SUMMARY In many organizations, people view HR as a department which is ineffective, incompetent and costly. These people having been asking the question as to Why HR department should not be abolished? The author says that in todays scenario, HR is more necessary than ever before. Achieving organizational excellence must be the work of HR. This can be accomplished in four ways: HR must become a partner with senior and line managers HR should be an expert in the way work is organised and executed HR should be a champion for the employees HR should become a change agent This means that HR has a new agenda which is to move ahead from its traditional functions and help the company to increase its shareholders value. Line managers and HR managers must be partners in reconceiving and reconfiguring the functions. Why HR matters more than before? In todays dynamic scenario, companies face 5 critical business challenges where HR can play a critical role in helping the organizations to meet the challenges. 1. Globalization: Organizations today are expanding globally and are required to customize their internal systems suiting to the external environment(like volatile political situations, contentious global ratios, fluctuating exchange rates and unfamiliar culture). This requires that the organization should increase their ability to learn and collaborate. 2. Profitability through growth: Achieving revenue growth through diversifying products and reaching out to new customers requires an organization to be highly innovative and creative. HR must create an atmosphere where this is possible. 3. Technology: Amidst a plethora of technological options available today, organizations should choose technology which will be viable and helps in improving productivity. 4. Intellectual Capital: Knowledge management is becoming more important to organizations these days. To ensure this, it must be ensured that not only the right talent is acquired but also, efforts must be made to retain the same. 5. Change, change, and more change: The greatest challenge which companies face today is how quickly they can adapt themselves to the rapidly and continuously changing environment. The HRs new role To overcome the above challenges, HR must don new roles.
HR must become a partner with senior and line managers: HR should help the organization in framing its strategy about how to do business. Once an organizational architecture is made, the HR must conduct audits in order to identify the components that must be changed to facilitate strategy execution. HR must also identify methods to improve the parts of the organizational architecture. HR, apart from its regular activities, should also set time to partner with line managers. HR should be an expert in the way work is organised and executed: HR staff will have to improve the efficiency of both their functions and also the entire organization. By doing so, HR can build its credibility within the company. HR should be a champion for the employees: In todays scenario, where more is expected of employees by giving less, HR plays a very critical role in ensuring that the voice of employees is getting communicated to the management. They also play an important role in maintaining high morale among the employees. HR should become a change agent: HR also has responsibilities to drive cultural changes in the organization by acting as a change agent. They must remove the inhibition to change amongst the employees and to create a sense of excitement and resolve. Of all the above, bringing about cultural change in the organization is the hardest challenge. This can be done by following a four step process: 1. Cultural change must be first of all, defined clearly and in an objective manner. 2. Articulating why cultural change is key for business. 3. Doing a GAP analysis between the existing culture and the desired new culture. 4. Identifying alternative approaches to create cultural change.
Four Changes for the Line: 1. Communicate to the organization that the Soft Stuff Matters: Senior managers and line managers need to show faith in activities of HR department. They must show seriousness towards the measures suggested by the department and seek their inputs while designing strategy 2. Explicitly define deliverables of HR and hold them accountable for the results: Such measures will increase the probability of achieving goals set up by an organization. 3. Invest in Innovative HR Practices: Senior line managers should encourage conferences, management literature and external analysis to learn innovative HR practices. Line managers, while investing in new HR practices, should ensure that HR adapts to the new practices to build competitive advantage for the organization 4. Upgrade HR professionals: Senior managers should constantly look for high quality HR professionals who are well aware of the organization culture, reengineering processes and various activities carried out at the line. Only such professionals can be effective change agents.
CRI TI CAL REVI EW About the structure of the article Simple and effective language has been used Organization of the article is good as each idea is clearly demarcated using appropriate headings and sub-headings Relevant frameworks and models have been given to explain the practical use of the theoretical knowledge Lack of sufficient number of examples to elaborate the points at many instances such as when explaining the new critical business challenges and when explaining the steps in HR becoming a partner in strategy execution. Some of the images used in between seem to be not of much significance About the content of the article Article gives a completely new perspective to the role of HR department in the organization starting from basic reason why the HR department exists at all. Article aptly maps the key business challenges to the capabilities that organizations need to acquire for gaining competitive advantage Though it is good to emphasize the quantification of deliverables for HR department, it is difficult to recognize small changes like 10% increase in the morale of employees Article tries to transform the role of HR managers in the organization and making them integral part of strategy execution. Thus, it makes HR profiles more lucrative than at present. As the article suggests making the HR managers an integral part of strategy execution, their role is very likely to interfere with the functions of other department of organizations. Thus, creating lot of resistance within the organization. Finding such multi-skilled HR managers as the article suggests, will be a difficult task and also an added cost for the company.