the evolving strategic_role_of_human_resource_management

CHAPTER 4

THE EVOLVING/ STRATEGIC ROLE OF HUMAN RESOURCE MANAGEMENT

STRATEGIC HRMSTRATEGIC HRMSTRATEGIC HRMSTRATEGIC HRM

1–2

Strategic Human Resource Strategic Human Resource ManagementManagement

Strategic Human Resource Strategic Human Resource ManagementManagement

• Involves development of consistent, aligned Involves development of consistent, aligned collection of practices, programs, & policies to collection of practices, programs, & policies to facilitate achievement of strategic objectivesfacilitate achievement of strategic objectives

• Requires abandoning mindset & practices of Requires abandoning mindset & practices of “personnel management” & focusing on strategic “personnel management” & focusing on strategic issues rather than operational issuesissues rather than operational issues

• Integration of all HR programs within larger Integration of all HR programs within larger framework, facilitating mission & objectivesframework, facilitating mission & objectives

• Writing down strategy facilitates involvement & Writing down strategy facilitates involvement & buy-in of senior executives & other employeesbuy-in of senior executives & other employees

• Involves development of consistent, aligned Involves development of consistent, aligned collection of practices, programs, & policies to collection of practices, programs, & policies to facilitate achievement of strategic objectivesfacilitate achievement of strategic objectives

• Requires abandoning mindset & practices of Requires abandoning mindset & practices of “personnel management” & focusing on strategic “personnel management” & focusing on strategic issues rather than operational issuesissues rather than operational issues

• Integration of all HR programs within larger Integration of all HR programs within larger framework, facilitating mission & objectivesframework, facilitating mission & objectives

• Writing down strategy facilitates involvement & Writing down strategy facilitates involvement & buy-in of senior executives & other employeesbuy-in of senior executives & other employees

1–3

Exhibit 4-1Exhibit 4-1

Possible Roles Assumed by HR Possible Roles Assumed by HR FunctionFunction


Possible Roles Assumed by HR Possible Roles Assumed by HR FunctionFunction

1–4

HR Roles in Knowledge-Based HR Roles in Knowledge-Based EconomyEconomy


• Human capital stewardHuman capital steward– Creates an environment & culture in which employees Creates an environment & culture in which employees

voluntarily contribute skills, ideas, & energyvoluntarily contribute skills, ideas, & energy– Human capital is not “owned” by organizationHuman capital is not “owned” by organization

• Knowledge facilitatorKnowledge facilitator– Procures necessary employee knowledge & skill sets that Procures necessary employee knowledge & skill sets that

allow information to be acquired, developed, & disseminatedallow information to be acquired, developed, & disseminated– Provides a competitive advantage Provides a competitive advantage – Must be part of strategically designed employee Must be part of strategically designed employee

development plandevelopment plan

• Human capital stewardHuman capital steward– Creates an environment & culture in which employees Creates an environment & culture in which employees

voluntarily contribute skills, ideas, & energyvoluntarily contribute skills, ideas, & energy– Human capital is not “owned” by organizationHuman capital is not “owned” by organization

• Knowledge facilitatorKnowledge facilitator– Procures necessary employee knowledge & skill sets that Procures necessary employee knowledge & skill sets that

allow information to be acquired, developed, & disseminatedallow information to be acquired, developed, & disseminated– Provides a competitive advantage Provides a competitive advantage – Must be part of strategically designed employee Must be part of strategically designed employee

development plandevelopment plan

1–5



• Relationship builderRelationship builder– Develops structure, work practices, & culture that Develops structure, work practices, & culture that

allow individuals to work togetherallow individuals to work together– Develops networks that focus on strategic Develops networks that focus on strategic

objectivesobjectives

• Rapid deployment specialistRapid deployment specialist– Creates fluid & adaptable structure & systemsCreates fluid & adaptable structure & systems– Global, knowledge-based economy mandates Global, knowledge-based economy mandates

flexibility & culture that embraces changeflexibility & culture that embraces change

• Relationship builderRelationship builder– Develops structure, work practices, & culture that Develops structure, work practices, & culture that

allow individuals to work togetherallow individuals to work together– Develops networks that focus on strategic Develops networks that focus on strategic

objectivesobjectives

• Rapid deployment specialistRapid deployment specialist– Creates fluid & adaptable structure & systemsCreates fluid & adaptable structure & systems– Global, knowledge-based economy mandates Global, knowledge-based economy mandates

flexibility & culture that embraces changeflexibility & culture that embraces change

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Lepak & Snell’s Employment ModelsLepak & Snell’s Employment ModelsExhibit 4-4Exhibit 4-4

Lepak & Snell’s Employment ModelsLepak & Snell’s Employment Models

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Traditional HR Versus Strategic HRTraditional HR Versus Strategic HRExhibit 4-5Exhibit 4-5

Traditional HR Versus Strategic HRTraditional HR Versus Strategic HR

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SHRM Critical CompetenciesSHRM Critical CompetenciesSHRM Critical CompetenciesSHRM Critical Competencies

• HR’s success as true strategic business partner HR’s success as true strategic business partner dependent on five specific competencies:dependent on five specific competencies:

– Strategic contribution - development of strategyStrategic contribution - development of strategy– Business knowledge - understanding nuts & bolts of Business knowledge - understanding nuts & bolts of

organizationorganization– Personal credibility - measurable value demonstrated in Personal credibility - measurable value demonstrated in

programs & policiesprograms & policies– HR delivery - serving internal customers through effective & HR delivery - serving internal customers through effective &

efficient programsefficient programs– HR technology - using technology to improve organization’s HR technology - using technology to improve organization’s

management of peoplemanagement of people

• HR’s success as true strategic business partner HR’s success as true strategic business partner dependent on five specific competencies:dependent on five specific competencies:

– Strategic contribution - development of strategyStrategic contribution - development of strategy– Business knowledge - understanding nuts & bolts of Business knowledge - understanding nuts & bolts of

organizationorganization– Personal credibility - measurable value demonstrated in Personal credibility - measurable value demonstrated in

programs & policiesprograms & policies– HR delivery - serving internal customers through effective & HR delivery - serving internal customers through effective &

efficient programsefficient programs– HR technology - using technology to improve organization’s HR technology - using technology to improve organization’s

management of peoplemanagement of people

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HR HR Competency Competency

ModelModel

HR HR Competency Competency

ModelModel

Source: Arthur Yeung, Wayne Brockbank, and Dave Ulrich, “Lower Cost, Higher Value: Human Resource Function in Transformation.” Reprinted with permission from Human Resource Planning, Vol. 17, No. 3 (1994). Copyright 1994 by The Human Resource Planning Society, 317 Madison Avenue, Suite 1509, New York, NY 10017, Phone: (212) 490-6387, Fax: (212) 682-6851. Figure 1.9

Presentation Slide 1–4

BusinessBusinessMasteryMastery

• Business acumenBusiness acumen• Customer orientationCustomer orientation

• External RelationsExternal Relations

BusinessBusinessMasteryMastery

• Business acumenBusiness acumen• Customer orientationCustomer orientation

• External RelationsExternal Relations

HRHRMasteryMastery• StaffingStaffing

• Performance appraisalPerformance appraisal• Rewards systemRewards system• CommunicationCommunication

• Organization designOrganization design

HRHRMasteryMastery• StaffingStaffing

• Performance appraisalPerformance appraisal• Rewards systemRewards system• CommunicationCommunication

• Organization designOrganization design

ChangeChangeMasteryMastery

• Interpersonal skillsInterpersonal skillsand influenceand influence

• Problem-solving skillsProblem-solving skills• Rewards systemRewards system

• Innovation and creativityInnovation and creativity

ChangeChangeMasteryMastery

• Interpersonal skillsInterpersonal skillsand influenceand influence

• Problem-solving skillsProblem-solving skills• Rewards systemRewards system

• Innovation and creativityInnovation and creativity

Personal Personal CredibilityCredibility

• TrustTrust• Personal Personal

relationshipsrelationships• Lived valuesLived values

• CourageCourage

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Barriers to Strategic HRBarriers to Strategic HRBarriers to Strategic HRBarriers to Strategic HR

• Strategic contributionStrategic contribution

• Business knowledgeBusiness knowledge

• Personal credibilityPersonal credibility

• HR deliveryHR delivery

• HR technologyHR technology

• Strategic contributionStrategic contribution

• Business knowledgeBusiness knowledge

• Personal credibilityPersonal credibility

• HR deliveryHR delivery

• HR technologyHR technology

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Outcomes of Strategic HROutcomes of Strategic HRExhibit 4-7Exhibit 4-7

Outcomes of Strategic HROutcomes of Strategic HR

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Model of Strategic HR ManagementModel of Strategic HR ManagementExhibit 4-8Exhibit 4-8

Model of Strategic HR ManagementModel of Strategic HR Management

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Reading 4.3Reading 4.3 Organization Culture QuestionnaireOrganization Culture Questionnaire

Reading 4.3Reading 4.3 Organization Culture QuestionnaireOrganization Culture Questionnaire

• Topics to be included in questionnaire:Topics to be included in questionnaire:– How is performance defined, measured & How is performance defined, measured &

rewarded?rewarded?– How are information & resources allocated & How are information & resources allocated &

managed?managed?– What is operational philosophy of organization with What is operational philosophy of organization with

regard to risk-taking, leadership, & concern for regard to risk-taking, leadership, & concern for overall results?overall results?

– Does organization regard human resources as costs Does organization regard human resources as costs or assets?or assets?

• Topics to be included in questionnaire:Topics to be included in questionnaire:– How is performance defined, measured & How is performance defined, measured &

rewarded?rewarded?– How are information & resources allocated & How are information & resources allocated &

managed?managed?– What is operational philosophy of organization with What is operational philosophy of organization with

regard to risk-taking, leadership, & concern for regard to risk-taking, leadership, & concern for overall results?overall results?

– Does organization regard human resources as costs Does organization regard human resources as costs or assets?or assets?

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Reading 4.3Reading 4.3 Interpreting Results & Formulating Interpreting Results & Formulating

StrategiesStrategies

Reading 4.3Reading 4.3 Interpreting Results & Formulating Interpreting Results & Formulating

StrategiesStrategies• Tendency to try to identify an “ideal” cultureTendency to try to identify an “ideal” culture• Not clear than any one culture will be effective for Not clear than any one culture will be effective for

all organizationsall organizations• Strategy consists of interrelated functional Strategy consists of interrelated functional

components that must be carefully integrated to components that must be carefully integrated to form an effective whole:form an effective whole:

– Selection & staffingSelection & staffing– Organizational & human resource developmentOrganizational & human resource development– RewardsRewards

• Tendency to try to identify an “ideal” cultureTendency to try to identify an “ideal” culture• Not clear than any one culture will be effective for Not clear than any one culture will be effective for

all organizationsall organizations• Strategy consists of interrelated functional Strategy consists of interrelated functional

components that must be carefully integrated to components that must be carefully integrated to form an effective whole:form an effective whole:

– Selection & staffingSelection & staffing– Organizational & human resource developmentOrganizational & human resource development– RewardsRewards

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Reading 4.3Reading 4.3

Analyzing Dysfunctional CulturesAnalyzing Dysfunctional CulturesReading 4.3Reading 4.3

Analyzing Dysfunctional CulturesAnalyzing Dysfunctional Cultures

• Which components of culture are misaligned?Which components of culture are misaligned?• What priorities should be assigned to bridging What priorities should be assigned to bridging

gaps between what culture is & what people feel it gaps between what culture is & what people feel it should be?should be?

• What resources are needed & how should they be What resources are needed & how should they be used to change culture?used to change culture?

• How should change effort be managed & who How should change effort be managed & who does what?does what?

• What role should HR strategy play in signaling, What role should HR strategy play in signaling, making & reinforcing necessary changes?making & reinforcing necessary changes?

• Which components of culture are misaligned?Which components of culture are misaligned?• What priorities should be assigned to bridging What priorities should be assigned to bridging

gaps between what culture is & what people feel it gaps between what culture is & what people feel it should be?should be?

• What resources are needed & how should they be What resources are needed & how should they be used to change culture?used to change culture?

• How should change effort be managed & who How should change effort be managed & who does what?does what?

• What role should HR strategy play in signaling, What role should HR strategy play in signaling, making & reinforcing necessary changes?making & reinforcing necessary changes?