The Impact of Business Partnering on the HR Function and HR Practice - Literature review Example

? The Impact of Business Partnering on the HR Function and HR Practice The Impact of Business Partnering on the HR Function and HR Practice Introduction The business world has grown and spread over the years and a number of concepts, theories and practices have emerged in relation to improving the business functions of a company. The main aim of any Commercial based company is the making of profit and reduction of loss and thus there are a number of methods, structures and business designs that have been developed by a number of individuals in a bid to come up with ways in which a company is able to achieve this objective (Patterson, 2008). The target would be to develop means in which a business is able to achieve its objectives in the fastest, easiest and most successful way possible. Businesses have grown from being simple sole proprietorship and family owned establishments to emerging as separate entities with a financial backbone of their own. All parties involved and adaptations have carefully monitored this development and changes have been made in order to accommodate the pace at which the economic life around the world has been growing (O'Brien, 2009). Two methods or practices that have been introduced over the years in relation to business practices and management have been Human Resource Management and more recently Business Partnering. Both have been developed with the aim of improving the business structure that has been set up in a company in manner that will enhance its output to its maximum potential. The use of these two practices have been going on for quite a period of time and thus the question has risen whether there is a definable impact of the addition of business partnering practices to Human Resource functions and the practice itself as well (O'Brien, 2009). Human Resource Management can be said to have been around longer than business partnering as employees have always been an essential part of a company. However, this relatively new practice can be said to have held a number of benefits if used correctly, and thus there is a need to integrate these two practices in a way that will allow them to work efficiently concurrently. Managing to do so will strengthen the success rate that a business will be able to enjoy as well as improve the business frame of the company through better tactics and management of resources (Patterson, 2008). In order to find a way that these practices can work in harmony with one another however, one has to identify the impact that business partnering has on the HR practice and its various functions. In order to do this, it is essential that one understands the full context of both business partnering and Human Resource Management (Krantik & Vidyashankar, 2006). By identifying what the two practices are one is able to understand their operations and the best way to integrate both systems into one unified network that is able to easily collaborate with each other. Human Resource Management Human Resource Management can be termed as the management of an organizations workforce or employee base (Nag, Hambrick & Chen, 2007). It deals with the relationship between the organization and its employees and the various subject matters that arise from such a relationship such as the hiring and firing of individuals among other criteria. The main aim of Human Resource Management is ensuring that the organization has a capable workforce that will allow it to carry out its operations without a problem (Conaty & Charan, 2011). In this regard, HRM can be considered to be the backbone of the operations that take place within an organization. It can be seen as one of the most important departments within an organization and thus it is essential that it is approached in the correct manner and with sustainable ideologies. A failure to do so may lead to the downfall of the organization as a result of a breakdown in operations. There are a number of responsibilities that are held by the HRM department and most of this are with regard to the relationship between the organization and its employees that was mentioned earlier (O'Brien, 2009). The main responsibilities of the HRM however can include the selection and recruitment of new employees into the company, the evaluation and if necessary termination of employees services to the organization and finally it can also be said that it is responsible for the progress and rewarding of employees within the organization. Without the HRM department it would be next to impossible to clearly coordinate the workforce of a business and this is especially true in companies that hold large numbers of workers on their payroll (Vasant, 2011). The HRM department works with the other departments such as finance and top level management in a collaboration that ensures there are individuals available for all operations within an organization at all times. It is essential that Human Resource works with the other departments to create a sense of unison that serves as the basis of the harmonic flow of responsibilities that goes up and down an organization in order ton ensure that all a company’s objectives are achieved. The HRM department is also responsible for ensuring that an organization remains in compliance of the various labor laws and other related policies set up by government . This stands the organization in good stead with the governments that are established in their area of operations. Ensuring that this happens is important as a unsuccessful attempt at doing so could lead to serious consequences including the shut down of the company’s operations all together depending on the severity of policy breach (DeGraff, 2010). The HRM department ensures that a company upholds all laws within a country and thus creates a safe and stable environment for the organization to establish its operations. The HR department can also serve as the representative of the organization during negotiations with the representatives of their employees (labor unions) over various matters. At these times the department can act as the mouthpiece of the company and allows for an established channel of communication through which the involved parties can interact with one another (Hill & Jones, 2012). Business Partnering Business Partnering is a relatively new practice in comparison to the other practices that have established themselves in this field over the years. It can be described as a process whereby strategic relationships are developed between various parties involved in a similar business in a bid to develop a business structure where all parties involved are successful and are able to benefit full from the relationship. The parties involved can be said to work together in order to gain a competitive advantage over other rivals who may be present in the market (Mohan, 2005). This practice arose because of a variety of bodies and organizations arising in similar fields and with similar interests. This resulted in these bodies and organizations working together in order to achieve a particular goal that may be in the interest of all involved to achieve. Business Partnering may not be as popular as other commercial practices available but it has proven successful by the organizations that have tried it and decided to integrate it into their system. Business Partnering is also related to Human Resource Management, as this is one of the departments among those involved in this new practice will have to collaborate with in the achievement of a company’s goals (Mckeown, 2012). As mentioned earlier, the HRM department is tasked with working with a variety of other departments for the good of the organization. In business partnering, employees in the Human Resource Management sector may have to at times work closely with other parties such as business and community leaders in a bid to achieve a goal that both parties may have in common (DeGraff, 2010). It can be said that this is where the complication may arise as there may be an impact of adding this practice to the already wide range of responsibilities that the Human Resource Department already has. The addition of new practices to those already used by the HR department however can be done successfully if carefully integrated in a manner that will see the new functions blend with the older ones in a mergence that simplifies and improves the various processes involved (O'Brien, 2009). The creation of strategic partnerships allows for a simpler method of achieving objectives as one is able to call on external resources that would perhaps not have been previously available to them as an option. The strategies that are developed as a result of business partnering can also serve as an advantage as they are able to take on a wider scope of form due to the extra reach that a new relationship between parties can bring to the table (DeGraff, 2010). Impact of Business Partnering on Human Resource Management A good way to ensure that business-partnering methods has successfully blended in with other Human Resource functions and practices is by studying the impact that such a move would have on an organization (Kotler & Keller, 2006). There are a number of results that could occur from the joining of business partnering and Human Resource, some of these impacts include: Cost Reduction One positive impact that the introduction of business partnering to an organization has is the reduction of costs in various sectors that can emerge as a result of the strategic relationships that have been formed. The relationships serve as a simpler form of connection between parties when alternative options such as a merger may not seem feasible at the moment (McKay, 2009). The benefits that one is able to enjoy from business partnering are nearly similar to such options and as such it can be said that business partnering serves as more flexible and not to mention cheaper option. One is able to form nearly the same relationships with parties that will serve to further their cause in the business market and reduce operation costs in the processes as result of the pooling of resources that is likely to take place in the event of the introduction of business partnering to an organization (Mckeown, 2012). Enhanced Competitive Advantage The other impact that business partnering may have on an organization’s HR practices is the enhancement of an organization’s current competitive advantage in the market (Krantik & Vidyashankar, 2006). The introduction of this new practice allows the HRM department to take advantage of the new resources that may be available at their disposal as a result of the strategic relationships that have been developed and this will put the company in a better competitive position than its other rivals in the market (Nag, Hambrick & Chen, 2007). The addition of business partnering ensures that the HR function is stretched to its fullest as it now involves the incorporation of external parties to the mix allowing for a greater mix of possibilities and options that may have not been previously available. The addition of new relationships can therefore in the long run serve as the stepping stone towards the expansion of an organization as a greater competitive edge allows for more room within which the company can spread across and enhance its presence over the market (Darby, 2006). Conclusion In conclusion, one can say that a great number of the various impacts that can be identified as a result of business partnering on the HR function are positive. This new practice allows for the expansion of the various HR practices that take place in an organization and can therefore be said to aid the Human Resource Management process through strengthening its capabilities and presence (Mulcaster, 2009). The relationship between business partnering and Human Resource can not be ignored as it can be considered to be a symbiotic relationship whereby, each benefits from the other. It would also be complicated to introduce business partnering practices into an organization without the involvement of the HR department (Armstrong & Green, 2007). A few negative views may be seen in that it may prompt the Human Resource department to take up educational courses on the matter for those who may not be familiar with the subject. However, these are small, short-term obstacles that can be simple dealt with as the result has more weight than the hardships (Mckeown, 2012). The best approach to be taken when dealing the merging of business partnering practices with the various established HR functions that are already present is a positive one. References Armstrong, S & Greene, K. C. 2007. Competitor-oriented Objectives: The Myth of Market Share. International Journal of Business 12 (1). Conaty, B & Charan, R. 2011. The Talent Masters: Why Smart Leaders Put People Before Numbers. Crown Publishing Group, New York. Darby, M. 2006. Alliance Brand: Fulfilling the Promise of Partnering. Wiley. New Jersey. DeGraff J. E. 2010. "The Changing Environment of Professional HR Associations". Cornell HR Review. Hill, C. W. L. & Jones, G. R. 2012. Strategic Management Theory: An Integrated Approach, Cengage Learning, Belmont. Krantik, D & Vidyashankar, G. S. 2006. 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