By Nilesh Bhagat, CHRP

In his book, The Mind of the Market, Michael Shermer argues that shifts in economic prosperity are a result of two phenomena: path dependency and quality.

He describes path dependency as ‘a property of contingent, non-reversible, dynamic processes, including a wide array of processes that can properly be described as ‘evolutionary’. Or more succinctly, history matters.’

HR as a profession is poised to become as important to business as accounting and finance have been in the past for reasons grounded in this phenomenon. Its future viability is dependent on HR’s approach to the second: quality.

From the acceptance of Fred Taylor’s efficient and productive workman to the rise of the connected – and increasingly empathetic – human, HR has evolved as a force in day-to-day business decisions and longer-term strategic planning. An example of where our world is headed with respect to the potential of human resources management practice can be found in this analysis of future work skills.

We’ve moved to a world of interconnectivity, moderated by the rise of the web and proliferation of social media. Our culture has become further grounded in the values of the emerging working demographic: sharing, openness and collaboration. In essence, understanding people dynamics is now as important to business as illustrating the effects of objectives on the bottom line. HR has already found itself in a position to drive business performance through historical contingencies.

Our job as HR professionals moving forward then is grounded in the second phenomenon of prosperity, quality.

Seth Godin defines quality in two ways:

• Quality of design: Thoughtfulness and processes that lead to user delight, that make it likely that someone will seek out a product, pay extra for it or tell a friend.
• Quality of manufacture: Removing any variation in tolerances that a user will notice or care about.

The first definition, quality of design, is what HR professionals must seek to perfect in the profession’s quest to become prosperous and truly recognized.

The focus on truly understanding human behavior and motivation (think of Dan Pink’s Drive) will be a strong force in connecting HR to business performance. This will not only establish a seat at the table, but one in the driver’s seat.

Designing work systems with the understanding that rigid controls and structures, as well as explicit reward systems, restrict quality in performance for individuals and groups will be a step in the right direction. That is, improving the quality of design of our business systems and processes as they affect people will help HR to gain and maintain its prominence as a driver for better business performance.

The past has built a path for HR to succeed. As we evolve to understand how individuals and groups work best in the context of company objectives, HR will become prominent in the success of companies the world over.

Nilesh Bhagat, CHRP, is the membership and CHRP administrator at BC HRMA. After several gruelling years in school, Nilesh graduated in October 2010 from Simon Fraser University with a Bachelor’s degree in Business Administration, First Class Honours. He majored in Human Resources Management and tacked on an extended minor in Psychology. He’s a self-confessed nerd (the first step is admitting), likes to read, loves hockey and is struggling with the complexities of learning the game of golf.