With new term ‘HR Governance’ gaining momentum in today’s times, HR leaders have to competent enough to optimise performance of the company’s human capital, identify stakeholders and their expectations, diminish company’s HR risk, design effective incentives, structure control systems, assist in decision-making of the management, and last but not the least, repair the dysfunctional system. It is an organised and systematic approach to management, which enables HR to achieve operational goals and strategic outcomes. Driving remarkable and positive organisational change, HR Governance can leave a lasting impression on the business by improving its performance and productivity.

HR leaders have to roll their sleeves up and play a leading role in directing the processes for board’s performance. In order to foster confidence among stakeholders, HR leaders would have to create clear reporting structures, pave way for role clarity at each level of the organisational hierarchy, form logical and rational limits for decisions and controls, and support transparent processes. They have to be socially sensitive to know when the top managers are giving orders implicitly that they would never make explicitly, and take measure to stop such actions and behaviours.  Undoubtedly, corporate governance scams provide positive opportunities for HR executives to mitigate stale and ineffective systems, and add value to the functioning of the company. But only if, HR leaders have the confidence, diligence and courage to explicitly play the role of the company’s conscience and defy the wrong practices of the top executives.