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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