Strategic role of HR

The Strategic Nature of HRThe work of HR practitioners can be divided into two

main areas: 1. Transactional activities – consist of the service

delivery aspects of HR (recruitment, training, dealing with people issues, legal compliance and employee services)

2. HR Strategic activities support the achievement of the organization’s goals and values and involve the development and implementation of forward-looking HR strategies that are integrated with one another and aligned to business objectives – In this HR Practitioners work with their line management colleagues in the continuous development and implementation of the business strategy.

The Strategic Partner ModelThe David Ulrich model argues that HR professionals

carry out the following proactive roles as champions of competitiveness in creating and delivering value:

1. Strategic partners helping the business to successfully implement strategy;

2. Administrative experts improving organizational efficiency by re-engineering the HR function and other work processes;

3. Employee champions maximizing employee commitment and competence and their overall responsiveness to change;

4. Change agents delivering organizational transformation and culture change

This model was reformulated in 2005 to list the following roles• Strategic partner – consist of multiple dimensions: business

expert, change agent, strategic HR planner, Knowledge manager and consultant; combining them to align HR systems to help accomplish the organization’s vision and mission, helping managers to get things done, and disseminating learning across the organization.

• Employee advocate – focuses on needs of today’s employees thro listening, understanding and empathizing

• Human capital developer – focuses preparing employees to be successful in future

• Functional expert – concerned with HR practices that are central to HR value, acting with insight on the basis of body of knowledge possessed.

• Leader – leading HR function, collaborating with other functions providing leadership to them, setting and enhancing the standards for strategic thinking and ensuring corporate governance.

Business Partnering as a term has been adopted by the Chartered Institute of Personnel and Development (CIPD) in 2007 according to whom business partnering ‘makes HR accountable to the business, and expects HR to add real value’.

HR is restructured into three specialist functions – shared services, centres of excellence and strategic business partners. The task of business partners is to ensure the business makes the best use of its people and its people opportunities.

Added value seems to mean the contribution made by HR to business success, which is measured by the extent to which the value of that contribution exceeds its cost.

The Strategic Role of HR Business Partners• Understand the business and its competitive

environment;• Understand the goals of their part of the business and

its plans to attain them;• Ensure that their activities provide added value for the

unit or function;• Build relationships founded on trust with their line

management clients;• Provide support to the strategic activities of their

colleagues;• Align their activities with business requirements;• Believe in and practise evidence-based management• Be proactive, anticipating requirements, identifying problems

and producing evidence-based solution;• See the broad picture and rise above the day-to-day detail.

The Strategic Role of Heads of HR Functions

• Understand the strategic goals of the organization as they affect their function;

• Appreciate the business imperatives and performance drivers relative to these goals;

• Help senior management to understand the implications of its strategy for the HR function;

• Know how HR practices in the function can contribute to the achievement of the strategic goals;

• Ensure tat their activities provide added value for the organization;

• Be aware of the broader context in which function operates;• Believe in and practise evidence-based management (EBMgt

entails also consider the circumstances and ethical concerns managerial decisions involve - It's about testing ideas, and learning from your mistakes. It's really an attitude—in fact, you could call it the Attitude of Wisdom. );

The Impact of Strategic HRMHow HRM strategies make an impactModel of a link between HRM and performance

HR outcomes: Employee Competence Commitment Flexibility

HR effectiveness

Business strategy

HR strategy

HR practices

Quality of goods and services

Productivity

Financial performance