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...
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... HR as a strategic partner.
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" This global London-based mining and mineral company was severely impacted by the global recession in 2008. Such an impact forced unprecedented workforce reductions worldwide and decentralized HR management had to be brought in under a single umbrella to ensure an orderly and efficient system that would support the organization’s future productivity."( Case Study OneRedesigning HR HRMG 5000 - Student Simple). Human resources have a strategic significance if managed efficiently and productively. The company revamped and managed its HR functions in a manner so as to achieve the strategic goals of the
Strategic human resource management can be defined as the linking of human resources with strategic goals and objectives in order to improve business performance and develop organizational culture that foster innovation, flexibility and competitive advantage. In an organization SHRM means accepting and involving the HR function as a strategic partner in the formulation and implementation of the company's strategies through HR activities such as recruiting, selecting, training and rewarding personnel (Sinha, 2007). This is the effective way of organizing the workforce by the adoption of a specific strategy, where employees' performance can help to achieve the planned organizational targets, such as increasing revenue or improving the profit margin. However, there is no common strategic human resource definition that fits every situation (Lotinggi, 2008). This paper will focus on strategic human resource management at Smarte Carte, Inc. and attempt to make a determination if the company uses SHRM effectively or if there are areas where improvements could be made.
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