Role of HR Professionals as Business Partners - Essay Example

? HRM in Context AFFILIATION: Table of Contents Table of Contents 2 Role of HR professionals as business partners 5 Findings 6 Challenges faced by HR business partners 8 Rationale for handling the issues 10 Conclusion 11 References 13 Human resources are recognised as highly vital elements for any firm as these resources are the main elements that execute the objectives and goals of the organisation from a written mode to a practical one. Human Resource (HR) department has been viewed as an administration constituent of an organisation for many years and the employees of this department were considered to be the individuals who impose the practices appropriate for the entire staff of the organisation (Lengnick-Hall et al., 2009). For decades, HR was believed to be responsible for pushing the paper circulation throughout the firm rather than making valuable contribution in the strategic implication of the business strategies. This notion has been changed gradually over the years and human resource management is being given its due value and respect. In order to make the shift of HR towards the strategic continuum from the operational continuum, Caldwell, Ulrich, Legge, Storey and many more theorists developed a wide range of frameworks and theories to support the notion that HR function should be treated as a business partner. The major contribution was made by Ulrich (1997) who introduced the ‘HR Business Partner Model’ and stated that HR can assist an organisation in achieving excellence by utilising four techniques (Holland et al., 2012). (Source: Vosburgh, 2007) According to the study of Bashir and Afzal (2009), Ulrich model is an effective tool for the development of a properly working HR business partnership culture as it gives detailed explanation of the key roles that are to be undertaken by the HR business partners. Furthermore, they concluded that the HR professionals can act as business partners by focusing their activities on the basis of the following roles: 1. At the foremost level, they have to provide support in effective strategy execution to the management so that there is alignment between the corporate strategy and Human Resource Management (HRM) structure. 2. Secondly, the relevant expertise and skills have to be acquired for attainment of the desired level of excellence in the work so that there is reduction in the overall cost for the firm and a high quality workforce is maintained through the proper delivery mechanism of HR arrangement. This needs to be reviewed by the HR department on a constant mode so that they can ensure that only the deserving employees are working in the firm. 3. Thirdly, there has to be an effective coordination present between the senior personnel and employees by fostering a friendly, competent and a highly committed work culture. Providing employees with an encouraging atmosphere at workplace will boost their morale and keep them interested in performing their job roles effectively and efficiently. With proper coordination and cooperation many things can work out well in the firm. 4. Lastly, they have to act as the change leaders by playing a vital and worthwhile role in the organisation change process so that its resources are efficiently utilised and the business capacity is fully employed to enhance its performance in the industry. The change required in the organisation is compulsory and avoiding resistance from the employees is also important and to address both these issues successfully the HR plays a vital role. Role of HR professionals as business partners With the advent of time and growth in the number of factors that are causing the business environment to get competitive, the organisations have realised that they need to develop a loyal, highly competent and motivated workforce that will assist them in meeting the challenges effectively (Caliskan, 2010). A motivated workforce would have the potential to deliver a good performance and they would prove to be highly productive and profitable for the firm. The firms also have to ensure that the desired objectives are successfully achieved by communicating the right messages to the entire workforce which is possible only by an effective and efficient HR professional (Ress & Edwards, 2009). The crucial elements that are emphasising the need of presence of the HR business partners are as follows: 1. The advancements in technology, communication networks and globalisation are making the world a smaller place. Since the international businesses have grown significantly in the last few years due to shrinking global and trade barriers, it has become mandatory for the organisation to ensure effective coordination among all HR people that are widespread in their international business operations. 2. The legislation requirements of the organisations regarding the employees’ rights have increased significantly that is affecting their cost structures. They have to ensure compliance with the stringent rules and regulations as any non-compliance will cause them to incur huge amount of legal costs. 3. There is lack of skilled labour as people are reluctant in acquiring the required competencies that can help them in flourish in their sectors. 4. The demands of the competent employees have increased drastically and each one of them has a different set of expectations from their employers. 5. There is an increased emphasis on cost reduction measures and the latest technology has given rise to the outsourcing of HR professional services. All of these changes in the business environment mandate the need of involving HR professionals as strategic business partners because they are the main people who play mediating role between the top management and employees (Mishra, 2010). These experts ensure that they provide every employee the desired set of facilities so that they are content and satisfied which will be evident in the enhanced level of productivity and ultimately the company’s increased performance (Garavan, 2010; Marchnigton & Wilkinson, 2011). Findings As a result of the HR business partners, the HR ratios have improved to a great extent. For instance, Cable & Wireless has about only ninety HR professionals who are assigned the responsibility of managing 15,000 employees that are present in various international locations; the ratio is 1:160 which is appropriate when compared with other firms such as Council of Surrey County has 1:825 as the HR ratio. These results show that the effective implementation of HR as a business partner strategy is ensuring the organisations to benefit from the effective utilisation of HR resources (Iveta, 2012). Since there are various factors that are impacting the functioning of HR department, it has become imperative for the organisations to understand the role of these professionals as business partners (Cuda, 2011). The HR professionals have to consider both the internal factors as well as the external factors as these issues need to be reflected while developing the HR policies. Some of the most important roles that are played by these experts in the changing organisational structures and dynamic business environment is evident from the successful revamping of business activities undertaken by Microsoft, Unilever, Coca-Cola, Sony and various other leading companies worldwide (McCarthy, Reeves & Turner, 2010). The HR business partners are required for the effective working of the HR department and fulfilment of the strategic objectives because of the following crucial roles: 1. The HR function has to lead the change within the firm and ensure effective adaptation of the company’s policies to ensure compliance with the changing nature of work. All of the organisations have to remain alert about the changes that are taking place in their external environment so that they are able to handle the requirements of the customers proactively and competently. 2. With the help of a well-designed HR function, there will be an effective link between the corporate strategy, demands of the employees and the targeted results of the companies. For instance, the HR professional will increase the efforts of developing the mandatory skills and competencies in employees that will help them in fulfilling the company’s goals so that the business strategy is properly implemented. When the strategic culture will be encouraged throughout the organisation, any necessary changes will be promptly made and its performance will eventually flourish effectively. 3. All the policies, programs and priorities of the employees will be properly aligned with the business strategy and working environment of the organisational units. The experts will ensure that there is uniformity in the policies of the organisations that are operating in diverse locations worldwide. Uniform policies worldwide would allow the results to be in the same mode as well and this would result in proper systemization of operations. 4. An effective, a highly integrated and the latest HR system will be developed so that the communication flow becomes efficient and the employees are provided information about the opportunities available related to their development. It is evident from the above mentioned points that HR business partners ensure that there is internal alliance among the employees so that there are no problems encountered in HR-line management relationships, the concept of business partnership is flourished, organisational changes are effectively made by addressing all the areas that will be impacted by the modifications in the structures and systems and effectively implementing Strategic HRM related initiatives (Tahilramani, 2010). Challenges faced by HR business partners Since the concept of HR business partners is an evolving one in the organisations, it has become mandatory for the organisations to encourage the employees to get engaged in activities that will allow them to support HR business partnership within its operations. However, there are some problems that are encountered by the HR professionals to embed their roles as business partners within the HR systems as the employees are reluctant to accept their changing roles (Moran, 2012; Singh, Darwish & Anderson, 2012). The following figure is a clear representation of the transition of Traditional HR department to HR business partnership: (Source: Holland et al., 2012) In order to promote the HR business partnership culture, the organisations have to ensure that they understand the barriers that are present for resisting the implementation of this latest HR phenomenon: 1. Quick access to information about company and employees – Since HR business partners have to get involved in the business decision making process, they need to have access to all the vital and confidential information about the company and its employees. The top management is not willing to provide them 100% support; when the professionals don’t have the complete information about the company and its resources, it becomes difficult for them to make a valuable contribution in strategy design and implementation. 2. Resistance from employees to share their viewpoints – As the HR people have to get involved with the employees in understanding their needs and requirements, they might be reluctant in sharing their opinions with the experts. In order to ensure alignment between individual competencies and skills level and the organisation’s objective, it is vital for the experts to assist the staff members in understanding their role in the corporate strategy implementation so that the performance of the company can be enhanced. 3. Changing dynamics of the business environment – The HR professionals have to ensure that they update the information about the internal and external environment so that they can incorporate the changing patterns that are happening in all these aspects. The organisations seldom provide adequate resources to the strategic partners to carry on the surveys both internally and externally and it becomes difficult for them to follow the proactive decision making process. 4. Maintain the strategic position – Once the required changes are made, the business partners have to ensure that they monitor the effectiveness of the employees and the organisations and any deviations should be promptly addressed. However, the top management considers HR business partnership as a onetime process and is reluctant to allocate more resources for the HR professionals’ effectiveness. Hence, the HR business partners have to ensure that they are provided access to the appropriate resources for their efficient working so that they are able to assist an organisation in developing a competent workforce which will allow it to make successive progression within the industry (Buren III, Greenwood & Sheehan, 2011; Keegan & Francis, 2010). Rationale for handling the issues In order to ensure that the HR business partners are provided appropriate set of systems, roles, structures and tools for performing their required tasks, the organisations are ensuring that they identify the problems that are present within their business operations so that they are removed (Rupidara & McGraw, 2011). All vital pre-requisites required for effective implementation of the new concept of HR business partnership are developed within the organisation so that the company can flourish and prosper successfully. The main supporting elements that are put into place within the business operations are support from top management, installation of the latest HR IT system, preparing the managers for the organisational change, giving the employees the liberty of making effective decisions that will support the organisational goals and ensuring alignment between the corporate strategy and each employees’ developmental goals (Plessis & Beaver, 2008). For instance, the company will ensure that the line managers such as supervisors are provided genuine guidance and information about the responsibilities that they have to fulfil along with the ways that can be employed to motivate and lead their subordinates. At this stage, the role of HR managers is restricted to the policy setting and getting input from the line managers so that there is a clear distinction between the roles of HR professionals and line managers (Sanders & Frankel, 2011). Similarly, the HR professionals play the role of intermediary between the employees and the senior management team so that there is uniformity in the business activities. The HR professionals are acting as a bridge for the employees and the management to ensure everything is working under order. Everyone will have clarity about the vision that the company aims to pursue and the employees will be provided the right tools, systems and structures so that they can help an organisation in maintaining its competitiveness in the market, follow the right strategy and achieve the organisational goals effectively (Martin, Gollan & Grigg, 2011). When an organisational or structural change is required, these experts ensure that the employees are taken on board so that there is less resistance from their end and the required changes are successfully made and there is effective HR integration throughout the organisation. Changes are taking place in a constant mode and hence with proper cooperation and coordination from the staff members the change can take place in a successful manner. Conclusion As the business environment is changing at a fast pace, the organisations have to ensure that they focus on developing their competitive edge on the basis of a competent and highly qualified employees rather than on other resources. Since the people working in an organisation are the vital and integral part of its business operations, it has become imperative for the top management to allocate sufficient amount of resources for their development. If employers and the management equip employees with complete resources then employees would feel motivated in working hard. The senior employees have realised that they need to create a working culture that is supportive, cordial and motivating so that they can develop a loyal and committed workforce who are willing to remain part of the company for a long period of time (Caldwell, 2010). The HR professionals have to work as business partners so that they can assist an organisation in making effective decisions organisation-wide so that both the company and the staff members get benefited from the effective performance of the business (Farham, 2010). However, these experts have to ensure that they upgrade their skills and competencies on an ongoing basis so that they are equipped with the latest knowledge and expertise required to ensure compliance with the changing market dynamics. Hence, when the framework of HR business partnership model is properly implemented in the organisation along with effective monitoring measures, there are high chances that a conducive and well-integrated HR system is created. It is a proven fact that when the right and appropriate workforce is developed, an organisation is able to survive for a long period in the business environment and respond proactively to the challenges that are encountered in the business operations. Organisations are able to gain competitive advantage elements as well. HR business partnership ensures that there is harmony among the employees, all personnel are satisfied with the organisational policies, have clarity about the vision and their role as a key partner of the company and willingly enhance their performance as they are aware of the fact that their efforts will be appropriately rewarded. 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