MANAGEMENT DEVLOPMENT INSTITUTE

December 03, 2017

Saurabh Katyal | Kaushal Kumar Rai | Deepti Sharma | Anish Jayan | Karan Varshney

HR AS BUSINESS PARTNER: HOW HR ROLE HAS EMERGED AS A BUSINESS

PARTNER

Human resources are like natural resources; they're often buried deep. You
have to go looking for them, they're not just lying around on the surface. You
have to create the circumstances where they show themselves. Ken Robinson

The new operating model for HR is emerging & undergoing transformational change because of
following factors .Firstly , the traditional definition of business HR role no longer meets the business &
workforce challenges of the 21st century .Business leaders and sometimes the HR function itself has a
dated view of HRs strategic and business potential .Secondly , Business HR roles have been often left
to evolve organically in the hope of becoming more strategic merely by centralizing some activities with
in a traditional HR administrative group and HR technology .In small size organizations local
administrative roles are combined with more strategic roles .

HR people are need to be created as expert consultants close to the business .Despite adoption of
business focused HR role ,organizations are not achieving the anticipated impact and return on
investment from the change .Still a large portion of the HR work continues to be administrative and
transactional in nature .

HR customers should be in the center with business HR positioned closest to the customer to drive
strategic business objectives and enhance business performance by working as partners with leaders of
people and the business. Applying increased agility, flexibility, coordination, networking and alignment.
HR as a business partner must operate day to day as part of the business leadership team and take
responsibility for driving and owning business outcomes. Earlier, HR was designed and positioned as an
outside role looking to partner with the business. Now business HR roles are embedded within the
business and work directly with line leaders. Business HR professionals are trained and rewarded to
meet business objectives and work on the business agenda

HR BUSINESS PARTNERING INVOLVES

1. Effective operating model with clear responsibilities and handovers to other parts of function.
2. Access to accurate data, reporting and management information system to facilitate the evidence
based business decision making
3. Clear mandate from top management to facilitate & embed HR business partnering
4. Alignment of function & business to bring about value addition
5. Formulation of functional strategy that achieve business priorities
6. Defining a clear competency network to develop effective business partnering

In HR business partnering strategies the various stages that are involved include

1. Planning & discovery to get insights about the current state of the organization
2. Analysis & assessment of the key focus areas of the organization
3. Design & develop solutions in HR analytics, change management etc

We can unlock the value of HR to drive business .Successful business partnering requires a special type
of person .Strong partnership relationship will add most value to the business .HR business partnering
can be very fruitful for the organizations and will help in encountering various challenges .Sometimes it
becomes hard to align the business & the HR perspective of an organization .Many organizations have
struggled to transform the concepts of HR business partnering into reality .A partnering relationship
involves accomplice , comradeship ,alignment , harmony , support , trust , creativity , vision and trusted
advisor .HR business partnering involves delivering tangible output that facilitate the achievement of
business goals .HR business partnering should involve

1. Focus on strategic business goals that facilitate the growth and competitiveness of the business
2. Focus on big picture perspective in relation with the organizations goals & priorities
3. Influence key decision makers by virtue of personal credibility
 4. Optimal alignment of HR and the business agendas acting as a diplomat and negotiator
5. Create value for the client/customer/business by virtue of skills and breadth of knowledge

PAYOFF OF A HR BUSINESS PARTNERING INVOLVES THE LINKING OF THE HR

BUSINESS PARTNER TARGETS DIRECTLY LINKED WITH THE BUSINESS RESULTS

Growth
revenue
sustainence

Strategy Growth
execution
capability in profit

Business
Outcomses

Customer
Reduction
loyality &
in cost
retention

Agility
,Flexibility
,adaptability

PRIORITIES OF HR PERSONNEL IN THE ROLE OF A HR BUSINESS PARTNER

1. Acquisition and identification of talent strategies for entering and exploring new markets
2. Prediction of requirements & management of critical talent to traverse the growth curve
3. Focus on augmenting the growth in business units
4. Provide support in optima management of Merger & Acquisition initiatives
5. Efficient management of cost reduction initiatives to facilitate productivity
6. Efficient evaluation and implementation of offshoring & outsourcing activities
7. Reduction the operating costs of HR related activities
 8. Alignment of performance and awards with agility and adaptability
9. Establishment of communication channels & tools to reinforce culture
10. Optimization of service delivery of HR processes & functions
11. Assessment of corresponding relation of employee loyalty and customer loyalty
12. Enhance & augment understanding of customer acquisition and facilitate the implementation of
supportive HR programs
13. Find out the existing gaps in leadership & facilitate development of top talent
14. Enhance capability of learning & development programs

BUSINESS-FACING FOCUS OF A HR PROFESSIONAL

Advisor on people issues to higher

leadership of orgaisation

Using various parameters to shape

organizational strategy

Mentoring managers around

engagement & performance

Management of change initiatives &

transformational programs

HR-FACING FOCUS OF A HR PROFESSIONAL

 Management of the HR Strategy and
the HR performance

Management of business priorities

and the business requirements

Efficient formulation of HR solutions

to cater to business needs

Proper evaluation of people trends

and external perspective

OPTIMAL MANAGEMENT OF HR , BUSINESS AND CONSULTING ROLES BY HR

PROFESSIONAL

Business capabilities of HR professional should involve optimal alignment of the HR strategies and
business strategies to enhance efficiency of the organization. Focus should be on customer, leveraging
the business acumen and awareness about factors affecting productivity.

HR employee relations should be efficiently managed to facilitate the efficient use of HR metrics and
gain HR subject matter expertise.

Consulting capabilities of HR business partner should involve Brokering, Trusted Advisor, Impact &
Influence, Facilitation & Coaching, Leadership and Project Delivery.

HR business partners acts as internal consultant to respond to changing business models .These HR
business partners are not aligned to any business unit and maintain their objectivity.

Efficient management of talent management strategy beyond the frontiers of human resource
management
Selection of non-HR professionals for the HR functions as they are believed to have much better
understanding of the business and easily establish themselves as a true business partner.

HR business partner is generally saddled with typical challenges which include

1. HR dont get enough opportunities to focus on development of their strategic skills and are pre-
occupied with transactional work. Existing competencies should be adequately assessed and
competency development initiatives such as coaching and training courses should be
incorporated. Redeployment and enhancement of skills should be facilitated
2. Role clarity and clearly defined responsibilities & relationship should exist between the HR
business partner and the centers of expertise in the organization.
3. Optimal alignment of HR and the business perspective should be facilitated. Develop
understanding of business and define business priorities associated with stakeholders. Evaluate
contribution of HR in enhancing value of business .Building business understanding and
confidence among business partners .

For implementation of HR business partner role underlying foundations related to standardized

reporting, technology and organizational policies should be streamlined.

Critical factor for the success of the HR business partner is the optimal alignment of talent and strategy
.HR business partner is responsible for aligning people to strategy, creating the right culture and
developing the future organizational capabilities that are critical for the success .

HR business partner should build strategic business partnerships, enhance execution capabilities of the
organization, creation of the right work culture and enhance business growth through effective change
management.

HR business partner need to develop a holistic view of the business goals and identify the agents needed
to fulfill the organizational objectives. They must constantly brainstorm and formulate solutions to take
the organization to the next level of growth. They must align themselves with business leaders and
stakeholders to attain their goals. Forging effective partnerships is critical for HR professional success.

HR professionals should make a real contribution to the business through value addition and risk
reduction with special focus on business strategy.
HR IN THE ROLE OF STRATEGIC BUSINESS PARTNER

HR should help clients in meeting their business and performance needs. Development of strategic
business partnerships is critical for the achievement of strategic business goals and objectives. The
strategic role of HR is driven by the approaches related to needs, opportunities and capability.

Needs involves to assess and address the prevailing skill deficiencies in the organization. A firm can
achieve its business goals if its employees maintain their competencies and fulfill the demands of their
assigned roles .HR approach should work with skill deficiencies and try to fill the existing gaps. Critical
evaluation of all the factors that are adversely affecting the performance of the organizational workforce
.Gaps identified are to be closed by the HR initiatives .Emerging needs of an organization are to be
properly evaluated to find the optimal methodology for implementation of the strategy .When business
of an organization is growing and some parts of organization face lack of competence ,HR people fill the
existing performance skill gaps and facilitate the success of the business strategy .Therefore, HR
decision making and evaluation is augmented by alignment of HR functions & stakeholder management
.HR are extensively involved in the formulation of the business strategy of the organization and it reaps
rich dividends for the organization .

HR also act as agents for change management in the organization and are closely associated with
business leaders in catalyzing the growth of the organization .In todays competitive environment HR
manage ways for effective management of the lean workforce management .HR as a strategic business
partner is responsible for driving the success of an organization ,providing competitive capabilities to an
organization and excel in any business functional area .Restructuring of the business HR processes and
systems is done to fulfill the objective of emphasizing the learning and development culture in the
organization .

Crisis management by HR involves effective management of the resources to facilitate the enhancement
of the operational capabilities of the organization and manage the crisis. Develop such capabilities
which improve the organizational response to the occurring crises events. These help the organizations
in outperforming their competitors and its the combination of various facets of the organization. Its the
combination of strategic thinking and capabilities for an organization that yields dividends for the
organization. Enhanced capabilities of an organization are related to the underlying attributes

1. Effective talent acquisition & management processes

 2. Agile processes in the organization facilitate effective decision making
3. Collective, collaborative and shared mind-set is essential for horizontal & vertical growth of
organization.
4. Accountability across the levels leads to high efficiency
5. Collaboration between the various departments of the organization is required to achieve
business excellence & to attain vision of the organization
6. Learning & development of the workforce of the organization should be facilitated to enhance
skill development across all levels
7. Leadership connect & grooming is essence for outperforming the competitors
8. Customer connectivity programs help in gaining essential feedback & to develop insights into
the customer relationship management processes.
9. Management of the corporate strategy in alignment with the HR processes of the organization is
essential for the organizational success.
10. Innovation is needed to remain ahead in the burgeoning competitive across segments
11. Efficient utilization of available resources to fulfill business objectives

Capabilities of an organization is dependent on the effective management of the skills, knowledge and
the processes that are prevalent in the organization. The effective combination of the existing skills &
processes leads to operational excellence. Change across the workforce in an organization leads to
lasting competitive advantage. Optimal alignment of HR practices to enhance organizational
capabilities.

1. Implemental stages of HR strategy are highly influenced by the underlying factors

2. Human Resource department of the organization
3. Human resource participation policy of the referred organization
4. Internal branding of the human resource philosophy in the organization
5. Efficiency and flexibility of the human resource systems within the organization
6. Enhancement of competency of the human resource staff
7. Availability of optimal resources for the organization
8. Availability of support from the Line Managers
9. Awareness & Knowledge of Line Managers with respect to HR practices
10. Training & Learning imparted to non -HR executives on HR related matters
 11. Knowledge about the various laws associated with the workforce
12. Prevailing conditions of the labor market

With the changes in the business reality the role of strategic HR is instrumental in enhancing the existing
business proposition, decision making process and formulation of strategy to achieve the business
objectives. Strategic HR facilitated that the learnings that are gathered from the past are utilized well to
develop insights & use them to prevent future impact of the abnormal business conditions.

STRATEGIC HR A VALUE DRIVEN BUSINESS FUNCTION

Transactional and administrative role of HR is undergoing transition into an internal strategic consultant
role providing great value to the business. People management responsibility is now managed by the line
managers for the staff who are in direct contact of the line managers. With the advent of strategic HR
initiatives, the organizational efforts are focused on generating the valued outcomes .HR department
drive the practices that motivate & drive people to focus on their skill improvement and competency
enhancement for performing their jobs.

Customers also recognize that HR practices of an organization are instrumental in facilitating the steady
flow of product and services in an organization. Strategic HR will help the organizations in combating
following competitive challenges

1. Advent of globalization enhanced competition from the multinational companies

2. Maintaining continuous growth and profitability
3. Maintaining competitive edge in Technology and Intellectual capital
4. Development of architecture to sustain companys overall mission and vision
5. Creation of business value & enhancing business proposition

HR department is associated with activities such as the resourcing of the manpower, training &
development of the personnel, adequate reward & recognition of the high-performance professionals,
establish communication between different departments of the organization and facilitating the effective
general management practices.HR can provide immense value addition to the organization in the process
of the strategy formulation for the organization.
 Technology; Economics

HR Role &
Demographics
Competencies

HR Value
Proposition
Customer
HR
,Investor
Organisation
,Managers ,
& Strategy
Employees

Information People
,Work Performnace,

Strategic HR voice is expressed and heard during formulation of the corporate strategy with optimal
aligning of HR policies & actions to achieve business objectives. Alignment of the management systems
with the strategic execution to create an asset which can outperform the competitors.

Strategic HR has been delivering values to the organization spanning across the

1. Strategic Domain
2. Human Resources Practices
3. Administrative Practices & Responsibilities
 Strategic
Domain
Human Resource
Practices

Administratio
n Practices

HR - Delivering Values to
Organisation

HR delivers the main value in the strategic domain in the organization which encompasses the
compensation policies of the organization, development of the executive in the firm and other processes
related to the succession planning programs.

Within the ambit of the HR practices, strategic HR manages recruitment, training & performance
management of the professionals across the verticals in an organization

Administrative services of a strategic HR involve the management of records and compliance with the
rules & regulations.
 Reduced
Turnover
Employee Employee
Development Motivation

Effective Value
proposition Risk
Recruitment delivered Reduction
& Selection by HR

Risk Reduction Capabilities of the HR

Through proactive evaluation of the human capabilities and limitations HR can play a pivotal role in the
risk mitigation strategy. Identification of people as a source of risk can be done by HR by identifying the
lacunae such as inefficiency in employees, underperforming employees, resistance to change by
employees, absentee employees etc .

Employees can also act as agents for handling the risk for the organization which involves employees
innovation, creativity of an employee to provide the needed solutions to the business problems, change
facilitation and enhancing business performance. Superior HR practices drive productivity and increased
turnover for the employees. Training and development reward systems play a pivotal role in
organizational performance. Recruitment should be done with due care to prevent the wrong sort of
employees from entering the organization. Lacunae in the recruitment results in falling productivity and
high labor turnover. Training and development activities lead to increased levels of satisfaction,
commitment and sense of belonging .HR can demonstrate its value by preventing mismanagement of
organizational resources by the employees.

Human
Resource
Harmonization

HR Risk Management
Perspective &
Methodology
HR professionals
should review
HR,Legal & HR Afflictions
Financial
Considerations

HR System consists of various kinds of function which involve the effective management of resources
and delivering value addition for the organization .Efficient management of the people and the
stakeholders lead to enhanced productivity in the organization .Regular HR activities such as training
development , performance appraisal , rewards etc should be integrated to risk management strategies
.Strategic integration of plans and policies is needed in addition to treatment of HR as equal business
partners for the overall business strategy to succeed .

References:

1. Wikipedia, www.wikipedia.com
2. INSEAD Business Insights, www.insead-hrbusiness.com
3. www.csb.gov.hk/english/publication/files/e-hrmguide.pdf
4. shodhganga.inflibnet.ac.in/bitstream/10603/76404/10/10_chapter%201.pdf
5. www.universityofcalicut.info/cuonline/exnotif/ex5462.pdf
6. https://openaccess.leidenuniv.nl/bitstream/handle/1887/.../ASC-075287668-3030-01.pdf
7. https://www.thebalance.com
8. www.whatishumanresource.com/human-resource-management
9. https://www.humanresourcesedu.org/what-is-human-resources/
10. www.businessdictionary.com/definition/human-resource-management-HRM.html