CHAPTER 4
THE EVOLVING/
STRATEGIC ROLE
OF HUMAN
RESOURCE
MANAGEMENT
Copyright © 2002 South-Western. All rights reserved. 4–2
Strategic Human Resource
Strategic Human Resource
Management
Management
Strategic Human Resource
Strategic Human Resource
Management
Management
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Involves the development of a consistent, aligned
Involves the development of a consistent, aligned
collection of practices, programs, and policies to
collection of practices, programs, and policies to
facilitate the achievement of the organization’s
facilitate the achievement of the organization’s
strategic objectives.
strategic objectives.
•
Requires abandoning the mindset and practices of
Requires abandoning the mindset and practices of
“personnel management” and focusing on
“personnel management” and focusing on
strategic issues than operational issues.
strategic issues than operational issues.
•
Integration of all HR programs within a larger
Integration of all HR programs within a larger
framework, facilitating the organization’s mission
framework, facilitating the organization’s mission
and its objectives.
and its objectives.
•
Involves the development of a consistent, aligned
Involves the development of a consistent, aligned
collection of practices, programs, and policies to
collection of practices, programs, and policies to
facilitate the achievement of the organization’s
facilitate the achievement of the organization’s
strategic objectives.
strategic objectives.
•
Requires abandoning the mindset and practices of
Requires abandoning the mindset and practices of
“personnel management” and focusing on
“personnel management” and focusing on
strategic issues than operational issues.
strategic issues than operational issues.
•
Integration of all HR programs within a larger
Integration of all HR programs within a larger
framework, facilitating the organization’s mission
framework, facilitating the organization’s mission
Copyright © 2002 South-Western. All rights reserved. 4–4
Traditional HR versus Strategic HR
Traditional HR versus Strategic HR
Traditional HR versus Strategic HR
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Barriers to Strategic HR
Barriers to Strategic HR
Barriers to Strategic HR
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Reading 4.1: HR and Organizational
Reading 4.1: HR and Organizational
Excellence
Excellence
Reading 4.1: HR and Organizational
Reading 4.1: HR and Organizational
Excellence
Excellence
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HR can help deliver organizational excellence by:
HR can help deliver organizational excellence by:
– Becoming a partner with senior and line managers in Becoming a partner with senior and line managers in strategy execution.
strategy execution.
– Becoming expert in the way work is organized, delivering Becoming expert in the way work is organized, delivering administrative efficiency to ensure that costs are reduced administrative efficiency to ensure that costs are reduced
while quality is maintained. while quality is maintained.
– Becoming a champion for employees, representing their Becoming a champion for employees, representing their concerns to senior management and working to increase concerns to senior management and working to increase
employee contributions. employee contributions.
– Becoming an agent of continuous transformation by shaping Becoming an agent of continuous transformation by shaping processes and organizational culture.
processes and organizational culture.
•
HR can help deliver organizational excellence by:
HR can help deliver organizational excellence by:
– Becoming a partner with senior and line managers in Becoming a partner with senior and line managers in
strategy execution.
strategy execution.
– Becoming expert in the way work is organized, delivering Becoming expert in the way work is organized, delivering
administrative efficiency to ensure that costs are reduced
administrative efficiency to ensure that costs are reduced
while quality is maintained.
while quality is maintained.
– Becoming a champion for employees, representing their Becoming a champion for employees, representing their
concerns to senior management and working to increase
concerns to senior management and working to increase
employee contributions.
employee contributions.
– Becoming an agent of continuous transformation by shaping Becoming an agent of continuous transformation by shaping
processes and organizational culture.
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Reading 4.1: Five Critical Business
Reading 4.1: Five Critical Business
Challenges
Challenges
Reading 4.1: Five Critical Business
Reading 4.1: Five Critical Business
Challenges
Change, Change, and More Change
Change, Change, and More Change
Globalization
Change, Change, and More Change
Copyright © 2002 South-Western. All rights reserved. 4–10
Reading 4.1: HR as Strategy Execution
Reading 4.1: HR as Strategy Execution
Partner
Partner
Reading 4.1: HR as Strategy Execution
Reading 4.1: HR as Strategy Execution
Partner
Partner
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HR is responsible for defining an organizational
HR is responsible for defining an organizational
structure as the model for the company’s way of
structure as the model for the company’s way of
doing business.
doing business.
•
HR must be accountable for conducting an
HR must be accountable for conducting an
organizational audit.
organizational audit.
•
HR is to identify methods to renovate part of the
HR is to identify methods to renovate part of the
organizational architecture.
organizational architecture.
•
HR must take stock of its own work and set clear
HR must take stock of its own work and set clear
priorities.
priorities.
•
HR is responsible for defining an organizational
HR is responsible for defining an organizational
structure as the model for the company’s way of
structure as the model for the company’s way of
doing business.
doing business.
•
HR must be accountable for conducting an
HR must be accountable for conducting an
organizational audit.
organizational audit.
•
HR is to identify methods to renovate part of the
HR is to identify methods to renovate part of the
organizational architecture.
organizational architecture.
•
HR must take stock of its own work and set clear
HR must take stock of its own work and set clear
priorities.
Copyright © 2002 South-Western. All rights reserved. 4–11
Reading 4.1: HR and Organizational
Reading 4.1: HR and Organizational
Culture
Culture
Reading 4.1: HR and Organizational
Reading 4.1: HR and Organizational
Culture
Culture
•
HR can help bring about a cultural change by:
HR can help bring about a cultural change by:
– Defining and clarifying the concept of cultural change.Defining and clarifying the concept of cultural change. – Articulating why cultural change is central to business Articulating why cultural change is central to business
success. success.
– Defining a process for assessing the current culture and the Defining a process for assessing the current culture and the desired new culture, as well as measuring the gap between desired new culture, as well as measuring the gap between
the two. the two.
– Identifying alternative approaches to creating culture Identifying alternative approaches to creating culture change.
change.
•
HR can help bring about a cultural change by:
HR can help bring about a cultural change by:
– Defining and clarifying the concept of cultural change.Defining and clarifying the concept of cultural change. – Articulating why cultural change is central to business Articulating why cultural change is central to business
success.
success.
– Defining a process for assessing the current culture and the Defining a process for assessing the current culture and the
desired new culture, as well as measuring the gap between
desired new culture, as well as measuring the gap between
the two.
the two.
– Identifying alternative approaches to creating culture Identifying alternative approaches to creating culture
change.
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Reading 4.1: Four Changes for the Line
Reading 4.1: Four Changes for the Line
Reading 4.1: Four Changes for the Line
Reading 4.1: Four Changes for the Line
•
How senior operating management can create an
How senior operating management can create an
environment in which HR becomes focused on
environment in which HR becomes focused on
outcomes instead of activities:
outcomes instead of activities:
– Communicate to the organization that the “soft stuff” Communicate to the organization that the “soft stuff” matters.
matters.
– Explicitly define the deliverables from HR, and hold HR Explicitly define the deliverables from HR, and hold HR accountable for results.
accountable for results.
– Invest in innovative HR practices.Invest in innovative HR practices. – Upgrade HR professionals.Upgrade HR professionals.
•
How senior operating management can create an
How senior operating management can create an
environment in which HR becomes focused on
environment in which HR becomes focused on
outcomes instead of activities:
outcomes instead of activities:
– Communicate to the organization that the “soft stuff” Communicate to the organization that the “soft stuff”
matters.
matters.
– Explicitly define the deliverables from HR, and hold HR Explicitly define the deliverables from HR, and hold HR
accountable for results.
accountable for results.
Copyright © 2002 South-Western. All rights reserved. 4–13
Reading 4.2: Human Capital Management
Reading 4.2: Human Capital Management
Reading 4.2: Human Capital Management
Reading 4.2: Human Capital Management
•
To become effective human capital managers, HR
To become effective human capital managers, HR
mangers must develop competencies in:
mangers must develop competencies in:
– Knowledge of the business.Knowledge of the business.
– Human resource functional expertise.Human resource functional expertise. – The management of change.The management of change.
•
To become effective human capital managers, HR
To become effective human capital managers, HR
mangers must develop competencies in:
mangers must develop competencies in:
– Knowledge of the business.Knowledge of the business.
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Reading 4.2: New Functional Role for HR
Reading 4.2: New Functional Role for HR
Reading 4.2: New Functional Role for HR
Reading 4.2: New Functional Role for HR
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HR must focus on business level outcomes rather
HR must focus on business level outcomes rather
than HR level inputs.
than HR level inputs.
•
HR must become a strategic core competency
HR must become a strategic core competency
rather than a market follower.
rather than a market follower.
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Strategic competencies are more important than
Strategic competencies are more important than
functional competencies.
functional competencies.
•
The most important missing element in the HR
The most important missing element in the HR
function expertise is a systems perspective.
function expertise is a systems perspective.
•
HR must focus on business level outcomes rather
HR must focus on business level outcomes rather
than HR level inputs.
than HR level inputs.
•
HR must become a strategic core competency
HR must become a strategic core competency
rather than a market follower.
rather than a market follower.
•
Strategic competencies are more important than
Strategic competencies are more important than
functional competencies.
functional competencies.
•
The most important missing element in the HR
The most important missing element in the HR
function expertise is a systems perspective.
Copyright © 2002 South-Western. All rights reserved. 4–15
Reading 4.3: Organization Culture
Reading 4.3: Organization Culture
Questionnaire
Questionnaire
Reading 4.3: Organization Culture
Reading 4.3: Organization Culture
Questionnaire
Questionnaire
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Topics to be included in the questionnaire:
Topics to be included in the questionnaire:
– How is performance defined, measured and rewarded in the How is performance defined, measured and rewarded in the organization?
organization?
– How are information and resources allocated and managed How are information and resources allocated and managed in the organization?
in the organization?
– What is the operational philosophy of the organization with What is the operational philosophy of the organization with regard to risk-taking, leadership, and concern for overall regard to risk-taking, leadership, and concern for overall
results? results?
– Does the organization regard its human resources as costs Does the organization regard its human resources as costs or assets?
or assets?
•
Topics to be included in the questionnaire:
Topics to be included in the questionnaire:
– How is performance defined, measured and rewarded in the How is performance defined, measured and rewarded in the
organization?
organization?
– How are information and resources allocated and managed How are information and resources allocated and managed
in the organization?
in the organization?
– What is the operational philosophy of the organization with What is the operational philosophy of the organization with
regard to risk-taking, leadership, and concern for overall
regard to risk-taking, leadership, and concern for overall
results?
results?
– Does the organization regard its human resources as costs Does the organization regard its human resources as costs
or assets?
Copyright © 2002 South-Western. All rights reserved. 4–16