Shrm3 Evolving Role of HR

8/2/2019 Shrm3 Evolving Role of HR

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Evolving Role of HR


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Possible Roles of the HR Function

Strategic Focus

Operational Focus

PeopleSystems

Change AgentStrategic Partner

Administrative Expert Employee Champion


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Traditional vs. Strategic HR

Traditional HR Strategic HR

Responsibility for HR Staff Specialists Line Managers

Focus Employee Relations Partnerships

Role of HR Transactional Transformational

Initiatives Reactive & Fragmented Proactive & Integrated

Control Bureaucratic OrganicKey Investments Capital & Products People & Knowledge

Accountability Cost Center Investment Center


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A New Mandate for HR

Become a partner with senior and line managers instrategy execution.

Become an expert in the way work is organized,delivering administrative efficiency to ensure that costsare reduced while quality is maintained.

Become a champion for employees, representing theirconcerns to senior management and working to increase

employee contributions.

Become an agent of continuous transformation byshaping processes and organizational culture.


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Barriers to Strategic HR

Short-term mentality

Lack of HR skills and strategic mentality

Lack of appreciation for what HR can contribute Difficulty in quantifying HR outcomes

Changing responsibility for line managers


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Ensuring Fit

Internal fit

The situation in which all the internal elements of the worksystem complement and reinforce one another.

External fit The situation in which the work system supports the

organizations goals and strategies.


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Human Resource Management

Planning andJob Design

Compensation

EmployeeRelations

Recruiting andSelection

Training andDevelopment

PerformanceManagement


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HR Alignment

Planning andJob Design

Compensation

EmployeeRelations

Recruiting andSelection

Training andDevelopment

PerformanceManagement

INTERNALFIT


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High-Performance Work System

A specific combination of HR practices, work structures,and processes that maximizes employee knowledge, skill,commitment, and flexibility.

Systems composed of many interrelated parts thatcomplement one another to reach the goals of anorganization, large or small.


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Underlying Principles

SharedDecision-Making

SharedInformation

Performance-RewardLinkage

KnowledgeDevelopment


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Employee Involvement

Power Authority to change job processes?

Self-managed teams

Information

Is business information shared? Does the job involve performance feedback?

Knowledge

Does the employee have proper training for the job?

Rewards Are rewards contingent on individual performance?


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Employee Involvement

Locating work decisions at thelowest level possible.

Power

Information

Rewards Knowledge and skills

EI in the Fortune 1000

150 Companies

1999 Survey

LowEI

MedEI

HighEI

ROA 9.3 9.7 11.2

ROI 14.2 15.7 17.1

ROE 23.4 20.7 26.6

Market Return -.7 2.8 11.9

Market/ Book .7 1.3 1.8

Lawler, Mohrman & Benson, 2000

Documents

Shrm3 Evolving Role of HR