope with the changing world in order to remain strong in the marketplace (Paradise, 2008). Clear guidelines and strategies should be put in place to ensure that employees are familiarized with the changes being experienced in the business world so that they can perform as expected. Every organization should strategize its human capital and HR processes for the purpose of training their employees on new developments in the market. Organizations that have strong HR departments have recorded positive results in terms of offering learning aids and training to their employees on matters to do with market development.
Amgen organization is among the many organizations that have taken in the idea of globalization and has opened a branch in Canada. The working environment in Canada is different from the one in California. The Amgen organization’s human capital and HR processes team identified some of the issues that have to be addressed concerning the new Amgen organization’s branch in Canada. The department has noted that employees have to be taken through specialized training to be able to cope well with the new working environment. First, employees in the Amgen’s Canada branch should be given time to fully learn about the culture of the local citizens where the business enterprise is located. Learning and appreciating culture of the local people where a business is situated is important because it creates a friendly business environment (Paradise, 2008). Appreciating other people’s culture is a sure way of getting market for your goods and services from the people.
Another learning element in globalization is that learning in global operations need better execution (Paradise, 2008). Employees need more specialized trainings while working in new environments than when operating from their home countries. The new environments have new operating strategies which need a proper training for the employees to be able to perform well. Therefore, any organization intending to adopt global operations should reinforce its HR department to be in a position to offer the needed training to employees working in the new global environments. The Amgen organization is fully aware of the challenges that employees might face in new global working environments and ensures that it provides proper training to the employees before they are dispatched to those new environments. Proper prior learning and training help employees to gain confidence in their activities; thus they are able to perform to their best for the benefit of the organization.
Global expansion to abroad business markets is preceded by research which seeks to identify the characteristics of the new environment (Paradise, 2008). The personnel who do the project research necessary for establishing a business in most cases do not get direct support from learnt professional in the business sector. In most cases, the project research team might come up with inadequate information about the new business environments. As a result, business success in the new environment might be derailed by the lack of proper know how of the environment and its locals. Amgen organization’s HR department deploys professionals in the field to help the project team during initial plans to expand operations beyond national borders. The professional help the project team to carry out thorough research and come up with all the information about the new targeted business environments. This helps the HR team to determine the type of training and learning that employees should go through before they begin their operations in the new environments. Through this expertise project research, organizations are able to expand their operations beyond national boundaries and operate effectively.
The area of learning and development is also faced by different ‘gaps’ during its implementation. It takes time for people to adapt to other people’s culture especially if the new culture shows some degree of discrimination against other cultures. The adaption to a new culture might negatively affect employees’ normal ways of living and as a result, their performance might go down. There are also cultures which are primitive in nature and promote unethical practices in the society. Employees’ performance might be negatively affected by these kinds of cultures which interfere with their moral standards (Westland, 2019). Expanding organization’s operations beyond national boundaries means that the employees will be subjected to new environment with new ways of living. It also means that the employees will be far from their families and will have to make new friends in the new environments. Some employees find it hard to fully cope with the new environments and new ways of living especially if the environment is dominated by people who speak a new language. Socializing with the people in the new environment will also be difficult and this might lead to mental breakdown among the employees.
Culture of Innovation
Culture of innovation refers to a business environment which promotes creativity and new inventions in efforts to extract economic and social values and generate new products and services with the aim of making more profits (Dalton, 2009). Culture of innovation always appreciates the existing strengths and opens a chance for more advanced strengths to improve business performance. Organization leaders always work towards coming up with new ways of executing tasks in attempts to improve the performance of their organizations. It is always very important for any organization to incorporate culture of innovation in its human capital system. It is easier for employees to come up with new ideas and new ways of doing things because they are directly involved in real business operations. There are usually three constraints to innovation in any organization. Organizations need to first deal with these three constraints before any new innovations can be realized in their activities.
The first constraint is known as policy or management constraint (Dalton, 2009). Policy or management constraint results from organizations’ operations and overreliance on new creativities which inadvertently constrain growth and development. Organizations might be quick in taking in new ideas of operating without the correct measures to maintain them. As a result, the new ideas and policies add up to a bulk of constraints which in turn affects the organization negatively. Unfortunately, most organizations do not realize the policy constraint and instead to moving forward to incorporate more new ideas and policies which worsen their performance. Amgen organization depends on its HR department to regulate on the incorporation on new innovations in its operations. Before new innovations from employees are absorbed by the organization, the HR department first ascertains its effects on the overall operations of the organization. Amgen organization has been able regulate between new innovations and work performance and this has helped the organization to remain strong in the market.
The second constraint is physical or resource constraint (Dalton, 2009). Lack of enough resources in an organization might derail the culture of innovation among the employees. Lack of enough resources means that the employees do not optimize their skills and as a result new ideas and policies cannot be arrived at. Resource constraint may also be as a result of insufficient workforce. An organization which does not have enough employees burdens its workforce by forcing them to overwork. As a result, the available employees end up straining to meet the organization’s demand which in turn deter innovation. In organizations where employees are not overworked, then possibilities of them coming up with new innovations are high because the workers have enough time to rest and reflect on their operations which in turn spark up new ideas and policies. In Amgen organization, the HR department ensures that the organization employs enough workforces and that human capital system is fully utilized. The Amgen organization has been able to get new innovations from its employees which have helped it improve its operations.
The third constraint is known as market constraint (Dalton, 2009). Market constraints are external and usually occur when demand for goods and services decrease in the market place. Market constraints can also be as a result of a market not interested in certain type of goods due to their quality or prices. Culture of innovation plays a very key role in matters to do with availability of market. Organizations should be on high alert to the changing trends in the market so that they can invent on new ways of approaching the market. Availability of a ready market for goods promotes innovation because employees are in a position to come with new ideas of attending to their daily customers. Unavailability of ready market on the other hand daters innovation because more effort and concentration is channeled towards disposing the already manufactured goods. Amgen organization is in the forefront through its human capital and HR processes in establishing a good market for its goods. The human capital and HR processes ensure that regular research is done to ascertain the state of its available market. The organization has been able to operate efficiently in the market place.
The ‘gaps’ associated with the implementation of culture of innovation include the unwillingness of top leaders to admit their incompetence in executing their duties. Most policy constraints result from poor leadership from organization’s top officials, who in turn refuse to step down to allow for fresh minds with new ideas to take over leadership roles (Westland,2019). Another ‘gap’ associated with the implementation of culture of innovation is selfishness among employees. Chances of employees coming up with new innovations are but in most cases the employees fail to reveal their innovations to the organizations and in turn move on to utilize the innovations for their own benefits.
Career Development and Succession Planning
Career development entails a lifelong process of learning and improving ones skills for the purpose of performing better. Succession planning refers to a strategic and deliberate effort to equip employees with necessary skills, a process which is rotational among all employees in order to fill key positions in case they are left vacant (Grossman, 2011). Career development and succession planning is executed through adhering to human capital systems and HR processes. Most organizations have put in place special programs which are specifically designed to help employees develop their careers effectively. Career development is vital for any organization because it improves the overall performance of any organization. On the other hand, succession planning aims at ensuring that special brains and capabilities are not lost, rather they are passed on to new employees to carry on organizations’ operations. Succession planning is mainly done through mentorship programs where newly employed employees are put under qualified personnel to learn their work skills so that they can apply them upon the retirement of the old employees.
Amgen organization has put in place the right mechanisms to help in the implementation of career development and succession planning programs. The organization’s human capital and HR processes help in training employees to gain more skills on their careers. Career development is done through organizing for workshops where motivational speakers are invited to come and talk to the employees on advancing their career skills. The Amgen organization also works closely with other industries in the market and borrows career development ideas from them then passes the ideas on to its employees. The two techniques of career development have worked well towards improving the work skills and knowledge of the workers, which in turn has improved the organizations overall performance. The element of succession planning is also well handled by the organization’s human capital and HR sector. The organization involves its highly skilled employees into direct mentorship and training of new employees so that they can pass their skills on them. Through this, the organization has been able to have highly qualified employees throughout its operation. The production sales rates have remained high for Amgen organization because of the availability of highly qualifies personnel.
Career development and succession planning is faced by several ‘gaps’ which hinter its successful implementation (Westland, 2019). In some cases, not all outgoing leaders are ready to mentor new employees to take over their positions. In such cases, the organization has to only rely on the willing outgoing employees to mentor and pass on their leadership skills to the new employees. There is also the possibility of some outgoing employees being malicious. Instead of the outgoing leaders and employees training the new employees adequately, some decide to do the trainings halfheartedly which result to the organization having a lot of unqualified personnel.
Gap Analysis and Possible Solutions
Gap analysis refers to the process of assessing the actual outcome of an operation with what was anticipated. Gap analysis helps organizations to detect shortcomings in their operation and device ways to solve the shortcomings (Westland, 2019). Human capital processes might not serve their purpose well in an organization due to resources limitation. For an organization to empower its employees through developing their career skills, enough resources and mechanisms should be available. Lack of enough resources and mechanisms will interfere with the human capital process of talent acquisition and career development. The challenge of limited resources can be solved through acquiring enough and appropriate resources and mechanisms. In some other situations, organizations are faced by employees’ boycotts and strikes. Organizations expect their employees to work hard towards meeting the organization’s goals and targets. In the event of employees’ boycotts and strikes, then the organizations’ expectations are not met. Employees’ boycotts and strikes threaten career development and succession planning.
Organizations should have clear work guidelines and strict measures upon employees who organize for employees’ strikes. Imposing strict measures on striking employees will ensure that unnecessary strikes and boycotts are avoided and that will help the organization to have a smooth work flow. When organizations expand their operation beyond national boundaries, they expect the employees who are deployed into those areas to perform well (Westland, 2019). In most cases, the employees who are sent to work outside their national boundaries find it hard to cope with the new culture and as a result their performance is lowered. Organizations should allocate enough time to employees who are sent to work beyond their national boundaries to interact and familiarize themselves with the new cultures. The organizations should also bring in culture experts to help the employees adapt well to the new cultures. There is also the need for organizations to gather enough information about the cultures of the areas they wish to expand their operations to so that the employees can be aware of the cultures prior to their deployment.
Organizations rely on succession planning to ensure that they do not run short of skilled workforce. In most cases, the organizations depend on the skilled outgoing employees to pass on their skills to the new and oncoming employees (Grossman, 2011). It is not always the case because some employees are simply not willing to help others develop career skills and become experts. In such cases, organizations are faced by short of skilled workforce (Westland, 2019). In order to ensure that succession planning goes on smoothly, organizations should set it as a rule that an outgoing employee must ensure that an equal replacement to his or her replacement is brought on board. The organizations should also set clear timely guidelines to ensure that there are always employees under training at all times so that they can be assured the availability of skilled labor all through.
References
Boudreau, J. W., & Ramstad, P. M. (2007). Beyond HR: The new science of human capital . Harvard Business Press.
Dalton, M. A. (2009). What's Constraining Your Innovation?. Research-Technology Management , 52 (5), 52-64.
Grossman, R. J. (2011). Organizational & Employee Development-Rough Road to Succession-Corporate board members—And regulators—Now expect smooth transition plans to be in place. HR Magazine-Alexandria , 56 (6), 46.
Lawler, E., & Boudreau, J. (2012). Creating an Effective Human Capital Strategy. Retrieved September 20, 2019; from https://www.shrm.org/hr-today/news/hr-magazine/pages/0812boudreau.aspx
Paradise, A. (2008). Learning and Globally Dispersed Workforce. American Society for Training and Development , 62 (6), 60-7.
Watson, A. (2010). Mapping out a Career: An Analysis of Geographic Concentration of Occupations. Occupational Outlook Quarterly , 54 (3), 12-23.
Westland, J. (2019). How Gap Analysis Can Improve Your Project Management. Retrieved September 20, 2019; from https://www.projectmanager.com/blog/gap-analysis-project-management
