How HR can Contribute to Building Human Capital for Global Competitiveness

To succeed in the global business arena, companies in the Philippines must harness their most important asset – their leaders, managers and employees – to build world class teams to drive sustainable growth. Which is easier said than done.

Unlike twenty years ago, businesses today cannot be run with a top-down approach. Even without outright rebellion, inertia from different factions can quickly kill new corporate initiatives. In fact, research shows that an alarming majority of companies, which have undergone significant changes for growth, fall short of their stated objectives, due to their inability to harness intangibles contributed by their human capital. That is why it is critical for companies in the Philippines to develop and channel the intangible, yet powerful human capital that reside in their employees. This is the point of inflexion between business growth and failure.

Given this context, the role of HR practitioners will evolve to becoming strategic partners contributing to building human capital outline for global competitiveness by adopting the following steps:

  1. Globalization of HR – As mergers and acquisitions become commonplace and offshore services model matures into a global delivery model, globalization of HR will become a major challenge. In this context, we will have to redefine our human capital roadmap and reconstruct the value chain that is necessary to leverage the multi-ethnic, multi-cultural workforce. We need to evolve a new HR manifesto, which should include contribution to the success in global business, integration of diverse cultures and innovation in HR processes, thus helping the Philippines to emerge an economic superpower in the next 50 years.
  2. HR New Paradigms – The emergence of a new order has given birth to new paradigms in HR management. Organizational structure has lost its relevance as change leaders have defined processes that support entrepreneurship and efficiency. The conventional leadership styles have faded. Employer-employee relationship based on shared vision has fostered a greater degree of ownership within the employees. This radical transformation of the workplace has helped HR become better ‘developers of human capital’.
  3. HR in Knowledge Economy – In the knowledge economy, human capital is the real differentiator; it is therefore crucial to acquire, develop and retain the best talent. Equally important is the need to harness knowledge, skills and initiatives of people, and spur innovation and organizational growth. Companies are not focused only on making profits. They are pro-active in contributing to the economic progress of the society. The organizational purpose to create value for all the stakeholders stretches the capabilities of the employees to continuously innovate and deliver results.

* Dr. Flor Glinoga is an internationally recognized Management and HRD Consultant. With a PhD in Clinical Psychology and Masters in Development Management, Dr. Glinoga has a wealth of knowledge about individual, group, and organizational behavior.  For the past 36 years, she has engaged individuals and organizations in the change process to increase their productivity, efficiency and effectiveness to include HR Services, strategic business plan programs, develop leadership skills, and build self-mastery.