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THE EVOLVING/STRATEGIC ROLE OF HUMAN RESOURCE MANAGEMENT Role of Human resource management in organizations - Before it was thought of as the

e personnel department o Performing recordkeeping, paper pushing, file maintenance, largely clerical functions o Administrative duties doesnt understand the importance of HR - Now: Increasingly being seen as a critical strategic partner and assuming far-reaching and transformational roles and responsibilities

Strategic Human Approach to HRM o Focuses more on strategic issues than operational issues o Managing people is the most important priority o Integrate ones programs and policies to the framework of the companys strategy o People make or break the organization o Involves the : Development of a consistent, aligned collection of practices, programs, and policies to facilitate the achievement of the organizations strategic objectives o Approaches vary from organizations (there is no one best way to manage people) Essentially: HR programs and policies are integrated within a larger framework facilitating, in general, the organizations mission and specifically its objectives o Establishing a strong HR strategy is not enough Strategy needs to be communicated, practiced and perhaps most important- spelled out and written down HR would be defined not by what ut does, but rather by what is delivers Ideally HR should deliver results that enrich the organizations value to its customer, investors, and employees; can be accomplished by: o Becoming a partner with senior and line managers in strategy execution o Becoming an expert in a way that work is organized and executed o Becoming a champion for employees, working to increase employee contribution and commitment o Agent of continuous transformation o Improving or rethinking traditional HR functions HR has to be able to build the organizations capacity to embrace and capitalize on situations, ensuring that change initiatives are defined, developed, and delivered in a timely manner HR ROLES IN KNOWLEDGE BASED ECONOMY o Human Capital Steward Creation of environment wherein employees would voluntarily contribute their skills, ideas, and energy Employees are recruited, duly motivated, and retained o Knowledge facilitator

Employees teach and learn from each other Knowledge sharing Procurement of necessary employee knowledge and skills sets that allow information to be acquired, developed, and disseminated o Relationship builder Development of structure, work practices, and organizational culture that allows individuals to work together Synergies and teamwork lead to outstanding performance o Rapid deployment specialist Creation of an organization structure and HR systems that are fluid and adaptable to rapid change in response to external opportunities and threats Flexibility: embrace change STRATEGIC HUMAN RESOURCE MANAGEMENT CRITICAL HR COMPETENCIES - These competencies are different from the past because in the past HR played more of an administrative role o 1st : Strategic Contribution Development of strategy connecting organizations to external constituents Implementing systems that align employee performance to company strategy nd o 2 : business knowledge Understanding the buts and bolts of the organizations operations and leveraging this knowledge to results rd o 3 : personal credibility Measurable value be demonstrated in programs and policies implemented th o 4 : HR delivery Serving internal customers through effective and efficient programs th o 5 : HR technology Using technology to improve the organizations management of people STRATEGIC HUMAN RESOURCE MANAGEMENT SET OF COMPETENCIES ALL HR EXECUTIVES WILL NEED - HR roles may need to be more highly specialized o 1st role: Chief financial officer Good in financial analysis Can argue the cost-effectiveness of various HR projects nd o 2 role: Internal Consultant Individual who trains employees Understanding employment relationship rd o 3 role: Talent Manager Finding the optimal mix of employees to fulfil organizations strategic objectives th o 4 role: Vendor Manager Determines which functions can be better handled internally or externally Managing vendor relations th o 5 role: Service Manager Oversees application technology to human resource management

LEPAK AND SNELLS EMPLOYMENT MODELS - Characteristics of human capital using 2 dimensions - 1st: Strategic Value extent of its potential to improve efficiency, exploit market opportunities - 2nd: Uniqueness: degree on how specialized and not available - MODES: o Quadrant 1: knowledge based employment Commitment based (heavy investment in training &development) Human capital that is unique and has high strategic value o Quadrant 2: Job-based employment Productivity based (seeks individuals with the requisite skills) Limited uniqueness but has high strategic value o Quadrant 3: Contractual employment Compliance based (employees and system is established and everyone must follow rules, regulations, and procedures) Not unique nor of strategic value o Quadrant 4: Alliance/Partnership employment Collaborative based (work is outsourced to an outside vendor based on the sharing of information and established trust Unique but of limited strategic value TRADITIONAL HR VERSUS STRATEGIC HR Traditional HR Strategic HR Responsibility of HR Staff specialist Line managers Focus Employee relations Partnerships with Internal and External customers Role of HR Transactional, change Transformational, change follower, and respondent leader, and initiator Initiatives Slow, reactive, fragmented Fast, proactive, integrated Time Horizon Short-term Short, medium, long(as necessary) Control Bureaucratic-roles, policies, Organic-flexible, whatever is procedures necessary to succeed Job Design Tight division of labor, Broad, flexible, cross-training, independence, specialization teams Key Investments Capital, products People, knowledge Accountability Cost center Investment center BARRIERS TO STRATEGIC HR - Rooted in culture of organization - Organizations history, values, and management practices can act as disincentives for any change initiative o 1st: Short-term Mentality Focus on current performance Performance evaluations are based on current performance o 2nd: Inability of HR to think Strategically

Segmented understanding of the entire business HRM is complex and ever-changing function rd o 3 : Lack of appreciation of what HR can contribute Fail to realize the contributions HR can make as a strategic partner Perception of HR is that it is inflexible and rules-oriented o 4th: Failure to understand general managers role as an HR manager Functional managers are more concerned with technical aspects of their areas of responsibility than the human aspects th o 5 : Difficulty in quantifying many HR outcomes Programs may not have any direct quantifiable benefit th o 6 : Perception of human assets as higher risk investment Human assets arent owned Fail to realize that it is the people who utilize the technology and information that provide an organization with good performance th o 7 : incentives for change that might arise Significant changes can be very risky for those responsible for implementation Drastic changes in how work is done/organized CONCLUSION o What works for one organization wont necessarily work for another o Most organizations doesnt realize the contribution that HR can make to overall organizational performance because they still perceive HR in more traditional ways A factor is that senior HR managers themselves may not understand how they can contribute to their organizations strategically KEY: (OUTCOMES OF STRATEGIC HR) HR managers to realize that strategic HR can provide three critical outcomes: o Increased performance o Enhanced customer and employee satisfaction o Enhanced shareholder value Accomplished through: - Effective management of staffing, retention and turnover through selection of employees that fit with both strategy and culture - Cost-effective utilization of employees through investment in identified human capital with potential for high retention - Integrated HR programs & policies that clearly follow from corporate strategy - Facilitation of change & adaptation through a flexible more dynamic organization - Tighter focus on customer needs, key and emerging markets, and quality