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    Developing Business Acumen
    Developing Business Acumen
    Developing Business Acumen
    Ebook113 pages1 hour

    Developing Business Acumen

    By Jennifer Currence

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    About this ebook

    The small business HR professional has a unique work environment. For one, HR departments in small businesses are typically quite small, often consisting of only one or two employees. 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. With so much responsibility, how do small business HR professionals have time to focus on their own professional development? And where to start? Surveys demonstrates that building career-long business, interpersonal, and leadership competencies should be the goal of every HR practitioner. Business Acumen falls within the first category. An HR professional who understands the business as a whole is better equipped to make decisions that positively affect the entire business. HR professionals in small businesses have more opportunities to do this than in larger organizations simply because the smaller size helps reduce the barriers to knowledge of various functions. The purpose of Developing Business Acumen is to provide the small business HR professional with a practical, hit-the-ground-running guide to becoming a more effective business partner. The reader will learn the elements of business acumen, such as: Reading and understanding a company's PL statement; Formulating and tracking metrics that help implement HR programs; Communicating more effectively with other departments and throughout the organization; Developing mutually beneficial relationships with sales and marketing; Conducting environmental scans that can lead to positively influencing the organization; and Expanding an entrepreneurial spirit to enhance corporate culture This is the first book in the "Making an Impact in Small Business HR" Series.
    LanguageEnglish
    PublisherSociety For Human Resource Management
    Release dateOct 27, 2017
    ISBN9781586444945
    Developing Business Acumen

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      "Developing a Business Acumen" is a game-changer! This book provides invaluable insights and practical strategies that have transformed the way HR must approach with various departments in the Business. Highly recommended for HR Professionals looking to enhance their business skills.

    Book preview

    Developing Business Acumen - Jennifer Currence

    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.

    This publication may not be reproduced, stored in a retrieval system, or transmitted in whole or in part, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the Society for Human Resource Management, 1800 Duke Street, Alexandria, Virginia 22314.

    The Society for Human Resource Management (SHRM) is the world’s 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

    Contents

    Dedication

    Preface

    Chapter 1. Defining Business Acumen

    Chapter 2. Demystifying the Numbers of Finance and Accounting

    Chapter 3. Harnessing the Power of HR Metrics and Analytics

    Chapter 4. Learning to Love Sales

    Chapter 5. Teaming Up with Marketing

    Chapter 6. Understanding Operations Management

    Chapter 7. Developing Environmental Awareness

    Chapter 8. Embracing Your Entrepreneurial Spirit

    Chapter 9. Developing Your Business Acumen

    Endnotes

    About the Author

    Additional SHRM-Published Books

    Dedication

    To Dad—You always knew I’d write a book someday. Thanks for installing the thought and never wavering from it.

    To Mom—Thank 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 Julia—I pray this book inspires you to never be afraid of hard work and to never let anyone tell you that you can’t do something. Unless, of course, that person is your mother.

    Preface

    This 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 Model’s ¹ 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

    Why Focus on the Small Business HR Professional?

    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 that’s 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.

    SHRM Behavioral Competencies

    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.² 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.³ 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.

    Business Acumen is the ability to understand and apply information to contribute to the organization’s strategic plan.⁴ 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.⁵ 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.⁶ 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.⁷ 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

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