the ceo magazine, human resources,
Mostafa Sayyadi, Author, Transformational Leadership: How To Prosper as a Leader In Today's Hypercompetitive Environment

HR managers can enhance the organization’s intellectual capital and ultimate performance. The question arises whether organizational factors themselves can be a source of effectiveness for HR strategies and practices. I pose that an ineffective vision and strategic plan may expose organizations to missed opportunities and lack of using emerging opportunities to their benefit given the existing opportunities in international and domestic markets, and how this lack of judgment may concern stakeholders. This assumption can be further explained by Barney, who argues that an organization’s internal characteristics can be seen as essential sources of achievement. HR professionals, to date, have failed to provide a comprehensive framework which incorporates all of the contextual factors that may impact HR strategies and practices within companies. Exploring these factors and how they may impact practical implications for HR managers to improve outcomes at the organizational level and meet their business objectives. There is a gap toward identifying the catalysts of HR strategies and practices. The absence of a systematic approach toward this challenge inhibits the development of HR strategies and practices as a vital driver of corporate performance. It is apparent that a systematic approach toward HR management can provide practical guidelines for HR managers.

HR managers can provide appropriate workplaces for employees to generate new solutions and a better environment. A highly centralized structure has a negative impact on HR strategies and practices, while decentralization positively contributes to HR managers in developing a more innovative climate. This can be enhanced by the crucial role of decentralized structures in facilitating the exchange of ideas and the implementation of more innovative solutions based on stipulating the power of decision-making at all levels of the organization. Highly formalized structures are more bureaucratic, and this negatively contributes to the effectiveness of HR managers in changing the existing situations and cultivating a better workplace. Thus, HR strategies and practices are more effective in more informal structures when compared to bureaucratic structures. Hence, a formalized and centralized structure is negatively related to the effectiveness of HR strategies and practices.

Trust, an important component of a collaborative culture which could positively contribute to develop and maintain organizational communications is emphasized in this section of my article. Both cultural aspects of collaboration and trust can be critical for the effectiveness of HR strategies and practices, which are strongly based on developing relationships with employees. A HR manager’s ability to build a more innovative workplace is also highly dependent on the extent to which employees trust them. Therefore, a culture that instils trust in employees enables HR strategies and practices through mobilizing their support toward the HR managers vision for changing current situations, whereas, distrust will impair the effectiveness of HR managers. Therefore, both cultural aspects of collaboration and trust can positively contribute to HR strategies and practices.

Inter-companies social networks improve the effectiveness of HR managers in developing a more innovative climate. As HR managers can facilitate innovation in the organization. Moreover, inter-companies social networks positively impact on HR managers’ views, and motivate them in expanding relationships with employees. Inter-companies social networks can enable HR managers in developing relationships with employees. Inter-companies social networks can also positively contribute to HR managers to effectively empower employees. This could be justified by stressing this fact that firms linked together by using inter-companies social networks are more capable in the effectiveness of learning. Hence, inter-companies social networks can have a positive relationship with the effectiveness of HR strategies and practices.

Finally, stakeholder orientation can improve the effectiveness of HR managers through developing a better vision that incorporates stakeholder’s attitudes. HR managers facilitate knowledge sharing and innovation and this could be positively affected by stakeholder orientation, which propels knowledge exchange with stakeholders. A higher degree of innovation is also dependent on exchanging more knowledge with various resources such as stakeholders. The exchange of knowledge can have a strong influence on learning within organizations. Moreover, the amount of knowledge exchanged with various stakeholders may be more likely to facilitate the effectiveness of HR managers by contributing to identify and develop talent within organizations. Thus, HR strategies and practices are more effective in organizations that have a high stakeholder orientation.

This article not only introduces various organizational factors that have a direct and indirect impact on HR strategies and practices, but also provide an impetus of effective HR management in supporting ultimate performance. This article clearly uncovers how the effectiveness of HR managers can be affected by substantial internal characteristics of organizations such as the organizational structure, culture, networks, and most importantly, the stakeholders.   


Barney, J.B. 1991. Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99-120.

[Image courtesy: ArtsyBee/ Pixabay]


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