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THE EVOLVING/ STRATEGIC

ROLE OF
HUMAN RESOURCE
MANAGEMENT
Strategic
Strategic Human
Human Resource
Resource
Management
Management
Involves
Involvesdevelopment
developmentof ofconsistent,
consistent,aligned
alignedcollection
collectionof
of
practices,
practices,programs,
programs,andandpolicies
policiestotofacilitate
facilitateachievement
achievement
of
ofstrategic
strategicobjectives
objectives
Requires
Requiresabandoning
abandoningmindset
mindsetand andpractices
practicesofofpersonnel
personnel
management,
management,and andfocusing
focusingon onstrategic
strategicissues,
issues,rather
ratherthan
than
solely
solelyononoperational
operationalissues
issues
Integration
Integrationofofall
allHR
HRprograms
programswithin
withinlarger
largerframework,
framework,
facilitating
facilitatingmission
missionandandobjectives
objectives
Writing
Writingdown
downstrategy
strategyfacilitates
facilitatesinvolvement
involvementand andbuy-in
buy-in
of
ofsenior
seniorexecutives
executivesandandother
otheremployees
employees

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Exhibit
Exhibit4-1
4-1(Ulrich,
(Ulrich,1997)
1997)
Possible
Possible Roles
Roles Assumed
Assumed by
by HR
HR
Function
Function

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HR
HR Roles
Roles in
in Knowledge-Based
Knowledge-Based
Economy
Economy
Human
Human capital
capital steward
steward
Creates
Createsananenvironment
environmentand andculture
cultureininwhich
whichemployees
employees
voluntarily
voluntarilycontribute
contributeskills,
skills,ideas,
ideas,and
andenergy
energy
Human
Humancapital
capitalisisnot
notowned
ownedby byorganization
organization
Knowledge
Knowledge facilitator
facilitator
Procures
Procuresnecessary
necessaryemployee
employeeknowledge
knowledgeand
andskill
skillsets
setsthat
that
allow
allowinformation
informationtotobebeacquired,
acquired,developed,
developed,and
and
disseminated
disseminated
Provides
Providesaacompetitive
competitiveadvantage
advantage
Must
Mustbebepart
partofofstrategically
strategicallydesigned
designedemployee
employee
development
developmentplanplan
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HR
HR Roles
Roles in
in Knowledge-Based
Knowledge-Based
Economy
Economy
Relationship
Relationship builder
builder
Develops
Developsstructure,
structure,work
workpractices,
practices,and
andculture
culturethat
that
allow
allowindividuals
individualstotowork
worktogether
together
Develops
Developsnetworks
networksthat
thatfocus
focuson
onstrategic
strategic
objectives
objectives
Rapid
Rapid deployment
deployment specialist
specialist
Creates
Createsfluid
fluidand
andadaptable
adaptablestructure
structureand
andsystems
systems
Global,
Global,knowledge-based
knowledge-basedeconomy
economymandates
mandates
flexibility
flexibilityand
andculture
culturethat
thatembraces
embraceschange
change

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SHRM
SHRM Critical
Critical Competencies
Competencies

HRs
HRssuccess
success as
as true
true strategic
strategic business
business partner
partner
dependent
dependent on
on five
five specific
specific competencies:
competencies:
Strategic
Strategiccontribution
contribution--development
developmentofofstrategy
strategy
Business
Businessknowledge
knowledge--understanding
understandingnutsnutsand
andbolts
boltsofof
organization
organization
Personal
Personalcredibility
credibility--measurable
measurablevalue
valuedemonstrated
demonstratedinin
programs
programsand andpolicies
policies
HR
HRdelivery
delivery--serving
servinginternal
internalcustomers
customersthrough
througheffective
effective
and
andefficient
efficientprograms
programs
HR
HRtechnology
technology--using
usingtechnology
technologytotoimprove
improveorganizations
organizations
management
managementofofpeople
people

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Exhibit
Exhibit4-4
4-4
Lepak
Lepak &
& Snells
Snells Employment
Employment Models
Models

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Exhibit
Exhibit4-5
4-5
Traditional
Traditional HR
HR Versus
Versus Strategic
Strategic HR
HR

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Barriers
Barriers to
to Strategic
Strategic HR
HR
Short-term
Short-termmentality/focus
mentality/focus on on current
current performance
performance
Inability
Inability of
of HR
HR toto think
think strategically
strategically
Lack
Lack of
of appreciation
appreciation for for what
what HR
HRcancan contribute
contribute
Failure
Failure to
to understand
understand line line managers
managersrolerole as
as an
an HR
HR
manager
manager
Difficulty
Difficulty inin quantifying
quantifying manymany HR HR outcomes
outcomes
Perception
Perception of of human
human assets
assets as
as higher-risk
higher-risk
investments
investments
Incentives
Incentives forfor changes
changes that
that might
might arise
arise

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Exhibit
Exhibit4-7
4-7
Outcomes
Outcomes of
of Strategic
Strategic HR
HR

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Exhibit
Exhibit4-8
4-8
Model
Model of
of Strategic
Strategic HR
HR Management
Management

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Reading
Reading4.1
4.1(Rodriguez
(Rodriguez&&Ordonez
Ordonezde
dePablos)
Pablos)
Strategic
Strategic HR
HR as
as Organizational
Organizational
Learning
Learning
Stages
Stages of
of knowledge
knowledge management
management
Generating
Generating oror capturing
capturing knowledge
knowledge
Structuring
Structuring and
and providing
providing value
value toto gathered
gathered
knowledge
knowledge
Transferring
Transferring knowledge
knowledge
Establishing
Establishing mechanisms
mechanisms for for use
use and
and reuse
reuse
ofof knowledge
knowledge for
for individuals
individuals and
and groups
groups

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Figure
Figure11
Knowledge
Knowledge Management
Management Cycle
Cycle

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Figure
Figure22
Knowledge
Knowledge Management
Management

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Reading
Reading4.1
4.1
Strategic
Strategic HR
HR as
as Organizational
Organizational
Learning
Learning
Knowledge
Knowledge creation
creation
Single-loop
Single-looplearning:
learning:
Comparing
Comparingconsequences
consequencesof
ofactions
actionswith
withdesired
desired
outcomes
outcomes
Modifying
Modifyingbehavior
behavior
Double-loop
Double-looplearning:
learning:
Goes
Goesbeyond
beyonddetection
detectionand
andcorrection
correctionof
oferrors
errors
Entails
Entailsexamining
examiningactions
actionsand
andoutcomes,
outcomes,as
aswell
wellas
as
underlying
underlyingassumptions
assumptions

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Reading
Reading4.1
4.1
Strategic
Strategic HR
HR as
as Organizational
Organizational
Learning
Learning
Without
Without purposeful
purposeful analysis
analysis of
of
underlying
underlying assumptions
assumptions andand systems,
systems,
organizations
organizations may
may become
become victims
victims of
of
competency
competency traps
traps
Organizational
Organizational learning:
learning:
Inherently
Inherently rare
rare
Inimitable
Inimitable
Immobile
Immobile
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Reading
Reading4.1
4.1
Strategic
Strategic HR HR as
as Organizational
Organizational
Learning
Learning
How
How HRHR management
management systems
systems can
can
contribute
contribute to
to development
development of
of organizational
organizational
knowledge
knowledge
Labor
Labormarkets
marketscan
canbebeexploited
exploitedininorder
ordertotoattract
attract
and
andselect
selectindividuals
individualswith
withhigh
highcognitive
cognitiveabilities
abilities
Internal
Internallabor
labormarkets
marketscan cancontribute
contributetoto
development
developmentofoffirmfirmspecific
specificassets
assets
Cross-functional
Cross-functionaland andinter-organizational
inter-organizationalteams
teamscancan
be
beutilized
utilized

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Reading
Reading4.1
4.1
Strategic
Strategic HR
HR as
as Organizational
Organizational
Learning
Learning
How
How HR
HR systems
systems can
can support
support and
and
enhance
enhance knowledge
knowledge transfer
transfer
Apprenticeship
Apprenticeship andand mentoring
mentoring
Cross-functional
Cross-functional teams
teams
Stimulate
Stimulate and
and reward
reward information
information sharing
sharing
Provide
Provide free
free access
access toto information
information
Job
Job rotations
rotations

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Reading
Reading4.1
4.1
Knowledge
Knowledge Institutionalization
Institutionalization
Walsh
Walsh and
and Ungsons
Ungsonsfive
five storage
storage bins
binsin
in which
which
organizational
organizational memory
memory can
can reside
reside
Individuals
Individuals(assumptions,
(assumptions,beliefs,
beliefs,and
andcause
causemaps)
maps)
Culture
Culture(stories,
(stories,myths,
myths,and
andsymbols)
symbols)
Transformations
Transformations(work
(workdesign,
design,processes,
processes,and
androutines)
routines)
Structure
Structure(organizational
(organizationaldesign)
design)
Ecology
Ecology(physical
(physicalstructure
structureand
andinformation
informationsystems)
systems)
Institutionalized
Institutionalized knowledge
knowledge tends
tends to
to be
be firm
firm
specific,
specific, socially
socially complex,
complex, and
and causally
causally
ambiguous
ambiguous

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Figure
Figure33
Alternative
Alternative Orientations
Orientations of
of Fit
Fit in
in
SHRM
SHRM

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Reading
Reading4.2
4.2(Bowen
(Bowen&&Ostroff)
Ostroff)
Understanding
Understanding HRM-Performance
HRM-Performance
Linkages
Linkages
Scholars
Scholars have
have often
often assumed
assumed twotwo perspectives
perspectives
Systems
Systems view
view considers
considers overall
overall configuration
configuration or
or
aggregation
aggregation ofof HRM
HRM practices
practices
Strategic
Strategic perspective
perspectiveexamines
examinesfit
fitbetween
between
various
various HRM
HRM practices
practices and
and organizations
organizations
competitive
competitive strategy
strategy
Overall
Overall set
set of
of HRM
HRM practices
practices generally
generally associated
associated
with
with firm
firmperformance
performance and and competitive
competitive advantage
advantage

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Reading
Reading4.2
4.2
Understanding
Understanding HRM-Performance
HRM-Performance
Linkages
Linkages
Psychological
Psychological climate:
climate:
Experiential-based
Experiential-basedperception
perceptionofofwhat
whatpeople
peoplesee
see
and
andreport
reporthappening
happeningtotothem
themas
asthey
theymake
makesense
sense
ofoftheir
theirenvironment
environment
Climate:
Climate:
Critical
Criticalmediating
mediatingconstruct
constructininexploring
exploringmultilevel
multilevel
relationships
relationshipsbetween
betweenHRM
HRMand andorganizational
organizational
performance
performance

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Reading
Reading4.2
4.2
Understanding
Understanding HRM-Performance
HRM-Performance
Linkages
Linkages
Two
Two interrelated
interrelated features
features of
of HRM
HRM
system:
system:
Content
Content
Process
Process
Must
Must be
be integrated
integrated effectively
effectively

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Reading
Reading4.2
4.2
Understanding
Understanding HRM-Performance
HRM-Performance
Linkages
Linkages
Content
Content
Set
Setofofpractices
practicesadopted
adopted
Ideally
Ideallydriven
drivenbybystrategic
strategicgoals
goalsand
andvalues
values
No
Nosingle
singlemost
mostappropriate
appropriateset
setofofpractices
practicesfor
forparticular
particular
strategic
strategicobjective
objective
Different
Differentsets
setsofofpractices
practicesmay
maybe beequally
equallyeffective
effectivesosolong
long
as
asthey
theyallow
allowparticular
particulartype
typeofofclimate
climatearound
aroundsome
some
strategic
strategicobjective
objectivetotodevelop
develop
Process
Process
How
HowHRMHRMsystem
systemcan
canbe
bedesigned
designedand
andadministered
administered
effectively
effectivelyby
bydefining
definingmeta-features
meta-featuresofofoverall
overallHRM
HRMsystem
system
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Reading
Reading4.2
4.2
Understanding
Understanding HRM-Performance
HRM-Performance
Linkages
Linkages
To
To create
create strong
strong situations
situations with
with
unambiguous
unambiguous messages
messages about
about
appropriate
appropriate behavior,
behavior, HRM
HRM systems
systems
should
should have:
have:
Distinctiveness
Distinctiveness
Consistency
Consistency
Consensus
Consensus

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Reading
Reading4.2
4.2
Understanding
Understanding HRM-Performance
HRM-Performance
Linkages
Linkages
Distinctiveness
Distinctiveness
Visibility
Visibility
Degree
Degreetotowhich
whichpractices
practicesare
aresalient
salientand
andreadily
readilyobservable
observable
Understandability
Understandability
Lack
Lackof
ofambiguity
ambiguityand
andease
easeof
ofcomprehension
comprehensionof
ofpractice
practice
content
content
Legitimacy
Legitimacyofofauthority
authority
Leads
Leadsindividuals
individualstotosubmit
submittotoperformance
performanceexpectations
expectationsas
as
formally
formallysanctioned
sanctionedbehaviors
behaviors
Relevance
Relevance
Whether
Whethersituation
situationisisdefined
definedso
sothat
thatindividuals
individualssee
seeititas
as
relevant
relevanttotoimportant
importantgoalgoal

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Reading
Reading4.2
4.2
Understanding
Understanding HRM-Performance
HRM-Performance
Linkages
Linkages
Consistency
Consistency
Instrumentality
Instrumentality
Unambiguous
Unambiguousperceived
perceivedcause-effect
cause-effectrelationship
relationship
between
betweensystems
systemsdesired
desiredcontent-focused
content-focused
behaviors
behaviorsand
andassociated
associatedemployee
employeeconsequences
consequences
Validity
Validity
HRM
HRMpractices
practicesmust
mustdisplay
displayconsistency
consistencybetween
between
what
whatthey
theypurport
purportto
todo
doand
andwhat
whatthey
theyactually
actuallydo
do

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Reading
Reading4.2
4.2
Understanding
Understanding HRM-Performance
HRM-Performance
Linkages
Linkages
Consensus
Consensus
Agreement
Agreement among
among message
message senders
senders
Fairness
Fairness
Composite
Composite ofof employees
employeesperceptions
perceptions of
of
whether
whether practices
practices adhere
adhere toto three
three
dimensions
dimensions ofofjustice:
justice: distributive,
distributive,
procedural,
procedural, and
and interactional
interactional

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Reading
Reading4.3
4.3(Greene)
(Greene)
Organization
Organization Culture
Culture Questionnaire
Questionnaire
Topics
Topics to
to be
be included
included in
in questionnaire:
questionnaire:
How
Howisisperformance
performancedefined,
defined,measured
measuredandand
rewarded?
rewarded?
How
Howare
areinformation
informationand
andresources
resourcesallocated
allocatedand
and
managed?
managed?
What
Whatisisoperational
operationalphilosophy
philosophyofoforganization
organizationwith
with
regard
regardtotorisk-taking,
risk-taking,leadership,
leadership,and
andconcern
concernfor
for
overall
overallresults?
results?
Does
Doesorganization
organizationregard
regardhuman
humanresources
resourcesasascosts
costs
or
orassets?
assets?
Copyright 2005 South-Western. All rights reserved. 129
Reading
Reading4.3
4.3
Interpreting
Interpreting Results
Results &
& Formulating
Formulating
Strategies
Strategies
Tendency
Tendency to to try
try to
to identify
identify an
an ideal
ideal culture
culture
Not
Not clear
clear than
than any
any oneone culture
culture will
will be
be effective
effective for
for
all
all organizations
organizations
Strategy
Strategy consists
consists of ofinterrelated
interrelated functional
functional
components
components that that must
must be be carefully
carefully integrated
integrated to
to
form
forman an effective
effective whole:
whole:
Selection
Selectionand
andstaffing
staffing
Organizational
Organizationaland
andhuman
humanresource
resourcedevelopment
development
Rewards
Rewards

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Reading
Reading4.3
4.3
Analyzing
Analyzing Dysfunctional
Dysfunctional Cultures
Cultures
Which
Which components
components of ofculture
culture are
are misaligned?
misaligned?
What
What priorities
priorities should
should be
be assigned
assigned toto bridging
bridging
gaps
gaps between
between what
what culture
culture isis and
and what
what people
people feel
feel
itit should
should be?
be?
What
What resources
resources are
are needed
needed andand how
how should
should they
they
be
be used
used to
to change
change culture?
culture?
How
How should
should change
change effort
effort be
be managed,
managed,and and who
who
does
does what?
what?
What
What rolerole should
should HR
HR strategy
strategy play
play in
in signaling,
signaling,
making,
making, and and reinforcing
reinforcing necessary
necessary changes?
changes?
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