What is Shared Value?

Shared Value is the concept written about by Michael E. Porter and Mark R. Kramer (Harvard) in their seminal article called: Creating Shared Value: How to Reinvent Capitalism and Unleash a Wave of Innovation and Growth. In their article they define the concept as:

Shared Value involves creating economic value in a way that also creates value for society by addressing its needs and challenges. Businesses must reconnect company success with social progress. Shared value is not social responsibility, philanthropy or even sustainability but a new way to achieve economic success(1).

It is a unique view and opinion that Mr. Porter and his writing partner Mr. Kramer are advocating. Which has, in my view, gained momentum as the business environment has changed and presented significant challenges over the past decade.

Given the damaged relationship between society and its industrial leaders due to events such as Enron’s financial governance issues, market collapse of the financial services industry, environmental catastrophes such as Exon Valdez and BP Oil rig spills these events coupled with the impact of job losses, personal bankruptcies and high unemployment have left many grasping for a new way. Porter points out that operating a business with a view to creating shared value is good for business in many ways.

These ideas accept that capitalism is an effective method for efficiently meeting human needs, creating jobs and wealth. The opportunity is to fully unleash the potential of capitalism by taking a wider view. In other words, the purpose of a corporation must be redefined to be the creation of shared value and not just profit. The hypothesis is if this path is taken it can create the next wave of innovation and productivity. Many real examples are starting emerge to validate this thinking. Companies which have embraced this type of long term wider community thinking put shared value not at the margin of what they do but at the center. You can find these examples and much more related to this concept at their website http://www.fsg.org.

For those of us practicing Industrial and Labour Relations it is an exciting concept to embrace. We are uniquely able to influence shared value goals as we are accountable for the creation of Labour Relations strategy and the execution of the strategy through negotiations, dealings with communities, employees and working relationships with unions.

(1)Creating Shared Value: How to Reinvent Capitalism and Unleash a Wave of Innovation and Growth", Michael E. Porter and Mark R. Kramer, Harvard Business Review, Feburary 2011

Human Resources Management –The Unsung Moderators of a Company

An organization is a place where the different departments work together to achieve the common goal of bringing profits. From the recent past, it has been seen that, one area which has seen a see change in terms of growth and practices is human resources management. Till recently, it was a department which was only considered to be concentrated over the smooth functioning of production and operations. However, coupled with other functions, their main job revolved around finding contingency measures to avoid strikes and sort out any kind of conflict that might be envisioned between the labors and the management. Added further the appraisals and compensation issues were the main issues that formed main part of the human resources employee relations.

Well in times of today the demographics of human resources management has completely changed. The company employee is not just a person giving his services for the pay that is given to him but it is a skill set which needs to be kept happy to give the company the best services. There are times that you have to deal very softly and at the same time professionally to get the managements point across to the employee. This is the reason it is said that human resources employee relations walk a very thin line. After all at the end of the day a happy and satisfied employee is what everyone aims to have as it turns into higher work output.

Human resources consulting and management begins right from the time a prospective employee comes to give his resume for a job in an organization. The short listing, sorting of resumes begins here where the HR of the company sorts the resume as per the requirement of the company. The interviews with the departments and heads are then scheduled by the HR. After finalization of the employee, then comes deciding the package and the remuneration that the employee will be paid. This all is finalized by the HR in discussion with the management. Not only this, the HR is responsible to finalize the appraisals of employees as the time arises.

Human resources management involves not just trainings, appraisals and the like but involves a system where you can give your complaints as well. This gives a feeling of transparency to the employees that there point is being heard. It also opens channels of communication between both the parties and benefits the organization in the long run. Human resources employee relations is a buffer which makes the employee open up with the management where he can discuss his future trainings that he might wish to undertake . This also gives him a chance to preview the future that he might have in the company and the HR has to make sure that the employee is comfortable in the organization.

Labour Relations Canada Aimed at The Skilled Employee

A person’s job is such an important aspect of his life that many times he has to transcend borders and move out to a completely new city and at times new country as well. The fact is a person with a high skill set in his job is always on the “Most Wanted” list of human resources management departments of companies. If you are good in your job you will always have your hands full with job offers. Not only this, the remuneration offered to you will be the best so as to keep you always with the company.

In developed countries like U.S, Canada, Europe a recent trend has immerged where you find imbalance between the new labors i.e workforce coming for a job and the labors retiring from the job. The result is shortage of people in the skilled labor category. To counterbalance this companies open their doors to a workforce from other states and countries as well. Canada is one such country which welcomes talent and skill with open arms and values a person for the work and skill that he has. For the comfort of the employees labour relations Canada laws are designed to the labours comfort where they offer flexible work hours and employee benefit family health schemes as well. Not only this in a recent development labour relations Canada is now encouraging women force to also join the construction sector. This is a step towards diversifying the work force from different sections of society and even minorities from different facets of work. Further companies are working towards keeping human resources employee relations very cordial and friendly with an aim to retain employees as far as possible.

Today’s labor is not just engrossed in his work but he requires diversification in his work as well. The human resources management of companies has to plan creative workshops and trainings for their employees. This makes the employee’s job interesting and makes them look forward to a new everyday in the company. This increases the zeal in the employees and they look forward to their day in the company. Another step towards enriching human resources employee relations is giving some rotation to the job of an employee. This way he learns something new in his job and at the same time gives him a new experience as well. This has been a big advantage for labour relations Canadaand has benefited the economy in a big way.

By initiating the new strategies and introduction to new departments and techniques you give new skill set to employees. Further, it brings about reorganized work arrangements, increased employee engagement and management responsiveness, devises new recruitment, selection, retention, and post-retirement strategies and above all improvement in productivity. At the end of the day the aim is to keep the companies employee happy and at the same time no compromise on productivity.