Strategic Human Resources Management for Creating Shared Value in Social Business Organizations

Abstract

Social business organizations work to achieve social and business goals to create shared value (CSV). Strategic human resource management (SHRM) is one of the key components of optimizing shared value. The available literature needs more evidence on how these organizations manage their human resources. This study aims to bridge the gap by examining the HRM approaches of social business in creating shared value for the organization. This study analyzed four social business cases through semi-structured interviews, field visits, and a review of archival documents and web-based reports and resources. As shown in the results, we found that formal recruitment processes are followed where candidates’ prior knowledge and interests in the social business are tested rigorously. Talented, qualified, and suitable candidates are selected without any biases. On-the-job training processes are followed with a rigorous focus on orienting employees to social and business goals. Key performance indicators (KPIs) are sets for evaluating employees’ social and business performance. Market rates are followed in providing compensation. Family-oriented and participatory work environment exists, which keeps their turnover low. High-performance HRM is recommended to achieve future growth and shared value optimization.