Legal Issues In The Workplace

Case for Human Resources as a Strategic Partner

In an era of organizational flux due to competition and globalization, companies and employees are faced with constant change. Leaders must be able to adapt to change as the environment shifts. HR has been known as the organizational change agent, administrative expert, and employee advocate. More recently they have been regarded as business strategic partners for many organizations. In order to be successful and remain competitive in today’s market, Human Resources (HR) must be considered a strategic partner if an organization wants to flourish. Top executives today commit significant resources to ensure that their company’s functions are capable of rapid change and achieving their goals. Far too often, the Human Resources (HR) function is nominal thus they are not as quick to respond to the rapid rate of change. When “this occurs, companies may be perpetuating or even creating barriers to fully leveraging their human capital. Organizations can begin the process of removing these barriers by assessing the Human Resources function and its alignment with business objectives” (Wert & Liwanag , 2002). This paper will make a case for having HR report to the CEO. In order to do so the author will describe the relationship between HR strategies and business strategies. Examples of HR strategies that can be effective will be discussed. In addition, the author will examine the benefits and consequence of having HR as a strategic partner and well as the key business competencies that they must retain. Furthermore, she will discuss an optimal career path for a senior HR executive.

HR Strategies and Business Strategies

In order for an organization to succeed and be competitive they must be strategic and have a strategic management plan. According to Webster’s New American Dictionary, strategy is defined “as the skillful employment and coordination of tactics and as artful planning and management” (Noe et al., 2002, 55). Business strategies touch every entity of the business including HR which is where many of the business necessities begin. The HR function needs to be involved in the strategic management process as “each component of the process involves people related business issues” (Noe et al., 2002, 59) which is the primary function of HR. “Once the strategy has been determined, HRM has a profound impact on the implementation of the plan by developing and aligning HRM practices that ensure that the company has motivated employees with the necessary skills” (Noe et al., 2002, 83).

HR must enact its own strategies which can aid the organization in meeting its goals and mission. They are referred to as strategic human resource management (SHRM). SHRM is “a pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals” (Noe et al., 2002, 55). The following are examples in which HR strategies can positively impact an organization in meeting its desired outcomes.

Strategies require more than retaining competent people. They require specific people with specific talents for specific tasks. Concentration strategies are a good example of how HR can affect change. They are an integral part in retaining employees by way if training to keep skills sharp and compensation to give those with skills the proper income for their work. Another strategy that can impact change in a positive direction is the external growth strategy during mergers and acquisitions. HR is a critical facet during a merger as issues of conflict usually arise. HR must train staff in conflict resolution due to the merging cultures. In doing so, morale and production can be impacted if the proper training is conducted. Additionally, rightsizing to cut costs and remain competitive in the market is another strategy whereby HR is important and can positively affect the company in meeting its goals. HR can assess the positions and the job functions to see what positions can merge. Upon doing so, they then can look objectively at the employees who aren’t as valued to determine the cuts needed to achieve the desired results.

Benefits and Consequences

Today companies are realizing that their human capital is one of the most important assets to their organization. Strategic planning clearly impacts everyone involved in the organization, thus involving HR is critical. Having HR as a strategic partner reporting to the CEO can only benefit the organization in meeting its goals. Finding the right candidate with the necessary skills to drive the business is essential in meeting the business objectives. This can be seen in the case of Pepsi when they assumed fast food franchises and its staff were not as high trained and educated. Additionally, HR can be a key factor in retaining personnel and assuring that the proper staffing is in place for when the job necessitates it. Boeing is a prime example of this blunder as they had the sales order but not the human capital to meet the needs of the organization. An error of that magnitude could result in major costs to an organization. Another example, where HR can be an asset is in looking at the internal strengths of the organizations’ human capital and assessing whether or not the strategies would be fruitful. Integrating HR into the strategic process can assist organizations in making efficient and effective choices.

Key Business Competencies

“Over the past 100 years the HR profession has been continuously evolving and changing, adding more and different responsibilities”(Jamrog & Overholt, 2004). “HR must work