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Evolving HR Roles and Strategic Impact

The role of human resources (HR) is changing from transactional to more strategic. Traditionally, HR focused on administrative activities like staffing, compensation, and benefits. However, as business environments evolve due to factors like globalization and new technologies, HR must now take on more strategic responsibilities. This includes partnering with top management on issues like strategic planning, mergers and acquisitions, organizational design, and ensuring HR programs enhance business performance. The strategic HR role involves moving from an internal, reactive orientation to an outward-facing, proactive approach that integrates business and HR strategies. For HR to add greater value, it needs to transform itself from a transactional function into a consultant and business partner.

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0% found this document useful (0 votes)
29 views24 pages

Evolving HR Roles and Strategic Impact

The role of human resources (HR) is changing from transactional to more strategic. Traditionally, HR focused on administrative activities like staffing, compensation, and benefits. However, as business environments evolve due to factors like globalization and new technologies, HR must now take on more strategic responsibilities. This includes partnering with top management on issues like strategic planning, mergers and acquisitions, organizational design, and ensuring HR programs enhance business performance. The strategic HR role involves moving from an internal, reactive orientation to an outward-facing, proactive approach that integrates business and HR strategies. For HR to add greater value, it needs to transform itself from a transactional function into a consultant and business partner.

Uploaded by

Rahul Gaur
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

CHANGING ROLE OF HR

Ashutosh Pandey Ashish Sharma Ashutosh Singh Avantika Tyagi Bineet Kumar Bhagwati Prasad Gupta
11

Nature of Human Resource Management


Human Resource (HR) Management
The design of formal systems in an organization to ensure effective and efficient use of human talent to accomplish organizational goals.

12

Nature of Human Resource Management cont.


Who Is an HR Manager?
In the course carrying out their duties, every operating manager is, in essence, an HR manager. HR specialists design processes and systems that operating managers help implement.
13

Past Role of HR Activities


Strategic HR Management Equal Employment Opportunity Staffing HR Development Compensation and Benefits Health, Safety, and Security Employee and Labor Relations

14

HR Management Activities

Figure 11 15

HR Management Challenges
Globalization of Business
Outsourcing and increased competition

Economic and Technological Changes


Occupational shifts from manufacturing and agriculture to service industries and telecommunications. Pressures of global competition causing firms to adapt by lowering costs and increasing productivity.

Technological Shifts and the Internet


Growth of information technology.

16

HR Management Challenges
Workforce Availability and Quality Concerns
Inadequate supply of workers with needed skills for knowledge jobs Education of workers in basic skills

Attracting and retaining Talent


By providing satisfaction in their work. Job satisfaction. Rewards.

17

HR Management Challenges
Workforce Demographics and Diversity
Increasing Racial/Ethnic Diversity More Women in the Workforce

Single-parent households Dual-career couples Domestic partners Working mothers and family/childcare

Significantly Aging Workforce

Age discrimination

18

Changing Roles of HR Management

Note: Example percentages are based on various surveys.

Figure 15 19

Strategic Role for HR


Strategic Role
Contributing at the Table to organizational results HR becomes a strategic business partner by:
Focusing on developing HR programs that enhance organizational performance. Involving HR in strategic planning at the onset. Participating in decision making on mergers, acquisitions, and downsizing. Redesigning organizations and work processes Accounting and documenting the financial results of HR activities.

110

Operational to Strategic Transformation of HR

Figure 16 111

HR Transformation
Process of Recreating the HR function so as to enhance HR contribution to the business

It involves a shift from the internal operations (transactional, inward) activities to a more market perspective related performance.
Over the years role has been evolving, but within its HR (Personnel) box. Current transformation is breaking outside the box Now HR transformation deals with issues of Organisational Renewal, Change Management, Business Success, Business intellegence, Culture, Behavioral Change.
112

113

Changing Role of HR

HR ROLE/CONTRIBUTION

BUSINESS PARTNER

CONSULTANT

TRANSACTIONAL

LOW VALUE

HIGH VALUE
114

Changing Role of HR

TRANSACTIONAL

CONSULTANT

BUSINESS PARTNER

Inform Police Control Reactive

Advise Solutions Inward Reactive

Integrate Strategy

Outward
Proactive

115

Transactional example of HR

Delivering a Service to a client or end user. Recruit an Engineer Investigate a discipline Case Book Training for the participants to Carry Workshop Provide Consulting Plus all the other Record keeping Functions
116

CONSULTANT

Provide HR to a Business Unit in order to solve a specific problem. Define competence requirements Giving advice in dealing with specific issues eg.: How to stop a Competitor from poaching your staff; How to create a Customer Care Culture.
117

PARTNER
Working with the top Management Team as a partner in:
Participating in defining Business Strategy. Actively live up to Vision and mission statement Influencing change in Strategy in view of the organizations Talent Base, or ability to build one in the short Term. Develop capacity building Implementing the HR component of the Business Strategy.

118

The Role of HR
Future / Strategic Focus

Strategic Partner
Strategic HR Planning HR as Business Partner Culture and Image

Change Agent
Staffing Organizational design Survey action planning Performance measurement Training and development

Processes

People

Administrative Expert
Compensation Benefits HR information systems Compliance

Employee Relations Expert


Employee relations Labor relations Safety & workers compensation Diversity and EEO

Day to Day Operational Focus

119

Conclusion

120

OPERATIONS

FINANCE

Human Resource

MARKETING

I.T

The new organisation places greater demands on HR assesments professionals to show their worth. New compatencies must be demonstrated to play a broader role in the organisation.

More holistic and dynamic models/approaches are needed to have a greater impact on decisions made and programs adapted

122

THE ORGANISATION OF THE FUTURE WILL RELY MORE ON ITS PEOPLE


Yesterday ------------------------------- Access to most capital and latest technology. Today ----------------------------------- Offering products with highest quality. Tommorow --------------------------- Maintating high caliber of people.

HR/assessment professionals are in a perfect position to regain and sustain their place in the new organization.
123

THANK YOU

124

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