Monday, April 4, 2011

Business Acumen Translates Effective Management of Human Capital and Resources

Today's organizational structures are becoming more and more complex. The globalization has emerged as the platform of a modern businesses. With the impact of workforce diversity as a main component of current market, there are dilemmas on the effectiveness of navigating the global organizational goals in every enterprise. 

Globalization became apparent that  there is a competency gap within the Human Resources Management and the Business Units in relation to business acumen. It became apparent that 'business acumen' is a deficiency in many HR organizations. 

Is 'business acumen' really a part of the Human Resources Management?  Many HR professionals' organizational purpose was to push and file papers that are brought into their desk.  Yes, it is time to transform this role and become a participant in the business arena. Acquire the skills and knowledge that reflect business mindset.

Strategically, if your objective was to maximize at  the fullest the capability and effectiveness of people who work in your organization. Then think and act strategically. Integrate both HR management and business principles into your environment.  This will require a demonstration of the financial acumen that relates to the human capital and looking into the bigger landscape of your organization. Aligning these to your overall business objectives that begins from business units to the top of the organization. 

When renaming my 'Generalist' as HR Business Partner, would it align my organization to having competencies with 'business acumen'?  It is suggested to review thoroughly the day-to-day functions of your Generalist. Majority of people in this role do not demonstrate a skill of a business partner. In the preceding  paragraph it provided some cues on  strategic mindset that integrate human capital, business, and bigger landscape.

Hiring HR Business Partner became  a fashion among many organizations that went out in droves advertising their need of a HR Business Partner.  They thought that there are zillions of people with that competencies. However, there were many unrealistic truth among organizations. When an organization advertises a job that calls a 'strategic mindset' the job functions do not measure up to the intended position because it asks for a tactically demonstrated skills plus some blurbs of partnerships and strategic.  These descriptions alone are factual evidence of lack of knowledge and competencies in defining what is a strategic role as HR Business Partner. 

©2011 JNTConsulting


When your competencies are short to be in line with the current practices and trends of global business, invest on your self development and education. Seek the help of an experienced Coach in this field. This Coach can provide you with necessary yet practical guidance and acquaint you with realistic and pragmatic techniques. Learning is always a gateway of immeasurable opportunities.

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  1. Note: Added comment at a relative discussion at LinkedIn -

    "Great observations! One of the biggest issue that I have seen is the prevalence of HR professionals in many HR organizations who pretend to be 'strategic and knowledgeable' regardless of their hierarchical position within the organization. When you start conversing and learning of what they do, they don't have the competencies of strategic business HR Professional yet they are still within the comforts of 'tactical and assembly line mentality'. These same people try to use and advocate the words like 'strategic, transformation, business partner and change' but their actual functions do not reflect such actions. Yet many have three letters behind their names but do not have a clue in executing what those three letters mean to navigate their world. Many are comfortable sitting beside the people in 'C Suits' but they do not have the capability of discussing the 'real essence of a human capital management' instead they are a 'Yes' sir/madam HR.

    In today's business landscape, professionals who work in the Human Resource Department MUST demonstrate and integrated acumen in business, human capital, cross culture and resources management (have written articles about this in the past).

    At some point, technologies that are deployed within the HR environment were not being used as a 'strategic tool' but instead used as a 'dummy fence' in eliminating people that they do not like to be a part of their selective group. Same tools are also not properly utilized in accelerating their full potentials in circumventing the tactical issues and navigate toward strategic approaches that they can benefit from these tools. There is a surge of acceptance on these tools as replacement of an employee due to automation and just follow the mechanical output of the tool. However, the link between automation of process and utilization of professional knowledge and competencies in using these tool as a value add to their abilities in progressing from their tactical workload and use the outputs for their strategic advantage were forgotten because they focused their attention on how great the machine or database is! - a real mistake within HR organizations.

    What is so amusing to see is that C executives like hiring the 'Yes' people so that they can do whatever they like whether or not within or outside employment regulations."

  2. This is the kind of articles that I have been searching for. I am looking for great ideas that I could use in my business plans. Thanks for sharing this.

  3. Paul,
    It is a pleasure to note that this article can provide you the insights for your business planning. We appreciate your comments and if there are other things you would like us to help you with. Do not hesitant to contact us.
    Sincere, JNTC Articles at +1 (650) 241-3207 #HPO #leadership #results #ROI @jntconsulting