Strategic management of human resources to create shared value in organizations

Social business organizations work to achieve social and business goals to createshared value (CSV). Strategic human resource management (SHRM) is one of the keycomponents of optimizing shared value. The available literature needs more evidenceon how these organizations manage their human resources. This study aims to bridgethe gap by examining the HRM approaches of social business in creating shared valuefor the organization. This study analyzed four social business cases through semistructuredinterviews, field visits, and a review of archival documents and web-basedreports and resources. As shown in the results, we found that formal recruitmentprocesses are followed where candidates’ prior knowledge and interests in the socialbusiness are tested rigorously. Talented, qualified, and suitable candidates are selectedwithout any biases. On-the-job training processes are followed with a rigorous focus onorienting employees to social and business goals. Key performance indicators (KPIs)are sets for evaluating employees’ social and business performance. Market rates arefollowed in providing compensation. Family-oriented and participatory workenvironment exists, which keeps their turnover low. High-performance HRM isrecommended to achieve future growth and shared value optimization.

Keywords:

social business , strategic human resource management , creating shared value , shared value optimization , high-performance work system