Jennifer Currence - Developing Business Acumen

This publication is designed to provide accurate and authoritative information regarding the subject matter covered. It is sold with the understanding that neither the publisher nor the author are engaged in rendering legal or other professional service. If legal advice or other expert assistance is required, the services of a competent, licensed professional should be sought. The federal and state laws discussed in this book are subject to frequent revision and interpretation by amendments or judicial revisions that may significantly affect employer or employee rights and obligations. Readers are encouraged to seek legal counsel regarding specific policies and practices in their organizations.

This book is published by the Society for Human Resource Management (SHRM). The interpretations, conclusions, and recommendations in this book are those of the authors and do not necessarily represent those of the publisher.

Copyright 2016 Jennifer Currence. All rights reserved.

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The Society for Human Resource Management (SHRM) is the worlds largest HR professional society, representing 285,000 members in more than 165 countries. For nearly seven decades, the Society has been the leading provider of resources serving the needs of HR professionals and advancing the practice of human resource management. SHRM has more than 575 affiliated chapters within the United States and subsidiary offices in China, India and United Arab Emirates. Visit us at shrm.org.

Interior and Cover Design: Shirley E.M. Raybuck

To DadYou always knew Id write a book someday. Thanks for installing the thought and never wavering from it.

To MomThank you for always believing in me and constantly reminding me I can do anything I want to do if I put my mind to it.

To Jack and JuliaI pray this book inspires you to never be afraid of hard work and to never let anyone tell you that you cant do something. Unless, of course, that person is your mother.

T his book is the first in a series focused on helping the small business HR professional make an impact in his or her business environment. The series will cover each of the SHRM Competency Models eight behavioral competencies organized into three categories:

• Leadership Competencies
  • Leadership and Navigation
  • Ethical Practice
• Business Competencies
  • Business Acumen
  • Critical Evaluation
  • Consultation
• Interpersonal Competencies
  • Communication
  • Relationship Management
  • Global and Cultural Effectiveness

The small business HR professional has a unique work environment. For one, HR departments in small businesses often consist of only one or two full-time equivalent positions (although that number could be as low as one-half and as high as five). Because of this, these HR professionals are usually expected to be generalists able to answer all HR-related questions. But because there are only one or two of them, they are also expected to be specialists in those same areas. For example, not only must a small business HR professional be able to recruit, but, to be effective, he or she must also be able to:

• Negotiate with staffing agencies.
• Understand federal and state laws regarding hiring decisions.
• Be able to guide and train managers to ask appropriate interview questions.
• Be darn good at sourcing, interviewing, and processing the paperwork once the perfect candidate has been selected.

And thats only for one of the many duties required of the position. With so much responsibility, how do small business HR professionals have time to focus on their own professional development? This book and series provide bite-size information for these busy professionals to enhance their behavioral competencies to benefit not only their companies but also their own personal career advancement.

The Society for Human Resource Management defines the eight behavioral competencies that are critical to perform effectively in the workplace:

• Leadership and Navigation is the ability to direct and contribute to initiatives and processes within the organization. This can be done through creating and maintaining processes and guidelines that model a strong organizational culture, implementing initiatives to foster teamwork and collaboration, and leading the function with integrity even in rough times. Effective leadership is attributed to many favorable employee outcomes, such as high retention, job satisfaction, and organizational commitment.
• Ethical Practice is the ability to integrate core values, integrity, and accountability throughout all organizational and business practices. Ethical practice can be demonstrated not only by behaving with integrity at all times, but also by assisting others in the organization to do the same through creating standards and providing guidance. Maintaining ethical standards can help mitigate risk in your organization.
• To make an impact in their organizations, HR professionals must fully understand the internal and external environment of how the business operates, how each function contributes to the business of the organization, and how HR fits in with each of these functions. This understanding of the business is crucial for HR to be able to effectively market itself within the company to develop initiatives that work.
• Relationship Management is the ability to manage interactions to provide service and to support the organization. Whether formal or casual, strong positive interpersonal relationships can have favorable impacts on employees and on the business. Healthy relationships instill a feeling of belonging and team cohesion, which decrease turnover and boost organizational commitment.
• Consultation is the ability to provide guidance to organizational stakeholders. HR professionals must have a foundational knowledge of HR laws and best practices to provide sound guidance. Additionally, HR professionals must have developed an effective method of disseminating information in a way that engages stakeholders and creates actionable recommendations. Consultative skills that are honed and that result in wins for the company can earn HR a seat at the table.
• Critical Evaluation is the ability to interpret information to make business decisions and recommendations. The first step in evaluating an issue is to obtain the necessary data, which can be found using environmental scans, surveys, and metrics, and by monitoring best practices. HR professionals can then draw on this data pool to inform their decisions and increase their credibility.
• Global and Cultural Effectiveness is the ability to value and to consider the perspectives and backgrounds of all parties in global business.successful, a company must understand the diversity of its internal and external stakeholders. HR often leads this charge. Diversity within a team can foster creativity and provide the organization with a variety of ways to market itself to a wider audience.