The Contribution role of strategic MODEL Value-HR Perspectives Approach

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International Journal of Research and Development - A Management Review (IJRDMR)

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ISSN (Print): 2319–5479, Volume-5, Issue–4, 2016 26

The Contribution role of strategic MODEL Value-HR Perspectives Approach

1V.Venkateswara Rao, ²M.Sri Nagesh, ³Rajesh Boddapati

1,2,3Department of MBA - Pace Institute of Technology & Sciences, Ongole.

Abstract: This article aims to change the perceived lack of a strategic value of Human resources (HR) function and seeks to focus on the devolution of HR from its transactional role to strategic effectiveness. Utilizing a range of secondary resources, this article aims to critically analyze the shift of HR from transactional to a strategic role and its value contribution role in the business. Hr needs to over come conventional resistance and act as the driver of an organizational strategy through aligning the HR strategy to the business strategy, adopting workforce planning and measuring organizations competencies. The paper contributes to the evaluation of HR management from viewpoint perspective and offers help to HR practioner’s in understanding the changing role.

Key words: HR function, Business strategy, HR integration etc.

I. INTRODUCTION:

In today’s competitive and complex business Environment, the role of Human resource (HR) is constantly changing. With its increasing alignment to core business and integration to the bottom line, HR is a reflection of the constant changing nature of its functions. Being responsive to globalization, demographic and technological changes and turbulent, competitive and complex environment of business, Hr itself has been changing dramatically. A transformable journey from the conventional role of administrative expert to the evolving and fostering function of strategic HR partner critically describes the value contribution of HR function. More precisely, HR goes strategic and becomes more business integrated. This intended reorientation would help HR not only to play a critical role in the overall strategic planning of the business, but also to act as a messenger to clarify and direct employees about the desired goal of the organization.

Shared partnership with line managers:

A recent major change in HR function is its building a shared partnership with the line mangers. By providing line managers better understanding of their responsibility in specific HR issues, such as absence control, team development, discipline, induction, health and safety, recruitment policy and performance management, HR aims to enhance employee engagement and open communication between line mangers and employees. These, indeed, lead to low

turnover and high-morale –keys to organizational performance and competitive success. In this regard, by replacing the traditional supervisory role of line mangers and empowering them to act as leader, enabler and facilitator. HR is playing the strategic role of an objective advisor. This devolving HR function to change management directs itself to be more aligned to business. Although this shared partnership of HR with line managers aims to have them greater ownership and create a teamwork environment, this devolution of HR responsibility often appears inappropriate to line mangers. Research suggests that many line managers lack people management skills, often complaint about the burden of workloads and many of them are willing to consider this developed people management tasks as a part of their job role. Such reluctance could have an impact upon the operational level of the business and could raise the level of conflict between HR and Line mangers. In this regard, the role of HR should be based on shared partnership with line managers, rather than simply shifting their administrative responsibilities to line managers. Understanding the rationale of the shift of task and skills of the managers.HR should take the lead or often play a subordinate role. Moreover, if line managers are linked too much with paper-based people management tasks, internal communication between management and employees will fall down. Again, if HR is very much committed to daily people management task, it will lose its effectiveness in higher value contribution,. Therefore, an optimum balance between efficiency and effectiveness of both HR and line managers are required. The devolution of HR function leads to its integration in to the organizational strategy, and this vertical integration of HR whether disciplines of business involves HR professionals direct participation in the strategic planning and implementation of organizational mission, values, culture strategy and goal. Introducing revised career path, new appraisal and reward system, the HR leader not only established culture change of the organization but also acted as the formulator of the strategic decision- making process itself. This reveals the true contribution of HR function in integrating and turning strategy in to reality.

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II. NEW COMPETENCIES OF HR:

A shift from transactional to a more strategic role contributes to the re-engineering of HR function.HR does not make strategy but has greater contribution to the implementation of a strategy. The continual function of HR strategy change of HR function is apparent in Dave Ulrich’s model that categorizes four roles of HR- Strategic partner, Functional Expert, Employee Advocate and HR leader. Of these, the latest role of HR leader has increasingly become critical to business function. Playing an active part in understanding the overall strategy and having an in depth knowledge about both internal and external business factors, an HR leader contributes to the integration of the strategy to HR policies and practices both vertically and horizantically and maintains the organizational and maintains the organization agility IBM with more than 3, 50,000 employees, found it almost impossible to have sustainable agility, and hence its HR leadership focused on there tasks. First, the HR leader performed future need analysis and then made two-to-three year forecast on required skills and people to maintain a competitive performance. Second, playing an active role in defining and implementing a strategy, rather than just facilitating strategic planning meetings.

Integrating of HR and Business strategy:

Another changing role of HR function is aligning HR practices to strategy, which means that each investment of the HR discipline must reflect the strategy and realities of the customer. More precisely, in today’s organizations all HR activities, including selection and recruitment, training and development, reward and compensation systems are designed and practiced in such an effective way that these must exhibit HR’s alignment and integrated H practice in Apple. Apples core strategy is growth through product innovation, and in order to align this strategy of innovative product, HR Practices of re3cfruitment, salary and training are designed to meet the requirement of creativity and diverse thinking. Thus, Apples successful adoption of integrated HR practices shows the strategic value contribution role of HR and its greater impact on business performance. In fact, Dave Ulrich’s model of HR function leads to an emerging change in HR function, and many organizations adopted this model to align their HR function with business goal.

Reasons for HR Lagging Behind:

Although today HR goes more strategic and has already established its valued contribution in business, a number of weakness in HR function are still apparent HR practioners, especially senior HR leaders, often fail to speak the language of the Board and the senior management struggles to see how the traditional transactional role of HR could be reinvented strategically. HR function often becomes the victim of traditional perceptions of senior management. Even HR’s role in strategic decision making and involment in business planning are seen as additional by senior

managers, and they think that HR involvement is likely to be executive with some transactional reactive works.

This view of senior management needs to be changed, and it is possible only when HR function would widely become a key in adding value to competitive advantage of the business. Therefore, HR needs to be recognized to reflect both operational and strategic goals ands needs. It may be mentione3d that the transactional function of HR is not contradictory to its transformational strategic role, rather both of these should be focused. To become more strategic, HR does not need to abandon its administrative duties. What is more important is to successfully operate at both transactional and strategic levels. An outline about how to strengthen HR function at both these levels is drawn below:

 The devolution and strategic transformation of HR needs to be exercised carefully. The devolution of key areas of HR responsibility to line officers can imbalance both operational and strategic HR roles.

Hence, the efficiency of an HR expert is some core transactional function should not be replaced or compromised under any circumstance.

 In the devolution of transactional HR functions, line managers should be given enough assistance in developing their leadership skills, and aligning their activities to the overall goals and missions of the organization is a core strategic role of HR professionals.

In this regard, it is essential for Hr professionals to help line managers understand what and where they lack in terms of driving motivation, recognizing the potentials and required development of employees, and how they grasp the changes in business effectively.

 HR practioners should not get to know about the motives, drives and needs of an external customer. In aligning strategy with the customer, they should focus more on each system, practice and activity that community’s message about present and future customer direction and requirements. They should do this while they design and deliver training programmmes, develop criteria for recruitment and promotions, formulate and implement measurements and rewards and structure organizations for Business success.

 HR needs to overcome the conventional resistance of being a part of the organizational strategy.

Therefore, HR has to identify the true strategic value that it can contribute to business and should also measure its impact on the bottom line of the organizational strategy.

III. CONCLUSION:

The perceived lack of a strategic value of HR function is its propensity to come to the game late. Today’s the biggest contribution of HR function is to get to the heart of the business, be an integral part of the business strategy and recognize business levers with a wide range of strategic functions. This alignment between HR and business processes can be a source of value creation for the organization and hence can be used to link financial

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business outcomes. Finally, if HR measures itself from a business perspective and the value that it brigs to an organization, the senior management will change their traditional negligence to HR. Instead they will welcome HR to be core contributor of the business strategy, realizing how HR can affect the bottom line from a business view point.

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