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... ... middle of paper ... ... HR as a strategic partner. References Allan, C., Sommerville, J., Kennedy, P., Robertson, H. (2000). Driving for business excellence through environmental performance improvements. Total Quality Management. Abingdon: July 2000, 11(4-6), 602-608. Buford, S. C., & Mackavey, M. (2003, Mar 2003). New directions for human resources in 2002 and beyond . Journal of American Academy of Business, Cambridge, 2 (2), 600. Jamrog, J., & Overholt, M. (2004). Building a Strategic HR Function: Continuing the Evolution. Human Resource Planning 27(1), 51. Noe et al. (2002). Human Resource Management: Gaining a Competitive Advantage (4/e ed.). : The McGraw-Hill Companies. Wert , J., & Liwanag , M. (2002, June 27, 2002). HR as Strategic Partner?. Retrieved October 30, 2004, from http://www.imakenews.com/sibson/e_article000078305.cfm
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Whether an organization consists of five or 25,000 employees, human resources management is vital to the success of the organization. HR is important to all managers because it provides managers with the resources – the employees – necessary to produce the work for the managers and the organization. Beyond this role, HR is capable of becoming a strong strategic partner when it comes to “establishing the overall direction and objectives of key areas of human resource management in order to ensure that they not only are consistent with but also support the achievement of business goals.” (Massey, 1994, p. 27)
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Understanding the strategic potential of HRM is a relatively recent phenomenon. Strategic HRM attempts to bring HRM to the boardroom. It requires personnel policies and practices to be integrated so that they make a coherent whole, and also that this whole is integrated with the business or organisational strategy.
The drive for conducting this research as outlined is to establish the importance of HRM as a strategic partner in an organization. A strategic partner is a party who legally agrees to work with the other party in order to achieve set goals. The first part of this research involves identifying the importance of having HRM as a strategic partner. They include but not limited to recruiting and maintaining the right talent, reduction in undesirable turnover and overall success for the organization. The second part identifies how HR can transform to a strategic business partner. The research shows that it is important for organizations to transform from primarily administrative functions to become strategic partners.
4) Tokesky, George C; Kornides, Joanne : ‘Strategic HR Management is vital’( Personal journal, December 1994 v 73 n 12 p 115.