INCLUDING HR PRACTICES IN CORPORATE GOVERNANCE


HUMAN CAPITAL is the basic unit of any organization and it is critical to an organization’s success so the HR focus must be more strategic in the new knowledge-based economy (K-economy) era. This knowledge based economy includes corporate governance and corporate governance is about ensuring ethics in corporate management so that business can be run with a social up gradation of the society and it also ensures transparency to the internal(i.e. employees and employers) and external society(i.e. customers and shareholders). But still corporate governance does not includes HR practices in it and if some HR practices are included in corporate governance it can help organizations to run smoothly .HR practices included in corporate governance will help in creating a value in the corporate to achieve excellence in their business and not competing with others and thus making their organization more successful.
                    In simpler terms, corporate governance is formal system of accountability of senior management to corporate stakeholders. Corporate governance includes company accountability to shareholders and other stakeholders such as employees, suppliers, customers and local community.
Corporate governance is concerned primarily with holding balance between economic and social goals and between individual and community goals.
Corporate governance is:
1. A relationship among stakeholders used to determine and control the strategic direction and performance of organizations.
2. Concerned with identifying ways to ensure that decisions are made effectively.
3. used in corporations to establish order between firm’s owners and its top level managers.
Some HR practices that can be included in corporate governance are:
       1. HR SHARED SERVICES   The HR Shared Services initiative is one part of the corporate services review that will transform the way Human Resources, Financial and Materiel administrative services are provided across the Public Service in order to:
Enhance enterprise decision-making;
Improve internal service delivery; and
Reduce operating costs

THUS  HR SHARED SERVICES WILL HELP IN MAINTAINING THE RECORDS OF EMPLOYEES AND ALL FINANCIAL TRANCPERANCY WHICH IS REQUIRED IN CORPORATE GOVERNANCE.
 

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