Human Resources: Complex Human System

For a company, strategic direction is the course of action which leads it to attain the objectives of organization’s strategy. Through this, the organization identifies its objectives and specific ways to attain them. In an organization, there may be some themes or areas which assist its strategic direction. These themes are such as complex human systems, SPICE Framework, effective decision making and Social Innovation. This report discusses all the above themes in context of businesses in general. It will be presented to the Board of Directors of the company.

In general, human system is the development of human resources including the capability to entice the proficient people, engage them and register them as the members of company’s culture. In an organization, human complex system emphasizes on the face-to-face interaction among heterogeneous people. It examines that how the organizational culture and its social structure co-develop to impact the interaction and behavior, thus influencing performance of overall system (Bratton, & Gold, 2017). The initial objective of this system is to entice the potential employees, choose the most appropriate and orient them to the way of organization. The organizations in this sector needs to focus on the management of human resources as it is one of the biggest concerns for businesses. In can be understood though the below-given theoretical framework of Butterfly complex human system.

To understand the complex human system in automotive sector, the example of Toyota can be taken into consideration. The human system of Toyota is very complex and it has faced various issues in managing its people. Due to complexities in HRM system, the company has faced the manufacturing defects in its products and then it has recalled them (Toyota Global, 2018). The lower level employees and managers of firm had complained about declining quality of Toyotas products before these recalls. But top level management did not take these complaints seriously. Moreover, its human system became complex due to failure risk management process. It is due to lack of employees to risk management process. However, Toyota has experienced a significant growth in past few years and it was not able to manage its human system. It failed to ensure that human resources are working with proper skills and knowledge to perform their job roles at optimum levels. The firm of Board of Directors can face the issues like Toyota (Hasenfeld, 2009).

In this industry, the future of human system will be changing with the advancement of technology. The firms will use updated technologies to manufacture the cars and other automobile products (Cascio, 2018). It can be stated that in the near future, new models and systems can be explored that functions like humans with feeling and emotions. Advanced Information Technology will assist the Board of Directors in making its complex human system simpler.

SPICE Framework: Generating Robust and Innovative Solutions

To generate robust and innovative solutions in challenging times, the SPICE Framework is the major resource for the entrepreneurs, managers and leaders in a company (Croft, 2016). It can represent a simple framework which can be implemented to the challenges like performance management, talent management, change management, operational and strategic decision making.              

Strategy

Strategy is the first components of the SPICE Framework that assists the development of thriving businesses via altering vision and aspiration into a plan with measurable effects (Wallace, 2017). Under this, the red zone of the strategy enables the reasoned planning, impact and delivery for development. The strategy is the outcome of the deliberate decision making process for the organization.   

Patterns are the ways in which situations, challenges and opportunities are perceived by the organization and its managers. About this dimension, it can be stated that each of employees identify and respond to the patterns is partly inbuilt and partly learned on the basis of experience. The more company and its people enhance skills in organizing different ways of identifying patterns, the more their decision making quality will enhance (Biondi, et al, 2014).

Individual

This framework allows the people to flourish through developing work relationships and working on their strengths. It is the most important component of SPICE model as its assists the leaders to balance their needs against the business’ needs. In a firm, the best decisions can be made by the flourished and developed people.

Context 

This dimension of framework empowers the businesses to flourish by evolving clarity of objectives and vision. Every company has a story to tell the people and a clear vision for its business operations. High performing firms make more focus on this component of SPICE.

Emergence assists the organization in developing insights for the sustainable innovation and future development. By looking at this, the company needs to capture the future possibilities and opportunities and make the decisions accordingly (Croft, 2016).

The Board of Directors of the company needs to understand that implementation of SPICE Framework can assist them in enhancing the performance of organization in long term. They can develop it by face-to-face training and coaching. In the future, they can develop it via e-learning and app-based resources.

Effective Decision Making can be defined as the process through which alternatives are chosen and then managed via execution to attain business goals. These firms use a step-by-step decision making process which assist them in making more deliberate and thoughtful decisions by managing the related information and avoiding the alternatives (Brodbeck, & Guillaume, 2015). There are 7 steps which are generally considered by the organization while making any decision for company.

Effective Decision Making: 7-Step Decision Making Process

The Board of Directors of the Company should focus on these steps:

Identify the issues

In this step, the company will identify the issue and reason behind making any decision. It will define the nature of decision that the company is going to take.

Collect the Related Information

After this, it will gather some relevant and specific information that will be required in the processes. For an organization, the information can be gathered from both internal and external sources (Ferrell & Fraedrich, 2015).

Identify the Alternatives

As the organization collects the data, it will identify several possible alternatives. It can use the additional data to make new alternatives.

Weigh the Evidence

In this step, the company will draw the data and emotions to imagine what it would be if the company carries all the options to the end. It will place all the alternatives in the priority order according to their usefulness and significance.

Select the Best among Alternatives

Once the company will have weighed all the evidences, it will be ready to choose the best alternative among all. It can choose more than one alternatives as the best.

Take Action

Now, the company is ready to take the required action by starting the implementation of the best alternatives in action.

Review the Decisions

This is the final step of effective decision making process in which it will consider the outcomes of decision and analyze whether it is able to resolve the issue identified in the step 1. After, it can take the action accordingly and implement it.

Board of Directors of the organization can practice this process to make the decisions which support the long term growth and success of organization (Phillips et al, 2015).

Nowadays, people are becoming very aware about the environment and society. They are being more environmental-friendly and making investment in safeguarding the environment and its different components (Manzini & Coad, 2015). Thus, it is very important for the organization to engage in social innovation. Social innovation is the process of creating and implementing effective solutions to the threatening and systematic social/environmental issues to support the social development. In this context, an author stated that social innovation is not the privilege of company. These solutions generally need the active engagement of people across the business, government and non-profit organizations. It emphasizes on the solutions and ideas which develop social value and the procedures through which they are produced (Cajaiba-Santana, 2014).

Social Innovation: Driving Social and Environmental Change

The Board of Directors of company needs to consider the drivers of social innovation. It will educate the future managers and leaders about the environmental and social change. Under this, the company can meet the mission of bringing the social and environmental changes to the world. This is the practice of utilizing creativity to generate the solutions that enhance the well-being of society (Skoll World Forum, 2013). It promotes the creative thinking, collaborative action and creative action to fulfill the social needs. Currently, the role of social innovation is increasing in both public and private sector organizations. Leadership plays an important role in driving social innovation in the organization (Drucker, 2014). The leaders have been realizing that the best manner to drive social innovation is by going beyond society volunteering and grant making to apply the power of core business. Social innovation can assist the organizations to grab the attention of more people. It will increase the customer base of organization which in turn support the long term growth and survival of business. Board of Directors can adopt this technique that will lead the organization in achieving predetermined goals and objectives of the organization (Kemp, 2015).

Conclusion and recommendations

From the above analysis, it can be concluded that there are some important areas which can support the business of Board of Directors. The above mentioned themes and areas will support the business in gaining more growth and long term survival in the industry. It can be recommended to the Board of Directors that they should implement these practices in an effective manner. They should make efforts to manage its human system efficiently. SPICE Framework is one of the best models that can support the organization in implementing best strategies to make effective decisions. These areas can provide the strategic important and strategic direction to the growth of business. In addition to this, they should make investment in the social innovation considering the changes and trends in the market. Social Innovation can assist them in enhancing brand image of organization among the people. To enhance the capabilities of managers and leaders, Board of Directors should go ahead with the implementation of SPICE Framework that will support in the development of business. In this way, they can practice different themes in the interest of organization and its employees.

References

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Bratton, J., & Gold, J. (2017). Human resource management: theory and practice. UK: Palgrave.

Brodbeck, F. C., & Guillaume, Y. R. (2015). Effective decision making and problem solving in projects. In Applied Psychology for Project Managers (pp. 37-52). Berlin: Springer.

Cajaiba-Santana, G. (2014). Social innovation: Moving the field forward. A conceptual framework. Technological Forecasting and Social Change, 82, 42-51.

Cascio, W. (2018). Managing human resources. US: McGraw-Hill Education.

Croft, M. (2016). The SPICE Framework An Introduction. Retrieved from https://www.spiceframework.com/SPICE-An-Introduction.pdf.

Drucker, P. (2014). Innovation and entrepreneurship. UK: Routledge.

Ferrell, O. C., & Fraedrich, J. (2015). Business ethics: Ethical decision making & cases. Australia: Nelson Education.

Hasenfeld, Y. (2009). Human services as complex organizations. US: Sage Publications.

Kemp, R. (2015). Social innovation as an emerging phenomenon of great societal importance. Retrieved  from https://www.transitsocialinnovation.eu/blog/social-innovation-as-an-emerging-phenomenon-of-great-societal-importance.

Manzini, E., & Coad, R. (2015). Design, when everybody designs: An introduction to design for social innovation. US: MIT press.

Phillips, W., Lee, H., Ghobadian, A., O’Regan, N., & James, P. (2015). Social innovation and social entrepreneurship: A systematic review. Group & Organization Management, 40(3), 428-461.

Skoll World Forum. (2013). The Critical Role Of Leadership In Driving Social Innovation. Retrieved from https://www.forbes.com/sites/skollworldforum/2013/12/27/the-critical-role-of-leadership-in-driving-social-innovation/#3ec1268a2413.

Toyota Global. (2018). Toyota Motor Corporation Global Website. Retrieved from https://www.toyota-global.com/.

Wallace, D. (2017). Environmental policy and industrial innovation: Strategies in Europe, the USA and Japan. UK: Routledge.