Human Resources often begins as very tactical policies, records, compliance, discipline, compensation, benefits, job descriptions, hiring, performance management (). Taken to the next level, HR becomes strategic, connecting employees to the business mission, values, and vision, in order to drive business results (). Employee goals and metrics align to the business strategy and rewards tie into results. Additionally, careful consideration is given to developing talent pipelines, employee succession plans, and career planning in order to respond flexibly to the inevitable work flow and staffing changes that all businesses experience ().
HR as strategic Partner is gaining momentum as being one of the best way yet in making human resources as the most important asset in an organization.
The role of a Human Resource department is ever changing in today’s volatile business environment. Over the years HR have become strong strategic partners within an organization by providing functions such as recruitment,
The field of human resources (HR) plays a critical role in the performance and success of organizations. As organizations have become increasingly more complex, the effective management of HR has become even more important. The traditional perception of HR as only an administrative office is no longer valid. Instead, contemporary HR is directly involved with the internal organizational structure, business operations, and variety of functions carried out by employees on a daily basis (Reed & Bogardus, 2012). HR functions impact the organization’s strategic planning, improvement processes, and goal achievement. Six core bodies of knowledge provide the foundation for all of these HR functions. These areas are: strategic
It is important that HRM consultants create a strong and sound strategy to keep and gain the competitive advantage. By successfully implementing good HRM strategies, companies can provide excellent talent and improve by staying current on the latest technologies and other information talent (Welcome to HR Consultants, Inc., 2009). This will allow clients to increase productivity within the organization; which in turn will increase profits. The greatest organizations realize that effectively managing the HRM strategies and know that employees are their greatest asset and that they are important to their survival. A sound understanding of HRM strategies will allow clients to keep their competitive advantage (Welcome to HR Consultants, Inc., 2009).
In any organization it is important for HR to touch all levels of the organization and to understand the organization’s environment. An organization who values their employees cannot afford having a human resources department that does not function in a strategic partner role. Human resources professionals, in organizations are equipped with the knowledge, skills and abilities to work with talented senior leaders in an organization. They have the ability to successfully partner with each department within an organization to understand the overall business. HR professional can assist in designing strategic plans to balance the needs of the organization, the employees and the stakeholders. HR can help align efforts of the various functions within the organization with the established goals. They can support the organization’s functions by recruiting, developing and retaining company team members who are crucial. HR should be the driver of the organization’s values. They must not only focus on internal tasks but must step outside the box and fully understand the organization as a whole, how it operates, the competition and what could influence the organization's progress. They must be able to handle change, perform environmental scanning, understand outsourcing and processes
Surviving in this era of globalization, organizations face varying degree of challenges to remain relevant and to obtain that ‘extra’ competitive edge. In doing so, HR managers play a vital role in ensuring that strategies adopted by the organization are fully supported. The challenges faced by HR managers in the current global trend, which includes the key issues pertinent to the company in question, Asiatic, are low morale and underperforming staff, high labor turnover, absenteeism and lack of
It is important for HR Management to transform from being primarily administrative and operational to becoming more strategic contributor because of the involvement of competitive advantages through a company s’ employees. Strategic HR managers need proceed with the professional growth by hiring employees with high potential and giving them opportunity to learn and make lot of experience from their job roles where can access to brightest future in the industry. Secondly, the executive succession where the strategic HR managers will hiring the potential successors and grooming them with experience and advancement to be ready for replacement of the owner of company. A company can be in right direction if proceed with the strategic succession planning. Third is the labor cost efficiency. Strategic HR department mainly focus on their top performers who effort the most to organizational goals and long-term company success. A strategic HR philosophy ensures the employees satisfied perfect where by paid to
Per our discussion, ABC Technology Company is a California-based technology company with 250 employees. It has the potential to double in size over the coming two years. The company has experienced high turnover, so staffing and retention are top on the list of your concerns. I will explain how my human resources strategic business plan will create growth and opportunity along with financial success for ABC Technology. HR is known and expected to cover the basics of the human resources functions by providing advice to supervisors and managers, answering employee questions, and administering payroll, benefits, and performance review processes. The strategic role of HR requires a global, long-term, and forward thinking focus as HR professionals
In my role as HR, I need to be prepared for the rapid changes in the business environment; organizations are increasingly looking at human resource as a unique asset that can help provide a sustained competitive advantage., I will ensure the HR strategy is in alignment with the business strategy of the company I am responsible for. Obviously, my ultimate goal is to provide a full-fledged effort to ensure the productive and fruitful integration between HR strategy and Business strategy.
Dr. Ulrich goes on to support the need for HR in today’s business world. He feels that there are 5 critical challenges that businesses face: Globalization, profitability through growth, technology, intellectual capital, and change (Ulrich 126). Conversely, these things do not matter on a competitive scale. All businesses need these things to survive, but they can be attained and copied. The only competitive weapon left is organization (Ulrich 127). That is where Ulrich believes HR plays its most vital role. The differences between the leading businesses in their respective markets is their organization. Top-tier businesses are run efficiently with good HR relations. For businesses to take the next step towards maximizing their operations, they must change the culture surrounding HR and train their HR teams to become sufficient in promoting higher employee morale. Ulrich is convinced that senior operating managers must value the “soft” matters, define and hold HR accountable for its results, invest in innovative practices, and upgrade HR professionals (Ulrich
Human resource management (HRM) has evolved into a huge industry in the business arena. The evolution and advancement of technology has created a global platform for HRM. The effect of globalization in many organizations has opened the door for HRM, and it is a crucial component for a successful business strategy and plan. This paper will define HRM, and discuss HRM’s primary function and role in an organization’s strategic plan.
In a smaller company it would be more cost effective for the HR department to be primarily an administrative HR department. Larger companies need to increase the HR roles to a more strategic role which is goaled towards meeting the company’s needs. The role of the strategic human resource management team is to meet the needs of the employees as they are needed. This type of planning allows for the HR department to meets the needs of the employees and to focus on making sure the needs of the company are being met also. This type of thinking can allow for improvement in the way employers hire and train current and future
Whether an organization consists of five or 25,000 employees, human resources management is vital to the success of the organization. HR is important to all managers because it provides managers with the resources – the employees – necessary to produce the work for the managers and the organization. Beyond this role, HR is capable of becoming a strong strategic partner when it comes to “establishing the overall direction and objectives of key areas of human resource management in order to ensure that they not only are consistent with but also support the achievement of business goals.” (Massey, 1994, p. 27)
After acknowledging the idealised roles of HRM, it is important to understand that what could be the impact of HRM functions on organisational performance. It has been proposed that HR resources efficiently contribute towards profitability of organisation by enhancing or by maintaining company’s competitive advantage (Singh et al., 2012). According to (Wright et al., 2001) and (Beardwell et al., 2004) HRM practices contributes to OP via leveraging the human capital, through discretionary efforts and by behaviors and attitude. According to Ulrich (1993) HRM performs the role of a strategic partner, employee champion, change agent and also administrative expert. In a study which was conducted on 256, mid-to upper level executives of medium to big size organisations, confirmed the presence of three out of Ulrich’s four roles in HR framework (Yusoff, Abdullah, & Baharom, 2010). Studies reveal that HRM performs a strategic role of Knowledge management (KM) which is to develop, share and to apply knowledge in the organisation in order to gain and to maintain a competitive advantage for business (Petersen & Poulfelt, 2002) as viewed in (Edvardsson, 2008). KM is required to develop the employees according to business strategy which is the basic function of HRM. If HRM practices develop knowledge, employee skills and motivation then employees behave in those ways which can be considered supportive for a