The introduction of this discussion series began by, examining and determining what business tactics are ascertained by the leadership of a family business entity in order to institute a human resource strategic dynamic that is constructively fundamental for business operations. By establishing, a human resources dynamic that is encompassed of ethical and professional business practices can strengthen a foundation that is consistent with fostering human resources strategies successfully.
Part (2) of our discussion reflected on identifying “Analytical Human Resources Tactics” that can be beneficial for managing a human resource structural dynamic in a family business operation.
As part of our wrap-up of this discussion series Part (3) focuses on “Implementing Strategic HRM Polices, Examination of the Literature, and Conclusion” of “Strategically Implementing and Managing Human Resources in a Family Business.”
Implementing Strategic HRM Policies
Integrating human resource strategies into a family business entity without the structure of a dedicated Human Resources Department should be introduced through proper leadership guidance and ethical principles. Having proper leadership in place is a key element to executing effective strategies that will be beneficial to a family business entity. Kouzes and Posner (2012) emphasize that illustrating proper leadership protocols is essential to leading others in a professional and respectable manner. When family business leaders demonstrate this momentous viewpoint a fundamental leadership strategy is exhibited:
When making extraordinary things happen leaders engage in what is called the Five Practices of Exemplary Leadership. They are (1) Model the Way, (2) Inspire a Share Vision, (3) Challenge the Process, (4) Enable Others to Act and (5) Encourage the Heart. The Five Practices are available to anyone who accepts the leadership challenge-the challenge of taking people and organizations to places they have never been before, of doing something that has never been done before, and of moving beyond the ordinary to extraordinary. (Kouzes & Posner, 2012, p. 15).
In essence, having proper leadership in place signifies developing human resource strategies that substantiate a family entity’s business organizational standards. Effectively communicating a human resources dynamic to a family business’s workforce is paramount to consistently acclimatizing human resource strategies that can be valuable to a family business entity. “A high degree of consistency, is normally associated with personal and intellectual strength. It is the heart of logic, rationality, stability, and honesty” (Cialdini, 2009, p. 53). Avowing human resources strategies with consistency organizational wide can enable a family business infrastructural operations to operate efficiently.
Instituting leadership credibility and organizational value is important aspects to envision when creating human resources policies and procedures for a family business entity. “In a values-based organization, people at every level come together for a higher purpose. Expectations for everything from ethical behavior to performance objectives are clearly communicated” (Kraemer Jr., 2011, p. 7). Each colleague that is associated with a family business entity should have robust individual characteristic values. The fundamental leadership that is in place should possess the proficiency to tap into theses individual foremost values to afford the opportunity to establish a strong ethical foundation that supports human resources dynamics. “As a leader, you must also affirm the shared values of the group” (Kouzes & Posner, 2012 p. 17). Integrating principles that comprise a values-based leadership model is significant to transition quality leadership attributes and dynamics into a human resource structure that complements a family business infrastructure. “The principles are self-reflection, balance, true self-confidence, and genuine humility. The principles are interconnected, each building and contributing to the others. Together they form a solid foundation for values-based leadership” (Kraemer Jr., 2011, p. 5). The Human Resources Department at the Society for Human Resource Management defines a values-based organization as:
A values-based organization (VBO) is a living, breathing culture of shared core values among all employees. This is different from the traditional structure which is a more machine-like, business approach that focuses on an authoritarian type relationship or rigid organizational structure. A values-based organization is a culture shaped by a clear set of ground rules establishing a foundation and guiding principles for decision-making, actions and a sense of community. (Society For Human Resource Management, 2012).
Declaring and authenticating quality leadership attributes with importance placed on a values-based initiative associates creating effective human resources strategies for a family business entity.
Partaking in proper ethical practices regarding human resource policies in association with the functionality of family business operations is vital to successfully creating honesty, integrity, commitment to employees, obligation to servicing customers and developing infrastructural morals and values subsequently executing these comportments throughout the organization. Apposite leadership that is encompassed in a family business entity can acknowledge the importance of devising the appropriate checks and balances to develop a code of ethics that can be used as a managerial tool to effectively drive a suitable human resources model. “The primary purpose of a code of ethics, for any profession, is to establish norms and expectations for practitioners in order to collectively minimize the risk of harm to clients and the general public” (Welfel, as cited in Francis and Dugger, 2014, p. 131). Ethics and values cohesive function together concurrently as one component in relationship to operating a family business entity the right way, sincerely taking care of employees by means of leadership revealing employees best interest is foremost in mind and heart, taking care of customers by exhibiting professional courtesy, exemplifying respectability, and steadily conducting business operations in the best manner possible.
An expedient method for family business leadership to produce a code of ethics that personifies the organization’s workforce is the capability to relate to personal competences that connect with emotional intelligence. These five personal competences are:
(1) Self-Awareness: – (Knowing one’s internal states, preferences, resources, and intuitions). (2) Self-Regulation: – (Managing one’s internal states, impulses, and resources). (3) Motivation: – (Emotional tendencies that guide or facilitate reaching goals). (4) Empathy: – (Awareness of others’ feelings, needs, and concerns). (5) Social Skills: – (Adeptness at inducing desirable responses in others). (Goleman, 2006, pp. 26-27).
Family business leaders that can efficacious implement a strong ethical foundation and emphasize this dynamic throughout an organization can establish uniformity defining organizational ethical standards. Leaders can divulge human resources concepts relating to morals, values, empathy, and cognizant elements that drive how decisions are made professionally by illustrating a commitment to conduct business operations ethically regarding the workforce and the infrastructure as a whole. Unveiling a proven track record of ethical magnitudes that is conducive to family business operations across the board epitomizes organizational credibility and heightens workforce productivity.
An Examination of Literature
The primary concepts examined within this document connect the importance of establishing proper organizational leadership, investing and effectively managing human capital, engaging in proper ethical business practices, exemplifying value for the workforce, and strategically applying human resources concepts that can align the infrastructure of a family business entity. Additional observation focuses on executing Strategic Human Resources Strategies and the benefits that can be realized by adopting policies that are suitable for a family business entity functional dynamic.
This analysis has reflected on literature that is irrefutable to implementing human resources dynamic for a family business entity that does not have a dedicated Human Resource Department rooted into the organization. Having proper leadership in place is pivotal to implementing a human resources dynamics that complements the operational infrastructure of a family business entity. It is evident that good quality leadership is a key element to a instituting family business operational success, but other factors exist that constitute attaining success for a family business entity. Ancillary concepts that should be asserted into the operational infrastructure of a family business operation that epitomize success is shared values, engaging in proper ethical business practices, and incorporating characteristic traits concurrent with exhibiting honesty, integrity, dedication and commitment, empathy, and effective communication between the family constituents that are associated with operating the family business entity.
Manufacturing a creditable and positively sound infrastructure devoted to allocating the uppermost superiority services to a family business entity’s workforce is crucial to creating strong productivity. The consensus is that family values and an organization’s vision are key fundamentals relating these concepts that drive effective business operations. Ward (2009) point out two clarifications that indicate this interpretation: (1) strategy formulation is a very personal process reflecting the desires and prejudices/biases of the family CEO controlling ownership team, and (2) no one particular strategy is uniquely suitable for a given company at a given time Ward (2009). This consensus identifies what a small family business entity may value entirely and can determine how Human Resources decisions are made affecting small family business operations. The Enterprising Family Vision is the remedy for family business success as Ward (2009) explains.
Human resource concepts and strategies that can be beneficial to a family business operational dynamic and how incorporating specific Human resource strategies can strengthen the infrastructure of a family business entity in order to maintain a successful decorum.
We hope that you have enjoyed our (3) part discussion series on “Strategically Implementing and Managing Human Resources in a Family Business.”
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Retrieved from http://www.shrm.org/templatestools/hrqa/pages/whatdoesitmeantobeavalues-basedorganization.aspx
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