Ultimately it means doing things differently that ensures HR continuing relevance and making it as one, if not the most, important function in the organization.
Innovation brings to mind such words as "invention" and "creativity." This assumes that HR expertise exists.
Is HR Innovation a Strategy or Capability?
Is it strategy or a capability? It appears that it is both.
A strategy is a course of action intended to accomplish a defined objective. It is "the newness and its potential of achieving that objective" that makes it innovative and thus, can become strategic in nature.
It is a capability since HR people possess the ability to generate new ideas, and improve HR processes. This, in turn, helps in the development of new types of services, new products or more effective methods of achieving both HR and corporate objectives.
HR innovation ensures that the organization will not run out of ideas in managing people effectively and how they can enhance their role in making the organization more successful.
Innovation Application in Human Resource Management
Human Resource Management demonstrates a strategic way of managing people. With HR innovative approach, personnel management is transformed to a more effective human capital management. An increasing number of organizations are adopting principles of human resource management.
Creativity, ideas and strategic knowledge reside in people. Strategic HR is expected to find ways in unearthing this capability.
Build a knowledge organization. Try to discover new and more effective ways of performing the HR function. For example, the recruitment policy needs to take this into consideration.
Innovative people generate new ideas or new applications of present ideas. Organizations having this capability can identify not only new business ventures but also find new ways that are much easier and cheaper to implement. Further, they can make use of other people's ideas and adapt them for their organizational needs.
Innovation improves the way things are managed and lead to novel ways in resolving problems and issues, including HR issues.
In order to encourage people to use their talents, implement a policy that recognizes and rewards innovation and creativity. Demonstrate that you value your people's contribution.
Impact of HR Innovation
Find out how the various areas of your organization's operations can benefit from the positive impacts of innovation. Watch out particularly for the sectors where people who generate revenue are found.
Failure to do this or if badly done hinders your organization continued success. It cannot expect to have a competitive edge over other organizations. It cannot hope to succeed where others have failed.
Your organization may stagnate and lose much ground to competitors who have this HR innovative capability. Your good employees may even leave for organizations that value their talents and abilities.
Resolve to carry out some of the following.
Yet another area where HR innovation can into play is finding a more innovative way for HR to work in partnership with every other function in the organization.
This means sometimes taking calculated risks. For example, trusting employees more in the performance of their respective job, allowing them to commit minor mistakes, and giving them some control over the way the work is done. Focus on the results, not on the insignificant mistakes.