HR Competencies and the Relationship To

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    Researchers in the field of strate-gic human resource management

    have emphasized the view that

    systems of human resource

    (HR) practices may lead to higher firm

    performance and be sources of sustained

    competitive advantages (Wright, Dunford,

    & Snell, 2001). Competing in todays

    tumultuous global economy provides

    additional challenges to the HR function

    in creating the expected value to create

    and sustain competitive advantages.

    Brockbank, Ulrich, and Beatty (1999)

    argue that for HR to be a profession, HRprofessionals must master the necessary

    competencies, and that mastery of HR

    knowledge comes from knowing the con-

    cepts, language, logic, research, and

    practices of HR. Furthermore, mastery of

    abilities comes from being able to apply

    the knowledge to specific business settings.

    With growing emphasis being placed on

    HR competencies as a means to increas-

    ing HRs effectiveness, this research

    study seeks to do several things:

    Determine if competencies are predic-

    tive of success in the HR profession.

    Understand how competencies vary by

    type of position within HR (entry level,

    manager, director, and executives).

    Determine if there is a relationshipbetween specific competencies and

    particular responsibilities of HR pro-

    fessionals.

    Determine the relationship among

    education, years of HR experience,

    competencies, and compensation.

    Competence of an individual is the know-

    ledge, skills, abilities, or personality

    characteristics that directly influence

    ones performance (Becker, Huselid, &

    Ulrich, 2001).

    Literature Review

    To sustain the transformation of the HR

    function, HR professionals must develop

    and demonstrate a new set of competen-

    cies to fulfill their changing roles and

    responsibilities (Yeung, Woolcock, &

    Sullivan, 1996). In the widely cited

    Michigans HR Competency Research

    (Brockbank, Ulrich, & James, 1997),

    the researchers identified five major com-

    petencies expected of HR professionals:strategic contribution, personal credibil-

    ity, HR delivery, business knowledge, and

    HR technology. Becker et al. (2001) sug-

    gested adding strategic HR performance

    management as a sixth competency.

    HR Competencies and

    Their Relationship to

    Organizational Practicesby Sunil J. Ramlall, PhD

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    According to Becker et al. (2001), the strategic performance

    management strategies are probably a little different and

    support the notion that HR managers must think differently

    about HR. The core dimensions of this competency are (1)

    critical causal thinking, (2) understanding of the principles

    of good measurement, (3) estimation of causal relationships,

    and (4) communication of HR strategic performance results

    to senior line managers. It is argued that with a stronger

    competency in strategic performance management that an

    HR professional would be better able to show correlation

    and causal relationships between HR systems and financial

    outcomes, customer value proposition, and even competi-

    tive advantages.

    The Society for Human Resource Management (SHRM), the

    University of Michigan Business School, and the Global

    Consulting Alliance have since developed the HR

    Competency Toolkit, which is in part designed to enable HR

    professionals to assess and improve their HR skills

    (Brockbank & Ulrich, 2004) and is now used by many HR

    professionals across the world. According to SHRM, compe-

    tencies have emerged that range from being a specializedand narrow application to being a leading method for diag-

    nosing, framing, and improving most aspects of HR.

    Furthermore, the research by Brockbank et al. (1999)

    showed that HR activities positively impact business perfor-

    mance (defined as the financial performance of the business

    over the last three years compared to major competitors) by

    approximately 10%. Strategic contribution accounts for

    43% of HRs total impact on business performance, which is

    almost twice the impact of any other domain. These are all

    reasons why competencies are being discussed by academi-

    cians and practitioners as ways of creating sustainable

    competitive advantages.

    Many other research findings have pointed to the relation-

    ship of HR and HR competencies to increasing profitability

    and creating competitive advantages. Competencies are needed

    to enable an organization to achieve strategic, creative out-

    comes and to maximize productivity.

    In addition to traditional HR disciplines, the HR function is

    now looked to for expertise in designing organizations and

    organizational systems and for managing major changes to

    increase competitiveness. Such outcomes require competency

    in strategic contribution and ability to deliver HR services.

    As cited in Patterson (2004), the following actions are being

    taken by HR professionals in response to these respective

    trends:

    Increasing the use of technology to perform transac-

    tional HR functions80%

    Increasing HRs role in promoting corporate ethics

    67%

    Increasing investment in training for HR staff57%

    Building people management or human capital compo-

    nents into key business transactions (change management,

    mergers, and acquisitions)54%

    Encouraging certification for HR professionals54%

    Measuring human capital52%

    Increasing use of specialized HR practitioners31%

    Increasing HR outsourcing21%

    Decreasing HR outsourcing10%

    Decreasing use of specialized HR practitioners9%

    The increasingly global nature of competition requires that

    firms use all their available resources to survive and suc-

    ceed. Wright, McMahan, McCormick, and Sherman (1998)

    concluded that this phenomena has resulted in an empha-

    sis on the alignment of all functional activities of a firm

    (e.g., finance, marketing, operations, etc.) toward the

    achievement of strategic objectives. One consequence of

    this trend is that many have called for a new strategic role

    for the HR function.

    This role entails two major aspects. First, the HR executive

    should provide input into the firms strategy to ensure thatthe firm has the human resource capabilities to implement

    the strategy. Second, the HR function needs to ensure that

    the HR programs and practices are in place to effectively

    implement the strategy. Given this requirement, it is quite

    obvious that HR professionals must be fully competent in

    strategy development, implementation, and evaluation.

    An approach within the strategic perspective on human

    resources management (HRM) pertains to how the overall

    set of HRM practices is generally associated with firm per-

    formance and competitive advantage (Ferris, Hochwarter,

    Buckley, Harrell-Cook, & Frink, 1999). Central here is the

    resource-based perspective (Barney, 1991) such that, collec-tively, a firms human resources are believed to have

    implications for firm performance and provide a unique

    source of competitive advantage that is difficult to replicate

    (Wright, McMahan, & McWilliams, 1994).

    In another study, business knowledge, customer orientation,

    effective communication, credibility and integrity, and sys-

    temic perspective were identified as competencies

    corresponding to structures and needs in organizations

    (Yeung et al., 1996).

    A competency model can serve as an integrative framework

    for an organizations entire HR system. It can help align theHR system vertically with the organizations strategic objec-

    tives or horizontally with other HR functions to ensure

    harmony and consistency across the many facets of HR

    activities that impact human performance (Rothwell &

    Wellins, 2004). Moreover, taking talent management exper-

    tise forward is central to the future success of the entire HR

    profession (Boudreau & Ramstad, 2003). The authors reiterate

    that the HR profession can evolve into a true decision science

    Performance Improvement Volume 45 Number 5 33

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    of talent and aspire to the level of influence of disciplines

    such as finance and marketing.

    With the shifting role of HR, organizations must establish

    new covenants with customers, manage disruptive technolo-

    gies, create new forms of engagements with employees, and

    face the scrutiny of investors who determine a firms market

    value by assessing its intangibles, not just its present or past

    earnings (Ulrich & Beatty, 2001). Tied to the changing

    demands of the HR professions are the new competencies

    enabling HR to be effective in driving firm performance and

    creating sustainable competitive advantages.

    Methodology

    The study used a cross-sectional design collecting data at

    one point in time versus a longitudinal research where data

    are collected from a sample at different points in time to

    study changes or continuity in the samples characteristics

    (Gall, Borg, & Gall, 1996). The target population was HR pro-

    fessionals in the upper Midwest region of the United States.

    HR professionals for the purpose of this study include indi-viduals who practice in the field of HRM and who hold

    full-time exempt positions.

    Survey Design

    Based on theories, concepts, and frameworks discussed in

    the literature review, the author designed a survey as the

    primary means of data collection for the study.

    The instrument was compiled to include multiple sec-

    tions. The first section sought information on the

    participants position classification (job title), industry,

    years employed in HR, years in current position, and high-est educational attainment. The second section of the

    survey had the participant identifying the competencies,

    skills, and attributes HR professionals should possess and

    the competencies the participants employers emphasize

    in various employment practices. Compensation informa-

    tion was also included in this section. The third section of

    the survey listed 12 specific strategies and activities

    (Becker & Huselid, 1998; Brockbank et al., 1999;

    Giannantonio & Hurley, 2002). A scale of 15 was used to

    indicate the level of competence needed in ones job and,

    second, the level of the employees competence for the

    specific HR activity; 1 represented least competent and 5

    represented highest level of competence.

    As a way to determine the construct validity of the instru-

    ment and to enhance its effectiveness, a pilot study of the

    survey was conducted on a stratified sample of 12 HR pro-

    fessionals including senior executives, HR managers, and

    HR generalists. Respondents were asked to review the

    instrument and provide feedback on the utility of the ques-

    tions, recommend additional questions, eliminate questions,

    and determine if the questions were able to collect the

    appropriate data needed to fulfill the purpose of the study.

    Items that were consistently identified by the focus group

    were included in the final survey.

    Sample

    The target population for the study was HR professionals in

    the upper Midwest United States belonging to professional HR

    associations. Surveys were sent to 224 HR professionals at 66

    different companies. The 66 companies were selected through

    stratified random sampling as a means to ensure population

    validity. The 66 companies represented Fortune 500 compa-

    nies, other large and medium-sized companies in retail,

    banking and finance, state and city government, agriculture,

    education, manufacturing, and transportation industries.

    According to Bracht and Glass (1968), one of the criteria for

    judging experiments is population validity, which is the

    extent to which the results of an experiment can be general-

    ized from the sample that participated to the population.

    Stratified random sampling ensured that companies wererandomly chosen but included samples from multiple

    industries, size of companies, and financial performance,

    among other factors. The reason for taking a stratified sam-

    ple is to have a more efficient sample than could be taken on

    the basis of simple random sampling. Another benefit is the

    assurance that the sample will accurately reflect the popu-

    lation on the basis of the criterion used for stratification

    (Zikmund, 2003).

    Given that this study used correlational and causal-compar-

    ative research among other statistical tools, it was

    imperative to include at least 30 companies in the research.

    Using statistical power analysis, 224 employees from 66companies were selected, enabling higher levels of reliabil-

    ity, validity, and generalizability. The sample included vice

    presidents of HR, HR directors, HR managers, HR general-

    ists, and HR specialists. The sample only included exempt

    level HR professionals.

    Reliability Test

    To determine the reliability of the data collected, the author

    used Cronbachs alpha to test the responses received. The

    quest was to determine the proportion of the variability in

    the responses that was the result of differences in the

    respondents. The result was 0.668. Under the assumptionthat the item variances are all equal, this ratio simplifies to

    the average interitem correlation, also resulting in standard-

    ized item alpha of 0.662.

    Although an alpha of at least 0.8 would have been preferred,

    0.7 would be acceptable given the multidimensional nature

    of the data, and, hence, a satisfactory measure of how well

    the variables measure the respective constructs.

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    Results

    Responses were received from

    108 of the 224 participants for a

    response rate of 48%. There were

    three surveys that were undeliver-

    able. Of the 108 participants who

    returned their surveys, approxi-

    mately 18% were HR directors,

    34% were HR managers, 25%

    were HR generalists, 17% were

    HR specialists, and 6.5% were

    vice presidents. Table 1 provides

    the specific numbers of individu-

    als by job category.

    Years of Experience

    The average number of years of experience for the overall

    sample was 10.45 years. Not surprisingly, vice presidents

    had the highest years of experience within HR. HR general-

    ists and managers had relatively similar years of experience,with HR specialists showing more years within the HR pro-

    fession, as illustrated in Figure 1.

    Education

    Of the 108 participants, 13 had a high school diploma/GED

    as the highest educational attainment, 60 had a BA/BS

    degree, and 35 had an MBA/MA/MS. Of the 19 HR direc-

    tors, six possessed an advanced degree, eight had an

    undergraduate degree, and five had a high school diploma

    or equivalent as the highest educational attainment. Among

    the vice presidents, six of the seven participants had earned

    a graduate degree and one had an undergraduate as thehighest educational attainment. Among the HR generalists,

    seven had an advanced degree, eighteen had an undergrad-

    uate, and two had a high school diploma or equivalent as

    the highest educational attainment (see Figure 2 and Table 2).

    Relationship Between Specific Competencies and Success

    in the HR Profession

    For purposes of this study, it was assumed that a higher

    level of compensation was correlated with relatively more

    success in ones position. The exception may be in a union

    environment, where pay

    may be based in part on

    longevity and not solely

    on performance. Thus,

    one of the dependent vari-

    ables used in this study is

    annual base compensation

    as a measure of success in

    ones position.

    The average annual salary for HR directors in this study was

    $95,395. HR generalists had an average salary of $74,075; HR

    specialists averaged $55,178; and, as expected, HR vice pres-

    idents averaged significantly higher at $162,857. Table 3

    provides the descriptive statistics for the compensation data.

    Based on the findings of Brockbank et al. (1997), the fre-

    quency of participants citing knowledge of the business,

    strategic contribution, personal credibility, HR delivery, HR

    technology, andas added by Becker et al. (2001)mea-

    surement as competencies HR professionals should possess

    to effectively function as strategic business partners were

    listed as some as the core competencies of HR professionals.

    Performance Improvement Volume 45 Number 5 35

    Table 1. Participants by Job Category.

    Table 2. Overall Educational Attainment.

    Figure 1. Years of Experience by Job Category.

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    As Table 4 shows, the participants of the study did not allagree that the listed competencies were seen as critical to

    success in the HR profession. The results showed that

    knowledge of the business, HR delivery, and strategic con-

    tribution were viewed as the most important competencies.

    Quite surprising, especially given the emphasis on ethical

    standards and emphasis on gaining respect in organizations,

    personal credibility was cited with relatively low frequency

    compared to the other measures.

    When asked if they understand the business in which they

    worked, 57.4% of the respondents stated a level of 4 on a scale

    of 15, with 5 being the highest level of expertise. Another

    18.5% stated that they had a perfect understanding of the busi-ness, and 24.1% evaluated themselves at either 1 or 2. More

    than 80% indicated a 4 or 5 level of expertise in delivering HR

    services, with similar results for managing change.

    Only 6.5% of the respondents felt that

    they had an extremely high level of exper-

    tise in strategic contribution. A majority of

    the respondents (74.8%) indicated an

    average level of expertise in this area.

    More than 80% indicated a relatively low

    level of expertise in measuring HRs efforts

    and showing how HR contributes to the

    overall bottom line of the organization.

    It has been frequently recommended by

    many scholars that HR professionals

    should understand the different perspec-

    tives of a business and be able to converse

    using accounting, marketing, and other

    functional areas terminology. More than

    70% of the participants perceived them-

    selves to have a high level of expertise in

    these functional areas and in staying

    abreast with HR research findings; how-

    ever, approximately 30% were reading

    professional and academic journals and magazines on afairly regular basis. This finding supports previous studies

    citing significant gaps between HR self-perception and per-

    ceptions from scholars and organizational executives. For

    example, Wright, McMahan, Snell, and Gerhart found that

    line executives seem to view HR as being best at providing

    basic HR services but are not quite as impressed with HRs

    effectiveness in contributing to the business (2001).

    Based on the regression analyses with annual base compensa-

    tion as the dependent variable and predictors as HR

    measurement, knowledge of the business, HR technology, per-

    sonal credibility, strategic contribution, and HR delivery, one

    can infer that there is a direct relationship between anemployees annual compensation and the above-listed compe-

    tencies. Figures 3, 4, 5, and 6 provide a graphic display of the

    results of the respective regression analyses. As the results indi-

    Figure 2. Summary of Education.

    Table 4. Frequency of Self-Identified Core Competencies.

    Table 3. Descriptive StatisticsCompensation.

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    cate, the higher the level of ones expertise in

    the respective competencies, the higher the

    annual compensation.

    Competencies of Various HR Position

    Classifications

    As identified in Table 5, participants identi-

    fied their ability to deliver HR services,

    technical competencies in HR, ability tomanage change, self-assessment of knowl-

    edge of the business, and ability to manage

    an organizations culture as the highest

    ranked competencies. In contrast, HR profes-

    sionals did not report high expertise in

    accounting concepts, marketing strategies,

    strategic contribution, or HR metrics and did

    not report spending a lot of time reading

    journals or staying abreast with recent HR

    research findings.

    As described in Figure 6, vice presidents listed all of the

    core competencies at 100%, except personal credibility; two

    of the seven did not list in their respective responses com-

    petencies necessary to effectively serve as strategic business

    partners and players in organizations. In this study, HR

    directors viewed HR delivery as the most important compe-

    tency to possess. Almost 74% cited HR delivery as a

    necessary competence. Only 37% of the HR directors

    viewed measurement as an important competence.

    For HR generalists, knowledge of the business was cited

    most frequently (49%). Compared to the literature, this find-

    ing shows a highly significant disparity for the

    competencies HR generalists view as being significant toeffectively functioning as strategic business

    partners. The results show that among the

    HR generalists in the research sample, many

    of the generalists said they were lagging in

    their awareness or belief of the established

    competencies ability to enhance their

    performance as HR professionals and subse-

    quently the performance of the HR function.

    One of the encouraging results of the study is

    that even though HR directors, managers,

    generalists, and specialists may not report

    that they possess all of the competencieswithin one particular classification, as an HR

    function the core competencies are all

    viewed as important and as a function HR

    professionals possess the competencies iden-

    tified by the literature to enhance firm

    performance.

    Activities HR Professionals Spend Time On and the Link

    with Competencies

    It is of critical importance to understand what activities HR

    professionals are spending their time on and if these activi-

    ties are value added. Ulrich (1998) stated that HR cannot

    expand its role in an organization without the requisite

    expertise. Becoming a strategic partner demands a degree of

    knowledge about strategy, markets, and the economy. In

    addition, Ulrich said, To meet the increased expectations

    of their organizations, HR professionals must begin to act

    professionally. He emphasizes that they must focus more

    on the deliverables of their work and less on just getting

    their work done.

    Figure 4. Relationship Between Compensation and Ability to Manage Change.

    Figure 3. Relationship Between Compensation and Ability to Deliver HR Success.

    Performance Improvement Volume 45 Number 5 37

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    Regardless of this profound advice and many echoing simi-

    lar thoughts, HR departments in global organizations still

    appear to be overwhelmingly preoccupied with transac-

    tional issues, according to a survey from Price Waterhouses

    Global Human Resource Solutions. Survey respondents say

    that 59% of their energy is absorbed by administrative mat-

    ters and only 6% is spent on strategic concerns

    (McShulskis, 1998).

    The results of this study suggest that, on average, HR pro-fessionals spend most of their time functioning as internal

    consultants, on staffing activities, and on implementing

    HR strategies. On the other spectrum, the least amount of

    time is spent dealing with legal issues, labor relations,

    and partnering with senior executives on strategy formu-

    lation. Table 6 provides a complete list of the activities

    where HR professional are spending their time and other

    investments.

    HR scholars have continually advised

    that to be effective as strategic business

    partners, HR professionals must be able

    to partner with senior executives on

    strategy formulation. So why arent

    more HR professionals spending more

    time on this critical activity? This study

    did not specifically address this ques-

    tion, but a comparison could be drawn

    between competencies of performing

    tasks where HR professionals are spend-

    ing most of their time as compared to

    competencies of performing tasks such

    as strategy formulation.

    The results showed that 6.5% of the

    sample self-reported their level of

    expertise on how to do strategic plan-

    ning at a 5 on the scale. Given that

    HR professionals are viewed or would

    like to be viewed in such manner, it is

    clear that much more emphasis has tobe put on developing

    this competency. Another

    32% indicated a level 4

    expertise in strategic

    contribution. So one

    possible explanation

    for their not spending

    more efforts on strate-

    gic contribution might

    be the lack of expertise

    to perform this core

    task in organizations.

    A Pearson correlation

    of strategic contribution

    and partnering with sen-

    ior executives showed a value of 0.451 establishing a

    relationship between these two factors. Although not an

    extremely strong relationship, in a practitioner world, such infor-

    mation proves extremely helpful in decision-making processes.

    The Relationships among Education, Years of HR

    Experience, Competencies, and Compensation

    In trying to determine if there were any relationships among

    multiple organizational issues, this research sought to determinethe impact of education and HR experience on salary, the rela-

    tionship between education and core HR competencies, and the

    relationship between HR experience and core HR competencies.

    The regression equation (see Figure 7) basically shows that

    with additional education and more years of experience in

    HR, ones salary will increase. Although there is a relatively

    lower R-sq, the p values are highly significant. A separate

    Figure 5. Relationship Between Compensation and Expertise in Strategic Contribution.

    Table 5. Descriptive Statistics: HR Competencies (Overall).

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    Performance Improvement Volume 45 Number 5 39

    sample of nine HR profes-

    sionals was taken to test this

    equation. Eight of the nine

    employees salaries came

    within $3,000 of the amount

    calculated using the equa-

    tion as compared to their

    actual salaries.

    In addition, correlations

    were done among educa-

    tion, salary, and each of the

    respective HR competen-

    cies used as measures in

    this study. The results are

    provided in Table 7.

    Based on these correlations,

    the ability to deliver HR

    services had the most signif-

    icant relationships with the

    ability to manage changeand manage culture, the

    ability to effectively partici-

    pate in strategic contribution, and HR technical competence.

    Experience positively related with compensation, knowledge

    of the business, ability to deliver HR services, ability to man-

    age change, ability to effectively participate in strategic

    contribution, and HR technical competence.

    The factors that most significantly related with strategic

    contribution were HR technical competence, accounting

    skills, marketing skills, and HR metrics. The ability to effec-

    Table 6. Descriptive Statistics of HR Activities (Percentage of Time Spent on Particular Activities).

    Figure 6. Identification of Core Competencies by Job Classification.

    Figure 7. Regression Analysis: Salary versus Education, HR Experience.

    The regression equation is

    Salary = 4014 + 2880 Education + 2548 HR Experience

    Predictor Coef SE Coef T P

    Constant 4014 22834 0.18 0.861

    Education 2880 1363 2.11 0.037

    HR Experience 2547.9 419.9 6.07 0.000

    S = 26010.8 R-Sq = 27.5% R-Sq(adj) = 26.1%

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    tively manage change was most closely related with strate-

    gic contribution, HR technical competence, marketing

    skills, HR metrics, and reading academic and practitioner

    journals. The factors that most significantly correlated with

    the ability to manage culture were staying abreast with new

    research and reading academic and practitioner journals.

    Discussion

    As cited in Lawler & Mohrman (2003), articles, books, and

    studies have all argued that HR professionals need to become

    more effective strategic business partners. Given that numerous

    studies have shown a positive relationship between strategic

    HRM and firm performance, this study sought to identify the

    competencies that lead HR professionals to becoming effective

    business partners and players in organizations.

    In todays global economy, HR professionals are continuously

    challenged to show how their function is creating value.

    Much emphasis is being paid on the competencies necessary

    to enable HR to be successful in helping create sustainable

    competitive advantages. Over time, many have written andspoken of the importance of HR spending time on issues that

    add value and less time on the transactional activities that are

    not very value-added. The results of this study suggest that

    there is still a significant amount of time being invested in the

    traditional transactional activities rather than the transforma-

    tional HR activities that have been proven to add more value

    to the bottom line of the organization.

    The results provide a reminder to HR professionals of

    the value of graduate degrees, professional certification

    through the Human Resource Certification Institute, and

    other means of developing higher levels of HR technicalcompetence. Of additional importance are understand-

    ing the benefits of accounting, marketing, and other

    different functional areas to effectively develop and

    implement HR strategies. Understanding the impact of the

    competencies on the various organizational practices

    could contribute to a more directed strategy in developing

    expertise among HR professionals, leading to a more cred-

    ible and effective function.

    With a growing emphasis on HR metrics, the results of this

    study suggest a lack of time and expertise on this strategy.

    There is clearly a need for more emphasis on measuring

    HRs contribution to the business strategy and the effective-

    ness of the respective HR strategies. The findings of this

    study support notions of Ramlall (2003) and Becker et al.

    (2001), who emphatically stated the need for metrics as a

    core component of the HR strategy.

    Although there are many positive results for the HR profes-

    sion in general from this study, there are clearly many areas

    that seem to be lacking. To be a true strategic partner and

    player, HR professionals and other executives of organiza-

    tions have the opportunity to focus on developing the

    critical competencies necessary to enhance HR effective-

    ness and, hence, maximize shareholder value. As has been

    established by the International Society for Performance

    Improvement, one of the keys of strategic interventions is

    to improve performance, guide the change management

    process, and evaluate the results. Furthermore, the partner-

    ship in strategies between HR and human performancetechnology (HPT) enforces the need to emphasize outcomes

    that enhance organizational effectiveness, measure strate-

    gies, and ensure that employees possess the necessary

    competencies to improve performance at the individual,

    process, and organizational levels. In the end, both HR and

    HPT strategies are focused on adding value, and without

    key measurements one is quite unlikely to determine the

    value created.

    Implications for Practice

    Given that there is a growing need for HR and HPT profes-

    sionals to provide significant input into the firms strategy,

    the core competency of being able to contribute strategically

    appears to be one that needs continual improvement. Ulrich

    (1998) reiterated that strategic contribution accounts for a

    significant portion of the total impact of HR on the business

    performance. With a self-identified expertise mean of 3.2 for

    strategic contribution, HR professionals in this study clearly

    perceive gaps here.

    From the results, other business subject matters such as

    accounting and marketing have proven to be key contribu-

    tors to strategic contribution. A high level of HR technical

    competence is evident in higher levels of strategic contri-bution. This can frequently be obtained through formal HR

    education, on-the-job training, or professional certifica-

    tion. Regardless of the source, the data show a relatively

    strong correlation between HR technical competence and

    strategic contribution. HR and HPT professionals without

    the relevant technical competence need to develop the

    appropriate expertise to ensure HRs contribution to busi-

    ness success.

    Implications for Future Research

    Given that this study was a cross-sectional research, it

    would be beneficial for HR or HPT professionals to con-

    duct longitudinal research examining the impact on

    organizational practices and outcomes as competency lev-

    els change. Another major opportunity for research is an

    examination of the effectiveness of undergraduate and

    graduate HR programs across the United States in developing

    the competencies necessary for HR professionals to ade-

    quately contribute to a firms success and in their

    respective careers.

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    Performance Improvement Volume 45 Number 5 41

    HR Experience Education Salary Understands Bus.

    Education -0.0600.537

    Salary 0.494 0.146 0.000 0.133

    Understands the Bus. 0.307 -0.063 0.3270.001 0.518 0.001

    Delivers HR 0.438 -0.081 0.238 0.4040.000 0.402 0.013 0.000

    Manages Change 0.341 -0.088 0.456 0.3640.000 0.367 0.000 0.000

    Manages Culture 0.166 -0.064 0.140 0.3640.085 0.511 0.148 0.000

    Strategic Contri. 0.302 0.056 0.437 0.2410.001 0.563 0.000 0.012

    Technical Competence 0.345 -0.099 0.090 0.0690.000 0.308 0.354 0.480

    OD Skills -0.057 0.119 0.089 0.1070.556 0.220 0.359 0.271

    Accounting 0.247 -0.127 0.220 0.0670.010 0.190 0.022 0.492

    Marketing 0.186 0.082 0.521 0.1650.054 0.399 0.000 0.087

    Metrics 0.146 -0.039 0.132 -0.1460.132 0.686 0.172 0.132

    Stays abreast w/res -0.131 -0.018 -0.076 -0.0990.178 0.852 0.434 0.308

    Reads journals -0.054 0.057 0.095 0.2420.576 0.558 0.327 0.012

    Delivers HR Manages Change Manages Culture Strategic Contrib.

    Salary 0.494 0.146 0.000 0.133

    Manages Change 0.279 0.003

    Manages Culture 0.310 0.1980.001 0.040

    Strategic Contri. 0.404 0.276 0.0770.000 0.004 0.428

    Technical Competence 0.394 -0.212 0.041 0.2970.000 0.028 0.673 0.002

    OD Skills -0.145 -0.253 -0.012 0.0670.135 0.008 0.902 0.488

    Accounting 0.300 -0.045 0.077 0.3680.002 0.644 0.426 0.000

    Marketing 0.099 0.286 0.178 0.1970.310 0.003 0.066 0.041

    Metrics 0.010 -0.271 0.036 0.2190.914 0.005 0.711 0.023

    Stays abreast w/res. 0.136 -0.291 0.334 0.1570.161 0.002 0.000 0.106

    Reads journals 0.079 0.313 0.335 0.1350.418 0.001 0.000 0.165

    Table 7. Correlations: HR Experience, Education, Salary, and Competencies.

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    42 www.ispi.org MAY/JUNE 2006

    Conclusion

    It is hoped that HR and HPT professionals will be able to

    use the information from this research to enhance practices

    in organizations, to enhance firm competitiveness; it is also

    hoped that researchers will be able to build on this knowl-

    edge base to create additional new knowledge on HR

    competencies and the impact on firm performance.

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    Sunil J. Ramlall, PhD, is an Assistant Professor in the Department of

    Management at the University of St. Thomas in Minnesota. He earned his PhD

    from the University of Minnesota. His primary research interests include iden-

    tifying and understanding HR competencies and the impact on individual and

    firm performance, HR metrics, linkages between HR strategy and theimpact on firm performance, positive organizational behavior, employee

    training and development, and HR technology. Sunil may be reached

    at [email protected].

    Performance Improvement Volume 45 Number 5 43

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