Military history has provided a number of useful representations for business, general management and for human resources management. Such history can teach many lessons that HR can put into practice in managing today’s complex organisations and their human capital. History provides us with centuries of collective wisdom and experience to learn from, as it is said, ‘there is nothing new under the sun’.
Over the past years, military descriptions have been used frequently on management topics such as marketing; the Cola Wars, the story of the global corporate battle between the Coca-Cola Company and PepsiCo, Inc., and between fast food industry McDonald’s and KFC. Everyone’s trying to one-up each other amid intense competition. Also, in 1997, McKinsey & Company introduced the term ‘War for Talent’ to describe the shortage of skills in the labour markets, which became part of HR annual planning activities to attract and retain talented staff.
To this end, certain comparisons can be made between company competitions and military warfare. Sun Tzu’s The Art of War offers valuable insights for the HR management of modern business. Whilst based on military strategies, the book has been highly influential in both marketing and business management science. In his writings, Tzu also shed light on some essential principles for HR to follow.
Sun said, “The art of war is of vital importance to the state. It is a matter of life and death, a road either to safety or to ruin. Hence, it is a subject of inquiry which can on no account be neglected.” In contemporary management, as well as the HR business environment, achieving competitive advantage is done by and through people as unique sources that can’t be copied easily, while other sources can. Therefore, from the HR standpoint, ‘the art of managing people is of vital importance to an organisation, it is a matter of life and death, a road either to prosperity and competitiveness or to destruction and bankruptcy. Hence, it is a subject of inquiry which can on no account be neglected’.
Communication strategy
In his first introductory lesson, the story of the concubines, Sun educated us on the necessity of clarity of communication, discipline of teams and appropriate execution of orders, otherwise serious consequences can occur. He said, “If words of command are not clear and distinct, if orders are not thoroughly understood, then the general is to blame.” He insisted on clear communication by the leader, otherwise the leader would be responsible for all consequences.
It is generally recognised that effective communication is a requisite of effective management. Communication is an important part of HR’s job that can’t be taken for granted, and regardless of the size of your organisation, smart HR practitioners who know that clear communication is the essence of business and can create an opportunity for employees to understand and take action on the message they are sending. Thus, communication must be simple and far from ambiguous or double interpretations or usage of jargon.
Leadership strategy
Organisations depend upon leaders and their leadership capabilities to guide them during trying times. HR executives must ensure that organisational leaders and themselves are ‘smart’ in order to be able to understand where the environment provides the best opportunities. The intelligent executive is able to rightly understand the competitor’s leader, and to use the appropriate technique in gaining advantage.
Generally speaking, the challenge faced by many of today’s executives is that they have backgrounds as good technical managers who were promoted to their current management roles. They know their industry well, but cannot distinguish between management and leadership beyond a mere intellectual understanding. To be respected as executive in today’s business climate, we must be relevant and manage the inevitable business climate changes and the follow-on strategy changes with good HR science.
Executives’ ‘trustworthiness’ must inspire their staff’s devotion and subsequently the staff must never fear danger or dishonesty. They must represent employees with keen concern to the top management, discuss their issues, fight for them and bring mutual agreement to the discussion table. They can have true influence and leverage over an organisation, bringing the functional expertise to bear without artificial limitation, where appropriate, for the greater good of the organisation. Also they ought to ‘care’ and treat staff as their beloved children. In this way HR may intervene in coaching and counselling sessions to solve or try to solve issues behind job-related matters, and helping organisations and employees to balance the demands of work with the need for a personal life.
Planning strategy
Benjamin Franklin, the father of time management said, “Failing to plan is planning to fail.” Sun was also very clear about the need for careful planning. He said “With careful and detailed planning, one can win; with careless and less detailed planning, one cannot win. How much more certain is defeat, if one does not plan at all! From the way planning is done beforehand, we can predict victory or defeat.”
‘Planning’ is an objective analysis of the competitive situation. Sun emphasised the importance of ‘laying plans’ and how careful planning can significantly increase the chance of victory whilst deviation from these plans will ensure failure. In HRM, recruitment and training should be planned based on internal and external environmental factors. HR practitioners should know the strengths and weaknesses of each and every employee and use them to their advantage against the competition. HR planning in the broadest sense includes both strategic and operational HR as a continuous process rather than an activity limited to a fixed segment of the business planning process.
Sun believed it was not possible to win a war without the support of the soldiers and population. If HR is to be successful, employees should be highly motivated and loyal to the organisation. Individuals who have different objectives for the organisation should be replaced, as they will be less likely to make personal sacrifices when required.
HR planning plays an eminent role in the organisation’s success. Surprisingly, this aspect of HR is one of the most neglected in the field. The importance of HR planning has generally been overlooked by organisations. Its proactive approach allows it to be more strategic in its decisions rather than face obstacles when unprepared. It can enhance the success of an organisation through anticipation of labour shortages or surpluses and thus make decisions about the overall qualitative and quantitative balance of employees.
HR practitioners who prepare the HR planning programme assist the organisation in managing its staff strategically. They must perform environmental scanning, in order to effectively be a part of the strategic planning process, by monitoring of the major external forces influencing the organisation such as economic factors, competitive trends, technological changes, political issues, social issues and demographic trends. Unfortunately, many organisations are seeing HR planning as all about payroll budget, benefits and some minor training expenses. Townsville Business Coach says, “If you don’t have a plan—you will become part of someone else’s plan. And you may not like it.”
Staffing strategy
What can be more important than finding and hiring the best people, and then giving them the opportunity to realise their full potential? The organisation’s ability to hire, develop and retain employees may be the single most critical determinant of organisational success in today’s stiff competition. Finding and appointing the right people is imperative, but providing them with the appropriate opportunity to excel cannot be ignored. Staffing the organisation is a critical task particularly when it comes to hiring talents. Selection is the process of choosing the right individuals with the right qualifications to fill jobs. Without such qualified employees, the organisation’s success is at stake.
In reality the process of building a company with good to great employees starts with the hiring process. HR practitioners who can manage the selection process for their organisations by hiring the right candidate the first time have the competitive edge. And when employees are matched with the right jobs, the amount and quality of work is higher. Therefore, to staff your organisations with the right candidates you need to define the required skills, attract the right people and select the best person—and then you are ready for the battlefield.
Rewards strategy
Sun said, “For them to perceive the advantage of defeating the enemy, they must also have their rewards.” Rewards are necessary for the soldiers to see the advantage of defeating the enemy. Therefore, ‘spoils of war’ must be used as rewards. In war, the spoils of the enemy might vary from supplies, food, weapons, ammunition, horses, slaves, or any material item of value that is confiscated at the end of a battle. It is important to reward the troops to keep them engaged and motivated for the next battle. Likewise, organisations have their own spoils but in the form of profits, financial results and stocks, gained from competing in the market place. If a company has a successful year, wins new business and posts great financial results, the profits must be used as rewards so that employees will have a keen desire to perform.
Employees will give their maximum when they feel that the management will reward their efforts, initiatives and performance.This is a great way to breed an apathetic and mediocre workforce. So give them praise and encouragement. Share with them the spoils of war, and they’ll be ready to fight. Thus, HR practitioners should create a rewards system that recognises employees’ performance and behaviour. Finally, organisations that hope to reap the rewards of a committed, empowered workforce have to learn to stop kidding themselves, and know that they will be out of business faster than they may think when their brains and muscles leave them and soon they will be defeated in the war of business.
Training strategy
Sun said, “Without constant practice, the officers will be nervous and undecided when mustering for battle; without constant practice, the general will be wavering and irresolute when crisis is at hand.” In warfare, skilled troops establish positions that make them unbeatable and do not miss opportunities to attack what the enemy values most, when they become vulnerable.
Similarly, organisations that do not have training programmes may lose good employees who want to progress in their career and consequently lose their competitive advantage, or if they try to retain good staff without investing in them often end up being the loser in the war for talent.
Training and developing the workforce is not something to be taken lightly. It calls for the same rigorous approach to strategy, planning, and return on investment.
Sun Tzu’s The Art of War offers valuable insights into the mental state needed to succeed in the management of modern business and its human capital. Studying the art of war can help all those in human resources reach and maintain success, both in their business and social spheres.
Paul Arkwright
Publisher
